‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInNYSE firms more likely to commit financial fraud, study finds
Researchers from a trio of universities (Washington State, Pennsylvania State, and Miami) studied 250 companies involved in Securities and Exchange Commission fraud filings from 2005 to 2013, and found that Fortune 500 companies were much more likely to have cooked books. Researchers looked closely for predictors of fraud, and found four risk factors : Fortune […]
Fraud Prevention CEO Is Charged With Fraud for Fake Sales (1)
The founder of cyberfraud prevention company NS8 Inc. was accused by federal prosecutors of raising more than $100 million for the firm by misleading investors about the state of its finances. NS8 said it is cooperating with investigators and has learned that the founder and former chief executive officer, Adam Rogas, “fabricated” much of its […]
SEC Charges Companies, Former Executives as Part of Risk-Based Initiative
The Securities and Exchange Commission today filed settled actions against two public companies for violations that resulted in the improper reporting of quarterly earnings per share (EPS) that met or exceeded analyst consensus estimates. The actions are the first arising from investigations generated by the Division of Enforcement’s EPS Initiative, which utilizes risk-based data analytics […]
SEC and DOJ Charge Former Executives of Private Company for Misrepresenting the Company’s Technology
In a case reminiscent of last year’s blockbuster government actions against Theranos and its former executives, the U.S. Department of Justice and the U.S. Securities and Exchange Commission have separately charged two former executives of a privately held company for falsely touting the firm’s products. On February 12, 2019, the SEC filed a civil enforcement […]
Tesla Faces Deepening Criminal Probe Over Whether It Misstated Production Figures – WSJ
Tesla Inc., with a fresh civil fraud settlement now behind it, faces a new legal problem: a deepening criminal investigation. Federal Bureau of Investigation agents are examining whether Tesla misstated information about production of its Model 3 sedans and misled investors about the company’s business going back to early 2017, people familiar with the matter […]
SEC Charges Walgreens and Two Former Executives With Misleading Investors About Forecasted Earnings Goal
The Securities and Exchange Commission today charged Walgreens Boots Alliance Inc., former CEO Gregory Wasson, and former CFO Wade Miquelon with misleading investors about increased risk that the company would miss a key financial goal announced when Walgreen Co. entered into a merger with Alliance Boots GmbH in 2012. Walgreens agreed to pay a $34.5 […]
Tesco bosses ‘bullied’ employees into false accounting, court hears – City A.M.
Former Tesco UK managing director Christopher Bush, former commercial director for food John Scouler, and former finance director Carl Rogberg were on Tuesday described as the “generals” who gave orders to the “footsoldiers” by Sasha Wass QC representing the Serious Fraud Office (SFO). As part of her closing statement, Wass told the jury that while […]
Rio Tinto, Former Top Executives Charged With Fraud
The Securities and Exchange Commission today charged mining company Rio Tinto and two former top executives with fraud for inflating the value of coal assets acquired for $3.7 billion and sold a few years later for $50 million. via Rio Tinto, Former Top Executives Charged With Fraud
Investors File U.K. Financial Misrepresentation Claim Against Tesco | The D&O Diary
The new U.K. action against Tesco is just the latest example of the phenomenon I described in a recent blog post, the global rise of collective investor litigation. The new Tesco action is also an illustration of a further point in that regard, which is the critical role that third-party litigation funding is playing in […]
The SEC’s Return to Accounting Fraud Enforcement – Corruption, Crime & Compliance
Just like the ups and downs of the business cycle, SEC enforcement of accounting fraud cases follow an up and down trend as well. For example, during the financial crisis, SEC enforcement of accounting fraud cases took a back seat to enforcement actions surrounding disclosure and conflicts of interest in relation to the financial meltdown. […]