Cambridge Analytica whistleblower to testify to House Democrats on Facebook data operation

The whistleblower who publicly revealed how Trump-affiliated data firm Cambridge Analytica used information mined from Facebook under false pretenses during the 2016 election cycle will give an interview to Democrats on the House Intelligence Committee as part of their investigation of Russian interference in the election, including possible ties to Donald Trump’s campaign read more »

Merrill Insiders Get $83 Million in SEC Whistle-Blower Awards

Three Merrill Lynch insiders will get more than $83 million from the U.S. Securities and Exchange Commission -- the biggest-ever payouts -- for providing information that helped the agency bring a 2016 case against Bank of America Corp., their attorney said Monday.

Whistle-blowers can seek payouts if they voluntarily give the SEC unique information that leads to successful enforcement actions. Compensation can range from 10 percent to 30 percent of the money collected in a case beyond $1 million. The SEC said it has awarded more than $262 million since issuing its first award in 2012. The previous record for a single payment was $30 million. read more »

Prosecutors Investigate Firms That Offer Plaintiffs Early Cash

Federal prosecutors are investigating the fast-growing business of finance companies that provide cash advances to plaintiffs in personal injury and other lawsuits, according to five lawyers briefed on the investigation.

Dozens of firms offer money to plaintiffs who are desperate for cash and don’t want to wait to collect on settlements or damages they might receive through their lawsuits. Critics of the practice say the advances are the equivalent of payday loans because their high annual interest rates — as much as 100 percent — can trap recipients in deepening cycles of debt. read more »

Broker Charged With Repeatedly Putting Customer Assets At Risk

The Securities and Exchange Commission today announced that Electronic Transaction Clearing (ETC), a registered broker-dealer headquartered in Los Angeles, has agreed to settle charges that it illegally placed more than $25 million of customers’ securities at risk in order to fund its own operations. read more »