Securities Fraud

June 2, 2014

A federal jury convicted Michael Baker and Michael Gluk, the former CEO and former CFO of Texas-based medical device manufacturers ArthroCare Corp., for orchestrating a fraud scheme that resulted in shareholder losses of over $400M. Evidence at trial demonstrated that Baker and Gluk masterminded a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of...

SEC’s 23rd Whistleblower Award Goes to a “Company Outsider”

On Friday, January 15^th, the SEC made an award of more than $700,000 to a whistleblower the agency described as a “company outsider who conducted a detailed analysis that led to a successful SEC enforcement action.” The SEC’s whistleblower program explicitly provides for financial rewards to company outsiders by allowing “independent analysis” — even when based on publicly available information — to...

Even the Mysterious Must Face the Taxman: Australian Authorities Raid Home of Suspected Founder of Bitcoin

By Tim McCormack On December 9, police in Australia raided the home of a man suspected of being the elusive and previously anonymous creator of digital currency Bitcoin.  Launched in 2009 by an anonymous programmer known by the pseudonym Satoshi Nakamoto, Bitcoin has since grown exponentially.  Indeed, “[a]s it’s been adopted for everything from international money transfers to online narcotrafficking, the...

SEC Enforcement Spotlight – Bob Marley-Linked Jammin’ Java Charged with Massive Pump and Dump Fraud Scheme

By Tim McCormack The Securities and Exchange Commission filed fraud charges yesterday against nine people in connection with a classic pump and dump market manipulation scheme involving the stock of Jammin’ Java, also known as Marley Coffee.   See SEC Press Release.  According to the SEC’s complaint, Jammin Java’s former CEO Shane Whittle orchestrated the fraud, which culminated in 2011 with the collapse...

In Their Own Words -- Ceresney

--  “The Division’s hard work, tremendous energy, and efficiency uncovered significant misconduct during the past fiscal year, and helped bring a significant number of high-impact, first-of-their-kind actions.”

Andrew J. Ceresney, Director of the SEC’s Enforcement Division, commenting on the SEC’s 2015 Enforcement Results.

October 2, 2015

Constantine Cannon announces $1.86 billion settlement of In Re: Credit Default Swaps Antitrust Litigation, one of the largest private settlements related to the financial crisis, and for which the firm represented the lead class plaintiff, the Los Angeles County Employees Retirement Association.  Click here for more.

In Their Own Words — Lamprey

—  “We are gratified to see the interests of participants in the CDS market – including public pension funds investing on behalf of retirees – vindicated, and competition in this important market fostered.”  

Wayne Lamprey, partner at Constantine Cannon, who, along with fellow partner Anne Hayes Hartman, assisted with the initial evaluation and filing of the claim in the credit-default swaps market case...

$1.86 Billion Dollar Credit Default Swaps Settlement: One of the Largest Since the Financial Crisis

Constantine Cannon LLP is pleased to announce a $1.86 billion settlement of In Re:  Credit Default Swaps Antitrust Litigation, a major class action lawsuit. The case alleged that 11 of the world’s largest banks conspired to restrain competition in the credit default (CDS) market.  See yesterday's Wall Street Journal report.  Constantine Cannon LLP served as one of the counsel for Los Angeles County Employees...

Does Stock Crash Reveal Markets Are Rigged Against Small Investors?

By Tim McCormack and Wayne Lamprey The precipitous drop in the stock market on Monday, August 24, was particularly hard on small investors.  The Washington Post reports:

“Millions of these Main Street investors were locked out during the crucial hour when the worst hit, just as markets opened Monday. Popular trading platforms run by TD Ameritrade, Scottrade and others ran slow or not at all as panic grabbed...

SEC Enforcement Spotlight – ITG Pays Over $20 Million To Settle Charges Related To Its “Dark Pool”

Brokerage company ITG, Inc. and its affiliate AlterNet Securities will pay $20.3 million to settle charges that they operated a secret trading desk and misused the confidential trading information of dark pool subscribers.  See SEC Press Release. In 1987, ITG created POSIT, an alternative trading system or “dark pool,” for subscribers such as asset managers, broker-dealers, and institutional investors to...