Category: Business & Economy

Disgraced Theranos CEO Elizabeth Holmes has avoided starting her more than 11-year prison sentence on Thursday by deploying the same legal maneuver that enabled her co-conspirator in a blood-testing hoax to remain free for an additional month.

Holmes’ lawyers on Wednesday informed U.S. District Judge Edward Davila that she won’t be reporting to prison as scheduled because she had filed an appeal of a decision that he issued earlier this month ordering her to begin her sentence on April 27.

The appeal, filed with the Ninth Circuit Court of Appeals late Tuesday, automatically delays her reporting date because she has been free on bail since a jury convicted her on four counts of fraud and conspiracy in January 2022. The verdict followed a four-month trial revolving around her downfall from a rising Silicon Valley star to an alleged scam artist chasing fame and fortune while fleecing investors and endangering the health of patients relying on Theranos’ flawed blood tests.

The tactic deployed by Holmes mirrored a move made last month by her former lover and subordinate, Ramesh “Sunny” Balwani, to avoid a prison reporting date of March 16. After the Ninth Circuit rejected his appeal three weeks later, Davila set a new reporting date of April 20.

The Kremlin warned on Wednesday that Russia could widen the list of foreign companies subject to temporary asset seizures in case of the “expropriation” of Russian assets abroad.

The comments came after Putin signed a presidential decree approving the takeover of operations of two Western energy groups in Russia — Finland’s Fortum and Germany’s Uniper — and threatened to do the same with others.

“If necessary, the list of companies could be expanded,” Kremlin spokesman Dmitry Peskov told reporters, a day after President Vladimir Putin signed a decree allowing asset seizures.

As a result of action by the Federal Trade Commission and the Commonwealth of Pennsylvania, debt collection company International Credit Recovery, Inc. (ICR), officer Richard Diorio, Jr., and manager Cynthia Powell, have agreed to a permanent ban from the debt collection industry after being charged with engaging in bogus debt collection efforts against businesses and non-profits. 

The FTC and Pennsylvania alleged that ICR was a key part of a telemarketing scheme run by American Future Systems, Inc., (AFS), which also does business as Progressive Business Publications and the Center for Education and Employment Law. ICR allegedly collected on debts AFS claimed organizations such as businesses, schools, fire and police departments, and non-profits owed for book and newsletter subscriptions they did not order.

 “The defendants in the case were the second half of a one-two punch that targeted small businesses, non-profits and first responders, first with bogus subscription bills and then bogus debt collection,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We’re proud to work with our partners in Pennsylvania to hold them accountable.”

“Through collaboration with our federal partners, we reached an agreement that ensures Pennsylvanians will be protected from these callous defendants that preyed on emergency-responder and non-for-profit organizations to fulfill their selfish greed,” Pennsylvania Attorney General Michelle Henry said.

The FTC and Pennsylvania charged that, in connection with its debt collection activities, ICR contacted consumers that it knew or had reason to know did not agree to order paid subscriptions. They also charged that ICR used false or unsubstantiated representations to try to get consumers to pay, and that ICR illegally threatened consumers if they did not pay.

The court order, which was agreed to by the defendants to settle the case, permanently bans them from the debt collection industry, as well as requires them to cooperate since the case will continue against the other defendants AFS, Progressive Business Publications of New Jersey, Inc. and Edward Satell.

The Commission vote approving the stipulated final order was 3-0-1, with Commissioner Christine S. Wilson not participating. The vote on this matter closed on March 23, 2023, prior to Commissioner Wilson’s departure from the Commission. The U.S. District Court for the Eastern District of Pennsylvania approved the settlement.

NOTE: Stipulated final orders or injunctions have the force of law when approved and signed by the District Court judge.

This matter is being handled by the FTC’s East Central Region.

The US Supreme Court rejected Wednesday the claim of sovereign immunity by a Turkish bank accused of violating Iran sanctions, in a case that has added tensions to ties between Washington and Ankara.

Halkbank was hit with US criminal charges in 2019 that it took part in a yearlong scheme to launder billions of dollars worth of Iranian oil and natural gas proceeds, violating sanctions on Iran.

