Business Crimes Hotline

TEXAS

SEC Gets Emergency Asset Freeze in Forex Trading Scheme

On July 12, 2013, the Securities and Exchange Commission (SEC) announced an emergency asset freeze against Kevin G. White, an unregistered money manager accused of defrauding investors in a foreign currency exchange (FOREX) trading scheme. The U.S. District Court of the Eastern District of Texas granted the SEC's request, as well as a temporary restraining order against White and his companies.

White is alleged to have made numerous misrepresentations to investors, including falsely describing his credentials and background, failing to disclose disciplinary history to investors, and failing to register securities with the SEC, the U.S. Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA). White was not currently registered or associated with the New York Stock Exchange or any member organization at the time of the SEC's complaint.

White is accused of using investor misrepresentations to solicit nearly $7.1 million for a FOREX trading fund. The crux of these misrepresentations included statements that the fund's compound annual growth rate was more than 36%, with total fund returns of more than 393%. The SEC claimed that ' in actuality ' the fund had realized substantial losses and was currently valued at approximately $3 million. The SEC also contended that White has misappropriated $1.7 million of fund investments to pay for personal and unrelated business expenses, an amount in excess of the cumulative management fees he collected from investors. Director of the SEC's Forth Worth, TX, Regional Office, David Woodcock, stated that “White and his companies brandished phony credentials and a can't-miss trading strategy to lure investors into a web of deceit.” The CFTC is also pursuing parallel charges.

WASHINGTON, DC

Panasonic and Subsidiary SANYO Settle Price-Fixing Disputes

On July 18, 2013, the Department of Justice (DOJ) announced that Japanese-based Panasonic Corp. and its subsidiary, SANYO Electric Co. Ltd., agreed to plead guilty and pay a combined $56.5 million in fines for their roles in separate price-fixing conspiracies.

Panasonic plead guilty to three counts of conspiracy to restrain trade under section 1 of the Sherman Act (15 U.S.C. ' 1). The charges stemmed from Panasonic's involvement ' as early as July 1998 and continuing through at least February 2010 ' in bid rigging and price-fixing of various vehicle switches, steering angle sensors, and automotive high-intensity discharge ballasts that were sold to major car manufacturers, including Toyota and Honda. As a result of Panasonic's and other co-conspirator's agreements to suppress and eliminate competition, the parts were sold to consumers at higher prices.

SANYO also plead guilty to one felony count of conspiracy for its agreement to fix the prices of cylindrical lithium ion battery cells used in notebook computer battery packs. Panasonic and Sanyo have also agreed to cooperate in DOJ's ongoing investigations. As of Panasonic's (and Sanyo's) plea date, 11 companies and 15 executives have pled or have agreed to plead guilty in connection with the DOJ's investigation, which has netted more than $874 million in criminal fines. The agreements are subject to approval by the District Court.

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TEXAS

SEC Gets Emergency Asset Freeze in Forex Trading Scheme

On July 12, 2013, the Securities and Exchange Commission (SEC) announced an emergency asset freeze against Kevin G. White, an unregistered money manager accused of defrauding investors in a foreign currency exchange (FOREX) trading scheme. The U.S. District Court of the Eastern District of Texas granted the SEC's request, as well as a temporary restraining order against White and his companies.

White is alleged to have made numerous misrepresentations to investors, including falsely describing his credentials and background, failing to disclose disciplinary history to investors, and failing to register securities with the SEC, the U.S. Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA). White was not currently registered or associated with the New York Stock Exchange or any member organization at the time of the SEC's complaint.

White is accused of using investor misrepresentations to solicit nearly $7.1 million for a FOREX trading fund. The crux of these misrepresentations included statements that the fund's compound annual growth rate was more than 36%, with total fund returns of more than 393%. The SEC claimed that ' in actuality ' the fund had realized substantial losses and was currently valued at approximately $3 million. The SEC also contended that White has misappropriated $1.7 million of fund investments to pay for personal and unrelated business expenses, an amount in excess of the cumulative management fees he collected from investors. Director of the SEC's Forth Worth, TX, Regional Office, David Woodcock, stated that “White and his companies brandished phony credentials and a can't-miss trading strategy to lure investors into a web of deceit.” The CFTC is also pursuing parallel charges.

WASHINGTON, DC

Panasonic and Subsidiary SANYO Settle Price-Fixing Disputes

On July 18, 2013, the Department of Justice (DOJ) announced that Japanese-based Panasonic Corp. and its subsidiary, SANYO Electric Co. Ltd., agreed to plead guilty and pay a combined $56.5 million in fines for their roles in separate price-fixing conspiracies.

Panasonic plead guilty to three counts of conspiracy to restrain trade under section 1 of the Sherman Act (15 U.S.C. ' 1). The charges stemmed from Panasonic's involvement ' as early as July 1998 and continuing through at least February 2010 ' in bid rigging and price-fixing of various vehicle switches, steering angle sensors, and automotive high-intensity discharge ballasts that were sold to major car manufacturers, including Toyota and Honda. As a result of Panasonic's and other co-conspirator's agreements to suppress and eliminate competition, the parts were sold to consumers at higher prices.

SANYO also plead guilty to one felony count of conspiracy for its agreement to fix the prices of cylindrical lithium ion battery cells used in notebook computer battery packs. Panasonic and Sanyo have also agreed to cooperate in DOJ's ongoing investigations. As of Panasonic's (and Sanyo's) plea date, 11 companies and 15 executives have pled or have agreed to plead guilty in connection with the DOJ's investigation, which has netted more than $874 million in criminal fines. The agreements are subject to approval by the District Court.

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