Notable litigation for October includes: (1) Karvounides, et al. v. Antonas, et al.; (2) Capital Providers of Cambridge Sarano, LLC, et al. v. Robl, et al.; (3) Investors in Friends of Production Capital LLC v. Friends of Production Capital LLC; and (4) Orrico, et al. v. ABC Capital Investments, LLC.
Financial
New Complaint – Securities and Exchange Commission v. Lam, et al.
Securities and Exchange Commission v. Lam, et al. was filed in the United States District Court for the Central District of California on September 22, 2022, claiming Defendants Brian Lam (“Lam”), Nathan Nguyen (“Nguyen”), NineSquare Capital Partners LLC (“NineSquare Capital”), and Nguyen Group LLC (“NGL”) (collectively, “Defendants”) violated several provisions of the Securities Act and…
New Complaint – SEC v. JMJ Capital Group and Richard Lee Ramirez
SEC v. JMJ Capital Group and Richard Lee Ramirez is a Securities Exchange Commission (“SEC”) enforcement action filed in the United States District Court for the Southern District of California on September 30, 2022. JMJ Capital Group (“JMJ”) is a California corporation and Richard Lee Ramirez (“Ramirez”) is the owner and sole operator of JMJ…
Federal Reserve Exercises Broad Disciplinary Authority to Sanction Former Bank Employees Who Committed PPP Loan Fraud
On October 13, 2022, the Board of Governors of the Federal Reserve System (“Board”) announced multiple enforcement actions against former employees of several financial institutions because the former employees made false statements to obtain economic injury disaster loans and grants from the U.S. Small Business Administration (“SBA”) or paycheck protection loans from SBA-approved lenders. The…
CFPB Charges Schools With “Abusive” Act of Denying Academic Transcripts to Students With Debts
The Consumer Financial Protection Bureau’s recent guidance on withholding transcripts from students with debts revealed that the CFPB is using a broad definition of “private education loan” that may apply to the practices of some not-for-profit schools. Additionally, while the CFPB characterized this practice as “abusive,” its analysis suggests that these practices may also be…
New Complaint – Damian as Receiver of Today’s Growth Consultant, Inc. v. Core Financial Outsourcing of Chicago, LLC
On August 31, 2022, Plaintiff Melanie E. Damian, in her capacity as the Court-Appointed Receiver for Today’s Growth Consultant, Inc. d/b/a The Income Store (“TGC”) (the “Receiver”) filed a complaint against Defendant Core Financial Outsourcing of Chicago (“Core Financial”) in the Northern District of Illinois (“Damian II”) seeking damages, injunctive relief, interest, and attorneys’ fees…
New Complaint – Guo, et al. v. Robl, et al.
Guo, et al. v. Robl, et al. was filed in the United States District Court for the Central District of California on August 8, 2022. Plaintiffs assert claims of fraudulent inducement, fraud, breach of fiduciary duty, civil racketeering under RICO, violations of the California Penal and Corporations Codes, violations of state securities laws, and breach…
New Complaint – U.S. Commodity Futures Trading Commission v. Giri, et al.
U.S. Commodity Futures Trading Commission v. Giri, et al., was filed in the United States District Court for the Southern District of Ohio on August 11, 2022, claiming violations of several provisions of the Commodity Exchange Act and Commission Regulations. Specifically, the U.S. Commodity Futures Trading Commission (“CFTC”) seeks permanent injunctive relief against all Defendants,…
New Complaint – SEC v. Vladimir Okhotnikov, et al.
Securities and Exchange Commission v. Okhotnikov was filed in the United States District Court for the Northern District of Illinois on August 1, 2022, claiming violations of several provisions of the Securities Act and Securities Exchange Act in connection with offering and selling unregistered smart contracts operated on the Ethereum, Tron, and Binance blockchains. Specifically,…
New Complaint – SEC v. Alexandra Robert, et al.
Securities and Exchange Commission v. Alexandra Robert et al. was filed in the United States District Court for the Southern District of Florida on July 26, 2022, claiming violations of several provisions of the Securities Act and Securities Exchange Act. Specifically, the SEC seeks permanent injunctive relief against all Defendants in order to prevent future…