White Collar

  • August 14, 2017

    Hedge Fund Manager, 2 Firms Must Pay SEC Nearly $13M

    A Connecticut hedge fund manager and two of his investment advisory firms have been ordered to pay nearly $13 million after they were found liable for allegedly misappropriating investor funds, the U.S. Securities and Exchange Commission said in a statement Friday.

  • August 14, 2017

    Chinese Pharma Co. Gets Nasdaq Leeway Amid FCPA Probe

    Chinese vaccine maker Sinovac Biotech Ltd. said Monday that Nasdaq has approved its plan stay listed in the U.S. and disclosed that the company is expanding an internal probe into potential Foreign Corrupt Practices Act violations.

  • August 14, 2017

    FINRA Expels Firm, Bars CEO Over Stock Sale Fraud

    The Financial Industry Regulatory Authority announced Monday that it has expelled Hallmark Investments Inc. and barred its CEO from the securities industry over a scheme that used manipulative trading to sell shares to customers at fraudulently inflated prices, charging a mark-up of more than 20,000 percent.

  • August 14, 2017

    Tech Exec’s Hubby, Family Settle SEC Insider Trading Claims

    A computer parts executive's husband, his friend and two relatives who traded on his tip about a pending company acquisition have agreed to pay $479,000 to settle securities fraud claims brought by the U.S. Securities and Exchange Commission.

  • August 14, 2017

    US Defends Bid To Quash Menendez Subpoenas

    The government on Monday defended its bid to quash subpoenas served by Sen. Bob Menendez and a Florida ophthalmologist on federal agencies seeking documents for their upcoming corruption trial, telling a New Jersey federal court that their requests are “breathtakingly overbroad” and rebutting their claim it does not have standing for the motion.

  • August 14, 2017

    Receiver Can Sue Outside Accountant Over Missed Fraud

    An Illinois state appellate court said Friday that state law allows court-appointed receivers to bring lawsuits on behalf of a company against its outside auditors after they fail to uncover the owner’s fraud, rejecting the argument that the receiver is equivalent to the fraudster.

  • August 14, 2017

    Arizona Man Gets 16 Years For Online Dating Scam

    An Arizona man who bilked women of their savings in an online dating scam was sentenced to nearly 16 years in prison by a state judge Friday, the state attorney general said.

  • August 14, 2017

    Ex-Execs Sentenced Over 'Fat Leonard' Navy Fraud Scheme

    Two former executives of a Singapore-based defense contractor were sentenced to between three and six years in prison for their role in the massive “Fat Leonard” scandal that overcharged the U.S. Navy about $35 million for resupplying and servicing ships in Asia.

  • August 14, 2017

    11th Circ. Upholds Conviction For $20M Ponzi Scheme

    The Eleventh Circuit on Friday confirmed the conviction and the 17-year sentence of a Michigan man for a Ponzi scheme in which he duped investors out of more than $20 million based on false promises that he would put the funds into oil ventures.

  • August 11, 2017

    News Outlets Ask Shkreli Trial Judge For Juror Names

    An attorney for Bloomberg, The Associated Press, Reuters, The New York Times Co., Daily News LP and NYP Holdings asked a New York federal judge on Friday to release the names of jury members who convicted controversial former pharmaceutical executive Martin Shkreli on two counts of securities fraud and another conspiracy charge.

  • August 11, 2017

    BofA Merger Settlement Administrator Can’t Beat Fraud Suit

    An accounting firm that was sued after it gave $6 million in settlement funds meant for Bank of America Corp. investors to a fraudster had two potential defenses spiked by a Pennsylvania federal judge on Friday, with the court saying the suit against Heffler Radetich & Saitta LLP couldn’t be stopped by procedural stumbling blocks.

  • August 11, 2017

    Jason Galanis Gets 14 Years In $63M Tribal Bond Scheme

    A New York federal judge sentenced inveterate white collar fraudster Jason Galanis to 173 months in prison for masterminding a $63 million bond fraud against a Native American tribal entity, with all but 60 months of it to run concurrently with the stretch he earned for running the Gerova Financial Ltd. pump-and-dump scheme.

  • August 11, 2017

    2 Plead Guilty, 2 Arrested Over $15M Oil Ponzi Scheme

    Prosecutors announced Friday that two men were arrested and two previously pled guilty to charges they raised $15 million by falsely claiming investors would make impressive profits in oil and gas projects, then used two-thirds of the cash to benefit themselves and advertise to new investors.

  • August 11, 2017

    $122M Alleged Facebook-Google Scammer To Be Extradited

    A Lithuanian appeals court said Friday that a man accused of scamming Google Inc. and Facebook Inc. out of over $122 million by posing as a major hardware manufacturer can be extradited to the United States.

  • August 11, 2017

    Texas Tortilla Co. To Shell Out $1M Over Illegal Workforce

    A Houston tortilla factory forfeited $1 million after being convicted of conspiring to "encourage and induce unlawful immigration," the U.S. Department of Justice announced Friday, the same day the owners pled guilty to misdemeanors associated with hiring undocumented employees.

  • August 11, 2017

    Dems Want Deutsche Bank Probe Over Russia, Trump Ties

    Five Democratic lawmakers on Friday asked the head of the House Financial Services Committee to issue a subpoena to Deutsche Bank for documents related to a purported Russian money laundering scheme as well as loans made to President Donald Trump and his family.