The funds were used to buy gold and the transactions were disguised as food and medicine purchases in order to fall under a humanitarian exemption to the sanctions, according to court documents.

As part of the scheme, Halkbank allegedly used front companies to funnel $20 billion to Iran, including $1 billion through the US financial system, the US Justice Department said.

The United States charged the bank with six counts of fraud, money laundering, and sanctions offenses, calling it one of the most serious sanctions-breaking cases it has seen.

  Ah, remember Parler? They were the first of the “alternative” social media companies targeting the Trumpist crowd, in which I pointed out that their whole “we don’t moderate” schtick wasn’t going to work. The company speed ran the content moderation learning curve faster than most. But even from the beginning, the Trumpists who joined admitted it was just no…

UK Prime Minister Rishi Sunak is under investigation over allegations he failed to disclose shares his wife owns in a child care business that stands to benefit from his government’s budget, a parliamentary watchdog disclosed. Parliamentary Commissioner for Standards Daniel Greenberg opened an inquiry last week for possible violations of the code of conduct that calls on members to be…

E-commerce giant Amazon has recently banned the sale of the Flipper Zero portable multi-tool for pen-testers, citing its potential use as a card-skimming device. The move has prompted Flipper Devices’ CEO Pavel Zhovner to ask Amazon to reconsider its decision, insisting that the device is incapable of such illegal activity.

The Flipper Zero is a compact, portable, and programmable pen-testing tool that enables users to experiment with and debug various digital and hardware devices using multiple protocols, including RFID, radio, NFC, infrared, Bluetooth, and more. Since its launch, users have showcased its capabilities, including activating doorbells, conducting replay attacks to unlock cars and open garage doors, and cloning a wide range of digital keys.

Almost 6 in 10 U.S. adults in a new poll report they’re living paycheck-to-paycheck amid an economic landscape fraught with inflation and recession fears.

A CNBC-Momentive survey on financial confidence found that 58 percent of Americans say they’re living paycheck-to-paycheck, and that 70 percent said they feel stressed about their personal finances.

Nearly 80 percent of respondents making less than $50,000 and 74 percent making between $50,000 and $99,999 said they’re stressed about their finances. And even among those making $100,000 or more, 57 percent still said they’re stressed.

Nearly 80 percent of respondents making less than $50,000 say they’re living paycheck-to-paycheck, compared to just 32 percent of those making $100,000 or more.

Calls to break up Big Ag have resurfaced after a large egg producer in the U.S. announced windfall profits. A March 28 press release by Cal-Maine Foods said the Mississippi-based egg producer recorded a total revenue of $997.5 million – a 109 percent increase – for the quarter ending Feb. 25. Cal-Maine Foods’ profit for the same period shot up by 718 percent to $323.2 million.

“Our results are reflective of a dynamic market environment with higher average selling prices and favorable demand,” said Cal-Maine President Sherman Miller. “Elevated market pricing continues, primarily due to the impact of the ongoing epidemic of highly pathogenic avian influenza, which has significantly reduced the nation’s egg-laying capacity.”

“U.S. egg inventories were 29 percent lower in the final week of December 2022 than at the beginning of the year,” said the U.S. Department of Agriculture. It added that more than 43 million egg-laying hens were lost to either the avian flu itself or culling measures to stop the disease since the outbreak began in February 2022. (Related: Government says “bird flu” responsible for rising egg prices.)

When KPMG LLP gave Silicon Valley Bank a clean bill of health just 14 days before the lender went under, the Big Four audit firm pointed to potential losses on loans to its customers as one of its so-called critical audit issues. But the audit opinion didn’t mention what really brought the bank down: its unrealized losses on bonds and its ability to sustain them, given its reliance on potentially volatile deposits.

“The auditors didn’t mention the fire in the basement or the box of dynamite on the second floor, but they did mention the peeling paint on the planter,” says Erik Gordon, a business professor at the University of Michigan.”How could they have overlooked interest rate risk?” The current banking crisis is the first litmus test of the system of critical audit issues, a measure designed to help investors decipher hidden risks and uncertainties in financial statements.

