Securities fraud

Machine Learning Startup Was a Sham, Says SEC
Technology

Machine Learning Startup Was a Sham, Says SEC

Founder Shaukat Shamim "drummed up interest in [YouPlus] by providing false information about its financial performance and customer base."
By Vincent Ryan | July 20, 2020
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Securities Fraud Class Actions Spike Again
Risk & Compliance

Securities Fraud Class Actions Spike Again

Cases filed since the beginning of 2017 represent more than 20% of all such cases filed since 1997.
By David McCann | August 1, 2019
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Ex-Playgirl Owner Accused of $287M Fraud
Risk & Compliance

Ex-Playgirl Owner Accused of $287M Fraud

Carl Ruderman allegedly used a substantial amount of the funds raised for a cash-advance business to support his own lavish lifestyle.
By Matthew Heller | August 30, 2018
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Ex-Healthcare CFO Accused of $309M Fraud
Risk & Compliance

Ex-Healthcare CFO Accused of $309M Fraud

Sotirios “Sam” Zaharis and two other former Constellation Healthcare execs allegedly duped investor Chinh Chu into acquiring the company for $309 million.
By Matthew Heller | May 17, 2018
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SEC Says Centra Tech ICO Was a $32M Fraud
Risk & Compliance

SEC Says Centra Tech ICO Was a $32M Fraud

The startup's co-founders spun a "web of lies" to deceive investors into participating in its initial coin offering, according to an SEC lawsuit.
By Matthew Heller | April 4, 2018
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Lawyer Accused of Shell Company Stock Fraud
Risk & Compliance

Lawyer Accused of Shell Company Stock Fraud

David Lubin allegedly participated in a scheme that realized $34 million in illicit proceeds from the sale of shares in a company he co-founded.
By Matthew Heller | July 20, 2017
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Man Accused of Making Phony Bid for Fitbit
Risk & Compliance

Man Accused of Making Phony Bid for Fitbit

Robert Murray allegedly gamed the SEC's EDGAR system to submit a tender offer for the company, enabling him to manipulate Fitbit's stock price.
By Matthew Heller | May 22, 2017
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Ex-Dewey & Leboeuf CFO Convicted of Fraud
Risk & Compliance

Ex-Dewey & Leboeuf CFO Convicted of Fraud

Joel Sanders was accused of plotting to conceal the New York law firm's losses before it went bankrupt in 2012.
By Matthew Heller | May 9, 2017
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Pot Entrepreneur Fined $12M in Fraud Case
Risk & Compliance

Pot Entrepreneur Fined $12M in Fraud Case

Vincent Mehdizadeh allegedly used the proceeds from illegal stock sales to inflate the revenue of his marijuana vending machine company.
By Matthew Heller | March 10, 2017
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808 Renewable Energy CEO Charged With Fraud
Risk & Compliance

808 Renewable Energy CEO Charged With Fraud

Patrick Carter allegedly misappropriated about half of the more than $30 million that his firm raised from investors between 2009 and 2014.
By Matthew Heller | November 18, 2016
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Promoter Accused of $2M Shell Company Scam
Risk & Compliance

Promoter Accused of $2M Shell Company Scam

The SEC says Sheldon Rose sold more than a dozen blank check companies disguised as promising startups to investors.
By Matthew Heller | September 22, 2016
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Ex-CFO of REIT Accused of Inflating Key Metric
Risk & Compliance

Ex-CFO of REIT Accused of Inflating Key Metric

American Realty Capital Partners' former CFO Brian Block allegedly manipulated the calculation of adjusted funds from operations.
By Matthew Heller | September 9, 2016
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Drug Investigator Accused of Insider Trading
Risk & Compliance

Drug Investigator Accused of Insider Trading

The SEC says cardiologist Edward Kosinski traded in the shares of Regado Biosciences based on his knowledge of a heart drug trial.
By Matthew Heller | August 5, 2016
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Texas AG Accused Over Promotion of Tech Stock
Technology

Texas AG Accused Over Promotion of Tech Stock

The SEC says Ken Paxton hyped Servergy to investors without disclosing he had been paid for his promotional efforts.
By Matthew Heller | April 11, 2016
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Scottish Man Accused of Stock Fraud by Tweet
Social Media

Scottish Man Accused of Stock Fraud by Tweet

U.S. authorities say James Craig caused more than $1.6 million in losses to investors by falsely tweeting that companies were under investigation.
By Matthew Heller | November 6, 2015
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