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U.S. prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles' self-driving capabilities, three people familiar with the matter told Reuters. Tesla's Autopilot and Full Self-Driving systems assist with steering, braking and lane changes — but are not fully autonomous. Investigators are exploring whether Tesla committed wire fraud, which involves deception in interstate communications, by misleading consumers about its driver-assistance systems, the sources said. They are also examining whether Tesla committed securities fraud by deceiving investors, two of the sources said. The Securities and Exchange Commission is also investigating Tesla's representations about driver-assistance systems to investors, one of the people said.
Persons: Tesla, Elon, Musk Organizations: Reuters, Justice Department, The Securities, Exchange Commission, SEC, Prosecutors Locations: U.S, Teslas
Shares of Robinhood rose in extended trading Wednesday afternoon after the retail brokerage announced stronger-than-expected first-quarter results. Robinhood reported net income of $157 million, or 18 cents per share, for the first quarter. Cryptocurrency transactions accounted for $126 million in revenue in the quarter, the company said. Robinhood said that its number of funded customers rose by 810,000 year over year to 23.9 million. Shares of Robinhood were up nearly 40% year to date before Wednesday's earnings announcement.
Persons: Robinhood, Dan Gallagher, Robinhood's Organizations: LSEG, Securities and Exchange Commission
Securities and Exchange Commission Chair Gary Gensler on Tuesday refused to comment on speculation of whether Trump Media is a funding organ for Donald Trump's presidential campaign. "What's important is that their disclosures are accurate and that folks aren't in the market front-running or trading on insider information." As the majority shareholder, Trump stands to gain the largest financial boost from DJT upswings. On Friday, Trump's stake added 36 million more shares to his existing 78.8 million, due to a clause in the company's contract that unlocks bonus shares as the stock hits certain checkpoints. Given that bump, Trump's stake had a paper value of over $5 billion at Tuesday's market open.
Persons: Gary Gensler, Donald Trump's, I'm, Gensler, Trump, upswings, Trump's Organizations: Securities, Exchange, Trump Media, Nasdaq, Trump
Read previewA former Fidelity financial advisor has accused the brokerage of unlawfully firing him after filing a whistleblower complaint. Fidelity ranked branch managers by the number of client assets in more expensive investments such as stock-managed accounts, Maeker said. Financial advisors who did not score highly were awarded little to no stock or threatened to be fired, Meaker said. This race to zero has led to more pressure on high-fee products, as Maeker's branch manager told him. In turn, financial advisors were pushed to sell more Tier 3 investments by awarding 10 times the amount of compensation for Tier 3 investments versus Tier 1.
Persons: , Michael Maeker, Maeker, Meaker, FINRA Organizations: Service, Fidelity, Department of Labor, Business, Financial Industry Regulatory Authority, Treasury, Northern, Northern District of, Securities and Exchange Commission, SEC, Reuters Locations: Dallas, Northern District, Northern District of Texas
Tyson Foods : Shares fell nearly 7% after the meat supplier issued a weak third-quarter outlook. I think the last story has not been written yet on Tyson," Jim Cramer said. Johnson Controls : Shares were basically flat Monday after UBS downgraded the stock to a hold-equivalent rating. Robinhood : The Securities and Exchange Commission informed Robinhood over the weekend that it could pursue enforcement actions tied to the brokerage's cryptocurrency operations. Robinhood shares were initially up more than 1% Monday, though they've given back some of the gains.
Persons: Jim Cramer's, Tyson, Jim Cramer, Baird, Cramer, Morgan Stanley, David Gitlin, Robinhood, they've Organizations: CNBC, Club, Tyson, Micron Technologies, Nvidia, Micron, . Steel, Japan's Nippon Steel, U.S . Steel, Johnson, UBS, Johnson Controls, Securities, Exchange Commission
Trump Media has hired a new accounting firm. Trump Media & Technology Group has now enlisted Phoenix-based Semple, Marchal & Cooper, according to a Securities and Exchange Commission (SEC) filing. Trump Media's previous firm, BF Borgers — as well as its owner Benjamin Borgers — settled fraud charges, the SEC said Friday. A Trump Media spokesperson told Business Insider last week the company planned to hire in a new auditor. Trump Media is the parent company of right-wing Twitter clone Truth Social and is principally owned by Donald Trump, the presumptive GOP nominee for president.
