Category: enforcement archive

In September, a class action lawsuit (Mannacio v. Discover Financial Services, et al., No. 23-cv-06788 (N.D. Ill.)) was filed against Discover Financial Services (“Discover”) alleging Discover and certain current and/or former executives violated the Securities Exchange Act of 1934. Specifically, the class action complaint alleged that the defendants made false and/or misleading statements and/or failed to disclose that: (i) Discover maintained deficient risk management and compliance procedures; (ii) as a result, Discover, among other things, failed to comply with applicable…

Thomas Flohr, owner of luxury airline VistaJet, must fight a claim that he defrauded a Guernsey investment partnership two decades ago after London’s High Court refused to dismiss the case.  Flohr, who denies the allegations, had tried to have the case thrown out on technical grounds related to the circumstances of the case, in which a previously dissolved partnership was resurrected in 2021 in order to file the suit.  Frontiers Capital initially sued for breach of contract in 2021 but…

Airbnb is facing the prospect of a tax bill worth hundreds of millions of euros following an Italian court ruling in an evasion case. Prosecutors in Milan say a judge authorised the seizure of €779.5m (£677m) from the short-term property rental platform. They said it related to an alleged failure by the company to comply with laws that require Airbnb to pay Italian tax authorities 21% of landlords’ rental income in the country. The requirement dates back to an EU…

Washington D.C., Nov. 2, 2023 — The Securities and Exchange Commission today charged John Hughes, president and chief compliance officer of registered investment adviser Prophecy Asset Management LP, for his involvement in a multi-year fraud that concealed losses of hundreds of millions of dollars from investors. Prophecy Asset Management advised multiple hedge funds and reported more than $500 million in assets under management. The SEC’s complaint alleges that Hughes and his associates at Prophecy Asset Management misled the funds’ investors,…

Editor’s note: This is a developing story and will be updated as additional information becomes available. Law enforcement officials have issued an arrest warrant for a 40-year-old Bowdoin, Maine man who is also a currently serving Army reservist, charged in the multi-location mass shooting Wednesday in Lewiston, Maine that left 18 people dead. Sgt. 1st Class Robert R. Card II is a petroleum supply specialist in the Army Reserve who enlisted in December 2002, according to Army spokesman Bryce Dubee,…

FTX founder Sam Bankman-Fried plans to testify at his fraud trial, his lawyer told a federal judge Wednesday, ending speculation over whether a man who embraced the spotlight during his years atop the cryptocurrency world could remain silent after prosecutors portrayed him as a greedy entrepreneur who stole billions of dollars from customers. Attorney Mark Cohen told Judge Lewis A. Kaplan that he planned to call three witnesses “and then our client is also going to be testifying” after prosecutors…

Palestinian resistance groups expect Israel to flood Hamas tunnels with nerve gas and chemical weapons under the surveillance of US Delta Force commandos as part of a surprise attack on the Gaza Strip, a senior Arab source familiar with the groups told Middle East Eye.Israel and the US hope to achieve the element of surprise in order to penetrate Hamas tunnels, rescue an estimated 220 hostages, and kill thousands of soldiers belonging to Hamas’s al-Qassam Brigades, the source said in…

A murder warrant has been issued for an “armed and dangerous” military veteran who’s accused of fatally shooting his wife in their family home this week. Aaron Pennington was charged with murder in Gardner District Court in Massachusetts, according to the Associated Press, as the homicide investigation and search for him continues.  A manhunt has been underway for Pennington, 33, since his wife was found shot to death at the couple’s house in Gardner, about 67 miles northeast of Boston, on Sunday. …

More than 300 people were arrested for illegally demonstrating and three people were charged with assaulting police after protesters descended on Capitol Hill to call for a cease-fire between Israel and Hamas. Hundreds of demonstrators from Jewish advocacy groups, including Jewish Voice for Peace and If Not Now, poured into a congressional office building on Wednesday. They wore shirts that read “Jews say cease fire now” and they chanted “let Gaza live” and “not in my name” before they were…

U.S. Attorney’s Office Eastern District of Florida FOR IMMEDIATE RELEASE Thursday, October 12, 2023  BEAUMONT, Texas – A Houston man who served as a production manager in a counterfeit drug trafficking scheme has been sentenced to federal prison for drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. Willis Reed, 61, pleaded guilty to conspiracy and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia…

Last Thursday, a Danish court sentenced a 24-year old programmer from Silkeborg to 60 days probation for his role in operating the torrent tracker ShareUniversity. The sentencing is the latest in Denmark following an unprecedented crackdown on local torrent trackers that has already resulted in more than a dozen prosecutions, with more yet to come. The National Unit for Special Crime (NSK) reports that it’s happy with the conviction. In addition to serving the suspended prison sentence, the man must…

Reddit’s latest transparency report shows a modest increase in DMCA takedown notices. The number of copyright infringement-related user- and subreddit bans has declined, however. The latest data follows a hectic period at Reddit, where protests over an API policy change triggered a ‘dramatic’ 1169% increase in user data requests. With millions of daily users, Reddit is without a doubt one of the most visited sites on the Internet. The community-oriented platform has “subreddits” dedicated to pretty much every topic one…

In just a few months, “AI Hub” became a massively popular Discord server with over half a million members. While copyright infringement was strictly forbidden, not all users stuck to the rules. This previously raised the attention of the RIAA, and now appears to have caused the server’s downfall after it was suddenly shut down. Artificial intelligence is booming. Dozens of companies are enthusiastic about its potential and many regular people are tinkering with it too. The ‘AI Hub’ Discord…

In letters sent to all insurance firms, the regulator reminded them of its expectations to make sure they’re checking their products are providing fair value to their customers. The FCA also identified further evidence that some Guaranteed Asset Protection (GAP) products may be failing to provide fair value to customers. This comes as the FCA publishes its latest insurance Value Measures Data (Jan-Dec 2022), which revealed potential concerns over the value of GAP products to customers. GAP insurance is an…

The information supplied by banks, building societies and payment companies suggests that no firm closed an account between July 2022 and June 2023 primarily because of a customer’s political views. The Payment Accounts Regulations ban banks or building societies discriminating on this basis. The FCA will be doing further work with firms to verify the data and to better understand the reasons behind, for example, the closure of accounts due to reputational risk. By far the most common reasons providers…