News & Analysis as of

Fiduciary Duty Fraud

Lowenstein Sandler LLP

Two Recent SEC Enforcement Actions Against Registered Investment Advisers Underscore That Regulatory Compliance Is Still Relevant...

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In the first half of August, the U.S. Securities and Exchange Commission (SEC) announced settlements with two different registered investment advisers for violations of the Investment Advisers Act of 1940. Specifically, on...more

Winstead PC

Court Holds That Step Children Did Not Owe Informal Fiduciary Duties To Their Step Father And There Was No Formal Fiduciary...

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In In re In the Est. of Booth, Bill and Doris were married in 1991 and had separate and joint accounts, No. 02-24-00056-CV, 2025 Tex. App. LEXIS 2666 (Tex. App.—Fort Worth April 17, 2025, no pet.)....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The Fraud That Is Matt Hutcheson

I’ve been in the retirement plan business for 27 years, and during that time, I’ve seen the best and the worst it has to offer. But without a doubt, the most despicable person I’ve encountered is Matt Hutcheson. Matt paraded...more

Winstead PC

SEC and DOJ Bring Parallel Actions in $275 Million Ponzi Schemes Involving Water Vending Machines

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There has not been much news regarding SEC enforcement lately, but today the SEC and DOJ both charged a founder of a Washington-based water vending machine manufacturer Water Station Management, LLC and two related companies...more

Perkins Coie

Second Circuit Reverses Wire Fraud Conviction After Supreme Court’s Ciminelli Ruling: Key Takeaways on the Right-to-Control and...

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This month marked a significant development in the wake of the Supreme Court’s 2023 rejection of the “right-to-control” theory of fraud in Ciminelli v. United States. In Johnson v. United States, the Second Circuit...more

Winstead PC

Texas Supreme Court Addresses Informal Fiduciary Relationships and The Fiduciary Duties Owed By Accountants

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In Pitts v. Rivas, Rivas brought claims against his accountants for negligence/malpractice, fraud, breach of fiduciary duty, and breach of contract, based on alleged errors in financial statements that harmed his business....more

Carey Olsen

Eastern Caribbean Court of Appeal delivers key ruling concerning directors' duties and creditor protection in the British Virgin...

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In the recent decision of Byers & Richardson v Chen Ningning (BVIHCMAP2024/0009) ("Byers"), the Eastern Caribbean Court of Appeal ("COA") considered the scope of the director’s duty to creditors when a company is insolvent or...more

Holland & Knight LLP

SEC Scorches New Mexico Investment Advisers for Allegedly Defrauding Elderly Clients

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The SEC on June 2, 2025, filed a complaint against David A. Nagler and New Line Capital LLC (Defendants) in the U.S. District Court for the District of New Mexico for allegedly breaching their fiduciary duties and defrauding...more

Polsinelli

Federal Reserve Board Enforcement Action Raises Concerns as to Reach of Regulators’ Jurisdiction

Polsinelli on

Key Takeaways - The Federal Reserve Board issued a removal and prohibition order against a former bank employee based on alleged misconduct unrelated to her role at the bank, raising concerns about the scope of regulatory...more

Davidoff Hutcher & Citron LLP

Fraud and Financial Misconduct in Restaurant Partnerships: Legal Recourse

Running a restaurant requires a delicate balance of creativity, management, and financial responsibility. When partners share ownership of a restaurant, each has a fiduciary duty to act in the business’s best financial...more

Winstead PC

Court Reversed Summary Judgment And Held That There Was A Fact Question On Whether A Trust Was Void Due To Forgery Or Fraud

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In In re Est. of Prieto, the contestant’s mother executed a will in 2008 leaving her property to a trust. No. 04-22-00038-CV, 2024 Tex. App. LEXIS 6336 (Tex. App.—San Antonio August 28, 2024, no pet.)....more

Farrell Fritz, P.C.