Persons: , Donald Trump's, Semple, Cooper, Trump, BF Borgers, Benjamin Borgers —, Borgers, hadn't, Donald Trump Organizations: Trump Media, SEC, BF, Trump, Service, Trump Media & Technology Group, Phoenix, Marchal, Securities and Exchange Commission
Trump Media hired a new auditor over the weekend, after its previous public accounting firm was accused Friday of perpetrating a massive fraud by the Securities and Exchange Commission. Trump Media said it had engaged Semple, Marchal & Cooper LLP on Saturday to replace BF Borgers. The ban required Trump Media and other public companies that had used BF Borgers to find new auditors. CNBC also requested comment from Phoenix-based Semple, Marchal, whose website said the firm in its four decades of operation it has "become a preeminent, and highly respected, certified public accounting firm." Trump Media was not yet publicly traded at the time of the alleged conduct by BF Borgers.
Persons: BF, Semple, Cooper, Donald Trump, BF Borgers, Marchal, Benjamin Borgers, Borgers Organizations: Trump Media, Securities and Exchange Commission, CPA, SEC, Marchal, BF, Company, Trump, CNBC Locations: Phoenix, Lakewood , Colorado
The Securities and Exchange Commission could soon pursue enforcement action against Robinhood , according to the trading firm. Robinhood disclosed in a filing Monday that over the weekend the regulator sent it a warning that upon completion of an investigation the company could be charged. "We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law," he said. Shares of the stock initially fell 2% but have reversed. They were recently trading up 1%.
Persons: Robinhood, Dan Gallagher, Robinhood's, Robinhood Crypto Organizations: Securities, Exchange Commission, Robinhood, SEC
The accounting firm did not respond to a request for comment. Trump Media said in a filing that it “dismissed” BF Borgers as its independent registered public accounting firm on Friday. Firing BF Borgers wasn’t optional for Trump Media or any other public company that used the firm. BF Borgers served as Trump Media’s independent registered accounting firm before the company went public in March. Later in March, Trump Media hired BF Borgers as the public company’s accounting firm.
Persons: Borgers, , ” BF, , Semple, Cooper, BF Borgers Organizations: New, New York CNN, Truth, Trump Media & Technology Group, Trump Media, Securities and Exchange Commission, ” Trump Media, Marchal, BF, SEC, Trump Locations: New York
An accounting firm that audits the financial statements of hundreds of public companies including former President Donald J. Trump’s social media company can no longer do so, U.S. securities regulators said on Friday. The Securities and Exchange Commission charged the firm, BF Borgers, with fraud, saying that it had failed to comply with accounting rules. The regulator held BF Borgers and its owner, Benjamin F. Borger, responsible for “deliberate and systemic failures” to comply with accounting rules. Many companies that used BF Borgers must now find new auditors. Trump Media & Technology Group, the parent company of the Truth Social platform, has been a client of BF Borgers since 2022, according to regulatory filings.
Persons: Donald J, BF, Benjamin F, Borgers Organizations: Securities, Exchange Commission, Trump Media & Technology Group, Trump Media Locations: U.S, Borger
Trump Media's auditor, BF Borgers, committed fraud in 1,500 filings, the SEC said. "Trump Media looks forward to working with new auditing partners," a spokesperson said. AdvertisementThe Securities and Exchange Commission on Friday charged accounting firm BF Borgers and its owner, Benjamin Borgers, with "massive fraud." "Trump Media looks forward to working with new auditing partners in accordance with today's SEC order," a TMTG spokesperson told Business Insider. AdvertisementDespite losing money and being cagey about how its user base compares to its social media rivals, Trump Media is now valued at over $6.3 billion.
Persons: Trump, BF Borgers, , Benjamin Borgers, Donald Trump's, Borgers, BF, Grewal Organizations: BF, SEC, Trump Media, Service, Securities, Exchange Commission, Trump Media & Technology, Bloomberg, Public Company, American Institute of Certified Public Accountants, Business, Truth
“Trump Media looks forward to working with new auditing partners in accordance with today’s SEC order,” Trump Media spokesperson Shannon Devine told CNN in a statement. According to filings, Borgers served as Trump Media’s independent registered accounting firm before the social media company went public in March. Later in March, the audit committee of Trump Media approved the hiring of Borgers as the public company’s accounting firm. The SEC review only focused on public companies, meaning BF Borgers’ work for Trump Media when it was private was not included. Trump Media is chaired and majority owned by former President Donald Trump, who is also the most popular user on Truth Social.
