SEC Fines ‘Fantasy Sports for Stocks’ Company

The operator of a mobile phone app that allowed users to make “fantasy stock” picks has been charged with illegally offering security-based swaps.The Forcerank app has been described as “fantasy sports for stocks,” offering contests in which players would rank a group of stocks or exchange traded...

By Matthew Heller • Oct. 14, 2016

SEC Hit Record Enforcement Highs in 2016

It’s been a busy year for the SEC —  in fact, one of the busiest on record. The Securities and Exchange Commission announced its enforcement results for fiscal year 2016, posting record numbers for actions filed and money forfeited.The SEC filed 868 enforcement actions, in the year ending Sept. 3...

By Sean Allocca • Oct. 13, 2016

Court Finds Structure of CFPB Unconstitutional

A federal appeals court has ruled that the single-director structure of the Consumer Financial Protection Bureau is unconstitutional but stopped short of shutting the controversial agency down.The D.C. Circuit Court of Appeals said having a single director who can only be removed by the President...

By Matthew Heller • Oct. 12, 2016

Joint Ventures: Proceed with Caution

As joint venture agreements gain in popularity, corporate executives should be aware of the legal challenges and pitfalls that present themselves in these unique commercial arrangements.Jonathan Cogan The benefits of joint venture (JV) agreements are clear: They provide a framework for deeper col...

By Jonathan Cogan and Will Rosenzweig • Oct. 10, 2016

Mylan Underpaid U.S. on Rebates for EpiPen

Mylan NV underpaid the federal-state Medicaid program in rebates owed on sales of EpiPen by misclassifying the emergency allergic reaction treatment as a generic drug, according to a federal regulator.Andy Slavitt, acting administrator of the federal Centers for Medicare and Medicaid Services (CM...

By Matthew Heller • Oct. 6, 2016

Tenet Settles Kickback Charges for $513M

Tenet Healthcare has agreed to pay $513 million to settle charges that its hospitals in Georgia and South Carolina paid kickbacks to an operator of prenatal clinics in return for referrals.The hospital chain said Monday it had finalized a deal with the U.S. Department of Justice that resolves bot...

By Matthew Heller • Oct. 4, 2016

A Foreign Government Blocks a Huge Customer Payment. Now What?

[Editor’s note: the following is a fictional scenario.]It was 4:30 a.m. and the phone must have just rung five times, probably waking up everyone in the house. Bleary-eyed, I could see that the call was coming in from Jimmy Callaghan, chief operating officer of my company’s Latin America division...

By Marc Wagman • Oct. 3, 2016

Och-Ziff Settles Africa Bribery Case for $412M

In the first U.S. foreign bribery case against a hedge fund, Och-Ziff Capital Management Group has agreed to pay $412 million to settle charges that senior employees paid off government officials in Africa to secure business for the firm.Federal prosecutors in Brooklyn, N.Y., said Och-Ziff “posit...

By Matthew Heller • Sept. 30, 2016

Puma Biotech Exec Accused of Insider Trading

A former Puma Biotechnology executive has been charged with making more than $1.1 million in illicit profits by trading in the company’s shares ahead of positive news about its breast cancer drug.The U.S. Securities and Exchange Commission said Robert Gadimian, 46, learned sensitive, nonpublic in...

By Matthew Heller • Sept. 30, 2016

Merrill Lynch Fined $12M Over Flash Crashes

Merrill Lynch has agreed to pay $12.5 million to settle charges that it failed to prevent the transmission of erroneous trades, causing mini-flash crashes in the stocks of 13 companies including Google, Diageo, and Anadarko Petroleum.The U.S. Securities and Exchange Commission said Merrill’s inte...

By Matthew Heller • Sept. 27, 2016

Movie Execs Accused of Studio Complex Fraud

The former CEO of a would-be movie production company and his successor have been charged with falsely claiming they were building the largest film studio in North America and using investor funds to finance a “Hollywood lifestyle.”The U.S. Securities and Exchange Commission said Medient Studios ...

By Matthew Heller • Sept. 26, 2016

Regulator Launches Samsung Phone Recall

With research data showing initial warnings have not discouraged use of Samsung’s Galaxy Note 7, the U.S. Consumer Product Safety Commission has announced a formal recall of the fire-prone devices.Samsung itself launched an international recall Sept. 2 of 5 million units of the new high-end Note ...

