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SEC’s Whistleblower Program Having Marked Success

Numbers speak loudly regarding evaluations surrounding the anti-fraud whistleblower program established by the U.S. Securities and Exchange Commission back in 2011 pursuant to the enactment of the federal Dodd-Frank legislation. Here’s an example: Whistleblowers coming forward with key tips helping regulators spotlight and punish securities fraud collected more money in the past fiscal year than […]

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A Look at Seminal Study’s Conclusions Regarding FINRA Arbitrations

Talk about exhaustive research that can’t easily be called into question. A team of researchers who recently published a paper on FINRA (Financial Industry Regulatory Authority) arbitration buttressed the validity of their results through research spanning nearly 9,000 decisions rendered by approximately 8,000 arbitrators. Although a number of notable conclusions emerged from that ambitious effort, […]

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SEC Sues Elon Musk Over his Tweets to Take Tesla Private

On September 27, 2018, the U.S. Securities and Exchange Commission (“SEC”) sued Tesla CEO, Elon Musk (“Musk”), alleging his August tweets about being prepared to take his Tesla private at a much higher price than its stock at the time were baseless assertions and violated federal securities laws. On August 7, 2018, Musk tweeted that […]

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A Look at Finra-Overseen Securities Arbitration

As an investor, how do you resolve a material dispute with your financial adviser and/or securities brokerage? Where do you turn for help if you reasonably suspect that one or more professionals you justifiably rely upon have defrauded you through illegal behavior? The offices of an established law firm might logically be your go-to venue […]

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SEC Alleges Two Brokers Made $4.6 Million Through High-Frequency Trading Fraud

On September 7, 2018, the U.S. Securities and Exchange Commission (“SEC”) filed two federal lawsuits on accusing New York-based brokers, Emil Botvinnik (“Botvinnik”) and Jovannie Aquino (“Aquino”), of violating the anti-fraud provisions of the federal securities law and earning a combined $4.6 million through excessive high-frequency trading. Botvinnik and Aquino recommended that their customers use […]

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Deutsche Bank Agrees to $21.9 Million ERISA Settlement

A class of Deutsche Bank (“Deutsche” or the “Bank”) employees has announced a $21.9 million settlement to resolve ERISA claims that Deutsche funneled their retirement savings into expensive and underperforming proprietary funds. The operative complaint accuses Deutsche of violating its ERISA fiduciary duties and placing its own interests ahead of those of its employees by […]

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Citigroup 401(k) Plan Committee to Settle Mismanagement Suit for $6.9 Million

Members of the class of participants in the Citigroup Inc. (“Citigroup”) 401(k) retirement plan are finalizing a $6.9 million settlement to conclude an Employee Retirement Income Security Act (“ERISA”) suit alleging the committees charged with managing the plan selected funds associated with Citigroup over less expensive options. The settlement agreement comes almost 11 years after […]

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Former Equifax Employee Pleads Guilty to Insider Trading Accusations

On July 23, 2018, Sudhakar Reddy Bonthu (“Bonthu”), a 44-year-old former software development manager at Equifax Inc. (“Equifax”), pled guilty to a single count of insider trading in the Northern District of Georgia. Bonthu is accused of leveraging his inside information about the credit reporting company’s massive data breach to earn over $70,000. Equifax first […]

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Class of Investors Certified in Stock Suit Against Twitter

On July 16, 2018, Northern District of California Judge Jon S. Tigar granted class certification to a group of investors who purchased shares of Twitter Inc. (“Twitter” or the “Company”) between February 6, 2015, and July 28, 2015 (the “Class Period”), in a case alleging that Twitter exaggerated its user engagement, resulting in an almost […]

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SEC looking for better ways to reward, protect whistleblowers

Regulators from the U.S. Securities and Exchange Commission have a potent weapon in their war against fraud that harms American investors and roils the financial markets. That is the whistleblower, marked collectively by persons commanding insider knowledge of illicit behavior. Those individuals have stepped forward time and again to spotlight wrongdoing and enable innocent third […]