Persons: BF, Benjamin Borgers, “ Borgers, ” Gurbir Grewal, Trump Media , , , Shannon Devine, Borgers, BF Borgers, Donald Trump Organizations: New, New York CNN, Trump Media & Technology, Securities and Exchange Commission, SEC, Truth Social, Trump Media, BF Borgers, “ Trump Media, ” Trump Media, CNN, Trump, Borgers Locations: New York
Tesla's board urged shareholders in a video to vote for CEO Elon Musk's $47 billion pay package. AdvertisementTesla's board made yet another push to get CEO Elon Musk his $47 billion pay package — this time on-camera. But Musk's billions in extra pay were thrown out after a Tesla shareholder filed a lawsuit arguing the payout was excessive. The shareholder vote to bring back the pay for Musk, Denholm said, will be "incredibly important for the future of the company." Related storiesShe noted that the carmaker grew revenues from $11.8 billion to $96.8 billion and turned a $2.2 billion loss into a $15 billion profit under Musk's leadership.
Persons: Elon Musk's, , Elon Musk, Robyn Denholm, it's, Denholm, Tesla, , , AmfRYo28ah — Sawyer Merritt, Musk, Forbes Organizations: carmaker, Service, Securities and Exchange Commission, Business Locations: Delaware
Trump Media's stock price dropped on Friday after its auditor was accused of "massive fraud." The auditor BF Borgers did not comply with common accounting standards, the SEC said. BF Borgers CPA PC, which audited the financials of Trump Media, had "deliberate and systemic failures to comply" with public company accounting standards, the regulatory agency said. BF Borgers settled the SEC charges by paying a $12 million penalty, while Borgers, the owner, paid a separate $2 million penalty. "Trump Media looks forward to working with auditing partners in accordance with today's SEC order," a spokesperson for TMTG said.
Persons: BF, , Benjamin Borgers, BF Borgers, Borgers, Ben Borgers, Gurbir Grewal, TMTG Organizations: Trump, SEC, Service, Trump Media, Securities and Exchange Commission Locations: SEC's
Chairperson of Indian conglomerate Adani Group, Gautam Adani, speaking at the World Congress of Accountants in Mumbai on November 19, 2022. India's markets regulator has sent notices of regulatory violations to seven companies of the Adani conglomerate, including its flagship Adani Enterprises, the group said in stock exchange filings. The regulator began probing the Adani group, led by billionaire Gautam Adani, after Hindenburg Research in January 2023 alleged improper use of tax havens and stock manipulation by the group, accusations the group has denied. Adani Green Energy, Adani Power, Adani Total Gas, Adani Energy Solutions, Adani Wilmar, and Adani Ports have also received notices from SEBI in the first quarter, the companies said in separate filings to the exchanges this week. Typically such violations attract monetary penalties or management can be barred from capital markets for a certain period.
Persons: Gautam Adani, Wilmar Organizations: Adani, World, Accountants, Adani Enterprises, Hindenburg Research, Securities and Exchange Board of India, Energy, Adani Energy Solutions Locations: Mumbai, SEBI
The auditing firm for Trump Media and the auditor's owner were charged Friday with "massive fraud" by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings, the federal regulator announced. The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, without admitting or denying the allegations, the SEC said. The agency, calling BF Borgers a "sham audit mill," said the company and its owner engaged in "deliberate and systemic failures to comply with Public Company Accounting Oversight Board ... standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023," according to a press release. BF Borgers during that same time acted as the auditor for Trump Media, which was then privately held and moving toward a planned merger with the publicly traded shell company Digital World Acquisition Corp.Trump Media and DWAC finalized that merger in late March 2024, leading to Trump Media becoming publicly traded under the DJT ticker. The SEC said the Lakewood, Colorado-based BF Borgers and its owner were charged with falsely telling clients that the auditor's work would comply with PCAOB standards, fabricating audit documents to make it seem that the work did comply with those standards, and "falsely stating in audit reports included in more than 500 public company SEC filings that the firm's audits complied with PCAOB standards," the release said.
Persons: Benjamin Borgers, BF Borgers, DWAC Organizations: Trump Media, Securities and Exchange Commission, SEC, BF, CPA, Company, Corp Locations: Lakewood , Colorado
The New York state comptroller sent a letter to Best Buy last week questioning whether the company changed its commitment to inclusivity and supporting LGBTQ groups. The comptroller's office manages the state's $207 billion public pension fund, which has invested in Best Buy. He also denied that the NCPPR pressured Best Buy to stop supporting LGBTQ groups in general. "This contentious and vast disagreement between radical gender theory activists and the general public has nothing to do with Best Buy selling electronics." Peck did not ask Best Buy to stop its donations to the HRC, saying in the email, "We understand that it's unrealistic for Best Buy to leave HRC in the near future because of their political clout."
