Category: Disgorgement

SEC Charges San Diego Duo in Alleged Ponzi Scheme

The Securities and Exchange Commission (“SEC”) charged Jonny Ngo, Donato “Mick” Baca, Jr., and NL Technology, LLC with defrauding hundreds of investors by running a Ponzi scheme. A Ponzi scheme is a type of investment fraud that sustains itself by paying claimed returns to existing investors with fresh money from new investors, while also enriching …

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Permanent link to this article: http://betweenthenumbers.net/2018/10/sec-charges-san-diego-duo-in-alleged-ponzi-scheme/

Check Amounts Can Differ Substantially from Class Action Settlements Per Claim

The reported value per claim in a class action settlement can differ significantly from the actual check a class member receives.  Both StarKist and Trader Joe’s have faced class action lawsuits involving damages for allegedly under-filled cans of tuna.  Both defendants settled for cash amounts in the range of $25-29 per claim (although StarKist also …

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Permanent link to this article: http://betweenthenumbers.net/2018/09/check-amounts-can-differ-substantially-from-class-action-settlements-per-claim/

General Cable Settles with SEC and DOJ for $82.3 Million

General Cable Corporation announced that it has entered into a joint settlement with the Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”) for a total payment of $82.3 million to address investigations into violations of the U.S. Foreign Corrupt Practices Act (“FCPA”) and separate allegations regarding financial restatements. In 2014, General Cable voluntarily …

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Permanent link to this article: http://betweenthenumbers.net/2016/12/general-cable-settles-with-sec-and-doj-for-82-3-million/

“Blurred Lines” Infringement Verdict Is In

The copyright infringement case brought by the estate of Marvin Gaye against the popular musicians Robin Thicke, Pharrell Williams, and “T.I”, as well as their respective record companies, was decided by jury verdict on March 10th. The jury awarded the Gaye estate $7.4 million in damages, to be paid by Thicke and Williams, with the …

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Permanent link to this article: http://betweenthenumbers.net/2015/03/blurred-lines-infringement-verdict-is-in/

SEC Wins with Tax Avoidance Approach to Disgorgement

The Securities and Exchange Commission (“SEC”) has been awarded a substantial win in its civil enforcement action against Samuel Wyly and Donald R. Miller, Jr. as the Independent Executor of the Will and Estate of Charles J. Wyly Jr. (the “Wylys”). The Court ordered the Wylys to pay a total of $188 million plus pre-judgment …

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Permanent link to this article: http://betweenthenumbers.net/2014/10/sec-wins-with-tax-avoidance-approach-to-disgorgement/

Disgorgement remedy potentially broadened by Second Circuit

In a sharply-divided 2-1 vote, the Second Circuit Court of Appeals found that a civil disgorgement amount can exceed the profit that the defendant received. Although the case facts and Opinion directly involved insider trading in an action brought by the Securities and Exchange Commission, the rationale could presumably be applied in other wrongful conduct. …

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Permanent link to this article: http://betweenthenumbers.net/2014/04/disgorgement-remedy-potentially-broadened-by-second-circuit/

Disgorgement of Profits on Unpaid Benefits Granted in ERISA Long Term Disability Case

In Rochow v. Life Insurance Company of North America (“LINA”), the Appeals Court affirmed a disgorgement remedy of $3.8 million under ERISA in this long term disability case.  In a previous appeal, the Court had determined that LINA had acted in an arbitrary and capricious manner when it continuously denied Daniel Rochow benefits for his long …

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Permanent link to this article: http://betweenthenumbers.net/2013/12/disgorgement-and-unpaid-benefits-granted-in-erisa-long-term-disability-case/