Atkins Investment Partnership, et al. v. EisnerAmper, LLP, et al. was filed in the Northern District of California on February 8, 2021, claiming civil damages from an auditor that allegedly aided and abetted its client’s Ponzi scheme by providing false audits. Specifically, the complaint alleges negligent misrepresentation, common law fraud, aiding and abetting fraud, aiding
Financial
New Complaint – Atkins Investment Partnership, et al. v. EisnerAmper, LLP, et al.
Atkins Investment Partnership, et al. v. EisnerAmper, LLP, et al. was filed in the Northern District of California on February 8, 2021, claiming civil damages from an auditor that allegedly aided and abetted its client’s Ponzi scheme by providing false audits. Specifically, the complaint alleges negligent misrepresentation, common law fraud, aiding and abetting fraud, aiding…
New Complaint – Atkins Investment Partnership, et al. v. EisnerAmper, LLP, et al.
Atkins Investment Partnership, et al. v. EisnerAmper, LLP, et al. was filed in the Northern District of California on February 8, 2021, claiming civil damages from an auditor that allegedly aided and abetted its client’s Ponzi scheme by providing false audits. Specifically, the complaint alleges negligent misrepresentation, common law fraud, aiding and abetting fraud, aiding…
New Complaint – SEC v. GPB Holdings, LLC, et al.
SEC v. GPB Capital Holdings, LLC, et al. was filed in the Eastern District of New York on February 4, 2021 by the SEC, alleging violations of federal law in connection with the defendants’ investment business, which allegedly raised over $1.7 billion from more than 17,000 investors. Specifically, the complaint alleges that the defendants violated…
Fifth Circuit Holds that Receiver Has Standing to Bring Derivative Claims on Behalf of Investors Harmed by Ponzi Scheme
February 3, 2021 – Rotstain v. Mendez, 2021 WL 359989 (5th Cir.)
On February 3, 2021, the United States Court of Appeals for the Fifth Circuit issued an opinion in Rotstain v. Mendez, holding in part that a receiver had standing to bring claims on behalf of investors in connection with a Ponzi scheme.
In…
A Detailed Look At The CFPB’s Historic Approval of Payactiv’s Earned Wage Access (EWA) Program under Regulatory Sandbox Policy
Last week, we reported that on December 30, 2020, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued compliance assistance sandbox (“CAS”) approval to Payactiv, Inc. (“Payactiv”) regarding specific aspects of its earned wage access (“EWA”) product.
Payactiv’s Chief Legal Officer, David Reidy, expressed Payactiv’s reaction to the Approval Order this way – “We are…
States Sue to Set Aside OCC’s True Lender Rule
New York, California and six other States filed a widely expected lawsuit on January 5 seeking to invalidate the “True Lender” Rule recently issued by the Office of the Comptroller of the Currency (“OCC”). As we previously reported, the OCC’s True Lender Rule — finalized in October and effective since December 29 —provides bright-line…
CFPB Grants Historic Approval to Payactiv, Approving Payactiv’s Earned Wage Access (EWA) Program under Regulatory Sandbox Policy
On December 30, 2020, the Consumer Financial Protection Bureau (“CFPB”) granted approval to Payactiv, Inc. (“Payactiv”) to offer its earned wage access (“EWA”) program under the CFPB’s Policy on the Compliance Assistance Sandbox, among the first approvals under the CFPB’s regulatory sandbox.
In its approval order, the CFPB granted approval to various aspects of…
CFPB’s Fee-Free Model Requirement Set Forth In Its Wage Access Advisory Opinion Raises More Questions
In an earlier article, we provided an overview of the Consumer Financial Protection Bureau’s (“CFPB”) earned wage access (“EWA”) advisory opinion. In the opinion, the CFPB identified seven requirements for a “Covered EWA Program,” i.e., an EWA program that would “not involve the offering or extension of ‘credit’” under the Truth In Lending Act…
SEC Takes Another Step to Prioritize Fintech Innovation
On December 3, 2020, the SEC announced that FinHub (the Strategic Hub for Innovation and Financial Technology) was being upgraded to an independent office. Acknowledging the importance of the all things fintech (emerging technologies and innovation in financial services), the SEC stated that creating a stand-alone office:
“[S]trengthens the SEC’s ability to continue fostering innovation…