Persons: Thomas DiNapoli, Corie, Barry, J, Patrick Doyle, DiNapoli, Scott Shepard, Shepard, Trevor, Carly Charlson, Charlson, Eric Bloem, Bloem, Ethan Peck, Peck, Marina Rizzo, hadn't, Rizzo Organizations: NBC News, Securities, Exchange Commission, National Center for Public Policy Research, Best, NBC, NCPPR's Free Enterprise, SAGE, GLAAD, Human Rights, SEC, NCPPR's Free Enterprise Institute, HRC, PRIDE Locations: York, States
Trimming Apple One surprising move from the conglomerate was selling about 10 million Apple shares (just 1% of its massive stake) in the fourth quarter. Second, it could have been Buffett's investment deputies Todd Combs and Ted Weschler who trimmed the Apple stake in order to fund other purchases. There's a chance that Buffett might reveal at the annual meeting the mystery bank stock that Berkshire has been buying for two quarters straight . Berkshire now owns more than 70 million of the tracking stock. "You need higher prices, or it doesn't work," Buffett said at Berkshire's 2023 annual meeting.
Persons: Warren Buffett's, Buffett, Todd Combs, Ted Weschler, Debbie Bosanek, Warren, Berkshire Hathaway, SIRI, Bob Bakish, Berkshire's, You've Organizations: Berkshire Hathaway, CNBC, Apple, Oracle, Securities and Exchange Commission, Verizon, Berkshire, Liberty, Liberty Media Corp, Liberty Media, Liberty Media Sirius, Paramount, Paramount Global, Skydance Locations: Berkshire, Woodstock, Omaha , Nebraska, Omaha, Chevron, New York, The Omaha
The CEO of Trump Media urged leading House committee chairmen to investigate eight financial firms over concerns of potentially illicit short selling of DJT, whose majority shareholder is former President Donald Trump. A spokesperson for Clear Street declined to comment on Nunes' letter. DJT shares were trading 6% higher early Thursday at $47.84 per share, which is 32% lower than its opening price on March 26. Trump, who is the presumptive Republican presidential nominee, faces pending civil legal judgments of more than $500 million. "Based on factors including the volume and price of purportedly available 'locates,' [Trump Media] has identified ongoing anomalies in DJT trading," Nunes wrote the House Judiciary, Ways and Means, Financial Services, and Oversight and Reform chairmen in his new letter.
Persons: Donald Trump, Devin Nunes, Nunes, Donald Trump's, Trump Organizations: Trump Media, Republicans, Trading, Cowen, Company, Securities, StoneX Securities, Clear, CNBC, Nasdaq, Market, Trump, Judiciary, Financial Services, Exchange, Depository Trust Company, SEC
An initial target of the SEC under a second Trump administration would be to roll back the new climate disclosure rules, these people explained. Gensler and the SEC adopted a rule in March requiring large publicly traded companies to disclose their levels of greenhouse gas emissions. Gensler argues greenhouse gas emission levels and other climate related data have a material impact on businesses, and investors deserve to know this information. But an SEC chaired by a Trump appointed Republican would likely remove these Biden-era disclosure requirements, these people said. The prospect of a Trump pullback on the SEC's climate disclosure rules is also tied to the former president's dislike of environmental, social and governance investment standards, some of these people explained.
Persons: Donald Trump, Gary Gensler, Trump, Joe Biden, Gensler, Biden Organizations: The Securities, Exchange Commission, SEC, Trump, Republican, CNBC Locations: Freeland , Michigan, U.S
Change Healthcare provides payment, revenue management and other solutions like e-prescription software. UnitedHealth told CNBC in April that it paid a ransom to try and protect patient data. Its business unit Optum — which provides care to 103 million customers — and Change Healthcare — which touches one in three patient records — merged in 2022. Committee Chairman Sen. Ron Wyden, D-Ore., said in his opening remarks that the Change Healthcare breach serves as a "dire warning about the consequences of too-big-to-fail mega-corporations." Sen. Michael Bennet, D-Colo., pressed Witty to share how UnitedHealth is working to ensure something like the Change Healthcare breach will not happen again.
Persons: Andrew, UnitedHealth, Sen, Ron Wyden, Wyden, Thom Tillis, they're, Tillis, Blackcat, Michael Bennet Organizations: Senate, Capitol, U.S ., Finance, UnitedHealth, Healthcare, CNBC, U.S . Securities, Exchange Commission, U.S . Department of Justice Locations: Washington , DC
Cash App, introduced in 2013, allows users to send and receive money instantaneously among themselves and to buy stocks and Bitcoin. As of December, Cash App had 56 million active transacting accounts and $248 billion in inflows during the previous four quarters, the company said. (Merchants are considered customers at Square, while users are considered customers at Cash App.) Cash App is not a bank, but it uses external banking partners to conduct various services. On March 29, Sutton Bank settled a consent order with the Federal Deposit Insurance Corp. that echoed the whistleblowers' allegations.
