Whistleblower News: Flash Crash Trader Sentenced, High Sped Traders, FCA, Pharma Bro

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'Flash crash' trader sentenced to time served plus a year of home confinement: lawyers

REUTERS

A Chicago-based U.S. federal district court judge on Tuesday sentenced Navinder Sarao, a London-based trader accused of contributing to Wall Street’s 2010 “flash crash”, to time already served in jail of four months, with a year of home confinement, Sarao’s attorneys said in a statement.

Sarao pleaded guilty in 2016 here to wire fraud and “spoofing” for placing orders intended to affect prices — rather than trade — in the S&P 500 E-mini futures market. read more »

High-speed traders cost regular investors almost $5 billion a year, study says

CNBC

A study by the U.K.’s Financial Conduct Authority found that the high-speed trading practice of “latency arbitrage” causes the overall volume of trading on global stock markets to decrease.

This essentially imposes a “tax” on other investors, according to the study, costing as much as $5 billion per year across global exchanges.

“In aggregate, these small races add up to meaningful harm to liquidity,” the FCA said. read more »

Deputy Associate Attorney General Stephen Cox Provides Keynote Remarks at the 2020 Advanced Forum on False Claims and Qui Tam Enforcement

DEPARTMENT OF JUSTICE

The False Claims Act is one of the most important tools we have to fight healthcare fraud, grant fraud, financial fraud, government-contracting fraud, and many other types of fraud on the taxpayer. Enforcing the False Claims Act is a top priority for the department.” read more »

New York, FTC sue 'pharma bro' Shkreli, others over Daraprim price hikes

REUTERS

Martin Shkreli, the “pharma bro” in prison for defrauding investors, faces a lawsuit filed by the Federal Trade Commission and New York Attorney General’s office for a scheme to preserve his monopoly for the drug Daraprim, which has seen gigantic price increases.

The lawsuit accuses a company that Shkreli once ran of buying the rights to Daraprim, which is used to treat toxoplasmosis, and quickly raising the price from $17.50 per tablet to $750 while also taking steps to ensure that there would not be a generic version of the medicine. read more »