Category: Financial Fraud

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Will Rakoff’s “Legal Error” Change SEC’s View of Settlement Admissions?

On June 4, 2014, the Second Circuit Court of Appeals vacated Judge Rakoff’s November 28, 2011 Order that had rejected the Citigroup-SEC settlement on a number of grounds, including that the SEC had allowed Citigroup to avoid admitting guilt. The Appellate Court found that Judge Rakoff abused his discretion and committed “legal error” in requiring … Continue Reading

For-Profit Colleges Receiving an Education in Government Enforcement

Reflecting a growing trend of civil enforcement actions taking aim at for-profit colleges, last month Iowa Attorney General Tom Miller reached a $7.25 million settlement with a for-profit college accused of misleading students regarding its educational programs while pressuring them to enroll. At least four federal government agencies and 22 states’ attorneys general are investigating or seeking … Continue Reading

Too Big to Fail vs. Too Big to Jail

On Monday, U.S. Attorney General Eric Holder publicly addressed mounting criticism of the DOJ’s treatment of financial institutions implicated in potential criminal misconduct:  simply put, “there is no such thing as too big to jail.”  Though Holder noted that some have suggested that the size and influence of certain financial institutions effectively renders them immune … Continue Reading
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