SEC Files Insider Trading Charges Against Research Scientist Aiming to Avoid SEC Detection

The Securities and Exchange Commission today announced insider trading charges against a research scientist who allegedly searched the internet for “how sec detect unusual trade” before making a trade that the agency flagged as suspicious through data analysis.

The SEC’s complaint alleges that Fei Yan loaded up on stocks and options in advance of two corporate acquisitions late last year based on confidential information obtained from his wife, an associate at a law firm that worked on the deals.

U.S. charges 412 people with healthcare fraud, opioid-related schemes

The U.S. Justice Department on Thursday announced charges against 412 people for taking part in healthcare frauds and opioid-related crimes that cost taxpayers about $1.3 billion.

The arrests came as part of what the department said was the largest healthcare fraud takedown in U.S. history. Those arrested included 120 doctors and other people charged for their roles in prescribing and distributing opioid painkillers.

The defendants include six doctors in Michigan accused of operating a scheme to prescribe patients with unnecessary opioids and of billing the Medicare healthcare program for $164 million in fraudulent claims.

Another case involved a fake Florida rehab clinic that recruited addicts with gift cards, visits to strip clubs and even drugs, resulting in $58 million in false treatments and tests, prosecutors said. read more »

The conviction of Lula and the future of Brazil’s political purge

Why the Lava Jato corruption investigations must continue

Almost three-and-a-half years after it began as a seemingly routine probe into money-laundering, Operation Lava Jato (“Car Wash”) has reached a critical stage. On July 12th Sérgio Moro, a federal judge, sentenced Luiz Inácio Lula da Silva, a former president, to almost ten years in prison, ruling that he was given an apartment worth 2.2m reais ($690,000) by a construction firm that had received padded contracts for work on an oil refinery. Congress this week began debating whether to allow a trial of the current (centre-right) president, Michel Temer, who is charged with benefiting from a bribe of $150,000, which he denies.

With the political establishment mortally threatened, calls for the corruption probes to be reined in have mounted. Lula’s lawyers say he is the innocent victim of “a politically motivated investigation”. He will remain free while he appeals, but the sentencing makes it harder for him to run for president again in 2018. It will also intensify debate as to whether Lava Jato is an overdue holding to account of the powerful, or just a witch-hunt. read more »

Ex-New York Assembly Speaker Silver has conviction voided, faces retrial

A federal appeals court on Thursday overturned the conviction of former New York state Assembly Speaker Sheldon Silver, citing a recent U.S. Supreme Court decision narrowing what kind of conduct can support corruption prosecutions.

But the 2nd U.S. Circuit Court of Appeals in Manhattan also said prosecutors had "sufficient" evidence to prove the honest services fraud, extortion and money laundering counts on which Silver was convicted in November 2015, and sentenced to 12 years in prison.

Acting U.S. Attorney Joon Kim in Manhattan said his office plans to retry Silver, 73, who has been free on bail.

"We look forward to presenting to another jury the evidence of decades-long corruption by one of the most powerful politicians in New York State history," Kim said. read more »

American Airlines reaches $22 million settlement in 401(k) self-dealing lawsuit

The settlement, if approved, would be among the largest in cases alleging enrichment due to use of proprietary investments.

American Airlines Inc. has agreed to settle a 401(k) self-dealing lawsuit for $22 million, one of the largest monetary settlements reached in similar class-action litigation.

Plaintiffs brought the suit, Main et al v. American Airlines Inc. et al, in April 2016. They alleged defendants breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 by selecting and retaining high-cost mutual funds offered by American Beacon, an investment manager affiliated with American Airlines.

Plaintiffs claimed American Airlines profited at plan participants' expense. read more »