On April 27, 2017, news outlets reported that a Southern District of New York judge had issued an injunction in the SEC's "Hamilton" Ponzi scheme case. Update to "Ponzi Schemers Promise Illusory 'Hamilton' Tickets" in our March 2017 newsletter.
Updates to our ongoing series on federal whistleblower programs, most recently in our February 2017 newsletter under "Whet Your Whistle—SEC Whistleblower Program Update":
- On May 2, 2017, the SEC announced that it had awarded a company insider a whistleblower award of more than $500,000 for "reporting information that prompted an SEC investigation into well-hidden misconduct that resulted in an SEC enforcement action."
- On April 25, 2017, the SEC announced that it had awarded a whistleblower award of more than $4 million to "a whistleblower whose original information alerted the agency to a fraud."
On April 18, 2017, news outlets reported that the SEC's insider trading case against Charles Hill was dismissed for lack of evidence by the administrative law judge overseeing the matter. Hill had unsuccessfully challenged the constitutionality of the SEC's "in house" administrative hearings in the Eleventh Circuit. Update to our "Wherefore Art Thou Due Process" series covering the various constitutional challenges to the SEC's administrative hearings, most recently in our October 2015 newsletter under "'Wherefore Art Thou, Due Process?' Part III."
Updates to "When Regulatory Failings Turn Criminal: Car Edition Redux" in our February 2017 newsletter:
- On April 21, 2017, the DOJ announced that Volkswagen AG had been sentenced in connection with the conspiracy to cheat on U.S. emissions tests.
- On March 17, 2017, news outlets reported that German authorities had raided the Munich offices of Jones Day, counsel to Volkswagen AG.
- On Feb. 27, 2017, the DOJ announced that Takata Corp. had pleaded guilty and was sentenced to pay $1 billion in criminal penalties for its airbag scheme.
On March 22, 2017, the DOJ announced that the owner of the New England Compounding Center was convicted of a racketeering scheme that led to a nationwide fungal meningitis outbreak. Update to "Criminal RICO Indictment for Pharma Execs in Alleged Second-Degree Murder for Improper Drug Production Leading to Fungal Meningitis Deaths" in our March 2015 newsletter.
On March 15, 2017, the SEC announced that it had obtained a judgment against former investment adviser Michael J. Breton, who had been charged in a cherry-picking scheme. Breton also pleaded guilty in the parallel criminal action and is awaiting sentencing. Update to our coverage of this case under "SEC—Data Analytics Key to Unlocking Fraud Schemes" in our March 2017 newsletter.
On March 10, 2017, the Federal Reserve Board announced that it was seeking to fine and prohibit two former managing directors at J.P. Morgan Securities (Asia Pacific) from employment in the banking industry in connection with "Princelings" government resolutions. Update to "'Sons and Daughters' Are the New 'Princelings'" in our December 2016 newsletter.
On March 3, 2017, news outlets reported that the whistleblower in the Jan. 13, 2017, Moody's ratings settlement with the DOJ was denied a whistleblower award. Update to our coverage of the Moody's settlement under "End of Administration Financial Enforcement Round-Up" in our February 2017 newsletter.
On Feb. 6, 2017, the DOJ issued a press release titled "An Important Court Opinion Holds Lawful Warrants Can be Used to Obtain Evidence from U.S. Internet Service Providers When Those Providers Store Evidence Outside the U.S." in connection with the Feb. 3, 2017, opinion by a magistrate judge in the Eastern District of Pennsylvania in In re Search Warrant to Google, which we covered in our March 2017 newsletter under "Eye on the Courts—Recent Decisions of Note."
Talks About Town
On April 18, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden spoke at the Anti-Corruption, Export Controls & Sanctions 10th Compliance Summit in Washington, D.C.
On March 29, 2017, Acting Assistant Attorney General for National Security Mary B. McCord spoke at the Second Annual Billington International Cybersecurity Summit Dinner in Washington, D.C.