Archive

UPDATE: Continued Legal Challenges for Former Startup CEO Charged with Fraud

By the Constantine Cannon Whistleblower Team A few months ago, this blog posted on a trio of startup scandals related to Theranos, Frank, and IRL.  The post discussed the legal problems that can arise when “fake-it-till-you-make-it” startup culture crosses the line, and it highlighted the crucial role whistleblowers can play in uncovering fraud.  Recent developments indicate continued legal troubles for the...

Judge Meg Ryan Named SEC Director of Enforcement -- What It Means For SEC Whistleblowers

By the Constantine Cannon Whistleblower Team

An Unconventional Pick to Lead SEC Enforcement

Last Thursday (August 21), the Securities and Exchange Commission (SEC) announced that Judge Margaret “Meg” Ryan will become the new SEC Director of Enforcement.¹  She will take over for Acting Enforcement Director Sam Waldon, who will return to his prior post of SEC Chief Counsel.  Judge Ryan’s appointment is a...

A Case Over $14M Whistleblower Award Serves as a Reminder of Benefits and Risks of Co-Whistleblowers Working Together

By the Constantine Cannon Whistleblower Team There is often strength in numbers.  Two or more whistleblowers working together can be a potent combination to bring truth to light.  Each may bring unique knowledge and information, and together the co-whistleblowers can reveal a broader scope or clearer picture of the fraud and improve the chances of a successful outcome – in other words, the whole can be greater...

UPDATE: DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities – Case Ends with Conviction

By the Constantine Cannon Whistleblower Team Guity Verdict for Former CEO of Crypto and Blockchain Company SafeMoon In an earlier article, we wrote about how federal prosecutors in the Eastern District of New York reaffirmed their intent to pursue criminal fraud charges against Braden John Karony, the former CEO of the cryptocurrency and blockchain company SafeMoon.  As we previously analyzed, the decision to...

SEC Charges Founder of Crypto Asset and Foreign Exchange Trading Company with $198 Million Fraud Scheme

By the Constantine Cannon Whistleblower Team On April 22, 2025, the Securities and Exchange Commission charged Ramil Palafox, the founder of PGI Global, with orchestrating a $198 million fraud scheme that preyed upon international investors. He also allegedly misappropriated over $57 million of investor funds to purchase luxury items, including Lamborghinis. As in a classic Ponzi scheme, the remaining funds were...

DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities

Despite a memorandum signaling the DOJ under Trump Administration will scale back certain enforcement actions involving cryptocurrency and digital assets, federal prosecutors in the Eastern District of New York recently reaffirmed the DOJ’s intent to pursue criminal fraud charges against Braden John Karony, the former CEO of the cryptocurrency and blockchain company SafeMoon. The Charges Against SafeMoon’s...

Former CEO of e-Commerce App nate Charged with Securities Fraud for Allegedly False Claims About AI

By the Constantine Cannon Whistleblower Lawyer Team This year, we’ve been tracking the notable spike in enforcement actions concerning AI washing or other AI-related fraud. These types of schemes generally involve an individual or company allegedly deceiving investors with misstatements or omissions about AI use or capabilities to make the company appear better than it is. Another such enforcement action came...

Startup Scandals and the Risks of “Fake-It-Till-You-Make-It” Culture

By the Constantine Cannon Whistleblower Team Startups and entrepreneurs should be admired. It takes courage to go out on your own, take big risks, and try to bring a new idea to market. They have an unrelenting drive to succeed. But there are very real legal risks when that drive leads to a “fake-it-till-you-make-it” culture that crosses the line. In recent years, the government has cracked down on these types...

Not OK! Cryptocurrency Exchange Platform OKX Violated U.S. Anti-Money Laundering Laws and Will Pay $504M+ in Penalties

OKX, the largest international cryptocurrency exchange platform, hosts transactions totaling billions of dollars each day where users can place orders for spot trades in over three hundred cryptocurrencies like Bitcoin and Ethereum, in addition to ordering derivative products tied to cryptocurrencies’ value. On February 24, the government announced that the Seychelles-based company, Aux Cayes Fintech Co. Ltd,...

Top FCPA Recoveries for 2024

The Foreign Corrupt Practices Act (FCPA) bars paying foreign officials for any kind of business advantage, such as securing government contracts or other kinds of favorable business treatment.  The statute covers any form of consideration including gifts, meals, travel, and entertainment.  It also imposes strict record-keeping and internal control requirements to prevent falsifying company books and records to...