investigation Archives - The Industry Spread

CFTC Announces $2 Million Award to Joint Whistleblowers

July 5, 2019

The CFTC found numerous violations of the Commodity Exchange Act (CEA) that were directly based on information from the whistleblowers. The multiple interviews and numerous documents the whistleblowers provided were highly informative and formed the basis of the CFTC’s investigation. The whistleblowers also reported the same information to another organization, which conducted a separate investigation and shared its findings with the CFTC. Those findings significantly assisted the CFTC in building its case. The award will be divided evenly between the whistleblowers because they jointly submitted the tip and award application to the CFTC.    

SEC Charges Lumber Liquidators With Fraud

March 15, 2019

The Securities and Exchange Commission today announced charges against Lumber Liquidators Holdings Inc. for making fraudulent misstatements to investors.  The charges stem from Lumber Liquidators’ false public statements in response to media allegations that the company was selling laminate flooring that contained levels of formaldehyde exceeding regulatory standards.  Lumber Liquidators agreed to pay more than $6 million to settle the SEC action.

SEC Charges Cognizant and Two Former Executives With FCPA Violations

February 25, 2019

The Securities and Exchange Commission’s complaint alleges that in 2014, a senior government official of the Indian state of Tamil Nadu demanded a $2 million bribe from the construction firm responsible for building Cognizant’s 2.7 million square foot campus in Chennai, India.

SEC Charges Founder of Online Gaming Company Defrauding Investors

February 11, 2019

According to the SEC’s complaint, among other misrepresentations, Alexander told investors that they would make a minimum of 10 times their investment, Alexander had personally invested millions of dollars in Kizzang, Alexander had made a $50 million charitable donation, and that he had led the creation of a prominent video game. 

SEC Brings Charges in Edgar Hacking Case

January 18, 2019

The Securities and Exchange Commission today announced charges against nine defendants for participating in a previously disclosed scheme to hack into the SEC’s EDGAR system and extract nonpublic information to use for illegal trading.