Financial fraud includes activities like embezzlement, insider trading, and accounting fraud, inflicts substantial harm on society. It distorts the transparency and efficiency of financial markets, leading investors and regulators to make decisions based on false information, which can destabilize entire economic systems. The direct victims of financial fraud—ranging from individual investors to large corporations—can face devastating financial losses, potentially wiping out life savings or crippling business operations.
EvilCorporations.com • Case 1:15-cv-05551-NGG-PK • 9 min read ForexNPower Stole $835,000 From Korean Immigrants. It Took a Decade to Get a Judgment. TL;DR Two companies operating as “ForexNPower” ran a foreign currency trading fraud from at least October 2010 through…
EvilCorporations.com • SEC v. Mathews et al., 26 Civ. 693 (S.D.N.Y.) • 51 min read The Money That Left and Came Back: How Three Executives Ran a Fake Revenue Machine and Sent a Nearly Billion-Dollar Data Company Into Bankruptcy From…
Class Action Investigation • Consumer Fraud Amazon Said “Free Returns.”Then It Quietly Took $9.90 From Her Refund. A federal lawsuit filed February 2, 2026 accuses Amazon of advertising “free” returns across its entire platform, then deducting unauthorized “Restocking Fees” from…
EvilCorporations.com • Case No. 8:25-cv-1841 • 33 min read The Cancellation Maze: How LA Fitness Trapped 3.7 Million Members and Collected Hundreds of Millions in Unwanted Fees The FTC says LA Fitness built a cancellation system designed to fail. They…
SEC Civil Action No. 1:26-cv-603 • SDNY The Lottery Was Rigged From the Start EvilCorporations.com • SEC v. DiMatteo, Komissarov et al. • 59 min read TL;DR Lottery.com (ticker: LTRY) was a struggling startup that couldn’t make payroll in September…
SEC Complaint • Case 1:26-cv-10159 • District of Massachusetts 180 People Trusted Him With $10.6M. He Spent It on Strippers. Sumit Rai told investors their money would cure cancer. The SEC says he spent $5.1 million in cash, $2.3 million…
TL;DR Flagstar Bank admitted it paid zero interest on California homeowners’ escrow accounts until at least 2017, despite a state law in effect since 1976 requiring a minimum 2% annual interest payment on those balances. This was not a paperwork…
Allied Title & Escrow’s Kickback Empire TL;DR The Facts: Allied Title & Escrow, led by CEO Thomas Latane Meade and President Matthew Paulson, created a web of at least eight joint-venture companies with real estate agents. They settled with the…
A $150,000 Fine for a $150 Million Conflict TL;DR The Facts: In July 2021, Barclays Capital Inc. acted as an underwriter for a ~$700 million Initial Public Offering (IPO) while having a direct, acknowledged conflict of interest. The Misconduct: Roughly…
TL;DR A class action lawsuit alleges Kradle, LLC, a pet products company, illegally enrolls customers into automatically renewing subscriptions without their knowledge or consent. The company’s website (kradlemypet.com) and social media ads allegedly use deceptive designs (so called “dark patterns”)…