Category: Enforcement Actions

Disgraced Theranos CEO Elizabeth Holmes has been rebuffed in her attempt to stay out of federal prison while she appeals her conviction for the fraud she committed while overseeing a blood-testing scam.

SEOUL (Reuters) – South Korea’s antitrust regulator has fined Alphabet Inc’s Google 42.1 billion won ($31.88 million) for blocking the release of mobile video games on a competitor’s platform.

The Korea Fair Trade Commission (KFTC) said on Tuesday that Google bolstered its market dominance, and hurt local app market One Store’s revenue and value as a platform, by requiring video game makers to exclusively release their titles on Google Play in exchange for providing in-app exposure between June 2016 and April 2018.

The KFTC said the move against the U.S. technology giant is part of efforts by the government to ensure fair markets.

Game makers affected by Google’s action include Netmarble, Nexon and NCSOFT, as well as other smaller companies, the antitrust regulator added.

In 2021, Google was fined more than 200 billion won by the KFTC for blocking customised versions of its Android operating system.

WASHINGTON (AP) — A Texas judge who sparked a legal firestorm with an unprecedented ruling halting approval of the nation’s most common method of abortion is a former attorney for a religious liberty legal group with a long history pushing conservative causes.

U.S. District Judge Matthew Kacsmaryk, an appointee of former President Donald Trump, on Friday ordered a hold on federal approval of mifepristone in a decision that overruled decades of scientific approval. His ruling, which doesn’t take immediate effect, came practically at the same time that U.S. District Judge Thomas O. Rice, an appointee of former President Barack Obama, essentially ordered the opposite in a different case in Washington. The split likely puts the issue on an accelerated path to the U.S. Supreme Court.

The European Union’s top justice official said he hopes to discuss with Group of Seven partners plans to set up a special tribunal to prosecute Russia over the war in Ukraine.

“We’ll continue, maybe during the Japanese presidency (of the G7) to see whether it’s possible to have the same approach about a proposal,” European Commissioner for Justice Didier Reynders said in a recent interview with Kyodo News and ahead of a G7 justice ministers’ meeting in July in Tokyo.

  MOSCOW (AP) — Jailed Wall Street Journal reporter Evan Gershkovich has been charged with espionage in Russia and has entered his official denial, Russian state news agency Tass reported Friday. Tass said a law enforcement source informed the news agency that Russia’s Federal Security Service officially charged the American journalist with espionage. Tass did not specify if the action was taken during a court hearing. In the Russian legal system, the filing of charges means the formal start of…

Anthony Joseph Damiano and his funeral service companies—Funeral & Cremation Group of North America, LLC, and Legacy Cremation Services, LLC (doing business as Heritage Cremation Provider, Evergreen Funeral Home and Crematory, and Carolina Central Crematory)—will pay civil penalties and abide by strict requirements on how they communicate with customers to resolve a lawsuit filed on behalf of the Federal Trade Commission by the U.S. Department of Justice.

The DOJ and FTC filed their complaint against Damiano and his companies in April 2022, alleging that they misrepresented their location, leading consumers to believe they were a local provider, advertised deceptively low prices, illegally threatened and failed to return cremated remains to bereaved consumers, and failed to provide disclosures required by the Funeral Rule.

“Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.”

The complaint alleged that the defendants claimed to be local funeral or cremation providers when speaking with customers, failing to disclose that the services would be contracted to a third party, sometimes hours away from loved ones. The complaint also alleged that when consumers were presented with undisclosed fees and higher prices, the defendants in some cases withheld the remains of their loved ones to extract payment.

The proposed court order, which was agreed to by the defendants in the case, would require the defendants to:

Share important info on their website: The order requires the defendants to disclose key facts on their website, including their actual physical location and a general price list, as well as a notice when funeral goods or services will be provided by a third-party company not owned by the defendants.
Disclose their price list upfront: The defendants are required to provide consumers with a general price list either during or immediately after their first interaction with a consumer about funeral goods or services, whether online or by telephone, and before any discussion of price occurs.
Provide info on third parties: The order requires the defendants to give consumers the name, address, and contact information for any third-party provider that will provide funeral goods or services.
Pay a civil penalty: The order requires the defendants to pay $275,000 in civil penalties.

The staff attorneys on this matter are Thomas Harris and Rebecca Plett.

The Department of Justice filed the order and civil penalty judgment on behalf of the Commission in the U.S. District Court for the District of Florida. NOTE: Consent judgments have the force of law when approved and signed by the District Court judge.

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.

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.

Lawyers for a wealthy self-exiled Chinese businessman who developed ties to Trump administration figures including Steve Bannon are seeking bail for him two weeks after his arrest, saying other defendants accused of massive frauds like Bernard Madoff and Sam Bankman-Fried were freed on bail.

