Without admitting or denying the allegations in an SEC Complaint filed in the United States District Court for the District of Connecticut that she was engaged in insider trading, Katherine M. Hanratty, the alleged girlfriend of former Heartland Payment Systems, Inc. Chief Executive Officer Robert O. Carr consented to the entry of a final judgment that permanently enjoins her from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, orders her to pay $277,980 in disgorgement and prejudgment interest as well $250,628 as a penalty. The SEC's case against Carr is ongoing. The Complaint alleged that Carr provided Hanratty with confidential information about a potential acquisition of Heartland by another payment processing company. In the weeks leading up to the merger announcement, Carr allegedly gave Hanratty $1 million to open a brokerage account and instructed her to use almost all of the funds to purchase Heartland stock, which resulted in her purchase of over 11,000 shares.
Following guilty pleas in the United States District Court for the District of New Jersey, MTV's "Jersey Shore" television personality Michael "The Situation" Sorrentino was sentenced to eight months in prison, and his brother, Marc Sorrentino, was sentenced to 24 months in prison for violating federal tax laws. Further, Michael Sorrentino was ordered to serve two years of supervised release and pay $123,913 in restitution and a criminal fine of $10,000; and Marc Sorrentino was ordered to serve one year of supervised release and pay a criminal fine of $7,500.The Sorrention brothers created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael's celebrity status. In Tax year 2011, Michael Sorrentino earned taxable income, including some that was paid in cash, and that concealed some of his income by making cash deposits into bank accounts in amounts less than $10,000 each so that these deposits would not come to the attention of the IRS.Marc Sorrentino admitted that during tax years 2010, 2011 and 2012, he under-reported his total and taxable income, and had assisted his accountants in preparing his personal tax return for those years, willfully providing them with false information.
Following a 12-day bench trial, the United States District Court for the District of Utah ordered R. Gregory Shepard, and Neldon Johnson, RaPower-3 LLC, and International Automated Systems, Inc. to disgorge over $50 million in gross receipts from facilitating and promoting an abusive tax scheme involving false tax deductions and solar energy credits; and Defendants were barred from promoting and marketing the scheme and ordered to ensure that the public is not further harmed by their actions. Defendant Johnson claimed to have invented solar energy technology involving solar thermal lenses placed in arrays on towers; and, he decided to sell the solar lenses component. The Court found that the Defendants made "gross valuation overstatements" when they sold lenses for a total purported price of $3,500 because the raw cost of manufacture was very low and the "technology does not work, and is not likely to work to produce commercially viable electricity or solar process heat. Therefore, each ‘lens' is just one component of an inoperable system. It is not a piece of sophisticated technology such that premium pricing is appropriate for it."