Category: News

Morgan Stanley Agrees to Settlement Morgan Stanley Investment Management has agreed to pay $8.8 million to resolve an investigation into mortgage backed securities that its portfolio manager parked at a broker before buying back the securities into other customer accounts on favorable terms. The brokerage firm, SG Americas, has agreed to pay more than $1...

End of the Year Settlements It must be the last weekend before Christmas because health care companies are looking to resolve government investigations into their wrongdoing before we leap into the new year! In the last two days, we’ve now seen four multi-million dollar settlement announcements in False Claims Act cases. A pharmaceutical company settled...

Settlement Agreements for JP Morgan An investigation into the adequacy of disclosures to clients of its wealth management business has resulted in a settlement of $367 million with U.S. securities regulators to resolve their investigations into the practices at JPMorgan. JPM clients were steered toward certain mutual funds and hedge funds without disclosing the bank’s...

Bloomberg is reporting that investment banks are under investigation by the Securities and Exchange Commission for manipulation of the credit default swap market. Employees or former employees of investment banks with information about their price manipulation or collusion in the CDS market should consider contacting an attorney for assistance reporting the evidence to the SEC...

CFTC Whistleblower Program Review The Office of the Inspector General has refocused on an investigation of the Commodity Futures Trading Commission Whistleblower Office to determine why there have been fewer awards concerning violations of the Commodity Exchange Act or CFTC rules as a result of Dodd-Frank and to recommend best practices. The CFTC has now...

Internal or External Audits Pale in Comparison Fraud within companies is on the rise and whistleblowers are playing a crucial role in helping detect it, according to the eighth annual Global Fraud Report produced by Kroll and released in late November. Three quarters (75%) of companies responding to the survey suffered a “fraud incident” within...

The U.S. Government Accountability Office has issued a report on the IRS whistleblower program following a year long audit of the program, its operation and the underlying data generated. The 2015 report concludes that the financial incentives of the rewards program have led to billions collected but that delays and communications problems may discourage whistleblowing....