Category: Fraud

Swiss Banks No Longer a Haven?

Since 2009, the U.S. Department of Justice has charged more than 30 banking professionals and 68 U.S. accountholders with violations arising from their offshore banking activities, with ongoing investigations proceeding against 14 additional Swiss-based financial institutions.  In an effort to improve this process, the U.S. Department of Justice and the Swiss Federal Department of Finance jointly announced …

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Will Shopping Center Be Held to Estimates In A Letter of Intent?

The California Court of Appeals has reversed a trial court’s decision to dismiss a tenant lawsuit against a shopping center landlord based on differences between the landlord’s estimates of certain charges outlined in a Letter of Intent (“LOI”) as part of lease negotiations versus the amounts charged by the landlord upon occupancy. Prior to entering …

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Fifth Circuit Takes Different Stance on Dodd-Frank Whistleblower Status

The U.S. Court of Appeals for the Fifth Circuit’s decision in Asadi v. G.E. Energy provides a new take on whistleblower protections under the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The Court found that, by definition, a whistleblower must have reported the claimed violation(s) to the U.S. Securities and Exchange Commission (“SEC”) in …

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Permanent link to this article: http://betweenthenumbers.net/2013/07/fifth-circuit-takes-different-stance-on-dodd-frank-whistleblower-status/

SEC Announces New Anti-Fraud Initiatives

The Securities and Exchange Commission (“SEC”) recently announced three new enforcement initiatives in its ongoing fight against fraud: “The Financial Reporting and Audit Task Force dedicated to detecting fraudulent or improper financial reporting, whose work will enhance the Division’s ongoing enforcement efforts related to accounting and disclosure fraud. The Microcap Fraud Task Force targeting abusive trading …

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Permanent link to this article: http://betweenthenumbers.net/2013/07/sec-announces-new-anti-fraud-initiatives/

Use of Internal Personnel for Whistleblower Reporting Costs Employer in Tenth Circuit Case

In Lockheed Martin Corp. v. Brown, No. 11-9524 (10th Cir. Jun. 4, 2013), the Tenth Circuit supported a broad interpretation of the claims that are protected under the anti-retaliation provisions of the Sarbanes-Oxley Act. The Tenth Circuit broadly described the case as follows: “Lockheed Martin Corp. (“Lockheed”) seeks to set aside a decision of the …

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Permanent link to this article: http://betweenthenumbers.net/2013/07/use-of-internal-personnel-for-whistleblower-reporting-costs-employer-in-tenth-circuit-case/

New Guidelines for Fraud Deterrence

The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) has released an updated Internal Control – Integrated Framework in the fight against fraud.  It provides expanded practical advice regarding effective implementation of internal controls.  COSO is a joint initiative of five private sector organizations with a shared interest in enterprise risk management, internal control and fraud …

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Permanent link to this article: http://betweenthenumbers.net/2013/06/new-guidelines-for-fraud-deterrence/

Whistleblower protection does not require fraud on shareholders

A recent decision has clarified the reach of the protections offered to whistleblowers under Section 806 of the Sarbanes-Oxley Act of 2002 (“SOX”).  In the matter of Lockheed Martin Corporation v. Administrative Review Board, United States Department of Labor, it has been determined that SOX whistleblower protection extends beyond employee reporting of frauds on shareholders.  …

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SEC Whistleblowers Rewarded

The Securities and Exchange Commission(“SEC”)  announced the agency has approved its second Dodd-Frank whistleblower award since the program’s 2011 inception, this time to three individuals who were each deemed to have provided information related to a $7.5 million enforcement action that was (i) voluntary, (ii) original, and (iii) led to the successful result. The SEC’s “fact …

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Permanent link to this article: http://betweenthenumbers.net/2013/06/sec-whistleblowers-rewarded/

More Than 10% of US Adults Were Victims of Fraud in 2011

A recent report by the Federal Trade Commission (“FTC”) entitled “Consumer Fraud in the United States, 2011: The Third FTC Survey” provides some interesting statistics on the prevalence of fraud.  The underlying consumer surveys revealed that during 2011 an estimated 10.8 % of U.S. adults (25.6 million people) were a victim of one or more of an estimated total …

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Permanent link to this article: http://betweenthenumbers.net/2013/06/more-than-10-of-us-adults-were-victims-of-fraud-in-2011/