securities fraud News

Supreme Court Upholds But Curbs SEC’s Power to Force Ill-Gotten Gains in Fraud Cases

The U.S. Supreme Court on Monday placed limits on the Securities and Exchange Commission’s practice of forcing defendants to surrender profits obtained through fraud as part of its enforcement of investor-protection laws in federal courts. The court reaffirmed the agency’s …

SEC Accuses Two Companies of Making Misleading COVID-19 Claims

The Securities and Exchange Commission has charged two companies it says claimed to offer products to combat the COVID-19 virus. One complaint is against against Applied BioSciences Corp. and the other is against Turbo Global Partners, Inc. and its chief …

Supreme Court Upholds SEC on Scope of Securities Fraud Liability

The U.S. Supreme Court reinforced the Securities and Exchange Commission’s powers, upholding sanctions against an investment banker found to have duped investors about a startup company’s financial condition. The justices, voting 6-2, said Francis V. Lorenzo, who worked at Charles …

Supreme Court Weighs Liability for Sharing Fraudulent Securities Information

U.S. Supreme Court justices on Monday appeared reluctant to further limit the scope of who can be held liable for violating laws that protect investors from securities fraud as they weighed an appeal by a New York investment banker who …

Jury Convicts Press Release Hackers Involved in Illegal Trading Scheme

A federal jury in Brooklyn, New York on Friday convicted two men for their roles in an international scheme to make millions of dollars by illegally trading on corporate press releases that were stolen by computer hackers before they became …

Supreme Court to Hear Appeal Over Liability for Securities Fraud

The U.S. Supreme Court on Monday agreed to hear an appeal by a New York investment banker banned from the industry by the Securities and Exchange Commission in a case that could limit the scope of those who can be …

New York Insurance Broker Sentenced in $1M Fraud Scheme

An Albany insurance broker has been sentenced to nine years in prison for a $1 million securities fraud scheme. Lawrence D. Rosenbaum previously pleaded guilty to charges including grand larceny and securities fraud. He also admitted failing to file state …

Ex-CFO of Bankrupt Enron Offers D&O Lessons from Accounting’s ‘Gray’ Areas

Andrew Fastow, former chief financial officer (CFO) of Enron Corp., a now-defunct energy trading company swept up in a massive fraud scandal in the early 2000s, warned a room full of directors and officers (D&O) underwriters that some companies today …

Supreme Court Deals Blow to Insider Trading Prosecutors

The U.S. Supreme Court let stand a major insider-trading ruling that threatens at least 10 convictions and creates what the Obama administration calls a road map for securities fraud. Rejecting an administration appeal without comment, the justices refused to consider …

New York Drop of Damages Claim Against Greenberg Avoids Test of AG’s Power

When New York Attorney General Eric Schneiderman gave up a claim for damages against former AIG chief Hank Greenberg, he also likely neutralized a long-awaited challenge to his office’s power. New York’s highest court is scheduled to hear arguments later …