If you are aware of misrepresentations made by an issuer of emerging market bonds or an investment bank involved in the financing, our whistleblower attorneys are available to discuss the benefits and drawbacks of the SEC whistleblower program. Growth in sovereign debt and emerging market corporate bonds are on our radar as among the industries where securities fraud might be happening.
There was a rush to sell emerging-market government bonds in January 2017 as the sale of sovereign debt raised money amidst fears of rising US interest rates and protectionist policies by President Donald Trump. Emerging market debt is expected to have a volatile year. If one or more issuances contained misrepresentations by the government entity and distributed by an investment bank to American investors, the U.S. Securities and Exchange Commission would be interested in evidence of its occurrence.
Corporate bonds issued for companies in Brazil, China and Russia have also been growing since the middle of the last decade, when bank lending tightened up around the recession. Because of the globalization of the world economy, that increase is not alone enough to raise suspicions of securities fraud. But we have added this area to the list of ones we are actively monitoring.
In December 2016, the media reported that the SEC is investigating a bond sale by Mozambique through Credit Suisse, BNP Paribas and VTB Group. The bonds were sold in 2013 to finance EMATUM’s tuna fishing plans but Mozambique subsequently reported that military equipment was purchased with the funds. The country said its debt load was unsustainable a few months ago and the International Monetary Fund suspended assistance to the country.
If you have information about a violation of federal securities laws involving emerging market bonds, call 1-800-590-4116 for a free and confidential initial consultation with a SEC whistleblower attorney at McEldrew Young.