Archive

Top 5 CFTC Recoveries for 2024

From our recent survey of top SEC fraud recoveries this past year, we found it was not an especially standout year for the securities regulator in terms of big-dollar hauls.  It was not necessarily a banner year for the Commodity Futures Trading Commission (CFTC) either in terms of its fraud recoveries.  Only five of them brought in 9-digit amounts or higher. But the Number 1 hit -- the eye-popping $12.7 billion...

Top 10 SEC Recoveries for 2024

It was not necessarily the biggest year for Securities and Exchange Commission (SEC) securities fraud recoveries, with only a handful in the hundred-million-dollar range and only one in the billions.  But it was a very active year nonetheless, with the SEC under Gary Gensler pursuing a very aggressive approach to enforcing the securities laws. With Gensler's recent departure, and Paul Atkins taking the reins, all...

More Cybercriminals Pay Steep Price for Running Crypto Scams and Laundering Cash

The government has already ramped up its efforts in 2025 to tackle cryptocurrency fraud and associated money laundering schemes with several recent enforcement actions. Cybercriminals exploit digital currency investment hopefuls. Their scams come in myriad forms such as ransomware attacks and virtual currency thefts, and the criminals use complex tactics to conceal their crimes to fuel their stolen profits. As...

A $1B+ Fraud Conspiracy: Yvette Wang Sentenced To 10 Years in Prison

Federal prosecutors continue the crack down on fraudsters that prey on innocent investors. On January 6, Daniel M. Gitner, Chief, Criminal Division, in the United States Attorney’s Office for the Southern District of New York, announced that Yvette Wang a/k/a “Yanping” was sentenced to 10 years in prison for conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition to Wang’s prison...

$4.3B! DOJ Announces 10th and Final Distribution of Financial Recovery to 40,000+ Madoff Ponzi Scheme Victims

On December 30, 2024, the government shared an important update on its Madoff Ponzi Scheme victim recovery distribution efforts. The Madoff Victim Fund (MVF) shelled out over $131.4 million to victims in its 10th and final round of distributions to victims of the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme. These funds will be distributed to over 23,000 victims around the world. With the...

What a sham(e)! Two Defendants Sentenced to Prison for Cryptocurrency Ponzi Scheme “IcomTech”

United States Attorney for the Southern District of New York, Damian Williams, announced that defendants David Brend (50, of Tampa, Florida) and Gustavo Rodriguez (48, of North Hollywood, California) were sentenced to prison for 10 years and 8 years, respectively, for their involvement in a cryptocurrency Ponzi scheme named IcomTech. The sentences were given by the Honorable Jennifer L. Rochon after a two-week trial...

SEC Announces Settled Charges Against Pharma Company and Executives for Misleading Investors about FDA Clinical Review of Drugs

The SEC continues to go after pharmaceutical companies for securities law violations in connection with misleading investors.  The most recent example is the SEC’s settled charges against a publicly traded biotherapeutics company called Kiromic BioPharma, Inc. (KRBP), the company’s former CEO, and its former chief financial officer. In this case, Kiromic was working on developing two cancer fighting drugs...

CFTC Issues Annual Whistleblower Report Highlighting Continued Success of CFTC Whistleblower Program

As it is required to do every year, the Commodity Futures Trading Commission (CFTC) just released its Annual Report on the CFTC Whistleblower Program, which provides rewards and protections to whistleblowers providing the agency with information on Commodities Exchange Act violations.  The 2024 Report covers the period from October 1, 2023 through September 30, 2024 and as with its previous annual reports, details...

Former Executives Sentenced for $1B Corporate Fraud Scheme  

Last week, three former executives of Outcome Health, a Chicago-based health technology start-up, were sentenced for a massive fraud scheme in which they deceived clients, lenders, and investors, resulting in approximately $1 billion in fraudulently obtained funds.   Rishi Shah, 38, co-founder and former CEO of Outcome Health, received a sentence of seven years and six months in prison. Shradha Agarwal, 38,...

Swiss-Based Commodities Trading Company Pays $661 Million for FCPA Violations

Last Friday (March 1), the Department of Justice (DOJ) announced that Swiss-based international commodities trading company Gunvor S.A. pleaded guilty and agreed to pay roughly $661 million to settle charges of violating the Foreign Corrupt Practices Act (FCPA).  The DOJ's action stemmed from Gunvor's scheme to bribe Ecuadorean officials to secure business with Ecuador’s state-owned oil company Petroecuador. The...