Criminal

Targeting white-collar crime, Justice Dept. seeks more whistleblowers – The Washington Post

Officials said they are modeling the new program after similar ones in two other federal agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission. The SEC received 18,000 tips in fiscal 2023, up nearly 50 percent from a year earlier, and paid a record $600 million to 68 whistleblowers. The CFTC received 1,530 tips and paid seven…

Read More

Chairman of Publicly Traded Health Care Company Convicted of Insider Trading

A federal jury in Los Angeles convicted the former CEO, executive chairman, and chairman of the board of directors of Ontrak Inc., a publicly traded health care company, for engaging in an insider trading scheme using Rule 10b5?1 trading plans. “When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the…

Read More

Fictitious Law Firms Targeting Cryptocurrency Scam Victims Offering to Recover Funds

The Federal Bureau of Investigation (FBI) is issuing this announcement to inform the public of an emerging criminal tactic used to further defraud cryptocurrency scam victims. This PSA is an update to Alert Number I-081123-PSA, published on 08/11/2023, titled, “Increase in Companies Falsely Claiming an Ability to Recover Funds Lost in Cryptocurrency Investment Scams.” Using social media or other messaging…

Read More

A €20 Million Inside-Trader Case Kept Alive as Privacy Bid Flops

A French investigation into two traders suspected of making €20 million ($21.6 million) from insider tips was kept alive by a Paris court as their long-running privacy bid collapsed. The investigation — France’s biggest insider-dealing case — had been hanging on a thread ever since traders Alexis Kuperfis and Lucien Selce won a key European Union ruling that threatened to…

Read More

Theranos founder Elizabeth Holmes seeks to overturn fraud conviction | Reuters

Lawyers for Theranos founder Elizabeth Holmes and company President Ramesh “Sunny” Balwani on Tuesday urged a federal appeals court to overturn their convictions for defrauding investors in the failed blood testing startup, which was once valued at $9 billion. Amy Saharia, Holmes’ lawyer, told a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco that Holmes…

Read More

WeWork Stock Probe Led to Real Estate Empire of Florida Man Jonathan Larmore – Bloomberg

But the government’s civil case—and any hope that investors would soon get their money back—took a back seat to other proceedings. In the pre-dawn hours of March 14, more than 20 federal law enforcement agents surrounded Larmore’s house and summoned him outside with a bullhorn. According to Larmore’s legal team, they were wielding “AK-47-like” weapons. The US Attorney filed a…

Read More

Joonko – Bloomberg

My sense has always been that, if you are a public company, everything is securities fraud: You have to be scrupulously truthful in all of your public communications, and if investors can find the slightest arguable misstatement they will sue you for securities fraud. And if you are actually lying about your customers and revenue, you will go to prison.…

Read More

Autodesk Faces SEC, DOJ Scrutiny After Internal Accounting Probe

The US Securities and Exchange Commission and the Department of Justice are probing Autodesk Inc. after the software maker reassigned its chief financial officer following an internal investigation into the company’s accounting practices. “The Company intends to cooperate with the SEC’s investigation,” Autodesk disclosed in a 10-K filed Monday afternoon. In addition, the US Attorney’s Office for the Northern District…

Read More