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Enforcement Actions Financial Services Industry Financial Fraud

Ballard Spahr LLP

Citing CFPB cutbacks, Pennsylvania Governor is beefing up consumer protection efforts

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Citing cutbacks at the federal level, Pennsylvania Governor Josh Shapiro has launched a new centralized consumer protection hotline, website and email address to make it easier for state residents to report allegations of...more

Troutman Pepper Locke

New York AG Sues Yellowstone Capital Over Alleged “Fraudulent Loans” Targeting Small Businesses

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New York Attorney General (AG) Letitia James filed a lawsuit on March 5 against Yellowstone Capital, its founder David Glass, and a network of 30 other affiliated companies and individuals. James alleges that Yellowstone...more

The Volkov Law Group

SEC and DOJ Charge SafeMoon Cryptocurrency and its Executives For Multi-Million Dollar Fraud

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On November 1, 2023, the U.S. Department of Justice (“DOJ”) and U.S. Securities and Exchange Commission (“SEC”) brought charges against cryptocurrency project SafeMoon LLC and its U.S. subsidiary SafeMoon US LLC, along with...more

Sheppard Mullin Richter & Hampton LLP

CFPB Acts Against Fintech Operator of Mobile App for Illegal International Money Transfers

On October 17, the CFPB took action against a nonbank fintech company for allegedly deceiving consumers about the speed and cost of remittance transfers through its mobile app. The Bureau also alleges that the company...more

The Volkov Law Group

The SEC Sues Cryptocurrency Exchange Binance Alleging Sweeping Securities Violations

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In a complaint filed June 5, 2023, the U.S. Securities and Exchange Commission (“SEC”) is suing the world’s larged cryptocurrency exchange – Binance Holdings Ltd. (“Binance”), BAM Trading Services Inc. (“BAM Trading”), BAM...more

Cadwalader, Wickersham & Taft LLP

CFTC Enforcement − Aiding and Abetting Liability

Churchill is credited with saying “Never let a good crisis go to waste” at the end of WWII in reference to lessons learned in rebuilding the post-war world. The rolling collapse in crypto and digital assets’ markets, and...more

Orrick, Herrington & Sutcliffe LLP

SEC files emergency action on $100 million crypto fraud

On March 6, the SEC announced it had filed an emergency action against a Miami-based investment adviser and one of its principals (collectively, “defendants”) in connection with a $100 million crypto asset fraud scheme. ...more

Orrick, Herrington & Sutcliffe LLP

FTC says fraud cost consumers $8.8 billion in 2022

On February 23, the FTC released data showing 2.4 million consumers reported losing a total of nearly $8.8 billion to fraud in 2022—a more than 30 percent increase from the prior year. Investment scam losses totaled more than...more

Orrick, Herrington & Sutcliffe LLP

Credit union to pay $558,000 in cyber fraud case

On January 12, the U.S. District Court for the Eastern District of Virginia ruled that a credit union (defendant) is responsible for $558,000 in compensatory damages for processing a payment order that was allegedly induced...more

Bilzin Sumberg

Fintechs Face DOJ, House Scrutiny Over PPP Lending

Bilzin Sumberg on

In a June 3, 2022 court filing, Kabbage, Inc. (doing business as KServicing), a fintech lender, disclosed that it is under investigation by the U.S. Department of Justice (“DOJ”) under the False Claims Act. The investigation,...more

The Volkov Law Group

DOJ Loses Another Libor-Rigging Case on Appeal

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The Justice Department trumpeted its criminal prosecutions against defendants charged with Libor-rigging.  It had a right to toot its own horn.  But many of these convictions have not withstood the scrutiny of appellate...more

Goodwin

Financial Services Weekly News: FDIC Issues Deposit Insurance Application Guidance For Non-Banks

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In This Issue. The Federal Deposit Insurance Corporation (FDIC) published new procedures for federal deposit insurance applications from applicants that are not traditional community banks; federal banking regulators released...more

Robins Kaplan LLP

Financial Daily Dose 11.20.2019 | Top Story: Utility PG&E Struggles with Fires and Path Out of Bankruptcy

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PG&E’s woes continue. Not only is the company still in the midst of a dangerous fire season, but it’s struggling to find a path out of bankruptcy while fending off a growing chorus of cities and state officials “threatening...more

Ballard Spahr LLP

11th Circuit Affirms FTC's $13.5 Million Judgment Against Mortgage Relief Fraudster

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On November 2, 2017, the U.S. Court of Appeals for the 11th Circuit affirmed a $13.5 million judgment that the FTC obtained against a group of individuals, law firms, and related entities that engaged in a massive nationwide...more

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