The Consequences of Deception: Defendant Hit With $4.5 Million Judgment After 12-Year “Wild Goose Chase Based on a Lie”

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“Down the ridiculous rabbit hole,” “magical math,” “smoke and mirrors,” “sixteen-year charade.” That’s how the plaintiff’s post-trial brief in Becker v Perla described the defendant’s reverse-field disavowal of his sworn...more

Cooley LLP

Are You in This Party? The Scope of Section 213 of the Insolvency Act 1986

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The UK Supreme Court recently handed down a judgment in Tradition Financial Services Ltd v Bilta (UK) Ltd & Others in which it considered the scope of section 213 of the Insolvency Act 1986, specifically whether those beyond...more

Robins Kaplan LLP

Lifestyles of the Rich and Famous: Fiduciary Responsibility in the Spotlight

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Wealth and celebrity provide no immunity from the burdens of fiduciary responsibility. The more complex an estate or financial portfolio, the greater the opportunity for fiduciary breaches—whether through elder exploitation,...more

Wiley Rein LLP

Coverage Barred by Prior Acts Exclusion Under First Policy; No Coverage Under Second Policy Because Defendant did not Qualify as...

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The United States District Court for the District of New Mexico, applying New Mexico law, has held that a prior acts exclusion in a directors and officers policy barred coverage for an investor lawsuit alleging a scheme to...more

Akin Gump Strauss Hauer & Feld LLP

Atkins-led SEC Recognizes that Conflicts of Interest must be “Material” in Complaint alleging Fraud and Breaches of Fiduciary...

SEC v. Nagler is the second enforcement action charging an investment adviser with undisclosed conflicts of interest since Chair Paul Atkins began his tenure on April 21, 2025. The Securities and Exchange Commission (SEC)...more

Ballard Spahr LLP

DE Chancery Court Curbs Inspection to Investigate Alleged Fraud

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In Scaramellino v. Arencibia Holdco, LLC, Delaware’s Chancery Court recently approved a limited liability company’s narrow production in response to a broad books and records inspection demand, despite the petitioner’s...more

Ropes & Gray LLP

SEC Speaks 2025: Key Takeaways from Division of Enforcement Panels

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The SEC’s Division of Enforcement intends to remain a “cop on the beat,” and will refocus on traditional core enforcement areas, such as insider trading, accounting and disclosure fraud, market manipulation, and breaches of...more

Jackson Walker

Business Court of Texas Rebuffs Member’s Duty Claim, Reaffirms Freedom of Contract in LLC Agreement

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A recent opinion from the Business Court of Texas, Eighth Division (Fort Worth), provides a crisp reminder that an LLC’s company agreement can all but eliminate fiduciary duties among its members and managers. In Tall v....more

Mayer Brown

UK Supreme Court Confirms Broad Scope of Fraudulent Trading Provision Under S.213 Insolvency Act 1986

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On 7 May 2025, the UK Supreme Court handed down its judgment in Bilta (UK) Ltd (in liquidation) and others v Tradition Financial Services Ltd [2025] UKSC 18. The judgment primarily concerned the scope of s.213 Insolvency Act...more

Hogan Lovells

Landmark Victory secured for Asia Cement Corporation in Hong Kong High Court

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In civil litigation, the parties are strictly bound by their pleadings and it is not permissible to deviate from the same. Serious allegations of fraud or dishonesty must be pleaded distinctly and with the utmost...more

Carey Olsen

Standing room only: a “person aggrieved” under s.273 of the BVI Insolvency Act 2003

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In a judgment handed down on 15 April 2025, Stevanovich v Matthew Richardson and another (as Joint Liquidators of Barrington Capital Group Ltd (in Liquidation) [2025] UKPC 18, the Judicial Committee of the Privy Council (the...more

Hendershot Cowart P.C.

Responding to Suspected Embezzlement, Misappropriation: A Texas Business Owner's Guide

As a Texas business owner, discovering that a partner, employee, or manager may be embezzling funds can be devastating. Left unaddressed, financial misappropriation can threaten your company's stability, compromise...more

Goldberg Segalla

Lawyers Beware: Litigation Funding Leads to Malpractice

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As recently reported by Law360, a Pennsylvania lawyer and a litigation funder are facing racketeering and malpractice claims. A Pennsylvania federal judge recently declined to dismiss claims brought by a client accusing his...more

Gray Reed

Scribner’s Error: A Cautionary Tale of Oil & Gas Fraud

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DALF Energy, LLC v. GS Oilfield Services addresses a fiduciary’s deceptive actions in oil and gas transactions. The Fifth Circuit held: self-dealing may constitute a breach of fiduciary duty even when the principal is...more

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