Internal whistleblower can sue for retaliation under Dodd-Frank – 9th Circuit

A divided appeals court ruled on Wednesday that a former executive at an IT company in San Francisco can sue for workplace retaliation, holding that the Dodd-Frank Act’s whistleblower protections cover workers who reported possible securities law violations internally.

In a 2-1 decision, a panel of the 9th U.S. Circuit Court of Appeals held that the law covers workers such as Paul Somers, who claimed Digital Realty Trust Inc fired him after he disclosed potential legal violations to management, even though the Dodd-Frank Act defines “whistleblower” as those who report such allegations to the U.S. Securities and Exchange Commission. read more »

Brazil's Odebrecht corruption scandal

For years, Latin America's construction giant, Odebrecht, built some of the region's most crucial infrastructure projects.

Now it is becoming well-known for another superlative: it is involved in one of the biggest corruption cases in history.

Last year, the Brazilian-based group signed what has been described as the world's largest leniency deal with US and Swiss authorities, in which it confessed to corruption and paid $2.6bn (£2.1bn) in fines.

Seventy-seven company executives have agreed to plea bargains with Brazilian authorities, and their statements to investigators are being made public.

These revelations are having strong political and economic repercussions throughout Latin America.

What is Odebrecht and why is it important? read more »

Yahoo’s CEO is giving up at least $12 million in compensation after the company’s hacking probe

Yahoo chief executive Marissa Mayer has made repeat appearances on the list of highest paid CEOs. The millions she could take home if she and Yahoo were ever to part ways has been the subject of much attention.

But following a board inquiry into her executive team's handling of epic data breaches in 2014, she'll be taking a sizable pay cut. In Yahoo's annual report filed Wednesday, the company said it would not award Mayer her cash bonus for 2016 “that was otherwise expected to be paid to her” — as well as that it accepted Mayer's offer to forgo her annual equity award. Mayer's target bonus, which is dependent on performance, is $2 million, while her employment agreement says she will get no less than $12 million in stock awards each year. read more »

PwC blames Corzine for MF Global collapse as trial begins

PricewaterhouseCoopers LLP [PWC.UL] pinned the blame for MF Global Holdings Ltd's collapse squarely on the commodity brokerage and its former chief executive, Jon Corzine, at the start on Tuesday of a trial over whether the auditor should pay about $3 billion for its alleged negligence.

Jurors are considering a demand by MF Global's bankruptcy plan administrator that PwC be held liable for causing MF Global's October 2011 bankruptcy through its "egregious" advice over how to account for Corzine's $6.3 billion bet on European sovereign debt, as well as so-called deferred tax assets. read more »

David Samson avoids jail in United Airlines bribery scandal

Facing two years in prison for the shakedown of United Airlines in a bizarre scheme to get a more convenient direct flight to his South Carolina getaway home, former  David Samson found a soft landing Monday.

U.S. District Judge Jose Linares stunned federal prosecutors by sentencing Samson to a year of home confinement, four years of probation and 3,600 hours of community service in his admitted strong-arming of the airline.

The 77-year-old former New Jersey attorney general will also be required to pay a $100,000 fine and wear a location-monitoring device.

"I did something wrong. I violated the law. I deeply regret it. I am trying to live my life to the highest moral standards," Samson said in court, apologizing to his family his friends and the public. "I violated the law. I deeply regret it."

Linares did not minimize Samson's guilt. read more »

"This crime was ridiculous. It was a complete abuse of power. It was corruption that is not to be tolerated," said the judge.

 

 

Orlando's David Schwarz faces life in prison after Cay Clubs conviction

David Schwarz, an Orlando businessman who helped run Cay Clubs Resorts and Marinas, has been convicted by a federal jury of conspiracy, bank fraud, and tax offenses.

The conviction is tied to Schwarz’ stint as chief financial officer of the company, which authorities have said was actually a $300 million Ponzi scheme.

The Cay Clubs scheme, which dates to the real estate bubble before 2008, has already seen several arrests and convictions. The scheme used the marketing slogan “Retire Rich and Young in Paradise” to lure in condo buyers by inflating the values of properties, and by promising big returns of up to 20 percent based on promises to rent out the condo units. The government says about 1,400 people were victimized by the fraud. read more »

 

 

A former FBI informant reflects on her involvement with the Insider Trading Industry

Roomy Khan, once known as “Tipper A,” spoke to students Wednesday night about what she has learned from her involvement in the FBI investigation, “Operation Perfect Hedge.”

According to Khan, “Operation Perfect Hedge” has been one of the largest insider trading investigations with about 90 arrests and prosecutions. read more »