Whistleblower News: Purdue Pharma, CFTC, Ponzi Scheme

OxyContin maker Purdue Pharma exploring bankruptcy

OxyContin maker Purdue Pharma LP is exploring filing for bankruptcy to address potentially significant liabilities from thousands of lawsuits alleging the drug manufacturer contributed to the deadly opioid crisis sweeping the United States, people familiar with the matter said on Monday.

The deliberations show how Purdue and its wealthy owners, the Sackler family, are under pressure to respond to mounting litigation accusing the pharmaceutical company of misleading doctors and patients about risks associated with prolonged use of its prescription opioids. read more »

Purported Metals Dealer and His Companies to Pay More Than $8 million for Fraud and Misappropriation of Customer Funds in CFTC Action

The Commodity Futures Trading Commission (CFTC) announced today that a Florida federal court ordered Carlos Javier Ramirez (Ramirez) and his companies, Royal Leisure International, Inc. (RLI) and Gold Chasers, Inc. (GCI), to pay restitution and civil monetary penalties for fraudulently soliciting customers to purchase physical gold and misappropriating their funds. read more »

Almanac: Schemer Charles Ponzi

On March 3, 1882, one-hundred-and-thirty-seven years ago yesterday, the founding father of financial hijinks, Charles Ponzi, was born in Parma, Italy.

Ponzi emigrated to the United States in 1903. He arrived in Boston at age 21 with $2.50 in his pocket, having gambled away his money on the voyage over.

It wasn't until after the First World War that Ponzi hatched his get-rich-quick scheme. His gimmick? The International Reply Coupon, a way to prepay foreign postage for mail. Because of a currency exchange quirk, Ponzi's coupon, bought at a low price overseas, could be cashed in for a higher amount in the United States.

Ponzi told investors he could double their money in three months by buying and selling the coupons, and it worked … at least at first.

The money poured in, more than a million dollars a week.

But when a newspaper revealed that there weren't enough coupons in the entire world to support Ponzi's scheme, his fraud was exposed. He hadn't been investing in the coupons at all – only paying off early investors with the money he got from selling tickets to later ones.

Many of his customers went into bankruptcy, and Ponzi went to jail.

And though he's long dead, the Ponzi scheme lives on. read more »

Shell May Face Charges in Netherlands Tied to Nigerian Oil Deal

Royal Dutch Shell, which is on trial in Italy over alleged corruption stemming from a $1.3 billion oil deal in Nigeria, now appears likely to face legal proceedings over the same issue in its home country, the Netherlands.

Shell said on Friday that the Dutch Public Prosecutor’s Office had warned that it was preparing to prosecute the giant oil company “for criminal charges directly or indirectly related” to a Nigerian oil deal that occurred in 2011.

A trial in the Netherlands would mark a significant expansion of the corruption case, and risk damaging Shell’s reputation as a major player in the global oil business. The legal woes might also further complicate Shell’s operations in Nigeria, where for years it has been a major producer of oil and gas. read more »