All articles tagged with #investor fraud
Donald Trump granted clemency to David Gentile, a private equity executive convicted of a $1.6 billion fraud scheme, shortly after he began serving a seven-year prison sentence; Gentile was released in November, amid ongoing legal and regulatory scrutiny of his activities.
A class action lawsuit was filed against Centene Corporation alleging that the company and its executives made false and misleading statements about its revenue outlook and growth prospects, leading to a significant stock decline after the company withdrew its fiscal guidance and revealed lower-than-expected market growth, resulting in substantial financial losses for investors.
A class action lawsuit was filed against Sarepta Therapeutics alleging that the company and its officers made false and misleading statements about the safety and efficacy of its gene therapy drug Elevidys for Duchenne muscular dystrophy, omitting critical safety concerns that led to FDA investigations and a significant stock decline.
Georgia businessman Edwin Frost and his company are under investigation for allegedly running a $140 million Ponzi scheme, misappropriating investor funds for personal expenses and political donations, with authorities freezing assets and seeking restitution.
The SEC has accused Edwin Frost and his company First Liberty of running a $140 million Ponzi scheme targeting conservative investors, with Frost allegedly living lavishly off investor funds, including purchasing a Patek Philippe watch and paying political donations, while the company operated at a deficit and was shut down amid investigations.
The SEC has charged Georgia-based First Liberty Building & Loan and its owner with operating a $140 million Ponzi scheme that defrauded around 300 investors through false promises of high returns and misappropriation of funds, with legal actions including asset freezes and penalties pending.
American investors, including individuals like Utah professor Braden Lindstrom, are falling victim to scams involving obscure Chinese stocks, often manipulated through social media and fake advice, leading to significant financial losses and prompting U.S. regulatory efforts to combat these frauds.
The testimony of Matt Huang, co-founder of Paradigm, at the trial of Sam Bankman-Fried suggests that the former crypto mogul defrauded investors. Huang testified that his firm was unaware of certain business practices at FTX, including the use of customer funds to support Bankman-Fried's hedge fund. Paradigm invested $278 million into FTX, but Huang stated that they have marked the investment down to zero. Huang's testimony supports the establishment of three out of four elements required to prove fraud. He also expressed concerns about FTX's lack of governance and resistance to having investors on the board.
Eliyahu Weinstein, a man whose 24-year prison sentence was commuted by former President Donald Trump in 2021, has been arrested again on charges of defrauding investors. Weinstein and four others are accused of conspiring to defraud over 150 individual investors of more than $35 million by making false promises involving humanitarian supplies for Ukraine. This is the third time Weinstein has been charged with large-scale investor fraud. After his release from prison, Weinstein allegedly began a new scheme using a fake name to solicit money from investors. Weinstein's case highlights a recurring theme of individuals who received clemency from Trump facing additional legal scrutiny.
Medical Properties Trust, a Birmingham-based real estate investment trust, is facing a class action lawsuit for allegedly misleading investors by concealing that four hospitals it invested in were "distressed." The lawsuit seeks to represent other investors and requires defendants to pay damages sustained by the plaintiff and the class of investors. The company's top executives were also named in the lawsuit. Medical Properties Trust buys hospital buildings and leases them back to hospital operators. The company allegedly concealed the distressed state of its tenants and fraudulently transferred hundreds of millions of dollars. The company's stock price fell nearly 18% after the alleged fraud was revealed.