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Securities Fraud Criminal Prosecution Department of Justice (DOJ)

White & Case LLP

DOJ’s Novel Application of Insider Trading to 10b5-1 Plans Leads to Conviction

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In April, we issued an alert discussing the U.S. Securities and Exchange Commission ("SEC") and Department of Justice’s ("DOJ") expansion of insider trading to 10b5-1 plans. On June 21, 2024, a federal jury in California...more

BCLP

Conviction of Insider in Connection with 10B5-1 Trading Plan

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As discussed in our March 3, 2023 post, the DOJ and SEC brought an insider trading case against the founder and former CEO and Executive Chairman of Ontrak, Inc. based upon the former executive failing the “clean hands”...more

Kohn, Kohn & Colapinto LLP

Department of Justice Secures Conviction in First Insider Trading Prosecution Based Exclusively on the Use of Rule 10b5-1 Trading...

On June 21, a jury in the U.S. District Court for the Central District of California found the former CEO and Chairman of Ontrak, Inc., a publicly traded healthcare company guilty on one count of securities fraud and two...more

Lathrop GPM

United States Department of Justice and United States Securities and Exchange Commission Jointly Target FAT Brands, Its Founder,...

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On May 10, 2024, the DOJ announced criminal indictments and the SEC filed a civil lawsuit for alleged securities fraud against FAT Brands and related persons....more

BakerHostetler

Weekly Blockchain Blog - May 2024

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Fintech and Crypto Firms Announce New Cryptocurrency Products - According to recent reports, a major U.S. fintech firm will begin letting its users accept payments in USDC. ...more

Benesch

White Collar Quarterly Report | Q1 2024

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We are thrilled to introduce the inaugural issue of our quarterly White Collar newsletter, a dedicated resource from Benesch’s White Collar, Government Investigations & Regulatory Compliance Practice Group. Each issue...more

Polsinelli

Blockchain+ Bi-Weekly - November 2023 #2

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The Blockchain Bi-Weekly presented by the Polsinelli Blockchain+ team is a rundown of some of the key stories in the Web3, blockchain and crypto ecosystems curated by our attorneys navigating the intersections of code, smart...more

ArentFox Schiff

Investigations Newsletter: DOJ’s First Criminal Securities Fraud Prosecution Related to COVID-19 Results in Eight-Year Sentence

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DOJ’s First Criminal Securities Fraud Prosecution Related to COVID-19 Results in Eight-Year Sentence - Mark Schena, the former president of Arrayit Corporation, a Silicon Valley-based medical technology company, was...more

Morgan Lewis

US Government Continues to Crack Down on Insider Trading with Four Coordinated Actions

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The US Securities and Exchange Commission (SEC) and Department of Justice (DOJ) on June 29, 2023 brought insider trading charges against several defendants in four proceedings. The insider trading cases demonstrate key focus...more

Vedder Price

SEC and DOJ Announce Four New Insider Trading Cases Against Multiple Defendants

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On Thursday, June 29, 2023, the Securities and Exchange Commission (SEC) announced the filing of four civil insider trading cases involving a variety of alleged insider trading violations. These cases were brought against a...more

BakerHostetler

DOJ Brings First-Ever Indictment for Insider Trading Based on Use of a Rule 10b5-1 Plan

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On Wednesday, March 1 the Department of Justice (DOJ) announced its first-ever prosecution of an individual for insider trading based on an executive’s use of 10b5-1 trading plans. Terren Peizer, the executive chairman of...more

BCLP

Criminal indictment of Executive Chairman and parallel civil charges show Feds' willingness to challenge Rule 10b5-1 trading plans

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The Justice Department recently indicted the Executive Chairman of Ontrak, Inc. alleging that he failed the “clean hands” requirement because he had been aware of material nonpublic information relating to the potential loss...more

Cadwalader, Wickersham & Taft LLP

DOJ, SEC and CFTC Announce Parallel Criminal and Civil Charges Against Sam Bankman-Fried, FTX Trading and Alameda Research

