Blog Posts Tagged With Cases of Interest

In re Fresenius Medical Care AG & Co. KGaA (A.P. Mar. 29, 2019, Settled)

Action against Respondent, a German medical products and services company, for alleged violations of the FCPA’s anti-bribery, books and records, and internal accounting provisions. According to the SEC, Respondent made improper payments in a number of different countries to obtain business and failed to maintain adequate accounting controls and compliance measures. Respondent has agreed to pay disgorgement of $135 million and prejudgment interest of $12 million. The SEC did not impose a penalty due to
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SEC v. Volkswagen Aktiengesellschaft, et al. (N.D. Cal. Mar. 14, 2019, Contested)

Action against Defendants, an auto manufacturer, two of its subsidiaries, and its former CEO, for alleged fraud in connection with misstatements made about vehicle emissions. According to the SEC, Defendants knew that some of their vehicles exceeded legal emissions limits and passed emissions tests due only to a device installed on the cars. The SEC alleges that Defendants made false and misleading statements to investors and underwriters to conceal this information while issuing over $13
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SEC Announces Settled Charges with 79 Investment Advisers in Share Class Selection Disclosure Initiative (Mar. 11, 2019)

Actions against Respondents, 79 investment advisers, for alleged violations of the antifraud and compliance provisions of the Advisers Act. According to the SEC, Respondents invested client funds in mutual fund share classes that charged 12b-1 fees directly or indirectly received by Respondents when less expensive share classes were available and failed to properly disclose this conflict of interest to their clients. The settlements stem from the SEC’s Share Class Selection Disclosure Initiative, which generally offered
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SEC v. Gordon J. Coburn and Steven E. Schwartz (D.N.J. Feb. 15, 2019, Contested); In re Cognizant Technology Solutions Corporation (A.P. Feb. 15, 2019, Settled)

Actions against Respondent, a technology company, and Defendants, two of Respondent’s former executives, for alleged violations of the FCPA’s anti-bribery, books and records, and internal accounting controls provisions.  According to the SEC, Respondent and Defendants paid bribes through a contractor to Indian officials to obtain operating licenses and construction permits.  The SEC alleges that Respondent and Defendants falsified documents in order to conceal the payments.  Respondent has agreed to pay disgorgement of $16,394,351, prejudgment interest
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SEC v. Gene Daniel Levoff (D.N.J. Feb. 13, 2019, Contested)

Action against Defendant, a former senior in-house attorney, for alleged insider trading.  According to the SEC, Defendant, who was responsible for securities laws compliance at his then-employer, traded while in possession of material nonpublic information about his then-employer’s quarterly earnings announcements.  Defendant has been charged in a parallel criminal action in the District of New Jersey.

SEC Complaint

SEC Litigation Release

SEC Press Release
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In re Daniel J. Callahan (A.P. Feb. 8, 2019, Settled)

Action against Respondent, an attorney, for alleged insider trading.  According to the SEC, Respondent traded while in possession of material nonpublic information of which he learned during the course of his representation of his client, a beverage company.  Respondent has agreed to pay disgorgement of $19,386.97, prejudgment interest of $3,291.62, and a civil penalty of $19,386.97.

SEC Order

SEC Administrative Summary
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SEC v. Oleksandr Ieremenko, et al. (D.N.J. Jan. 15, 2019, Contested)

Action against Defendants and Relief Defendants, 11 individuals and two companies, for alleged hacking and insider trading. According to the SEC, Defendants hacked a newswire service and the SEC’s EDGAR system to obtain material nonpublic information on earnings announcements of public companies.  The SEC alleges that Defendants traded while in possession of this information.  The U.S. Attorney’s Office for the District of New Jersey has brought parallel criminal charges.

SEC Litigation Release

SEC Complaint

SEC
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CFTC v. Kelvin Oscar Ramirez (S.D. Tex. Jan. 14, 2019, Contested)

Action against Defendant, a self-professed forex trader and investment manager, for alleged fraud and failure to register as a commodity pool operator and commodity trading advisor.  According to the CFTC, Defendant fraudulently solicited investments in forex pools by making exaggerated claims about his investing success and other misrepresentations, primarily via social media.  The CFTC further alleges that Defendant misappropriated nearly all of the funds that he raised for personal use.  The Court entered a preliminary
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In re Polycom, Inc. (A.P. Dec. 26, 2018, Settled)

Action against Respondent, a communication product company, for alleged violations of the FCPA’s books and records and internal accounting controls provisions.  According to the SEC, Respondent’s subsidiary provided discounts to distributors and resellers with the understanding that the discounts would be used to make cash payments to government officials who had influence over purchasing decisions.  The SEC further alleges that Respondent failed to maintain adequate accounting controls and lacked an effective anti-corruption compliance program with
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In re Centrais Elétricas Brasileiras S.A. (A.P. Dec. 26, 2018, Settled)

Action against Respondent, a partially state-owned Brazilian energy company, for alleged violations of the FCPA’s books and records and internal accounting controls provisions.  According to the SEC, officers of Respondent’s subsidiary engaged in a scheme to rig construction bids, inflate contract prices, and pay bribes to government officials.  The SEC further alleges that Respondent’s accounting controls were inadequate.  Respondent has agreed to pay a civil penalty of $2.5 million.

