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Kacey Riccomini Discusses Corporate Fraud Concerns

September 28, 2023

In a recent article for Daily Journal, business litigation partner Kacey Riccomini discusses the significant concerns surrounding corporate fraud, which can result in substantial losses for companies and individual investors. She highlights several high-profile cases of corporate fraud, such as the founder of financial aid startup Frank being charged with fraud during an acquisition, Peloton facing investigations for injuries allegedly related to its treadmills, Elizabeth Holmes' conviction for defrauding investors in Theranos, and the founder of FTX Trading Ltd. facing fraud charges.

There are various factors that can lead businesses and their executives into government investigations, criminal charges, and civil suits. Inexperienced startup founders may lack the necessary guidance and compliance measures, and fraudulent activities such as embezzlement, insider trading, and misrepresentations can deceive investors.

Investors may recover more through civil suits than through government-controlled victim funds, Riccomini wrote, and she highlighted the importance of seeking legal advice early in the process.

Read more here.