News & Analysis as of

Fraud

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Sheppard Mullin Richter & Hampton LLP

DOJ Civil Rights Fraud Initiative Will Use the False Claims Act to Target Antisemitism and DEI Programs

At the end of May, the Department of Justice (DOJ) announced the formation of a Civil Rights Fraud Initiative to “utilize the False Claims Act to investigate and, as appropriate, pursue claims against any recipient of federal...more

Perkins Coie

European Response to DOJ’s Changes in FCPA Enforcement

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In recent months, the U.S. Department of Justice (DOJ) has hit “pause” on enforcement of the Foreign Corrupt Practices Act (FCPA) and reoriented its other enforcement priorities away from investigating and prosecuting...more

Troutman Pepper Locke

Troutman Pepper Locke Weekly Consumer Financial Services Newsletter – June 2025 # 2

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week....more

Ballard Spahr LLP

FTC takes action against student loan debt relief companies

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The FTC has recently taken action against two student loan debt relief companies and their owners....more

Orrick, Herrington & Sutcliffe LLP

Navigating Regulation E Risk in Banking as a Service Models

In the consumer deposits and payments products space, the banking as a service (BaaS) model creates significant opportunities for fintech innovation and consumer choice — but BaaS arrangements have also drawn the attention of...more

Paul Hastings LLP

SEC Concept Release on Foreign Private Issuer Eligibility: A Portent for the Foreign Private Issuer Regulatory Framework?

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On June 4, 2025, the SEC published a concept release in which the agency analyzes trends related to foreign private issuers (FPIs) and solicits extensive feedback regarding whether and how the definition of FPI should be...more

Farella Braun + Martel LLP

Fraud Risks in Nonprofit Organizations: Building an Effective Framework of Internal Controls

Fraud prevention is a critical issue for nonprofit organizations. Without the right safeguards, fraud can severely damage an organization’s reputation and financial health. Nonprofits, particularly those that grow rapidly or...more

Farella Braun + Martel LLP

Fraud Risks in Nonprofit Organizations: Learning From Real-Life Case Studies

The Washington Post (2013) found that one-sixth of all embezzlement cases in the U.S. involve nonprofit and religious organizations, ranking just behind the financial sector. This statistic is jarring but not entirely...more

Troutman Amin LLP

SCAMMERS OR DUMMIES?: Selling Limited Benefits Plans to Consumers Seeking Health Insurance Lands Four Dudes In Hot Water–BUT Are...

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The lead generation industry is fascinating. If there is one over arching mantra it is this– monetize all data available. And sometimes that can get folks into BIG trouble, especially when lead buyers end up pitching...more

Foley & Lardner LLP

Customs Fraud Makes the Big Leagues: DOJ’s New White-Collar Priorities Confirm Heightened Risk

Foley & Lardner LLP on

Last month, the Department of Justice put trade, customs, and tariff fraud squarely in the spotlight. This isn’t just another line item on the compliance checklist, it’s a loud-and-clear signal that import-related enforcement...more

Poyner Spruill LLP

The Sovereign Citizen Movement and Potential Impacts on Lending Institutions

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The “Sovereign Citizen Movement” is a term used to describe the growing number of individuals who deny the authority and / or legitimacy of the U.S. government. While the “SovCit” movement originated decades ago, there...more

Troutman Pepper Locke

Will DBE Fraud Continue to Be Prosecuted? The Impact of the Kousisis Decision in the Shifting Affirmative Action Landscape

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On May 22, the Supreme Court in Kousisis, et al., v. United States, affirmed the convictions of a painting subcontractor and its owner (defendants) under the federal wire fraud statute for conspiring to defraud the Department...more

Akin Gump Strauss Hauer & Feld LLP

Atkins-led SEC Recognizes that Conflicts of Interest must be “Material” in Complaint alleging Fraud and Breaches of Fiduciary...

SEC v. Nagler is the second enforcement action charging an investment adviser with undisclosed conflicts of interest since Chair Paul Atkins began his tenure on April 21, 2025. The Securities and Exchange Commission (SEC)...more

Orrick, Herrington & Sutcliffe LLP

Second Circuit sides with bank in FCRA case

On May 28, the U.S. Court of Appeals for the Second Circuit affirmed a judgment issued by a district court judge in U.S. SDNY dismissing a plaintiff-appellant’s claims under the FCRA for allegedly failing to reasonably...more

Orrick, Herrington & Sutcliffe LLP

Iowa enacts new digital asset kiosk law

Recently, the governor of Iowa signed into law SF 449, enacting new legislation to regulate digital financial asset transaction kiosk operators. The new law stipulates that such operators must not dispense more than $1,000 to...more

Farella Braun + Martel LLP

Which Party Loses Out When Settlement Funds Are Wired to a “Spoofer” and Not Plaintiff?

Answer: the “party in the best position to prevent the fraud.” In the digital age, where cyber-attacks are becoming more sophisticated, all legal professionals should take heed of the recent decision in Thomas v. Corbyn...more

Perkins Coie

US Supreme Court Adopts Expansive “Fraudulent Inducement” Theory of Wire and Mail Fraud

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As we previously reported, last month, the Supreme Court of the United States in Kousisis v. United States roundly endorsed the expansive “fraudulent inducement” theory of federal wire and mail fraud. Resolving a circuit...more

Robinson+Cole Data Privacy + Security Insider

Privacy Tip #446 – Department of Motor Vehicles Warns Drivers About Smishing Text Surge

Smishing schemes involving Departments of Motor Vehicles nationwide have increased. Scammers are sending SMS text messages falsely claiming to be from the DMV that “are designed to deceive recipients into clicking malicious...more

Latham & Watkins LLP

Recent Developments for UK PLCs June 2025

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On 3 June 2025, the Financial Reporting Council (FRC) published the UK Stewardship Code 2026. The new Code, effective from 1 January 2026, aims to foster long-term sustainable value creation and improve engagement quality...more

Goldberg Segalla

Fraud Doesn’t Pay in New York – May 2025 Update

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As a part of our quarterly practice group update, we are pleased to produce our latest installation with examples of our continued success in fraud litigation. This is our fourth year of this publication, and in February...more

Lathrop GPM

California Federal Court Enforces Hotel Franchisor’s Arbitration Provision and Compels Arbitration

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A federal court in California recently granted a franchisor’s motion to compel arbitration and stay the lawsuit in a dispute alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and...more

Lowndes

Trademark Scam Emails: Why You Shouldn’t Panic

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A trademark scam is making the rounds targeting business owners through emails from varying businesses marketing trademark legal services. These emails falsely claim that another party is planning to register the recipient’s...more

Venable LLP

Venue Fatal in Crypto Fraud Case: An Important Legal Challenge Relating to Decentralized Platforms

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On May 23, 2025, the District Court for the Southern District of New York (SDNY) overturned a jury verdict against Mango Markets trader Avraham Eisenberg, granting a motion for judgment of acquittal based on venue...more

A&O Shearman

ESMA calls on platform providers to combat unauthorised financial promotions

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The European Securities and Markets Authority (ESMA) has issued written letters to several major social media and platform companies—including X, Meta, TikTok, Alphabet, Telegram, Snap, Amazon, Apple, Google and Reddit—urging...more

Porter Hedges LLP

SEC Shifts Focus to “Rooting Out” AI Abuse

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The Securities and Exchange Commission (SEC) has recently focused on “rooting out” the misuse of artificial intelligence (AI) by publicly traded companies and brokerage firms. On February 20, 2025, the SEC established the...more

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