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securities 11 articles

Whistleblower Warns Regulators of Stock Market Manipulation

The biggest index used by Wall Street to gauge stock market volatility, known as the Cboe Volatility Index or VIX, is being manipulated, causing wild market swings and costing investors hundreds of millions of dollars a month, an anonymous whistleblower has warned the Securities and Exchange Commission (SEC). The whistleblower, a senior executive who worked at many of the largest investment firms in the world, made the allegations in a letter to the SEC and the Commodity Futures Trading Commission (CFTC) sent by a Washington D.C. law firm. According to USA Today, the whistleblower alleges that the market manipulators are ... Read More

Three Whistleblowers Share $7 Million SEC Award

A group of whistleblowers who provided tips to the Securities and Exchange Commission (SEC) about a fraudulent investment scheme will share an award of more than $7 million, the agency said Monday. According to the SEC, the information provided by the whistleblowers led to a successful enforcement action, but the agency did not say how much the offending company was penalized. The SEC’s policy is to not reveal any information that could directly or indirectly reveal the identity of a whistleblower. The SEC said one whistleblower provided information that served as the primary impetus for its investigation. That whistleblower will ... Read More

Hotline Opened For Former Wells Fargo Bankers With Retaliation Concerns

The Financial Industry Regulatory Authority (FINRA) introduced a hotline Friday for certain former Wells Fargo employees who were fired amid news that bank representatives had been opening fake, unauthorized accounts for customers. In September, federal regulators ordered the San Francisco-based bank to pay the U.S. $185 million in penalties and $5 million to customers it defrauded by pressuring employees to meet aggressive sales quotas by opening the unauthorized customer accounts. Responding to this pressure, Wells Fargo employees opened up some two million fake accounts and charged customers maintenance fees on those accounts. The bank subsequently fired about 5,300 employees for opening the accounts ... Read More

SEC Awards Whistleblower More Than $4 Million

The U.S. Securities and Exchange Commission (SEC) announced Tuesday that it has awarded a whistleblower more than $4 million for providing insider tips and information that alerted regulators to fraud. The award caps off a successful summer for the SEC whistleblower program, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and launched in 2011. In June, the SEC announced a series of fraud-related settlements that resulted in awards of more than $26 million for whistleblowers. In August, the agency awarded more than $22 million to a Monsanto whistleblower, which pushed the SEC whistleblower ... Read More

Aegerion Enters Multiple Agreements, Pays $40 Million For Drug Violations

Massachusetts-based drugmaker Aegerion Pharmaceuticals announced May 12 that it would plead guilty to two misdemeanors, pay $40 million in penalties, and enter into a number of settlements and agreements with federal regulators over alleged marketing and distribution violations concerning its cholesterol drug Juxtapid. Juxtapid is one of just two products that Aegerion Pharmaceuticals manufactures and sells. It is used for the treatment of a genetic cholesterol disorder. According to Law 360, both criminal pleas involve misbranding violations under the Federal Food, Drug and Cosmetic Act. One count alleges Aegerion marketed Juxtapid without full directions for use, even though the drug ... Read More

SEC pays whistleblower $3 million for exposing “complex fraud”

A whistleblower whose tips helped the U.S. Securities and Exchange Commission (SEC) crack open a complex fraud scheme has received an award of more than $3 million, the agency announced Friday. To protect the identities of individuals assisting the SEC with tips of securities fraud, the agency does not release the names of whistleblowers or the companies implicated in their allegations. In this latest case, the SEC’s Office of the Whistleblower said that the tipster was a “company insider.” The SEC said the multi-million-dollar payout was the third largest award since its whistleblower program was established in 2011 under the ... Read More

U.S. Commodity Futures Trading Commission resolves its first whistleblower case

A whistleblower who provided tips that led to the first-ever recovery by the U.S. Commodity Futures Trading Commission (CFTC) since its two-year-old whistleblower program was created will receive $240,000. On Tuesday CFTC Chairman Mark Wetjen said that the whistleblower provided valuable information about violations of the Commodity Exchange Act. The whistleblower’s identity has not been disclosed in compliance with regulations that require confidentiality to protect the whistleblower from retaliation. “I am pleased to announce this first award, which illustrates that the CFTC’s Whistleblower Program is a valuable resource for the American public. Information received under the Whistleblower Program helps the agency ... Read More

Whistleblower receives nearly $70 million for exposing JPMorgan mortgage fraud

N.Y., N.Y. — A whistleblower who was instrumental in recovering $614 million for federal mortgage loan programs from JP Morgan Chase & Co. will receive $63.9 million as his share, according to a Reuters report. Louisiana resident Keith Edwards sued JP Morgan on behalf of the U.S. government in January 2013 under the qui tam or “whistleblower” provisions of the U.S. False Claims Act. Mr. Edwards worked for the banking giant from 2003 to 2008 as an assistant vice president. His responsibilities involved supervising a government insuring unit of the company. Mr. Edwards alleged that JP Morgan defrauded the government ... Read More

JPMorgan settles whistleblower’s allegations of mortgage fraud for $614 million

JPMorgan Chase & Co has agreed to pay the U.S. $614 million to resolve more False Claims Act allegations that it defrauded federal agencies by knowingly originating and underwriting substandard mortgage loans that failed to comply with federal insurance requirements, the Justice Department said on Tuesday. The settlement began with a whistleblower, Keith Edwards, who sued JPMorgan in January 2013 under the False Claims Act, an anti-fraud law that allows individuals to sue government contractors, suppliers, and other entities for defrauding taxpayers. In exchange, whistleblowers receive a percentage of the recovery in successfully argued cases. According to court documents, JPMorgan, ... Read More

JPMorgan, U.S. reach record $13-billion settlement over mortgage and securities fraud

The U.S. Justice Department announced Tuesday that it reached a record $13-billion agreement with JPMorgan Chase to resolve allegations that it knowingly sold faulty mortgage investments that contributed to the 2008 financial crisis. The settlement is the largest settlement between the U.S. government and a single entity in history, the Justice Department said, and the largest sum ever paid by an American company. As part of the settlement, JPMorgan admitted it made serious misrepresentations to the public, including the investing public, about its numerous mortgage-backed securities transactions. The resolution also requires JPMorgan to provide$4 billion in relief, included in the ... Read More