SEC Order

SEC Administrative Summary
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In re Wealthfront Advisers, LLC (f/k/a Wealthfront, Inc.) (A.P. Dec. 21, 2018, Settled)

Action against Respondent, a robo-adviser, for alleged false statements to clients.  According to the SEC, Respondent failed to monitor client accounts for transactions that would cause wash sales, despite promising to do so, improperly published client testimonials, improperly paid for client referrals, and failed to implement adequate policies, procedures, and a compliance program.  Respondent has agreed to pay a civil penalty of $250,000.

SEC Order

SEC Press Release
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In re Hedgeable, Inc. (A.P. Dec. 21, 2018, Settled)

Action against Respondent, a robo-adviser, for alleged misleading statements to clients regarding Respondent’s performance.  According to the SEC, Respondent’s promotional material included select data from high-performing client accounts and made false comparisons against competitors’ trading models.  The SEC also alleges that Respondent failed to maintain required records and a compliance program reasonably designed to prevent violations of the securities laws.    Respondent has agreed to pay a civil penalty of $80,000.

SEC Order

SEC Press Release
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SEC v. Jared Jeffrey Davis and Dale Burke Pinchot (N.D. Ohio, Dec. 10, 2018, Settled)

Action against Defendants, two business partners, for alleged operation of  an unregistered binary options trading business and fraud on investors.  According to the SEC, Defendants misrepresented to investors the probability of success and failed to disclose that one Defendant manipulated its software to the detriment of customers.  Defendants have agreed to a permanent injunction against participating in the issuance, purchase, offer, sale, or promotion of any binary option security, and disgorgement and civil penalties to
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SEC v. Mark Suleymanov (E.D.N.Y. Dec. 3, 2018, Settled)

Action against Defendant, an options broker, for alleged unregistered securities offering and fraud on investors.  According to the SEC, Defendant operated several websites from which he publicly offered and sold binary options but failed to register with the SEC, misrepresented the profitability of the offered securities, manipulated trading results, and prevented investors from withdrawing funds.  According to the SEC, Defendant also misused and commingled investor funds with his own.  Defendant has agreed to pay disgorgement,
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In re Khaled Khaled (A.P. Nov. 29, 2018, Settled)

Action against Respondent, a celebrity music producer, for alleged touting violations in connection with initial coin offerings. According to the SEC, Respondent promoted three initial coin offerings on his social media accounts without disclosing that the issuers were compensating him for the publicity.  Defendant has agreed to pay disgorgement of $50,000, prejudgment interest of $2,725.72, and a civil penalty of $100,000.

SEC Order

SEC Press Release
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In re Floyd Mayweather Jr. (A.P. Nov. 29, 2018, Settled)

Action against Respondent, a professional boxer, for alleged touting violations in connection with initial coin offerings.  According to the SEC, Respondent promoted three initial coin offerings on his social media accounts without disclosing that the issuers were compensating him for the publicity.  Respondent has agreed to pay disgorgement of $300,000, prejudgment interest of $14,775.67, and a civil penalty of $300,000.

SEC Order

SEC Press Release
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In re Paragon Coin, Inc. (A.P. Nov. 16, 2018, Settled)

Action against Respondent, a company established to implement blockchain technology in the cannabis industry, for an alleged unregistered offering. According to the SEC, Defendant publicly offered and sold digital tokens to raise capital without registering the offering or attempting to qualify for an exemption to the registration requirements.  Defendant has agreed to pay a civil penalty of $250,000.

SEC Press Release

SEC Order
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In re CarrierEQ, Inc., d/b/a Airfox (A.P. Nov. 16, 2018, Settled)

Action against Respondent, a mobile technology business, for an alleged unregistered offering.  According to the SEC, Defendant publicly offered and sold digital tokens to raise capital without registering the offering or attempting to qualify for an exemption to the registration requirements.  Defendant agreed to pay a civil penalty of $250,000.

SEC Press Release

SEC Order
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