List of securities frauds

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Following is a list of securities frauds (also called stock frauds or investment frauds):

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The 2003 mutual fund scandal was the result of the discovery of illegal late trading and market timing practices on the part of certain hedge fund and mutual fund companies.

<span class="mw-page-title-main">Bernie Madoff</span> American fraudster and financier

Bernard Lawrence Madoff was an American financial criminal and financier who was the admitted mastermind of the largest known Ponzi scheme in history, worth an estimated $65 billion. He was at one time chairman of the Nasdaq stock exchange. Madoff's firm had two basic units: a stock brokerage and an asset management business; the Ponzi scheme was centered in the asset management business.

Stephen Walsh is an American former money manager who pleaded guilty to securities fraud.

<span class="mw-page-title-main">Frank DiPascali</span> American fraudster (1956–2015)

Frank DiPascali Jr. was an American fraudster and financier who was a key lieutenant of Bernie Madoff for three decades. He referred to himself as the company's "director of options trading" and as "chief financial officer". For a number of years, he played a key part in the daily operation of the Madoff investment scandal, later recounting how he helped manipulate billions of dollars in account statements so clients would believe that they were creating wealth for them.

<span class="mw-page-title-main">Madoff investment scandal</span> Investment scandal discovered in 2008

The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008. In December of that year, Bernie Madoff, the former Nasdaq chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC, admitted that the wealth management arm of his business was an elaborate multi-billion-dollar Ponzi scheme.

<span class="mw-page-title-main">Participants in the Madoff investment scandal</span>

Participants in the Madoff investment scandal included employees of Bernard Madoff's investment firm with specific knowledge of the Ponzi scheme, a three-person accounting firm that assembled his reports, and a network of feeder funds that invested their clients' money with Madoff while collecting significant fees. Madoff avoided most direct financial scrutiny by accepting investments only through these feeder funds, while obtaining false auditing statements for his firm. The liquidation trustee of Madoff's firm has implicated managers of the feeder funds for ignoring signs of Madoff's deception.

<span class="mw-page-title-main">Edward Davila</span> American judge (born 1952)

Edward John Davila is an American lawyer who serves as a United States district judge of the United States District Court for the Northern District of California. He was previously a state court judge on the Santa Clara County Superior Court from 2001 to 2011.

International Investment Group (IIG) is an American financial institution that specializes in short-term trade finance and commercial finance with a focus on emerging markets. Through its affiliate IIG Capital it provides financing to small and medium-sized merchants, traders and processors with a need for supply chain financing.

Thema International Fund PLC, based in Dublin, Ireland, is a Dublin-listed, Undertakings for Collective Investment in Transferable Securities (UCITS) III-certified, open-end fund incorporated in Ireland, which was launched in December 1996. It created only one sub-fund, the Thema Fund. The fund had a minimum investment requirement of $50,000.

Theranos Inc. was an American privately held corporation that was touted as a breakthrough health technology company. Founded in 2003 by 19-year-old Elizabeth Holmes, Theranos raised more than US$700 million from venture capitalists and private investors, resulting in a $10 billion valuation at its peak in 2013 and 2014. The company claimed that it had devised blood tests that required very small amounts of blood and that could be performed rapidly and accurately, all using compact automated devices that the company had developed. These claims were proven to be false.

<span class="mw-page-title-main">Elizabeth Holmes</span> American criminal and businesswoman (born 1984)

Elizabeth Anne Holmes is an American biotechnology entrepreneur who was convicted of fraud in connection to her blood-testing company, Theranos. The company's valuation soared after it claimed to have revolutionized blood testing by developing methods that needed only very small volumes of blood, such as from a fingerprick. In 2015, Forbes had named Holmes the youngest and wealthiest self-made female billionaire in the United States on the basis of a $9-billion valuation of her company. In the following year, as revelations of fraud about Theranos's claims began to surface, Forbes revised its estimate of Holmes's net worth to zero, and Fortune named her in its feature article on "The World's 19 Most Disappointing Leaders".

<span class="mw-page-title-main">John Carreyrou</span> American journalist and author

John Carreyrou is a French-American investigative reporter at The New York Times. Carreyrou worked for The Wall Street Journal for 20 years between 1999 and 2019 and has been based in Brussels, Paris, and New York City. He won the Pulitzer Prize twice and is well known for having exposed the fraudulent practices of the multibillion-dollar blood-testing company Theranos in a series of articles published in The Wall Street Journal.

Mutual Benefits Corporation was a Ft. Lauderdale, Florida based investment sales company that operated a huge ponzi scheme selling viatical settlements, with investors losing an estimated $835 million. The principal ring leader of the scam was Joel Steinger.

Ramesh "Sunny" Balwani is a businessman, former president and chief operating officer of Theranos, which was a privately held health technology company founded by his then-girlfriend Elizabeth Holmes. He and Holmes fraudulently represented that they had devised a revolutionary blood test that required only small amounts of blood, such as from a fingerstick. Both Balwani and Holmes were convicted of fraud. The consequences of the fraud led to the collapse of Theranos and the loss of billions of dollars to investors.

Visium Asset Management LP was an American multi-strategy hedge fund. It began as a healthcare-focused hedge fund, founded in 2005 by Jacob Gottlieb. Visium controlled investment funds with about $8 billion of assets under management and had 170 employees at its peak in 2016. That year, three of the company's traders were indicted by United States federal authorities for securities fraud. One of the accused employees killed himself days after he was indicted. Visium subsequently liquidated several of its funds and wound down operations.

<i>The Dropout</i> (podcast) 2019 American true crime podcast

The Dropout was an American podcast hosted by Rebecca Jarvis that follows the story of Elizabeth Holmes and Theranos. It was produced by ABC News, Taylor Dunn, Victoria Thompson, and Rebecca Jarvis. Following the podcast, a two-hour 20/20 episode premiered in March 2019, following the popularity of the podcast, and was nominated for a news Emmy Award in the Outstanding Feature Story in a Newsmagazine category. The podcast has been adapted to a limited series of the same name starring Oscar-nominee Amanda Seyfried as Holmes. Jarvis, Dunn, and Thompson served as executive producers along with showrunner Elizabeth Meriwether.

<i>United States v. Elizabeth A. Holmes, et al.</i> Criminal fraud case

United States v. Elizabeth A. Holmes, et al., was a United States federal criminal fraud case against the founder of now-defunct corporation Theranos, Elizabeth Holmes, and its former president and COO, Ramesh Balwani. The case alleged that Holmes and Balwani perpetrated multi-million dollar wire-fraud schemes against investors and patients. Holmes and Balwani each had their own jury trial.

References

  1. "The Mutual Fund Trading Scandals". Journal of Accountancy. December 2004. Retrieved May 3, 2008.
  2. Keenan, Alexis (November 18, 2022). "Elizabeth Holmes, Theranos founder, sentenced to 11.25 years in prison". Yahoo! Finance.