Securities-Fraud

SEC Drops Fraud Case Against Pardoned Nikola Founder Trevor Milton

| Importance: 8/10

The Securities and Exchange Commission moved to dismiss its civil fraud case against Trevor Milton, founder of Nikola Corporation, following his pardon by President Trump on March 28, 2025. Milton was convicted in October 2022 of securities fraud for misleading investors about Nikola’s …

Trevor Milton Securities and Exchange Commission Donald Trump Nikola Corporation corruption regulatory-capture pay-to-play securities-fraud elite-impunity
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SEC Files Securities Fraud Lawsuit Against Former DWAC CEO Patrick Orlando

| Importance: 9/10

The Securities and Exchange Commission files a federal lawsuit against Patrick Orlando, former CEO and Chairman of Digital World Acquisition Corporation, alleging securities fraud in connection with DWAC’s initial public offering and proposed merger with Trump Media. The SEC alleges Orlando …

Securities and Exchange Commission Patrick Orlando Digital World Acquisition Corp Trump Media & Technology Group sec-lawsuit patrick-orlando securities-fraud dwac trump-media +1 more
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SCOTUS limits SEC use of in-house tribunals for civil penalties (SEC v. Jarkesy)

| Importance: 6/10

In a 6-3 decision on June 27, 2024, the Court held the Seventh Amendment requires jury trials when the SEC seeks civil penalties for securities fraud, ending the agency’s use of in-house administrative law judge proceedings for such cases. Chief Justice Roberts’ majority opinion found …

Supreme Court of the United States Securities and Exchange Commission Chief Justice John Roberts (majority opinion) Justice Neil Gorsuch (concurring) Justice Clarence Thomas (concurring) +4 more administrative-law courts enforcement seventh-amendment jury-trial-rights +3 more
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SEC Charges DWAC with Securities Fraud, Imposes $18 Million Penalty

| Importance: 9/10

The Securities and Exchange Commission announced settled fraud charges against Digital World Acquisition Corp (DWAC) for material misrepresentations to investors about merger discussions with Trump Media & Technology Group (TMTG). The SEC found that individuals who would later become …

Securities and Exchange Commission Digital World Acquisition Corp Trump Media & Technology Group SEC sec-charges dwac securities-fraud trump-media spac-fraud +1 more
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FBI Arrests Three in "Trust Social" Investigation for DWAC Insider Trading

| Importance: 9/10

FBI and HSI agents arrested Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick on June 29, 2023, for an insider trading scheme related to Digital World Acquisition Corp (DWAC), which was set to merge with Trump Media & Technology Group. The defendants allegedly made over $22 million in …

Michael Shvartsman Gerald Shvartsman Bruce Garelick FBI HSI +3 more dwac insider-trading fbi-arrests trust-social-investigation truth-social +2 more
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Rep. Chris Collins Sentenced to 26 Months for Insider Trading From White House Lawn

| Importance: 8/10

Former U.S. Representative Chris Collins (R-NY) was sentenced to 26 months in federal prison, one year of supervised release, and a $200,000 fine by Judge Vernon S. Broderick for insider trading and making false statements to the FBI. Collins, who was the first member of Congress to endorse Donald …

Chris Collins Cameron Collins Donald Trump Vernon S. Broderick Congressional Corruption Insider Trading Republican Party New York Securities Fraud +2 more
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Facebook IPO Market Manipulation by Morgan Stanley

| Importance: 9/10

Morgan Stanley and other underwriters engaged in selective disclosure during Facebook’s initial public offering, revealing sensitive financial information only to institutional investors. Massachusetts securities regulators fined Morgan Stanley million for creating an ‘unlevel playing …

Morgan Stanley Facebook William Galvin James Gorman securities-fraud market-manipulation tech-industry financial-regulation facebook +1 more
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Jeffrey Skilling Sentenced to 24 Years for Enron Fraud

| Importance: 10/10

On October 23, 2006, former Enron CEO Jeffrey Skilling was sentenced to 24 years and four months in federal prison for his role in the Enron fraud, representing one of the harshest sentences ever imposed on a corporate executive. U.S. District Judge Sim Lake also ordered Skilling to forfeit …

Jeffrey Skilling Department of Justice Sim Lake corporate-fraud enron criminal-prosecution securities-fraud corporate-accountability
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Ken Lay and Jeffrey Skilling Convicted of Enron Fraud and Conspiracy

| Importance: 10/10

On May 25, 2006, a federal jury convicted Enron founder Kenneth Lay on all six counts of fraud and conspiracy, and former CEO Jeffrey Skilling on 19 of 28 counts of securities fraud, wire fraud, and conspiracy. The verdicts marked a watershed moment in corporate accountability, holding top …

Kenneth Lay Jeffrey Skilling Department of Justice corporate-fraud enron criminal-prosecution securities-fraud corporate-accountability
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WorldCom CEO Bernard Ebbers Sentenced to 25 Years in Prison

| Importance: 10/10

On July 13, 2005, former WorldCom CEO Bernard Ebbers was sentenced to 25 years in federal prison for orchestrating the largest corporate accounting fraud in American history. The sentence, handed down by U.S. District Judge Barbara Jones in Manhattan, represented one of the harshest penalties ever …

Bernard Ebbers Department of Justice corporate-fraud worldcom criminal-prosecution securities-fraud corporate-accountability
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Enron Founder Ken Lay Indicted on 11 Counts of Fraud and Conspiracy

| Importance: 9/10

On July 7, 2004, a federal grand jury indicted Enron founder and former CEO Kenneth Lay on 11 counts of securities fraud, wire fraud, and making false statements to banks. The indictment charged that Lay repeatedly lied to investors, employees, and federal regulators about Enron’s …

Kenneth Lay Jeffrey Skilling Department of Justice corporate-fraud enron securities-fraud criminal-prosecution white-collar-crime
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Tyco CEO Dennis Kozlowski Indicted for $600 Million Fraud

| Importance: 9/10

On September 12, 2002, Manhattan District Attorney Robert Morgenthau indicted former Tyco International CEO Dennis Kozlowski, CFO Mark Swartz, and General Counsel Mark Belnick on charges of looting at least $600 million from the company through fraudulent loans and unauthorized stock sales. The …

Dennis Kozlowski Mark Swartz Mark Belnick corporate-fraud tyco securities-fraud executive-looting white-collar-crime
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WorldCom Announces $3.8 Billion Accounting Fraud Discovery

| Importance: 10/10

On June 25, 2002, WorldCom, the second-largest telecommunications company in the United States, announced it would restate its financial statements after discovering $3.8 billion in fraudulent accounting entries. The company admitted that “certain transfers” from line cost expenses to …

Bernard Ebbers Cynthia Cooper Scott Sullivan WorldCom corporate-fraud worldcom accounting-fraud securities-fraud white-collar-crime
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