  • August 11, 2017

    Federal Prosecutor Took His Own Life, Fla. Police Say

    The Hollywood Police Department said investigators have determined that an assistant U.S. attorney for the Southern District of Florida found dead on a Hollywood, Florida, beach earlier this year took his own life, according to Thursday news reports.

  • August 11, 2017

    Defense Contractor ADS Settles FCA Suit For $16M

    Virginia-based operational equipment supplier ADS Inc. will pay $16 million to settle False Claims Act allegations it illegally snagged government contracts set aside for small businesses and women- or minority-owned businesses, one of the largest settlements ever obtained for small-business contract fraud, the Department of Justice announced Thursday.

  • August 11, 2017

    Feds Say Platinum Partners Exec Threatened Witness

    Prosecutors have accused Platinum Partners co-founder Mark Nordlicht's lawyers of making a "veiled threat" to a former Platinum employee over his potential cooperation in the government's $1 billion securities fraud suit, a claim the defense calls "false and unfounded."

  • August 11, 2017

    Rakoff Puts $360M Transmar Bank Fraud Case On Fast Track

    Transmar Commodity Group Ltd. CEO Peter G. Johnson, his son and a financial executive at the belly-up New Jersey cocoa distributor denied charges Friday that they engaged in a massive $360 million bank fraud, and Manhattan U.S. District Judge Jed S. Rakoff put the case on track for an April trial.

Expert Analysis

  • Series

    15 Years Of SOX: A Whistleblower Promise Unfulfilled

    Jason Zuckerman

    Our practice consists primarily of representing whistleblowers under the Sarbanes-Oxley Act, and we have found that even at senior levels of a company, whistleblowers suffer swift and severe retaliation, say Jason Zuckerman and Matthew Stock of Zuckerman Law.

  • A Glimpse Into DOJ’s New Health Care Enforcement Initiative

    Melissa Jampol

    Recently, the U.S. Department of Justice announced to great fanfare its eighth annual national health care fraud “takedown.” Peeling back the layers of hyperbole, the “takedown” provides a helpful window into current health care-related investigative priorities of the DOJ, U.S. Department of Health and Human Services Office of Inspector General and FBI, say Melissa Jampol and George Breen of Epstein Becker Green.

  • Weekly Column

    Innovating For Wise Juries: Closing Argument

    Stephen Susman

    In the final article in this series on proposed innovations to the American jury trial, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project sum up the improvements they believe the U.S. jury system desperately needs.

  • US Presidents Are Not Immune From Criminal Prosecution

    David Chaiken

    For 40 years, America’s top constitutional scholars have uniformly concluded that nothing in the text or the history of the U.S. Constitution bars the criminal indictment, arrest, trial, conviction or imprisonment of a sitting president. And yet pundit after pundit has recently opined that a president cannot be criminally prosecuted while in office, says David Chaiken, a partner at Troutman Sanders LLP and former federal prosecutor.

  • Series

    15 Years Of SOX: It Is Time To Revisit The Burdens

    Adam Ingles

    The Sarbanes-Oxley Act — with Section 404 being its most burdensome mandate — was a regulatory “overcorrection” that many believe has stifled access to public capital markets and increased regulatory costs far more than any recent financial regulations ever will. The 15 years of post-SOX regulatory environment has been anything but favorable for new, entrepreneurial businesses, say Adam Ingles and Frank Gonzalez of MBAF.

  • 5 Questions All AFAs Should Answer Clearly

    Gregory Lantier

    While no particular form is required to establish a durable alternative fee arrangement, there are terms that should, for the benefit of both client and outside attorney, be expressly set forth in the agreement itself, but are often overlooked, say attorneys with WilmerHale.

  • Series

    15 Years Of SOX: The WorldCom And Enron Securities Cases

    Jeffrey Golan

    The private securities cases involving WorldCom and Enron, which were ongoing at the time the Sarbanes-Oxley Act was enacted 15 years ago, served notice on board members and corporate executives of the very real and costly consequences of being asleep at the switch, say Jeffrey Golan and Chad Carder of Barrack Rodos & Bacine.

  • Tickets To Roberts Court: Good For This Day And Train Only?

    Rahul Mukhi

    Chief Justice John Roberts has charted his legacy to be one of court consensus and the narrow decisions that such consensus begets. But, as illustrated by two recent criminal law decisions, this may mean the U.S. Supreme Court is drifting away from its principal role of providing guidance to the lower courts on open and recurring legal questions, say Rahul Mukhi and David Felton of Cleary Gottlieb Steen & Hamilton LLP.

  • Cybersecurity Risks In The Courtroom

    Daniel Garrie

    As cybercriminals continue to look for easy targets, the court system will surely enter their crosshairs. If judges and court personnel do not maintain proper data security and cyber hygiene, confidential litigant information can fall into the hands of a wide variety of bad actors, say Daniel Garrie of JAMS, David Cass of IBM Cloud, Joey Johnson of Premise Health Inc. and Richard Rushing of Motorola Mobility LLC.

  • OFAC's Settlement With CSE Global Breaks New Ground

    Roberto J. Gonzalez

    On July 27, the Office of Foreign Assets Control announced a $12 million settlement with CSE Global Limited and its subsidiary, CSE TransTel Pte. Ltd. This appears to be the first time OFAC has penalized a non-U.S., non-financial company for “causing” sanctions violations by initiating U.S. dollar payments involving a sanctioned country, say members of Paul Weiss Rifkind Wharton & Garrison LLP.