Persons: Jack Dorsey, Block, Venezuela —, Edward Siedle, Prosecutors, Cash, OFAC, Lawrence Summers, Sharon Rothstein, Summers, Rothstein, Lord Paul Deighton, Goldman Sachs, Deighton, Dorsey, Banks, Sutton, James Booker Organizations: Twitter, Southern, of, NBC, NBC News, Securities and Exchange Commission, Block, Foreign Assets Control, U.S . Treasury, Cash, OFAC, Goldman, Financial Market, Bank of Lithuania, Payments Lithuania UAB, PayPal, Consumer Finance Protection Bureau, Sutton Bank, Federal Deposit Insurance Corp, FDIC Locations: of New York, Cuba, Iran, Russia, Venezuela, Ohio, Sutton
Change Healthcare offers payment and revenue cycle management tools, and other solutions such as electronic prescription software. On Feb. 21, UnitedHealth Group , which owns Change Healthcare, discovered that hackers compromised part of the unit's information technology systems. UnitedHealth told CNBC earlier this month that there is "no evidence of any new cyber incident at Change Healthcare." It's just one of the ways Change Healthcare touches cash flow within the health-care sector. A controversial mergerSheldon Cooper | Sopa Images | Lightrocket | Getty ImagesUnitedHealth's ownership of Change Healthcare has raised eyebrows from the outset.
Persons: Omar Marques, Dr, Angeli Maun Akey, Akey, she's, UnitedHealth, I've, Andrew, Mike Bradley, Barbara McAneny, McAneny, Sarah Carlson, Carlson, Sheldon Cooper, Optum, Michael Nagle, Tyler Kisling, Kisling, he's, There's, it's, Purvi, Parikh hadn't, they've, Amit Phull, Phull, Igor Golovniov Organizations: Lightrocket, CNBC, Healthcare, UnitedHealth, U.S . Securities, Exchange Commission, Change, Inc, Bloomberg, Getty, U.S, American Medical Association, AMA, U.S . Department of Justice, DOJ, U.S . Department of Health, Human Services, Wall Street, New York Stock Exchange, Change Healthcare Locations: Gainesville , Florida, U.S, Minnetonka , Minnesota, UnitedHealth's, New Mexico, Boulder , Colorado, California, New York City, UnitedHealth
Dado Ruvic | ReutersHong Kong on Tuesday launched six spot bitcoin and ether exchange traded funds — becoming the first in Asia to offer retail investors the ability to trade the cryptocurrencies at spot prices. The cryptocurrency ETFs were issued by three Chinese firms — China Asset Management, Bosera Asset Management, and Harvest Global Investments — on the Hong Kong exchange. Spot bitcoin ETFs by ChinaAMC, Bosera HashKey and Harvest were above 3% higher in early trading, but subsequently gave up some gains to trade by about 1.5% higher. The three ether ETFs were trading above 1% in the morning, but fell into negative territory by the late afternoon. The spot crypto ETFs had received regulatory approval under the provision of virtual asset management services, but crypto futures ETFs have been trading on the HKEX since late 2022.
Persons: Dado Ruvic, Bosera, Bitcoin, Antoni Trenchev, Nexo, Trenchev, Han Organizations: Reuters, Tuesday, China Asset Management, Bosera Asset Management, Harvest Global, Hong, Hong Kong's Securities, Futures Commission, ChinaAMC, U.S . Securities, Exchange Commission, CNBC, Stock Exchange of Hong, ., Harvest Global Investments Locations: Reuters Hong Kong, Asia, China, Hong Kong, U.S, Singapore, Dubai, Japan, South Korea, Stock Exchange of Hong Kong
Changpeng Zhao, former chief executive officer of Binance, arrives at federal court in Seattle, Washington, US, on Tuesday, April 30, 2024. Binance's billionaire founder Changpeng Zhao was sentenced to four months in prison on Tuesday, after pleading guilty to charges of enabling money laundering at his crypto exchange. The sentence in Seattle federal court was significantly less than the three years that federal prosecutors were seeking for Zhao. In November, Zhao struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world's largest cryptocurrency exchange. The action against Binance and its founder was a joint effort by the Department of Justice, the CFTC and the Treasury Department, though the SEC was notably absent.
Persons: Changpeng Zhao, Binance, Zhao Organizations: U.S, Bank, U.S . Securities, Exchange Commission, Commodity Futures Trading Commission, Binance, Department of Justice, CFTC, Treasury Department, SEC Locations: Seattle , Washington, US, Seattle, Binance, U.S
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