The lawyers submitted papers in Manhattan federal court, saying Guo Wengui is entitled to bail just as other wealthy defendants have been given the chance to post bail in the past. They also challenged claims by prosecutors that he is a risk to flee, saying he would not leave his wife of 38 years and his daughter as all three seek asylum.

Madoff was free for several months in late 2008 and early 2009 before he was jailed after he pleaded guilty in a multibillion-dollar fraud. He was later sentenced to 150 years in prison and died behind bars.

Bankman-Fried, 31, was arrested in the Bahamas in December in what a prosecutor called one of biggest frauds in American history. He agreed to return to the United States, where he was freed with GPS monitoring on a $250 million personal recognizance bond after pleading not guilty to charges that he oversaw a massive cryptocurrency fraud.

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Redwire Corporation (NYSE: RDW).

In November 2021, the Company disclosed that it could not timely file its quarterly report due to an internal investigation into accounting issues. On March 31, 2022, the Company disclosed a multitude of internal procedural and control failures, including “an additional material weakness” beyond the company’s “previously identified internal control deficiencies.” The next day, the Company finally filed its 3Q2021 report revealing that its “disclosure controls and procedures” suffered from an inadequate “control environment” and that “certain members of senior management failed to consistently message and set certain aspects of an appropriate tone at the top.”

The Committee has learned that while Mr. Taibbi was describing his findings of government abuse and civil liberties violations, an IRS revenue officer appeared at Mr. Taibbi’s personal residence in New Jersey — leaving a note for Mr. Taibbi to call the IRS four days later. When Mr. Taibbi called the IRS, the IRS informed him that the reason for the visit was because his electronic 2018 and 2021 tax return filings had been rejected due to concerns of identity theft.

According to Mr. Taibbi, the IRS notified his accountant that the IRS had accepted his 2018 filing, and in the four-and-a-half years since then, the IRS has never notified Mr. Taibbi or his accountant of any issue with this return — until the day he was testifying before Congress. With respect to his 2021 return, the IRS rejected Mr. Taibbi’s electronic filing twice, even after his accountant filed with an IRS-provided pin number. In both cases, the IRS informed Mr. Taibbi after the agency visited his home that the problems were not “monetary”; in fact, the IRS apparently owed Mr. Taibbi a “considerable” tax return.

The U.S. Court of Appeals for the Federal Circuit said the verdict could not stand after the U.S. Patent Trial and Appeal Board canceled the virtual private network (VPN) patents VirnetX accused Apple of infringing.

The ruling follows the Federal Circuit’s Thursday decision to affirm a U.S. Patent and Trademark Office tribunal’s finding that the patents were invalid.

Japan’s antitrust watchdog on Thursday ordered three major utilities to pay a total of 101 billion yen in fines for forming cartels over electricity sales, in a move that goes against the nation’s efforts to free up the electric power market. The amount of the penalty, to be collected from electricity companies based in central, western and southwestern regions, is the highest ever imposed by the Japan Fair Trade Commission for a violation of the antimonopoly law. Chugoku Electric Power…

The Biden administration has sanctioned a Slovakian man who U.S. officials said attempted to facilitate an arms deal that would have given Russia access to weapons and munitions from North Korea in exchange for aircraft, food and other material.

The Treasury Department announced new sanctions targeting Ashot Mkrtychev, the man accused of trying to arrange the secret deal. Officials said the episode is the latest sign that Russia is searching for ways to replenish its military capabilities as it continues to suffer losses amid heavy fighting in Ukraine.

“We know that between the end of 2022 and early 2023, that [Mkrtychev] worked with North Korean officials to attempt to obtain, as I said, over two dozen kinds of weapons and ammunitions for Russia” in exchange for aircraft, raw materials and commodities, National Security Council spokesman John Kirby told reporters on a call. He said any such arrangement would violate multiple U.N. Security Council resolutions.

The Treasury Department said Mkrtychev “confirmed Russia’s readiness to receive military equipment from the DPRK with senior Russian officials,” using North Korea’s official diplomatic name. The department said Mkrtychev worked with a Russian official to locate commercial aircraft that could be delivered to North Korea. Thursday’s sanctions mean all of Mkrtychev’s property and interests in the U.S. or in the possession of U.S. persons are blocked.

In Vladimir Putin’s Russia, the security services routinely torment domestic reporters who dare to expose the truth and now it has extended to the foreign press, arresting Wall Street Journal reporter Evan Gershkovich. Reporters Without Borders’ World Press Freedom Index ranks the country 155th of 180 nations, declaring that “the government has taken complete control of news and information by establishing extensive wartime censorship, blocking the media, and pursuing non-compliant journalists, forcing many of them into exile.” The Committee to…