Tag: Insider trading

Written by FinCrime

Second Circuit Questions Use of Criminal Insider-Trading Statute Without Proof of Receipt of Personal Benefit

Reported by: Jonathan Richman The Second Circuit held yesterday that a government agency’s nonpublic, pre-decisional regulatory information does not constitute “property” for purposes of the federal insider-trading and wire-fraud statutes.  The decision in United States v. Blaszczak (2d Cir. Dec. 27, 2022) (“Blaszczak II”) effectively vacated convictions under those statutes for defendants who had traded on nonpublic, market-moving information […]

Written by FinCrime

US SEC Enforcement 2022 Year in Review

Reported by: Matthew Solomon, Robin Bergen, Tom Bednar, Cleary Gottlieb The SEC brought a total of 760 actions in fiscal year 2022, which included a total of 462 new “standalone” actions, up 6.5 percent from fiscal year 2021. The SEC obtained a total of $6.439 billion in monetary remedies, comprised of disgorgement, interest, and the […]

Written by FinCrime

Two Biotech CEOs Charged in Securities Fraud Schemes

Reported by: U.S. Department of Justice A federal grand jury in the District of Maryland returned an indictment that was unsealed today charging two men for their roles in schemes to defraud investors in CytoDyn Inc., a publicly traded biotechnology company (OTCQB: CYDY) based in Vancouver, Washington. According to court documents, Nader Pourhassan, 59, of […]

Written by FinCrime

SEC Awarded $229M to 103 Whistleblowers in 2022

Reported by: Vincent Ryan The Securities and Exchange Commission received 12,322 whistleblower tips in fiscal year 2022 — the most ever and a slight increase from 2021, according to its annual report to Congress. But allegations of cryptocurrency fraud continue to grow, from 289 in 2019, to 369 in 2020, 762 in 2021, and 1,718 in 2022. […]

Written by FinCrime

SEC Under Gensler: Crypto Power Grab or Effective Protection?

Reported by: SEBASTIAN SINCLAIR&DAVID CANELLIS The US Securities and Exchange Commission (SEC) has long been a thorn in the side of the crypto ecosystem — and chairman Gary Gensler represents the very tip. Gensler’s SEC has been more prolific in its crypto cases this year. In January, Gensler directed staff to figure out how to get “these […]

Written by FinCrime

Viatris Executive Charged in Insider-Trading Scheme Allegedly Netting Millions

Reported by: Dave Michaels A top technology executive at the healthcare company Viatris Inc. was charged with sharing illicit stock tips that netted millions of dollars for a friend who traded on them, according to the Justice Department. Ramkumar Rayapureddy, the global chief information officer at Viatris, shared undisclosed information about a regulatory drug approval, his employer’s financial […]

Written by FinCrime

Democratic representative discloses Big Tech stock sale before voting for bill that would rein in corporate power

Reported by: Gabe Kaminsky, Investigative Reporter Rep. Kathy Manning’s (D-NC) husband sold thousands worth of Big Tech stock shares before the congresswoman voted in favor of an antitrust bill that aims to rein in the power of these very companies, according to a financial disclosure.  Manning, one of the wealthiest members of Congress, disclosed on Sept. 12 that her husband, Randall […]

Written by FinCrime

3 Former CannTrust Executives Face Fraud, Insider Trading Charges

Reported by: Tony Lange Charges against three former cannabis executives in Ontario could set a legal precedent for publicly traded cannabis companies that fail to comply with provincial regulations—notably securities offenses—in Canada.  Legal proceedings are expected to begin Oct. 17 in the Ontario Court of Justice involving CannTrust Holdings Inc.’s (now doing business as Phoena […]