Articles Posted in Securities Fraud

The recent news that the U.S. Department of Justice (DOJ) is disbanding its crypto unit and shifting focus from prosecuting platforms to targeting individuals who harm crypto investors or use digital assets for illegal activities may be seen as a sign of a significant sea change in the Government’s “regulation by prosecution” approach to financial…

Cryptocurrency has been at the forefront of debate between various law enforcement and regulatory efforts to impose stricter controls and regulations and those who view it as a form of currency that should not be closely regulated. Within the past two weeks, both the SEC and the Treasury Department have defended their enforcement actions and…

Federal regulatory and law enforcement agencies have been redirecting and expanding their resources to investigate and combat frauds involving crypto and other digital platforms. The SEC recently requested $200M from Congress to hire additional 170 new employees, many to focus on crypto-related cases. These new hires will include lawyers in the Division of Enforcement’s Crypto…

A recent high profile case highlights the federal government’s ability to seize a convicted defendant’s accounts to satisfy an Order of Restitution after a conviction at trial or a guilty plea. The Second Circuit recently held that the retirement funds of Evan Greebel, the former convicted attorney and Martin Shkreli’s codefendant, could be seized in…

The U.S. Securities and Exchange Commission (SEC) operates from its headquarters in Washington, D.C. and has 11 regional offices. It’s Division of Enforcement investigates cases and recommends to the Commission cases to be brought against individuals and entities. Investigations can begin through whistleblowers, news articles, referrals from other agencies, complaints from the public or data…

A form of white collar crime that most New Jersey residents have heard about and some have unfortunately become first-hand familiar with is the fraudulent investment scheme. This trap usually comes in the form of a purported investment opportunity that promises a return on investment that is the epitome of the saying, “Too good to…

Everyone who trades stocks ordinarily does so based on a combination of luck, speculation, and knowledge about a company. To keep the playing field level, the government is increasingly regulating what is known as “insider trading.” Insider trading centers around the idea of “inside information;” there are two criteria that an element of information must…

With the economic recession that began in 2008 came an attitude in New Jersey and throughout the country that was very hostile towards executives in large companies and people working within the financial industry. They were seen as reckless gamblers or greedy thieves that blatantly stole money from ordinary, honest people. The prevailing mood was…

Violations of any number of federal statutes have the potential to jeopardize a business and can, in many cases, result in individuals going to prison. In addition, restitution and forfeiture may be applicable. Below, we delve into some of the most commonly encountered federal business fraud statutes. The Foreign Corrupt Practices Act The Foreign Corrupt…