All articles tagged with #securities fraud
Shiloh Luckey, founder of tax-compliance startup ComplYant, was arrested in Florida and charged with federal fraud for allegedly raising $13.3 million from investors while fabricating revenue and misusing funds for personal expenses, including a house, a Tesla, and a Caribbean wedding.
Donald Danks, a former director of Nasdaq-listed Loop Industries, was convicted by a federal jury on September 14, 2026, of conspiracy to commit securities fraud, witness tampering, obstruction of justice, and perjury. The verdict follows a two-week retrial after a mistrial in the first proceeding. Danks is scheduled to be sentenced on December 4, 2026.
Democratic U.S. Senate hopeful James Talarico’s campaign asked a Collin County court to unseal transcripts of Ken Paxton’s depositions from 2019 and 2022 in a securities-fraud dispute tied to Unity Resources; the move argues the depositions are matters of public record relevant to Paxton’s fitness for office in the Texas U.S. Senate race, note that reporting suggested potential attorney-client privilege issues, while Paxton’s camp rejects the claims and the depositions were sealed after a 2023 settlement.
Investors are suing Selena Gomez, her mother Mandy Teefey, and Wondermind founder Daniella Pierson, alleging they raised about $1.2 million for the mental-health startup Wondermind with false promises about an app, advertising deals, and leadership, then let the company collapse without informing investors. The defendants face securities fraud, common law fraud, and breach-of-contract claims, with plaintiffs seeking rescission and damages.
A Delaware federal lawsuit accuses Selena Gomez, her mother Mandy Teefey, and Daniella Pierson of defrauding Wondermind investors by falsely promising a profitable platform and celebrity-backed opportunities, while allegedly concealing operational and financial issues for years; investors seek rescission and damages after investing about $1.2 million.
New York investors in Selena Gomez’s Wondermind are suing Gomez, her mother Mandy Teefey, and Daniella Pierson for securities fraud, common-law fraud, breach of contract and other claims, saying they invested about $1.2 million in 2022 expecting Gomez’s involvement and partnerships that never materialized, the app was never built, and Wondermind quietly collapsed; Pierson left the company in 2023 as the suit seeks to recover their investment and damages.
Two investor groups filed a federal lawsuit in Delaware accusing Selena Gomez, her mother Mandy Teefey, Daniella Pierson, and Wondermind of misrepresenting a $1.2 million investment in a mental-health platform; the suit claims the company was never built, collapsed for years, and that partnerships and growth plans never materialized, with Teefey’s alleged substance‑abuse cited. Gomez reportedly distanced herself amid internal disputes as investors seek the return of their funds, damages, and a jury trial.
James Patten was sentenced to 21 months in federal prison for his role in a $100 million stock-manipulation scheme tied to Hometown International, the owner of Your Hometown Deli in Paulsboro, NJ. His co-conspirators have already served their sentences, and Patten faces three years of supervised release and about $5 million in restitution. He had urged no prison time, but the judge cited his prior fraud conviction and ongoing restitution obligations in imposing the sentence.
A Montgomery County jury found Janey Sears guilty of theft scheme over $100,000, securities fraud, and misappropriation of funds by a fiduciary after she manipulated a Silver Spring man into a $400,000 investment scheme, used the money for personal expenses (including a car) and casino gambling, and moved into his home; sentencing is set for Aug. 28, 2026, with a potential penalty of up to 23 years in prison.
North Carolina resident Charles Cole was indicted in the Southern District of New York on wire fraud, conspiracy to commit wire fraud, and conspiracy to commit securities fraud for allegedly obtaining at least 239 million Infinite Reality (Napster) shares through fake bank records, sham correspondence, and a counterfeit bank website, then using those shares to secure loans while never paying for them.
President Donald Trump pardoned former Indiana Representative Stephen Buyer, who was convicted in 2023 on four counts of securities fraud for insider trading related to the T-Mobile-Sprint merger. The unconditional pardon came on the recommendation of 52 current and former lawmakers, and Buyer — a former Army judge advocate general and longtime politician-turned-consultant — had been sentenced to 22 months in prison for trades involving Sprint and Navigant (now Guidehouse) stock.
The Supreme Court unanimously upheld the SEC’s broad power to disgorge ill‑gotten gains in securities fraud, ruling that the agency need not prove that individual investors lost money—only that the offender profited and that investors may be victims eligible for compensation. The decision, tied to a case involving penny-stock pump‑and‑dump schemes, allows the SEC to order more than $3 million (including interest) returned to investors, reinforcing federal enforcement of fraud.”
The Supreme Court upheld a broad reading of the SEC’s authority to disgorge ill-gotten gains in securities fraud cases, reinforcing the agency’s power to recoup profits for investors.
A jury found short-seller Andrew Left guilty of securities fraud, potentially facing prison time when sentenced, a verdict that compounds a years-long retreat of activist short-selling amid soaring stocks, meme trading, and rising regulatory scrutiny; experts say the ruling may spur tougher disclosures and caution among shorts and could impact market efficiency and price discovery.
A federal jury in Los Angeles convicted activist short seller Andrew Left of securities fraud for a long-running market manipulation scheme that earned more than $21 million. Left used public posts, social media and preplanned trading to move stock prices, presenting himself as independent while exploiting positions to profit from the price moves. He faces sentencing on August 31 and up to 25 years in prison. The investigation involved the USPIS and FBI, with FINRA assisting.