Others may decide to risk detection by the IRS and the imposition of substantial penalties, including the civil fraud penalty, numerous foreign information return penalties, and the potential risk of criminal prosecution.
Tenet 6: The prevalence of secret, sealed settled cases of fraud and wrongdoing in the money management and securities industry is so substantial as to effective undermine the regulatory scheme.
In its second pro-business decision in a week, the U.S. Supreme Court made it more difficult for investors to sue securities companies for alleged fraud, saying that before a case can initially go forward, shareholders must show substantial evidence that a company intended to commit wrongdoing.