Cambridge Analytica whistleblower Christopher Wylie warns that Facebook targeting threatens free speech

The whistleblower who outed Cambridge Analytica for improperly accessing millions of Facebook users’ personal information warned on Tuesday that unchecked data collection and targeting on social media threaten Web users’ privacy — and the healthy functioning of democracy.

Christopher Wylie, who worked at the consultancy before it assisted President Trump’s 2016 campaign, pointed to Facebook’s tools that allow political candidates, advertisers and others to reach discrete categories of Americans online. Their narrowly tailored and delivered messages, he said at an event hosted by The Washington Post, “erode the public forum” because they allow some in politics to “go to every one of you in the audience and whisper you something. And you don’t know what I’m telling this person versus that person.” read more »

Opioid Ruling Could Send Purdue, Drugmakers to Court

New York judge shoots down companies’ suit-dismissal request
Local governments seek to recoup costs tied to opioid epidemic

Purdue Pharma LP, Johnson & Johnson and other opioid makers faced one of the first extensive reviews of their legal defenses to claims they violated consumer-protection laws and created a public nuisance with the sale of the pain killers. They lost.

New York state court Judge Jerry Garguilo on Monday rejected the pharma companies’ requests for the lawsuits to be thrown out on a myriad of grounds, concluding lawyers for eight counties could move forward with their claims.

“It is at least arguable that the manufacturing defendants were in a position to anticipate or prevent the claimed injuries,’’ Garguilo wrote in a 36-page ruling. ‘It does not seem unfair, therefore, to hold them potentially accountable.’’

While the ruling is based solely on New York law, it could provide a roadmap for other judges around the U.S. weighing whether states and local governments can proceed with claims that Purdue and other opioid makers understated the risks of prescription opioids and overstated their benefits. read more »

SEC Shuts Down $102 Million Ponzi Scheme

The Securities and Exchange Commission today filed charges and obtained an asset freeze against the individuals and companies behind a $102 million Ponzi scheme that bilked investors throughout the U.S.

According to the SEC’s complaint, the defendants defrauded more than 600 investors through sales of securities in issuers they controlled, including First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp.  The complaint alleges that investors were told that their funds would be used for the companies and some were guaranteed dividends or double-digit returns.  But, according to the complaint, the defendants spent at least $20 million to enrich themselves, paid $38.5 million in Ponzi-like payments, and transferred much of the remainder in transactions that appear unrelated to the issuers’ purported businesses.

The complaint charges Perry Santillo, of Rochester, New York, Christopher Parris, also of Rochester, Paul LaRocco, of Ocala, Florida, John Piccarreto, of San Antonio, and Thomas Brenner, of Orville, Ohio, along with the three companies.

“We allege that the defendants engaged in a massive fraud and swindled investors to line their pockets with ill-gotten gains,” said Marc P. Berger, Director of the SEC’s New York Office. “Investors should be on high alert whenever they are promised guaranteed returns.”

The SEC’s complaint, filed in federal district court in Manhattan, charges Santillo, Parris, LaRocco, Piccarreto, Brenner, and the three issuers with violating the antifraud provisions of the federal securities laws.  The court granted the SEC’s request for an asset freeze and a temporary restraining order.  The court will hold a hearing in 10 days concerning the asset freeze and will consider ordering a preliminary injunction. read more »

BofA's Merrill admits misleading customers, to pay $42 million SEC fine

Bank of America Corp’s (BAC.N) Merrill Lynch unit admitted to misleading brokerage customers about which firms processed their trades and agreed to pay a $42 million fine under a settlement with the U.S. Securities and Exchange Commission announced on Tuesday.

The settlement follows a similar agreement with the New York attorney general in a related probe nearly three months ago, under which Merrill Lynch also admitted to wrongdoing and agreed to pay a $42 million (£36.9 million) fine.

Merrill “fell far short of the standards expected of broker-dealers in our markets,” preventing customers from making informed decisions about their orders and broker-dealer relationships, Stephanie Avakian, co-director of the SEC enforcement division, said in a statement.

The SEC said Merrill engaged in a scheme known as “masking,” including the alteration of trade confirmations, to deceive customers into thinking it was processing their trades in-house, making its trading services appear more active and sophisticated and reducing fees it would pay to exchanges. read more »