One Pennsylvania man pleaded guilty to federal fraud charges, according to the Department of Justice. The 53-year-old man from Lilly was accused of securities fraud, wire fraud and filing false tax returns in a $4.5 million securities scheme that took place between February 2002 and May 2016. The man, a broker and investment advisor, reportedly created an entire scheme in which others believed that they were investing in high-yield securities. However, the contracts behind the scheme were apparently bogus.
A person who has been convicted of a white collar crime in Pennsylvania may be facing time in federal prison depending on the nature of the crime. White collar crime differs from street crimes like drug distribution and robbery although there is some disagreement among criminologists about how to classify and define white collar crime.
Depending on the specific circumstances, someone who engages in phishing may be subject to criminal charges. Nevertheless, many criminals use these fraudulent scams to deceive people throughout Pennsylvania and the rest of America. There are many different types of phishing scams that potential victims should be aware of.
Pennsylvania readers might be interested to learn that federal prosecutors have indicted three Maryland men for allegedly running a $364 million Ponzi scheme for several years. The defendants were taken into custody on Sept. 18.
The often-complex world of insider trading allegations that can be of concern to corporate executives in Pennsylvania and elsewhere is also coming to Washington, D.C. While the political culture of the nation's capital often involves an array of leaks and rumors, typically these involve journalists and lobbyists rather than investors. However, some firms, known as political intelligence companies, are making large sums of money by selling information to hedge funds about upcoming government actions. With this advance knowledge, the funds can make millions by selecting stocks that will soon rise or fall based on expected government actions.
Pennsylvania readers may be interested to learn that the founder of Theranos has been charged with massive fraud by the Securities and Exchange Commission. According to the SEC, the company raised $700 million over several years through fraudulent means. Theranos had stated that its portable product could determine a person's health with the use of a few drops of blood. The company had also claimed that its device had been used in Afghanistan by the Department of Defense.
A 28-year-old from Pennsylvania pleaded guilty to one count of securities fraud for his role in an insider trading scheme. The trades involved a company called Celator Pharmaceuticals based on information about a drug called Vyxeos. Vyxeos was in clinical trials, and it was developed to help treat myeloid leukemia. The information was obtained from a 27-year-old man who worked at Celator.