All articles tagged with #securities fraud
A Pennsylvania man, Daryl Heller, has been charged with orchestrating a $400 million ATM fraud scheme involving false promises of high returns, many of which were based on non-existent or broken machines, leading to significant investor losses and allegations of securities and wire fraud.
The founder of CaaStle, Christine Hunsicker, is accused of orchestrating a $300 million fraud by misleading investors with false financial documents and misappropriating funds, leading to the company's bankruptcy and her surrender to authorities.
Terren Scott Peizer, former CEO of Ontrak Inc., was sentenced to 42 months in prison, fined $5.25 million, and ordered to forfeit over $12.7 million for insider trading using Rule 10b5-1 plans to avoid losses exceeding $12.5 million, after trading on inside information related to the company's contract termination.
The U.S. Supreme Court has decided not to hear a securities fraud case involving Nvidia, leaving the lower court's decision in place. This means that the allegations against Nvidia will not be reviewed by the highest court, effectively ending the legal proceedings at this level.
Barclays has agreed to a $19.5 million settlement in a Manhattan lawsuit where shareholders accused the bank of securities fraud for selling $17.7 billion more debt than allowed by regulators. The settlement, which requires court approval, follows Barclays' admission of overissuing structured and exchange-traded notes beyond the authorized limit. Despite denying wrongdoing, Barclays had to restate its 2021 financials and set aside funds for the overissuance. The lawsuit involved investors in Barclays' American depositary receipts from February 2021 to February 2023.
Sung Kook "Bill" Hwang, founder of Archegos Capital Management, received an 18-year prison sentence for securities fraud and market manipulation, which led to significant financial losses for major banks and the collapse of his firm. The scheme expanded Archegos's portfolio from $1.5 billion to $35 billion in a year, using extensive borrowing to make large investments in companies like ViacomCBS and Tencent.
Billionaire Gautam Adani has been indicted in New York for allegedly orchestrating a $250 million bribery scheme to secure solar energy contracts in India, which were expected to generate $2 billion in profits. The charges include securities fraud and conspiracy to commit securities and wire fraud. The US attorney's office and the SEC have accused Adani and two other executives of paying bribes to Indian officials and misleading US investors. Adani Group has not yet commented on the charges.
Gautam Adani, chairman of the Adani Group, along with two other executives, has been charged in a New York federal court with wire and securities fraud. The charges involve an alleged scheme to defraud investors by making false statements and bribing Indian officials to secure lucrative contracts. The U.S. Attorney's Office in Brooklyn announced the indictment, highlighting the international scope of the alleged fraud.
The Supreme Court appears likely to allow a class-action securities fraud lawsuit against Nvidia, as justices showed skepticism towards the company's attempt to dismiss the case. This lawsuit, one of two significant securities fraud cases this term, could influence how such cases are brought forward in the future.
The U.S. Supreme Court appears inclined to permit a securities fraud lawsuit against Nvidia to proceed. The case involves allegations that Nvidia misled investors about the impact of cryptocurrency mining on its business. This development could have significant implications for how companies disclose information to investors.
Carlos Watson, founder of Ozy Media, was convicted of fraud by a Brooklyn federal jury for misleading investors about the company's finances and deals. Watson and Ozy were charged with securities fraud and wire fraud conspiracy, with prosecutors alleging they falsified financial information and audience size to attract investment. The trial included testimony from former deputies who admitted to conspiring with Watson. Ozy Media collapsed in 2021 following reports of deceptive practices, including impersonating a YouTube executive. Watson denied involvement but was found guilty after a six-week trial.
Former 3Com CEO Robert Scott Murray has pleaded guilty to securities fraud for attempting to inflate Getty Images' share price through misleading announcements and a false acquisition bid, allowing him to sell his shares for a profit.
Keith Berman, the former CEO of a biotechnology company, has been sentenced to seven years in prison for securities fraud after falsely claiming to have invented a rapid Covid-19 test that could detect the virus in 15 seconds. Prosecutors stated that Berman engaged in a scheme to defraud investors by promoting the test, resulting in about $28 million in losses. Berman pleaded guilty to securities fraud, wire fraud, and obstruction of an official proceeding.
The value of Donald Trump's company, Trump Media & Technology Group (TMTG), has declined by more than half since going public, with each share now worth $34.26, down from the opening price of $70. The decline has led to concerns and a petition calling for an investigation into potential securities fraud. Despite this, a TMTG spokesperson remains optimistic, citing the company's lack of debt and over $200 million in the bank, while Trump himself expressed confidence in the company's financial stability.
Investment firms led by the former CEO of the SPAC that merged with Donald Trump’s media company have filed a federal civil lawsuit accusing a current board member of the media company, Eric Swider, of hacking and stealing their files in an attempted corporate coup to replace the CEO. The lawsuit seeks damages and an injunction to prohibit the use of the stolen information. This legal dispute is just one of many that have plagued Trump Media's rocky road to an IPO, including fraud charges, mismanagement allegations, and lawsuits between co-founders.