Investors who successfully withdrew money before the collapse of Bernard Madoff's mammoth Ponzi scheme should pay back $150 million to offset the losses of other investors, according to a lawsuit filed by Madoff Investment Securities trustee Irving Picard.
A group of banks agreed to a $586 million settlement with a group of investors after nearly a decade of negotiations. The investors sued over bank requirements that allegedly served to artificially inflate stock prices during the IPOs of tech companies.
The American Medical Association, a leading advocacy association for doctors and patients, is suing WellPoint, the nation's largest health insurance provider. The suit is the latest in a series against insurance providers alleging price-fixing to maximize profits.
Maurice Greenberg, former CEO of foundering insurance giant AIG, is suing the company for securities fraud. He claims the company's misrepresentations led him to acquire its stock at an artificially inflated price as part of his executive compensation plan.
Bernard L. Madoff, a prominent stock trader and fixture on Wall Street for more than four decades, was arrested at his Manhattan home on Thursday, December 11 by federal agents and charged with defrauding investors of billions of dollars.
New York Stock Exchange regulators today banned stockbroker Charles Winitch from working for member firms for a period of five years after he pocketed over $100,000 making unauthorized trades using the accounts of injured children.
Judge Kenneth Karas has ordered convicted swindler Samuel Israel to undergo a thorough evaluation in order to determine whether or not Israel is competent to plead guilty to bail-jumping charges.
Nakami Chi Group Ministries International co-owner Gregg Wolfe has admitted the business took millions in investment funds from church groups and used new investors’ money to make interest payments and cover their tracks.
A former pastor from Colorado Springs has been ordered to pay $1.4 million and serve 15 years' probation for his role in a scam that defrauded investors of more than $12 million.
Read the qui tam glossary to find definitions of terms relating to qui tam, the Federal False Claims Act, and whistleblowers.
Qui tam is a stipulation of the Federal False Claims Act that allows private citizens, also known as whistleblowers, to bring a lawsuit on behalf of the government against persons who use government funds in a fraudulent way. Contact a qui tam attorney today if you feel you have a potential case.
Qui tam is a provision of the Federal False Claims Act that allows private citizens to bring a lawsuit on behalf of the government against persons who use government funds in a fraudulent way.
Qui tam suits are filed quite often, and with steadily increasing frequency since the False Claims Act Amendment in 1986.
Procurement fraud refers to deception for personal profit within the process of government contracting for goods and/or services.
Originally, healthcare fraud was defined as deceptive means used by an organization to profit from government healthcare agreements. That definition has more recently been extended to include unreasonable ignorance of the rules.
According to the Department of Justice (DOJ), over $3 billion has been recovered in qui tam lawsuits since 1986. More than half of those recoveries have involved healthcare fraud.
An Amendment to the Federal False Claims Act that was passed in 1986 greatly improved the qui tam award to the relator, or whistleblower.
A whistleblower is an individual who informs the government or other authorities of information that he or she believes constitutes a prohibited act.
Qui tam is a legal principle found in the Federal False Claims Act that allows any person, including corporations, known as whistleblowers, to bring a lawsuit on behalf of the government against anyone who uses government funds in a fraudulent way.
Qui tam allows private citizens, also known as whistleblowers, to bring a lawsuit on behalf of the government against persons who use government funds in a fraudulent way. Contact a qui tam attorney today if you feel you have a potential case. A qui tam lawyer can review your case and advise you of your legal options.
Read about some prominent securities fraud cases – including those involving Adelphia, iVillage, Global Crossing, and InfoSpace - that have been in the news.
Executives at telecommunications giant WorldCom perpetrated accounting fraud that led to the largest bankruptcy in history. The fraud was revealed to the public in June 2002 and WorldCom filed for bankruptcy in July 2002.
Wachovia offers banking and investment services to individuals and businesses. When Wachovia purchased Corporate Securities Group it inherited a dispute between the investment group and one of its former clients, which led to a securities fraud lawsuit being filed against the group.
The Swiss company UBS Warburg merged with PaineWebber in 2000 in an effort to enter into the US investment market. The company was one of ten firms targeted for securities fraud in recent investigations by the New York Attorney General, SEC, NASD, and other federal regulators.
Tyco manufactures a wide variety of products, from electronic components to healthcare products. During 2002, the Securities and Exchange Commission began an investigation of Tyco's top executives. Inquiries into the accuracy of the company's books began in January.