On December 13, the U.S. Attorney’s Office for the Southern District of New York (the “U.S. Attorney’s Office”), the U.S. Securities and Exchange Commission (the “SEC”), and the U.S. Commodity Futures Trading Commission (the...more

Freeman Law

A Crypto Quagmire: Civil and Criminal Charges Filed against a Coinbase Manager for Insider Trading of Securities

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Recently the SEC filed suit for insider trading of securities against a high-level employee at the popular crypto exchange, Coinbase. The SEC filed its civil suit in Seattle on July 22, 2022, against and his co-conspirators....more

Polsinelli

Concerning Questions Raised by SEC Action Against Former Coinbase Employee

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On July 21, 2022, the Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) each alleged insider trading violations against a former Coinbase employee, his brother, and another alleged acquaintance...more

A&O Shearman

U.S. Investment Firm Enters $6 Billion Parallel Resolutions With DOJ And SEC Over Allegations Of Fraudulent Conduct By Employees...

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On May 17, 2022, the U.S. Department of Justice (“DOJ”) and the U.S. Securities and Exchange Commission (“SEC”) announced parallel resolutions with a registered investment advisor (the “Advisor”), resolving criminal and civil...more

Goodwin

Northern District of Illinois Grants Motion for Partial Reconsideration of Summary Judgment Decision Regarding Whether Former...

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Northern District of Illinois Grants Motion for Partial Reconsideration of Summary Judgment Decision Regarding Whether Former Walgreens CFO’s Statements Were Actionable; Securities Fraud Claims Against Chicken Producer for...more

Womble Bond Dickinson

“Carrots & Sticks”: Individual Accountability in Corporate Criminal Enforcement Remains a Top DOJ Priority

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On March 3, 2022, at the 37th Annual American Bar Association Criminal Justice Section National Institute on White Collar Crime in San Francisco, Attorney General Merrick B. Garland emphasized that “the prosecution of...more

White & Case LLP

How to Manage the Risks of SPAC Securities Fraud Actions in 2022

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In March 2021, White & Case published a client alert entitled "How SPACs Can Manage the Risks of White Collar Scrutiny." The article discussed the surge in interest and publicity surrounding "SPACs" (Special Purpose...more

The Volkov Law Group

NatWest Markets Pleads Guilty and Agrees to Pay $35 Million for Fraudulent “Spoofing” Scheme (Part I of II)

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The Department of Justice secured a guilty plea from NatWest Markets, the newly-named Royal Bank of Scotland, for trade manipulation, referred to as “spoofing,” in U.S. Treasury markets. The NatWest resolution reflected new...more

Polsinelli

Automata - SEC Files Suit Against “Robotic” Cryptocurrency Multi-Level Marketing Scheme

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The U.S. Securities and Exchange Commission (SEC) charged two promoters for acting as unregistered brokers.  The SEC action was filed in tandem with a criminal indictment by the U.S. Department of Justice against the same...more

Troutman Pepper

It’s All Hands on Deck in Prosecuting COVID-19 Fraud

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As scientists around the globe team up to discover and develop treatments and vaccine candidates for COVID-19, we are also seeing unprecedented speed and coordination in the effort to quell a different kind of virus — the...more

Dorsey & Whitney LLP

The Convergence: Feds Level First Hybrid Healthcare- and Securities-fraud Charges Arising from COVID-19 Marketing and Sales

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In what may be the beginning of a wave of enforcement actions, the Justice Department charged an organization and its leadership with dual healthcare and securities fraud charges. The prosecution underscores the risks facing...more

Mintz - Health Care Viewpoints

DOJ Announces Criminal Charges against Lab Executive Accused of Fraudulently Promoting COVID-19 Tests

The Department of Justice (DOJ) has announced its first criminal securities fraud prosecution related to COVID-19, and it involves health care fraud as well. Mark Schena, president of Arrayit Corporation, a publicly traded...more

ArentFox Schiff

Four Physicians Found Guilty for Role in $150 Million Medicare Fraud Scheme

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Headlines that Matter for Companies and Executives in Regulated Industries - DOJ News - Four Physicians Found Guilty for Role in $150 Million Medicare Fraud Scheme - Following a four-week trial, a federal jury in...more

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