The Federal Trade Commission Tuesday sued Walmart for allegedly allowing money transfer services to be used for fraud, saying the retail giant "turned a blind eye" costing consumers hundreds of millions of dollars.
By the numbers: From 2013 to 2018, more than $197 million in payments that were subjects of fraud complaints were sent or received from Walmart, according to data from MoneyGram, Western Union and Ria, the FTC said. Walmart has called the lawsuit baseless.
Jackpot, a soon-to-be-launched app for buying lottery tickets, announced last week that it raised $35 million in its first funding round, backed by a slew of high profile professional athletes and sports ownership groups.
Why it matters: The gamification of gambling, in all its forms, has become increasingly big business fueled by governments, professional sports and venture capital — all eager to usher in a newer, younger group of bettors.
HONOLULU — Nobel Peace Prize laureate and journalist Maria Ressa said Tuesday that the Philippine government has ordered her news organization to shut down.
Why it matters: Ressa's Rappler has exposed Philippine President Rodrigo Duterte's "bloody war on drugs" and documented the government's propagation of disinformation.
Crypto exchange CoinFlex is locked in battle with once-VIP customer and Bitcoin evangelist Roger Ver, trying to recoup funds to make many of its other customers whole, Axios has learned. Only Ver denies he owes the firm any money.
Why it matters: CoinFlex suspended withdrawals last week, saying that a big-time customer owed them money and that the firm had to "resort" to such measures.
Amazon enlisted multiple military veterans to help with producing the new Chris Pratt series "The Terminal List."
Driving the news: Pratt portrays a Navy SEAL named James Reece in the new Prime Video series, which is based on a book of the same title by author Jack Carr.
The pandemic has dealt a setback to vehicle quality, according to a study released Tuesday.
Driving the news: The number of problems in new vehicles reached a record high in the 36-year history of the J.D. Power Initial Quality Study, a closely watched annual assessment of the performance of new cars and trucks.
Driving the news: The temporary ban was first announced in August of 2020 to slow the spread of COVID-19. Airbnb said there's since been a 44% year-over-year decrease in the rate of party reports, and that the ban has been well received by its hosts and community leaders.
A new global shortage is brewing in the condiments section, thanks to climate change and hotter temperatures.
Driving the news: Hot off of the sriracha shortage, there are reports of mustard shortages in France because of bleak mustard seed harvests in Canada, and global mustard supplies are now in jeopardy, UK-based The Independent reports.
Monday morning, the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, said on CNBC's Squawk Box that the only token he would lump in with commodities was bitcoin.
Why it matters: Gensler pointedly declined to name any cryptocurrency other than the original one, notable because the market has been operating under the assumption that there is a sort of wink-and-nod understanding that ether is also not a security.
When most Americans talk about airlines right now, their focus is on flight delays and cancellations. But there's also a contentious merger battle that could reshape U.S. air travel for years to come.
Driving the news: Spirit Airlines shareholders this Thursday will vote on a takeover offer from rival budget carrier Frontier Airlines, which Spirit's board is supporting over a rival bid from JetBlue.
A key part of America's supply chain infrastructure will now be owned by a trio of foreign investment firms, as Charlotte-based chassis lessor Direct ChassisLink agreed to be acquired by GIC, Omers Infrastructure and Wren House.
By the numbers: DCLI is the country's largest intermodal chassis provider, with over 151,000 marine and 100,000 domestic chassis in its fleet.
The sense of shock-and-awe surrounding heavy sanctions on Russia early in the war has been overtaken by the reality that the economic battle — like the military assault — will be a slog.
The big picture: "Right now neither side is winning the economic war, if the goal of the economic war in the short-and-medium term is to induce political concessions from your adversary," Chris Miller, a professor at Tufts University's Fletcher School of Law and Diplomacy, tells Axios. "Neither side is getting ready to offer concessions. So in that sense, it's a stalemate."
When Russia defaults, that's generally a sign of financial carnage both inside and outside the country. That's what happened in 1918, and then again in 1998. This time, however, is different.
Why it matters: The cost of Russia's default this week appearsnegligible — and in fact there might be a benefit of defaulting, given that it could then retain possession of dollars that would otherwise go to foreign bondholders.
The Securities and Exchange Commission on Tuesday slapped a $100 million fine against Ernst & Young (EY), accusing the accounting giant of ethical breaches committed by some of its Certified Public Accountants (CPA).
Why it matters: According to the SEC, the penalty is the largest ever imposed against an audit firm, underscoring the gravity of a situation that the agency said “discredited the accounting profession” as a whole.
EY also violated a Public Company Accounting Oversight Board (PCAOB) rule that required them to adhere to specific industry guidelines, regulators wrote in a complaint.
The details: According to the SEC, “a significant number” of EY’s audit professionals cheated on the ethics component of the CPA exam over “multiple years,” as well as other exams required to maintain those licenses.
During that time, the firm knowingly misrepresented the misconduct to the SEC, undermining industry practices.
EY’s professionals cheated on exams designed to make sure that accountants can “properly evaluate whether clients’ financial statements comply with Generally Accepted Accounting Principles,” the SEC stated.
Ernst & Young admitted to the SEC’s findings, and agreed to engage with independent consultants to correct the lapses.
What they’re saying: “It’s simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams of all things,” Gurbir S. Grewal, Director of the SEC’s Enforcement Division, said in a statement.
“This action should serve as a clear message that the SEC will not tolerate integrity failures by independent auditors who choose the easier wrong over the harder right,” he added.
Thought bubble: On multiple fronts, the SEC is getting more comfortable flexing its muscles as the sheriff of financial markets.
The action is also a reputational black eye for an accounting industry that’s managed to fly under the radar since Enron’s ignominious collapse 20 years ago led to the demise of auditor Arthur Andersen.
One in 10 U.S. homes sold in the first quarter of 2022 was "flipped" — or bought-and-sold within a year by an arms-length buyer — the highest level since 2000.
Why it matters: While the upward march in home prices has turned house-flipping into a blood sport, profit margins are on the decline, reflecting rising mortgage rates and higher labor and material costs.
There's a big global sale on Russian oil right now if you're able to buy — with prices at least $30 less per barrel than European Brent crude, according to some estimates. (Russia is keeping a tight lid on price information.)
Why it matters: Yes, the sanctions against Russia were swift and severe, but all this time Russia has been selling a whole lot of oil. The country has been able to offset a decline in oil sales to the West by increasing its sales to Asia.
Driving the news: The 348-foot-long Amadea, valued at $325 million, was seized by officials in Fiji in May. The yacht flew the U.S. flag as it passed retired aircraft carrier USS Midway and under the Coronado Bridge, per CBS News.
Spanish soccer club FC Barcelona has agreed in principle to sell a 10% stake in its television media rights to U.S. private equity firm Sixth Street for €205 million (approximately $217 million), Axios has learned from a source familiar with the deal.
Why it matters: American investors keep pushing deeper into Europe's most popular sport.