U.S. Bancorp Piper Jaffray was one of ten firms that settled in April of 2003 with the Securities Exchange Commission and other federal regulators. This was not the first regulatory action taken against Piper Jaffray. It was preceded by a number of other fines for violations on the part of the firm.
Salomon Smith Barney is the investment banking division of Citigroup. Investigations that focused on the integrity of Smith Barney’s telecom ratings were launched, resulting in a $400 million securities fraud settlement.
Morgan Stanley finalized two settlements with regulators of the securities industry. In December of 2002 Morgan Stanley was fined $1.65 million, and in April of 2003 it agreed to a separate $125 million securities fraud settlement.
The bullish ratings given by Merrill Lynch analysts to floundering Internet companies led Eliot Spitzer, New York’s Attorney General, to suspect the company of securities fraud.
During recent investigations into the reliability of Lehman Brothers’ stock ratings, emails were found that recorded analysts acknowledging inconsistencies between their ratings and the values of the companies they were evaluating.
Knight Trading Group serves investors by acting as a vehicle through which trades are made. The Knight shareholder class action suit alleges that the company was involved in a front-running scheme.
J.P. Morgan was fined $80 million by the SEC and other regulating agencies in April of 2003. The fine was one of ten that were issued as a measure to reform the securities industry.
Goldman Sachs is a major investment banking firm that operates across the world. Allegations against Goldman Sachs have focused on the company's practice of 'laddering' public offerings.
It was one of the largest securities fraud scandals in history, and the investigation into the extent of the fraud committed by Enron is still ongoing. As a result, Enron was forced to file for bankruptcy in December 2001.
Deutsche Bank was founded in Berlin in 1870, and is presently the largest bank operating under the euro. In Germany Deutsche Bank’s CEO has faced breach of trust charges from the United States.
Credit Suisse First Boston (CSFB) is an investment banking unit of Credit Suisse Group, a financial services company that operates worldwide. In 2000, the Securities and Exchange Commission investigated the company on securities fraud charges.
Charles Schwab, the discount brokerage firm known for its commitment to maintaining credibility, weathered investigations into brokerage firm reliability with relatively few counts against it.
Bear Stearns is a global investment banking/brokerage firm that recently paid two major fees, one to settle securities fraud charges filed against it in 1999, and another in 2002 to end investigations by the SEC and partnering regulatory entities.
A lawsuit was filed against Alliance Capital Management by Florida’s State Board of Administration (SBA) in response to a $334 million loss Florida’s pension plan suffered under Alliance’s financial management.
Securities fraud lawsuits can be waged against an individual and/or an entire company for a number of reasons. Learn more about securities fraud lawsuits and read about cases that have been in the news.
Read the definitions of terms relating to securities fraud in LawyerShop's securities fraud glossary.
The SEC (Securities and Exchange Commission) was established in 1934 to act as a federal check on investment markets.
Securities fraud is an act committed by an entity intending to manipulate the market through deliberate concealment, or distortion of information. The SEC (Securities and Exchange Commission) acts to regulate against securities fraud by enforcing investment acts and laws.
Investment fraud (also known as brokerage fraud) occurs when an advisor, stockbroker, or brokerage firm offers inaccurate, incomplete, or biased information in an effort to control the market or draw business.
Corporate fraud, also known as shareholder fraud, occurs when, to maintain this front, corporations deliberately conceal or skew information.
Securities fraud is an act committed by an entity intending to manipulate the market through deliberate concealment, or distortion of information. If you have been charged with securities fraud, it is important to contact attorneys in your state as soon as possible. Securities fraud lawyers can defend your rights.
Healthcare fraud is the misstatement of facts – either knowingly or through unreasonable ignorance – that leads to unfair profit through medical coverage. Government agencies are constantly taking steps to try to combat healthcare fraud.
Government fraud is a serious crime refers to illegal acts that intentionally divest the government of funds through deception or scams. The most common types are procurement fraud, false claims and statements, and healthcare fraud.
Learn about the types of crimes that constitute "white collar" criminal cases, including embezzlement, fraud, extortion, bribery, and more. If you have been accused of a white collar crime, contact an attorney as soon as possible.
If you or a loved one has been accused of a crime, LawyerShop can assist you in finding a qualified criminal law attorney. In addition to our lawyer directory, we provide information about criminal law, including the types of crimes punishable by law and elements that make up a crime.