Auditors are required to record any critical audit issues when approving a public company’s books. Regulators define them as matters that have a significant impact on financial statements and involve “especially difficult, subjective or complex” judgments by auditors.

One of the most closely watched US defamation cases in decades is set to begin this week as a Delaware court picks a jury to decide whether Fox News should pay Dominion Voting Systems $1.6bn (£1.3bn) for spreading falsehoods on election rigging.

A critical task for jurors over the five-week trial will be to decide who was responsible for the cable network’s decision to broadcast the claims, despite internal doubts about their veracity. Dominion asserts that Fox’s top brass approved of the coverage, but the network disputes this.

Last week, Delaware Superior Court Judge Eric Davis said he would not block Dominion from calling Rupert Murdoch, chairman of Fox News parent company Fox Corp, to testify in person about his involvement in the coverage, which Judge Davis has ruled was false and defamatory.

“The more complicit the whole organisation is in perpetuating these known falsehoods, the more likely a jury would be to return a big dollar figure,” said Mary-Rose Papandrea, a constitutional law professor.

Most Wall Street banks are likely to report lower quarterly earnings and face a dour outlook for the rest of the year, with last month’s regional banking crisis and a slowing economy expected to hurt profitability.

Earnings per share for the six biggest U.S. banks are expected to be down about 10% from a year earlier, analyst estimates from Refinitiv I/B/E/S show. Banks start reporting results on April 14.

Access to cheap deposits, which swelled for bigger banks as savers fled smaller lenders in the wake of Silicon Valley Bank’s collapse last month, likely boosted net interest income for the largest banks, analysts said.

In recent days, industrial action by refinery workers has intensified, leading to supply disruptions as members of French unions stopped refineries and depots from delivering fuel, the outlet said. According to the latest data compiled by the news outlet, the Val-de-Marne department in Ile-de-France is the worst affected with nearly half (49.4%) of its petrol stations facing partial or complete fuel supply disruption. The second-worst-affected area was the Paris region, where 38.8% of petrol stations were experiencing shortages of at least one type of fuel as of April 6. Drivers reported problems at 39.7% of pumps in Hauts-de-Seine, while 24.2% of pumps in Indre-et-Loire were also affected, reporting little or no supply.

Binance, one of the world’s largest cryptocurrency exchanges, is facing a lawsuit filed by the United States Commodities Futures Trading Commission (CFTC) for allegedly violating US law by allowing US clients to trade on its platform without complying with Know Your Customer (KYC) standards. In the lawsuit, the CFTC identified three trading firms – Jane Street Group, Tower Research Capital, and Radix Trading – as Binance’s VIP clients, who allegedly received preferential treatment from the exchange.

According to Bloomberg, which cited “people familiar with the matter,” Radix Trading was identified as “Trading Firm A” in the CFTC’s suit, while Jane Street was “Trading Firm B” and Tower Research was “Trading Firm C.” The firms on the CFTC’s list were examples of US clients allegedly able to access Binance, despite not complying with KYC standards.

Excerpt: Saudi Arabia and other major oil producers on Sunday announced surprise cuts totaling 1.15 million barrels per day from May until the end of the year, a move that could raise prices worldwide.

Higher oil prices would help fill Russian President Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid inflation fueled in part by that conflict.

It was also likely to further strain ties with the United States, which has called on Saudi Arabia and other allies to increase production as it tries to bring prices down and squeeze Russia’s finances.

The Saudi Energy Ministry said its own reduction of 500,000 barrels per day would be made in coordination with some OPEC and non-OPEC members, without naming them. The cuts are in addition to a reduction announced last October that infuriated the Biden administration.

The American bank Wells Fargo has been fined $97.8m (£79m) by the Federal Reserve and the Treasury Department for breaching US sanctions laws. Inadequate oversight meant that it allowed a foreign institution to process $532m in illegal transactions involving Iran, Syria and Sudan. Wells Fargo said it stopped dealing with the client in 2015.