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Government Failure to Prove Actual Losses Means No Restitution to Victims under Restitution Act, Court Rules

The Mandatory Victims Restitution Act of 1996 provides that defendants convicted of crimes committed by “fraud or deceit” must compensate victims for the full amount of their losses. A question that courts often face is whether the government and victim have provided sufficient evidence of their actual losses to obtain restitution under the MVRA. The … Continue Reading

SEC Action Impacts Employer Confidentiality Agreements

The Securities and Exchange Commission recently settled its first administrative proceeding and enforcement action under the Dodd-Frank Act involving an employer’s use of a form confidentiality agreement.  The SEC found the agreement, which prohibited employees from discussing aspects of internal investigations without prior law department authorization, could interfere with the employee’s ability to communicate with the Commission regarding … Continue Reading

Insufficient Evidence Calls for Overturning Insider Trading Cases, Second Circuit Rules

Overturning the criminal convictions of former Diamondback Capital Management, LLC portfolio manager, Todd Newman, and former Level Global Investors, L.P. portfolio manager, Anthony Chiasson, for insider trading, the federal appeals court in New York has held the government “failed to present sufficient evidence that the defendants willfully engaged in substantive insider trading or a conspiracy … Continue Reading

Does Dodd-Frank Act Protect Whistleblower Who Did Not Report to SEC?

Whether a claimant qualifies as a whistleblower under the  language of the Dodd-Frank Act when he  does not complain directly to the SEC is  the question the Eighth  Circuit Court of Appeals in St. Louis may attempt to answer. Securities clearing and settlement firm COR Clearing LLC has appealed a Nebraska District Court’s denial of … Continue Reading

Dodd-Frank Whistleblower Provision Proving Fertile Breeding Ground for Whistleblowers

In a securities filing on May 1, 2014, it was announced that Avon Products, Inc. had reached a $135 million settlement with the Securities and Exchange Commission (SEC) and the Department of Justice. The $135 million in fines will be paid to the SEC and the DOJ by Avon to resolve violations under the Foreign … Continue Reading

SEC Argues for Broad Construction of Dodd-Frank Act Whistleblower Anti-Retaliation Provision

In the wake of recent SEC pronouncements about huge numbers of whistleblower complaints in the pipeline, one of the most hotly contested issues under the Dodd-Frank Wall Street Reform and Consumer Protection Act “Dodd Frank Act”) has been the question of whether the Dodd Frank Act’s whistleblower anti-retaliation provision protects only those individuals who report … Continue Reading

SEC Whistleblower Awarded Record $14 Million

On October 1, the Securities and Exchange Commission (SEC) announced that an unidentified whistleblower, “who voluntarily provided original information” to the SEC “that led to the successful enforcement” action against an undisclosed company, has been awarded a record $14 million.  According to the SEC, the award “recognizes the significance of the information that the Claimant … Continue Reading
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