First, the SEC has charged Dr. Phillip Frost and his company, Opko, with running a “pump and dump” stock manipulation scheme related to certain thinly traded biotech securities. (see, Opko is not Fraudco!).
Full Answer
What companies have been accused of massive fraud?
20 Huge Companies that Have Been Accused of Massive Fraud 1. BAE Systems. British defense, security, and aerospace company BAE has been plagued by allegations of fraud since 1989. 2. Bank of Credit and Commerce International. In 1990, the Bank of Credit and Commerce International (BCCI) came ...
What happened to Valeant Pharmaceuticals?
In October 2015, short-seller Andrew Left accused Valeant of artificially inflating its sales through its “secret division”, the specialty pharmacy company, Philidor. An investigation by the SEC followed… as did a 90% plummet in Valeant’s stock price.
What is the history of Wells Fargo fraud?
Well Fargo’s history of fraudulent activities goes back years. In 1981, an assistant operations officer, Lloyd Benjamin “Ben” Lewis, was found to have orchestrated one of the biggest embezzlements in history after he was discovered to have written numerous debit and credit receipts to benefit several boxing promoters.
What did BCCI do wrong?
In 1990, the Bank of Credit and Commerce International (BCCI) came under fire from Price Waterhouse for reporting “false or deceitful” transactions on its accounts, and “ (colluding) with major customers to misstate or disguise the real purpose of significant transactions”.
Who all was charged in Theranos?
The hits keep coming for former Theranos founder and CEO Elizabeth Holmes. On Friday, a federal grand jury indicted Holmes alongside the company's former president and chief operating officer Ramesh “Sunny” Balwani on two counts of conspiracy to commit wire fraud and nine counts of wire fraud.
What fraud did Theranos commit?
Criminal proceedings On June 15, 2018, Holmes and Balwani were indicted on multiple counts of wire fraud and conspiracy to commit wire fraud. According to the indictment, investors, doctors and patients were defrauded.
What happened to Theranos?
Soon after, Walgreens sued Theranos for $140 million dollars for misleading them about the capabilities of the technology. In 2016, the SEC slapped Holmes and her ex-boyfriend and Theranos COO Sunny Balwani with 11 felony counts for fraud against investors and patients. Theranos completely shut down by 2019.
What is Theranos scandal?
By October 2016, Theranos had ceased its lab operations and closed its wellness centers. Holmes, Theranos and Balwani were charged with “massive fraud” by the SEC in March 2018. She agreed to relinquish financial and voting control of the company, pay a $500,000 fine and return shares of Theranos stock.
Who blew the whistle on Theranos?
George ShultzGeorge Shultz died in February 2021. In an interview with CNBC, Shultz said his one disappointment with the verdict was that Holmes was not found guilty of defrauding patients. Calling the patients “the real victims,” Shultz said, “I did what I did.
How much did Walgreens lose on Theranos?
In June, the companies reached a tentative settlement in which Theranos would pay Walgreens less than $30 million, people familiar with the deal told The Wall Street Journal. However, the terms weren't finalized and could change, the WSJ reported.
Where is Elizabeth from Theranos now?
Currently, Holmes is living in California. As she awaits her September sentencing, Holmes is free on a $500,000 bond. According to CNBC, the new mother is living on a nine-bedroom Silicon Valley estate, worth an estimated $135 million.
Is Elizabeth Holmes still married?
Holmes was found guilty of four counts of defrauding investors and will be sentenced in 2022. After the end of her romance with Balwani, Holmes, who faces 20 years behind bars, went on to marry Billy Evans — the heir to the Evans Hotel Group in California — in 2019 and welcomed a son.
What happened to sunny from Theranos?
In June 2018, a federal grand jury indicted Holmes and Sunny on multiple counts of wire fraud and conspiracy to commit wire fraud. The victims of their crimes were listed as investors and patients. Both pleaded not guilty and were released on bail.
Did Theranos use Siemens machines?
Because of this, when Walgreens tapped Theranos to bring its seemingly miraculous blood-testing tech into clinics, the startup turned to the Siemens machines to perform the tests—even as Holmes maintained that Theranos' technology was capable of doing what the company promised.
What happened to Walgreens and Theranos?
A Wall Street Journal article published in 2016 detailed how Walgreens invested $50 million in Theranos before eventually abandoning their deal. It also details how Walgreens made its deal “without fully validating” Theranos' technology over fears that Elizabeth would walk away.
Who lost money with Theranos?
Story: Big name investors among Theranos biggest losers For instance, the Wall Street Journal reported, the Devos family lost an estimated $100 million in their investment while Murdoch lost $125 million and the Walton family lost $150 million.
Why were Act's annual reports and proxy statements inaccurate?
Subsequently, ACT’s annual reports and proxy statements during that period were inaccurate because they failed to report that Rabin was not complying with his obligation to disclose his substantial sales of ACT stock. ACT and Rabin agreed to settle the SEC’s charges.
What happened in 2014-191?
10, 2014 —. The Securities and Exchange Commission today charged a Massachusetts-based biotech company and its former CEO with defrauding investors by failing to report his sales of company stock. The federal securities laws require certain corporate executives to report their transactions in ...
What company was hit with the biggest accounting scandal of all time?
3. Enron. In 2001, the world was hit with one of the biggest accounting scandals of all time. The energy trader Enron had for years been hiding its huge debts by simply removing them from its balance sheet.
Why was FIFA indicted?
FIFA. In 2015, soccer was rocked by the news that FIFA was being indicted by the FBI on allegations of racketeering, fraud, and various other charges.
What was the Volkswagen emissions scandal?
The Volkswagen Emissions Scandal can be traced back to 2015 when the EPA issued German car manufacturer Volkswagen with a notice of violation of the Clean Air Act. Within days, regulators in numerous countries opened investigations into the emission discrepancies that suggested Volkswagen may have been tampering with their vehicles in order to pass government emission tests. As it turned out, they were; as the BBC notes, the scandal went all the way to the top, with CEO Martin Winterkorn not only being aware of what his engineers were doing but actively participating in the ongoing cover-up. Volkswagen was ordered to cough up $2.8 billion, while Winterkorn was charged with fraud and conspiracy.
What countries did BAE sell arms to?
One of the most serious cases levied against them involves the use of corrupt practices to sell arms to various countries, including Chile, Czech Republic, Romania, Saudi Arabia, South Africa, Tanzania, and Qatar. According to the Serious Fraud Office, BAE made a series of payments via an intermediary to line the pockets ...
How much did Siemens pay for the contract?
Siemens was found guilty of, amongst other things, paying $40 million in fines to win a $1 billion contract to make national insurances cards in Argentina and a further $20 million to build power plants in Israel.
What was BAE's fine in 2010?
In February 2010, BAE agreed to pay criminal fines of US$400 million to the US and £30M to the UK after being convicted of felony conspiracy. 2. Bank of Credit and Commerce International.
When did Columbia Healthcare merge with HCA?
Columbia/ HCA Medicare. In 1994 , Hospital Corporation of America and Columbia Healthcare Corp merged to form a joint venture that included the operation of 192 hospitals. 3 years later, the FBI and IRS had a little merger of their own, joining forces to raid the company’s offices after allegations emerged of Medicare fraud.