The U.S. Supreme Court has rejected the appeal of a $40 billion lawsuit filed by former Enron investors against Wall Street investment banks that lent money to the now-disbanded corporation.
Sandy, Oregon pastor Corey Jerry Pritchett, who was found guilty of 32 counts of fraud in November 2007, was sentenced to serve seven years and 10 months in prison in Multnomah County Circuit Court Wednesday.
Apollo Group Inc., parent corporation of the University of Phoenix, the largest for-profit school in the U.S., must pay up to $277.5 million in damages after losing a securities-fraud lawsuit brought by shareholders.
In a 5-3 ruling Tuesday, the U.S. Supreme Court ruled that third parties such as banks cannot be sued in securities fraud cases unless shareholders relied on those parties' recommendations when making investment choices.
Eight people in Washington, Utah, and Florida have been indicted by a federal grand jury for their roles in a securities fraud scheme said to have defrauded consumers of over $1.2 million.
Former Investment Centers of America investment adviser representative Mark Leon Henry, 37, pleaded guilty to federal securities fraud and tax fraud charges in U.S. District Court in Springfield, Missouri on Tuesday.
Owen A. Vilan has been indicted by a Maricopa County Superior Court grand jury and charged with fraud, theft, securities fraud, and the sale of unregistered securities and transactions by an unregistered dealer.
Former RenaissanceRe Holdings Ltd. executive Michael W. Cash has agreed to pay a $130,000 fine in order to settle securities fraud charges brought against him by the U.S. Securities and Exchange Commission.
Paul Humphreys, the former chief financial officer of Plano, Texas-based Safety-Kleen Systems, Inc. was sentenced to five years and 10 months in a federal prison for his role in artificially inflating the company's earning reports.
Former DHB Industries Inc. chairman and chief executive officer David Brooks and former chief operating officer Sandra Hatfield have been charged with 21 counts of securities fraud, insider trading, tax evasion and other offenses.
An Iowa man suspected of terrorizing investment companies with explosive devices and threatening letters has been taken into federal custody and indicted on securities fraud, mail threat, and explosives charges.
The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, has agreed to pay $50 million to settle Securities and Exchange Commission charges related to a multibillion dollar accounting fraud.
The Securities and Exchange Commission has filed fraud charges against two former officers of the Penn Traffic Company, a regional grocery company based in Syracuse, New York.
In a report released this week, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and state regulators said many investment seminars targeted towards older Americans are deceptive or even fraudulent.
The Massachusetts Appeals Court has ruled that whistleblower Peter Scannell, who reported trading abuses at Boston-based Putnam Investments, is not entitled to receive a share of settlements recovered from the company.
Fundraiser Norman Hsu, who raised over $1 million for the campaign coffers of presidential candidate Senator Hilary Clinton and other Democratic politicians, has turned himself in to California authorities.
A Cleveland investment advisor will spend at least ten years in prison after pleading guilty to two charges of securities fraud for his role in a Ponzi scheme that defrauded investors of over $28 million.
Convicted in 2004 on 18 felony counts apiece of securities fraud, bank fraud, and conspiracy, Adelphia founder John Rigas and son Timothy Rigas reported Monday to Butner Federal Correctional Complex near Raleigh, North Carolina.
A San Francisco jury found Gregory Reyes guilty on 10 felony counts of securities fraud this week, following a trial that has come to be seen as a litmus test for options backdating cases.
Carole Argo, former president, COO, and CFO of network security company SafeNet Inc., was charged this week with six counts of securities fraud and conspiracy for allegedly backdating millions of dollars in stock options.
Mark Kaiser, the former chief marketing officer of one of the largest food product distribution companies in the U.S., was sentenced to seven years in prison for his involvement in defrauding investors of over $800 million.
Mark E. Phillips of Elkton was sentenced to serve more than 10 years in prison after being found guilty in October of 35 counts of securities fraud, mail fraud, wire fraud and credit card fraud.
Diana Flaherty was sentenced to serve 90 months in prison for her contribution to an investment scheme. Flaherty, her late husband, and another man told investors they could extract precious metals from reserves of volcanic ashes they claimed to own.
William H.T. “Bucky” Bush, uncle of President George W. Bush, has been named by the SEC as one of a group of contractors who profited from a backdating scheme at Engineered Support Systems Inc. (ESSI).
A man convicted of using a Ponzi scheme to defraud churchgoers of tens of millions of dollars has been sentenced to 40 years in prison.
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