By Matthew Heller • Sept. 16, 2016

Court Tosses Suit Over One-Star Rating on Yelp

In a victory for internet service providers, a federal appeals court has ruled that Yelp’s signature star-rating system does not make it liable for a negative review posted by a user.Section 230 of the Communications Decency Act (CDA) broadly protects ISPs from liability for content “created” by ...

By Matthew Heller • Sept. 14, 2016

New Rules Open Skies to Commercial Drones

The Federal Aviation Administration’s new rules for the drone industry have gone into effect, with the agency predicting a 30-fold increase in commercial flights within a year.There are 20,000 drones currently registered for commercial use in the U.S. but the new rules, which were finalized in Ju...

By Matthew Heller • Aug. 31, 2016

How to Mitigate the Threat of Ransomware

All too often, companies’ focus after being victimized by a ransomware attack is on the ransom paid, which is generally the most trivial outcome of the incident. From the perspective of a CFO, what goes unaccounted for in any meaningful way is the lost productivity, lost profits, harm to business...

By Michael R. Overly and Aaron Tantleff • Aug. 31, 2016

Green Tech Execs Accused of $6 Million Fraud

The two top executives of green technology firm Enviro Board have been charged with defrauding investors of $6 million by making bogus financial projections for a building materials product.The U.S. Securities and Exchange Commission said co-chairmen/CEOs Glenn Camp, 59, and William Peiffer, 62, ...

By Matthew Heller • Aug. 29, 2016

How Delaying Payments Can Help Suppliers

Extending payment terms to 120 days or more frees up working capital for big companies. But it can also increase the financial stress on suppliers and ultimately lead to increased product costs. Although the tactic has attracted much criticism, research underway at the Zaragoza Logistics Center, ...

By Spyros Lekkakos • Aug. 12, 2016

Ex-College Football Star Accused of $6M Fraud

Former University of Virginia linebacker Merrill Robertson and his partner in an investment firm have been charged with stealing $6 million in funds from investors, including football coaches at schools he attended, to finance their “luxurious” lifestyles.The U.S. Securities and Exchange Commissi...

By Matthew Heller • Aug. 11, 2016

Drug Investigator Accused of Insider Trading

A Connecticut cardiologist who was helping to conduct a clinical trial of a heart drug for Regado Biosciences has been charged with insider trading in the biotech firm’s shares.The U.S. Securities and Exchange Commission said Edward Kosinski, 68, traded on his advance notice of announcements rela...

By Matthew Heller • Aug. 5, 2016

Regulator Seeks Tougher Rules on Debt Collectors

The U.S. Consumer Financial Protection Bureau has proposed new rules for the debt collection industry that include limiting collectors’ communications with debtors.While the industry is already regulated by the Federal Trade Commission under the Fair Debt Collection Practices Act, the CFPB has pe...

By Matthew Heller • July 29, 2016

Treasury Chief Lauds Dodd-Frank

In a statement celebrating the six-year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, U.S. Treasury Secretary Jacob Lew today praised the “resilience” of the reformed financial system in the face of episodes of market volatility triggered by Brexit and other events...

By David Katz • July 21, 2016

Herbalife to Revamp Distributor Compensation

Herbalife has agreed to refund $200 million to consumers and revamp its compensation system as part of a settlement of charges that it made false promises to distributors about how much money they could make.The U.S Federal Trade Commission alleged in a consumer fraud complaint that the multi-lev...

By Matthew Heller • July 15, 2016

‘Frack Master’ Accused of $80M Investment Scam

Texas oilman and TV pundit Chris Faulkner has been charged with orchestrating a “massive” scheme to defraud investors in more than 20 oil and gas prospects and using at least $30 million of the proceeds to finance a “lifestyle of decadence and debauchery.”The U.S. Securities and Exchange Commissi...

By Matthew Heller • June 27, 2016

Analogic Accused of Improper Foreign Payments

Medical device manufacturer Analogic Corp. has agreed to pay nearly $15 million to settle charges that its Danish subsidiary engaged in a scheme with distributors in Russia and other countries to make improper payments to third parties.The U.S. Securities and Exchange Commission on Tuesday said t...

By Matthew Heller • June 22, 2016

Home Depot Joins Battle Over Chip Card Security

Home Depot has opened a new front in an escalating battle between retailers and credit card issuers over chip-based payment cards, accusing Visa and MasterCard of putting profits ahead of consumer security.The credit card giants and their member banks, Home Depot said in an antitrust lawsuit file...

By Matthew Heller • June 16, 2016