Blog Posts Tagged With Cases of Interest

In re Walmart Inc. (A.P. June 20, 2019, Settled)

Action against Respondent, a retailer, for alleged violations of the FCPA’s books and records and internal accounting controls provisions.  According to the SEC, Respondent’s subsidiaries in Brazil, China, India, and Mexico lacked sufficient internal anticorruption controls and, as a result, employed third-party intermediaries who made improper payments to foreign government officials.  The SEC further alleges that Respondent failed to adequately investigate allegations of corruption and mitigate known risks.  Respondent has agreed to pay disgorgement of
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In re Wedbush Securities, Inc. (A.P. June 18, 2018, Settled)

Action against Respondent, a registered broker-dealer, in connection with an industry-wide sweep into practices related to the pre-release of American Depositary Receipts (ADRs).  According to the SEC, Respondent obtained pre-released ADRs from depositary banks pursuant to an agreement which required the broker receiving the pre-released ADRs to represent, among other things, that it beneficially owned the ordinary shares (or an equivalent security) represented by the ADRs.  The SEC alleges that Respondent’s brokers and customers did
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In re KPMG LLP (A.P. June 17, 2019, Settled)

Action against Respondent, an auditing firm, for alleged audit integrity violations.  According to the SEC, Respondent obtained confidential information related to upcoming PCAOB inspections and used that information to revise previously issued audit reports.  The SEC also alleges that audit professionals employed by Respondent cheated on the firm’s training exams.  Respondent has agreed to pay a civil penalty of $50 million.

SEC Order

SEC Press Release
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CFTC v. Control-Finance Limited and Benjamin Reynolds (S.D.N.Y. June 17, 2019, Contested)

Action against Defendants, a U.K-based Bitcoin trading and investment company and its principal, for an alleged $147 million Ponzi and pyramid scheme.  According to the CFTC, Defendants made false guarantees of daily trading profits and other misrepresentations to induce investors to purchase Bitcoin and transfer the Bitcoin to Defendants.  The CFTC alleges that Defendants made no trades on investors’ behalf and instead misappropriated investor funds to, for example, make Ponzi-like payments to earlier investors.  The
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In re Industrial and Commercial Bank of China Financial Services LLC (A.P. June 14, 2019, Settled)

Action against Respondent, a registered broker-dealer, in connection with an industry-wide sweep into practices related to the pre-release of American Depositary Receipts (ADRs).  According to the SEC, Respondent obtained pre-released ADRs from depositary banks pursuant to an agreement which required the broker receiving the pre-released ADRs to represent, among other things, that it beneficially owned the ordinary shares (or an equivalent security) represented by the ADRs.  The SEC alleges that Respondent’s brokers and customers did
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SEC v. Mark “Christian” Ramsey (E.D. Pa. May 21, 2019, Contested)

Action against Defendant, the friend and business partner of a former football player charged with insider trading, for alleged participation in the same insider trading scheme.  According to the SEC, Defendant received tips from a former investment banker, also previously charged by the SEC, for information related to upcoming corporate acquisitions and traded on the former football player’s behalf while in possession of that information.  Defendant has also been charged in a parallel criminal action.
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SEC v. Ivan Acevedo and Dane R. Roseman (S.D. Fla. Apr. 12, 2019, Contested)

Action against Defendants, two former directors of investment at the Woodbridge Group of Companies LLC, for alleged fraud.  According to the SEC, Defendants, who were not registered with the SEC, fraudulently marketed securities in a $1.2 billion Ponzi scheme and misappropriated investor funds.  In January 2019, the Southern District of Florida ordered Woodbridge Group of Companies LLC and its owner to pay disgorgement of $892 million, among other remedies.  Defendant directors have been charged in
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SEC v. Paul Bannon Powers (M.D. Fla. Apr. 9, 2019, Contested)

Action against Defendant, a former in-house attorney at Sea World, for alleged insider trading.  According to the SEC, Defendant purchased stock while in possession of material non-public information about his employer’s quarterly earnings, which had improved significantly after a period of decline, and sold the stock soon after the earnings were publicly released.  Defendant has been charged in a parallel criminal case.

SEC Complaint

SEC Litigation Release

SEC Press Release
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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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