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 (SEC) Donald Trump Nikola Corporation corruption regulatory-capture pay-to-play securities-fraud elite-impunity
Read more →

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 (SEC) Patrick Orlando Digital World Acquisition Corp Trump Media & Technology Group sec-lawsuit patrick-orlando securities-fraud dwac trump-media +1 more
Read more →

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 (SEC) Digital World Acquisition Corp Trump Media & Technology Group sec-charges dwac securities-fraud trump-media spac-fraud +1 more
Read more →

Nikola Founder Trevor Milton Indicted for Securities Fraud, Exposing How SPAC Loophole Enabled Investor Deception

| Importance: 9/10

U.S. Attorney’s Office for the Southern District of New York and the SEC simultaneously charge Nikola Corporation founder Trevor Milton with securities and wire fraud for systematically deceiving investors about the company’s hydrogen truck technology. Milton made false claims that a …

Trevor Milton Nikola Corporation Securities and Exchange Commission (SEC) DOJ Hindenburg Research +2 more fraud spac-era securities-fraud regulatory-gaps sec +2 more
Read more →

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
Read more →

ITT Technical Institute Shuts Down All 130 Campuses After SEC Fraud Charges and Federal Aid Cutoff, Stranding 35,000 Students

| Importance: 9/10

ITT Technical Institute, one of the nation’s largest for-profit college chains operating more than 130 campuses across the United States, announced on September 6, 2016, that it would immediately cease operations and close all locations, stranding approximately 35,000 actively enrolled …

ITT Technical Institute ITT Educational Services Kevin Modany Daniel Fitzpatrick U.S. Securities and Exchange Commission (SEC) +1 more for-profit-education fraud securities-fraud college-closure student-debt +2 more
Read more →

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
Read more →

SEC Charges Goldman Sachs with Fraud Over ABACUS 2007-AC1 Synthetic CDO Deal Where Hedge Fund Manager John Paulson Selected Mortgage Securities to Bet Against While Goldman Sold Package to Investors, Resulting in $550 Million Settlement but No Criminal Charges

| Importance: 9/10

On April 16, 2010, the Securities and Exchange Commission charged Goldman Sachs and Vice President Fabrice Tourre with securities fraud related to ABACUS 2007-AC1, a synthetic collateralized debt obligation (CDO) tied to subprime residential mortgage-backed securities. The SEC alleged that Goldman …

Goldman Sachs Fabrice Tourre John Paulson Securities and Exchange Commission (SEC) Department of Justice +2 more financial-crisis securities-fraud regulatory-capture synthetic-cdo accountability-crisis
Read more →

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
Read more →

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
Read more →

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
Read more →

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
Read more →

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
Read more →

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
Read more →

Dot-Com Bubble Peaks, Exposes IPO Fraud and Analyst Conflicts

| Importance: 9/10

The NASDAQ Composite stock market index peaks at 5,048.62 on Friday, March 10, 2000, marking the height of the dot-com bubble before collapsing 78% to 1,114 by October 2002, erasing all gains made during the bubble. Between 1995 and the March 2000 peak, NASDAQ investments rise 600% in what becomes …

Investment Banks Securities Analysts Securities and Exchange Commission (SEC) NASDAQ Venture Capitalists +1 more deregulation regulatory-capture securities-fraud analyst-conflicts irrational-exuberance +2 more
Read more →

Florida Land Boom Epitomizes Unregulated Speculation and Securities Fraud

| Importance: 7/10

The Florida land boom reaches its speculative peak in 1925, with real estate transactions totaling an estimated $7 billion (equivalent to over $120 billion today) in a single year. Developers like Carl Fisher (Miami Beach), George Merrick (Coral Gables), and Addison Mizner (Boca Raton) orchestrate …

Carl Fisher George Merrick Addison Mizner Florida Legislature financial-speculation regulatory-failure securities-fraud real-estate predatory-finance
Read more →