All articles tagged with #securities fraud
U.S. prosecutors asked a Brooklyn judge to dismiss criminal fraud and conspiracy charges against Indian billionaire Gautam Adani in connection with a solar-power deal, citing prosecutorial discretion; the judge must approve, and Adani has never been arrested or faced trial. The move follows a related SEC settlement and years of scrutiny over Adani’s ties to the Modi government and past allegations of misconduct in the energy sector.
In the Los Angeles securities-fraud trial of Andrew Left, a retired firefighter testified that he turned about $110,000 from his 401(k) into cannabis stock CV Sciences after watching Left’s coverage, which later caused the stock to fall; he sold at roughly an $80,000 loss and then put remaining funds into Namaste Technologies (now Lifeist Wellness), losing about 80% of that investment after Left publicly criticized the stock. Another retail investor testified that Left’s actions seemed dubious, while the defense argued Left’s reports were accurate. The trial is ongoing.
The DOJ charged 30 individuals, including former Biglaw attorneys, in a decade-long insider-trading operation that allegedly leveraged non-public information from major law firms, routed through a layered network of traders and sources, and used burner phones and coded language; the scheme referenced deals like iRobot and Amazon, with 19 arrests and two fugitives, while unnamed victim firms likely include some of the country’s largest M&A practices.
The SEC charged 21 individuals in a decade-long insider trading scheme (2018–2024) that misappropriated material nonpublic information from multiple global law firms, with leaders Nicolo Nourafchan and Robert Yadgarov allegedly tipping others who traded for illicit profits; a third corporate lawyer joined the scheme and helped expand it to more deals, including misused information from more than twelve pending transactions and generating millions in profits. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties, in a case filed in Massachusetts alongside parallel criminal charges announced by the U.S. Attorney’s Office.
Federal prosecutors unveiled indictments alleging a multimillion-dollar insider trading scheme that used nonpublic information about mergers and acquisitions handled by top law firms (including Goodwin Procter, Latham & Watkins, Sidley Austin, Wachtell Lipton, and Weil Gotshal) to trade on deals involving major companies such as Amazon, Johnson & Johnson, and eBay.
Citron Research founder Andrew Left is headed to a federal trial next month on securities-fraud charges alleging he manipulated stock prices to profit from moves in names like Tesla, Nvidia, and Meta; Left denies the accusations, says he may testify depending on his lawyers, and faces up to 25 years in prison if convicted.
Two former iLearningEngines executives, CEO Puthugramam Chidambaran and CFO Sayyed Farhan Ali Naqvi, were indicted in Brooklyn on charges including operating a continuing financial crimes enterprise, securities fraud, and wire fraud for allegedly fabricating customers and revenue to mislead investors and lenders as the NASDAQ-listed company went public; investigators allege sham contracts, round-tripping of funds totaling over $144 million, and a collapse into bankruptcy after a rapid rise to a $1.5 billion market cap. Both were arrested and will appear in federal court in different districts, and, if convicted on the enterprise count, face a minimum of 10 years to life in prison.
Shareholder-rights law firms filed securities-fraud class actions against PayPal, alleging the company misled investors about Branded Checkout growth and its long-term outlook in statements from Feb 25, 2025 to Feb 2, 2026. After PayPal reported weak Q4 2025 results and withdrew its 2027 targets, the stock fell over 20%. The suits, led by Rosen Law Firm, The Schall Law Firm, and Robbins Geller Rudman & Dowd, claim executives overstated competitive position and execution capabilities. Analysts still rate PYPL as Hold with a target around $51, implying roughly 24% upside.
A Pennsylvania man, Daryl Heller, has been charged with orchestrating a $400 million ATM fraud scheme involving false promises of high returns, many of which were based on non-existent or broken machines, leading to significant investor losses and allegations of securities and wire fraud.
The founder of CaaStle, Christine Hunsicker, is accused of orchestrating a $300 million fraud by misleading investors with false financial documents and misappropriating funds, leading to the company's bankruptcy and her surrender to authorities.
Terren Scott Peizer, former CEO of Ontrak Inc., was sentenced to 42 months in prison, fined $5.25 million, and ordered to forfeit over $12.7 million for insider trading using Rule 10b5-1 plans to avoid losses exceeding $12.5 million, after trading on inside information related to the company's contract termination.
The U.S. Supreme Court has decided not to hear a securities fraud case involving Nvidia, leaving the lower court's decision in place. This means that the allegations against Nvidia will not be reviewed by the highest court, effectively ending the legal proceedings at this level.
Barclays has agreed to a $19.5 million settlement in a Manhattan lawsuit where shareholders accused the bank of securities fraud for selling $17.7 billion more debt than allowed by regulators. The settlement, which requires court approval, follows Barclays' admission of overissuing structured and exchange-traded notes beyond the authorized limit. Despite denying wrongdoing, Barclays had to restate its 2021 financials and set aside funds for the overissuance. The lawsuit involved investors in Barclays' American depositary receipts from February 2021 to February 2023.
Sung Kook "Bill" Hwang, founder of Archegos Capital Management, received an 18-year prison sentence for securities fraud and market manipulation, which led to significant financial losses for major banks and the collapse of his firm. The scheme expanded Archegos's portfolio from $1.5 billion to $35 billion in a year, using extensive borrowing to make large investments in companies like ViacomCBS and Tencent.
Billionaire Gautam Adani has been indicted in New York for allegedly orchestrating a $250 million bribery scheme to secure solar energy contracts in India, which were expected to generate $2 billion in profits. The charges include securities fraud and conspiracy to commit securities and wire fraud. The US attorney's office and the SEC have accused Adani and two other executives of paying bribes to Indian officials and misleading US investors. Adani Group has not yet commented on the charges.