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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInTrump SPAC faces grand jury investigation – The Washington Post
The company that plans to merge with former president Donald Trump’s social media company has received subpoenas from a federal grand jury, a setback that could complicate Trump’s plans to bring his company to the public markets. The company, known as Digital World Acquisition Corp., revealed the subpoenas in a Securities and Exchange Commission filing […]
Jury takes fraud case against Elizabeth Holmes’s ex-partner | AP News
The fate of hard-nosed technology executive Ramesh “Sunny” Balwani is now in the hands of a jury that will weigh criminal charges alleging he joined disgraced Theranos CEO Elizabeth Holmes, his former partner, in an elaborate fraud that jarred Silicon Valley. U.S. District Judge Edward Davila handed the case to the jury Friday afternoon after […]
Balwani’s Atty Tells Jury Romance With Holmes Not A Crime – Law360
Former Theranos executive Ramesh “Sunny” Balwani’s attorney told a California federal jury during closing arguments in his criminal fraud trial Wednesday that Balwani’s romantic relationship with ex-CEO Elizabeth Holmes doesn’t prove he committed a crime, noting their text messages never say, “Let’s do crime, let’s cheat people, let’s deceive people.” Source: Balwani’s Atty Tells Jury […]
The crypto crime wave is real and it’s gotten worse. – Los Angeles Times
The growth in crypto fraud has turned exponential in recent years. The reported losses from crypto scams in 2021 were 60 times larger than in 2018, the Federal Trade Commission reported earlier this month, with crypto now accounting for 1 out of every 4 dollars lost to fraud in the reports monitored by the agency. […]
Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Admits Insider Trading | USAO-NJ | Department of Justice
Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly employed by the same company. Before April […]
Sunny Balwani slammed as Theranos accomplice in trial
In a lengthy closing argument, federal prosecutors reiterated their case that Balwani was an active participant, alongside Holmes, in a scheme to defraud investors and patients of the doomed medical technology startup. “Mr. Balwani is not a victim, he is the perpetrator of the fraud,” prosecutor Jeffrey Schenk told jurors during the proceedings. Source: Sunny […]
FBI says fraud on LinkedIn a ‘significant threat’ to platform and consumers
The scheme works like this: A fraudster posing as a professional creates a fake profile and reaches out to a LinkedIn user. The scammer starts with small talk over LinkedIn messaging, and eventually offers to help the victim make money through a crypto investment. Victims interviewed by CNBC say since LinkedIn is a trusted platform […]
Elizabeth Holmes Won’t Testify in Ex-Boyfriend, Theranos COO’s Trial
Since Balwani’s trial began, legal experts and curious onlookers alike have wondered whether Holmes might testify against Balwani in exchange for some leniency in her sentencing, although it’s not known whether she was offered that opportunity. They got their answer today, when the prosecution confirmed in an evidentiary hearing that Holmes would not in fact […]
The arrest heard ’round the crypto world | TechCrunch
There are an awful lot of people taking a very close reading of the SDNY press release, which states it specifically charged Chastain “with wire fraud and money laundering in connection with a scheme to commit insider trading in Non-Fungible Tokens.” They notably describe NFTs as “digital assets” later in the release. Also, it’s worth […]
Don’t Insider Trade NFTs – Bloomberg
Seems bad. But it is weird to put a person in prison for years because he … bought some internet cartoons … before … they were … put on a website? Like on the one hand it certainly seems like insider trading, sure, but on the other hand, does the US government have that much interest in protecting the […]