Yearly Archives: 2012
Sanofi-Aventis Agrees to Settle Kickback Lawsuit
Sanofi-Aventis U.S. Inc. and Sanofi-Aventis U.S. LLC (collectively “Sanofi US”), two subsidiaries of French pharmaceutical company Sanofi, have agreed to pay $109 million to settle a qui tam lawsuit. The settlement resolves allegations that Sanofi US violated the False Claims Act in connection with the drug Hyalgan, a knee injection used to treat osteoarthritis… Read More »
Amgen Agrees to Largest Civil and Criminal False Claims Act Settlement in U.S. History
Fortune 500 company and biotech giant, Amgen, Inc., pleaded guilty in the U.S. District Court for the Eastern District of New York to charges that it illegally introduced a misbranded drug, Aranesp, into interstate commerce. Amgen also agreed to pay $612 million to settle related civil allegations that it caused false claims to be… Read More »
UBS Securities Japan Co. Ltd. and Parent Company UBS AG to Pay Substantial Penalties for LIBOR Manipulation
The Justice Department announced that UBS Securities Japan Co. Ltd. (“UBS Japan”), a wholly owned subsidiary of Zurich-based UBS AG, has agreed to plead guilty to felony wire fraud for manipulating the London Interbank Offered Rate (“LIBOR”). The LIBOR is the interest rate at which banks can borrow funds from other banks in the… Read More »
Japan-Based Printing Ink Provider and U.S. Affiliates Settle Whistleblower Case
Toyo Ink SC Holdings Co. Ltd, Toyocolor Co. Ltd., Toyo Ink Co. Ltd. and Toyochem Co. Ltd. based in Japan and U.S. affiliates Toyo Ink Mfg. America LLC, Toyo Ink International Corp. and Toyo Ink America LLC (collectively “Toyo Ink”) have agreed to settle charges that they violated the False Claims Act. Toyo Ink… Read More »
Value of Wells Timberland REIT Down 35%
The board of directors for Wells Timberland REIT, Inc. (“Timberland REIT”) announced that they had determined the estimated value of the non-traded real estate investment trust (“REIT”) to be $6.56 per share. The shares were initially offered to the public in 2006 at $10 per share. The board blamed the 35% decline in value… Read More »
Broward County Whistleblower Receives Million Dollar Payday
Weston resident Jason Wolk is the first private citizen to receive a payout under Broward County’s False Claims Act Ordinance. According to the Sun-Sentinel, Wolk, a former controller for USA Parking Associates, was assigned to work on contracts the company held for parking at Ft. Lauderdale-Hollywood International Airport and Port Everglades. Bill Bodenhamer, Jr.,… Read More »
South Florida Man Charged With Selling Securities Without a License
The Palm Beach County Sheriff’s Office arrested Wellington resident Bartholomew Caso, Jr. for allegedly selling securities as an unregistered dealer. He was released after posting $3,000 bail. According to the arrest report, the police were alerted to Caso’s alleged wrongdoing in February 2012 when they received a complaint from Josephine Stetson, an elderly woman… Read More »
FINRA Backtracks From its Earlier Interpretation of Suitability Rule
On July 9, 2012, FINRA Rule 2111, the new suitability rule enacted by the Financial Industry Regulatory Authority (“FINRA”), took effect. Rule 2111 states, in pertinent part, that a broker “must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer….”… Read More »
LPL Financial in the Sights of State Securities Regulators Over Non-Traded REITs
The Enforcement Section of the Massachusetts Division of the Office of the Secretary of the Commonwealth has initiated an administrative complaint against LPL Financial LLC relating to its sales practices of non-traded real estate investment trusts (“REITs”.) In 2012, there were in excess of $500 billion in REIT offerings in the marketplace. REITs engage… Read More »
Connecticut Advisory Firm Charged With $276 Million Insider Trading Scheme
The Securities and Exchange Commission (“SEC”) has charged hedge fund advisory firm, Stamford-based CR Intrinsic Investors LLC (“CR”); its former portfolio manager, Mathew Martoma of Boca Raton, Florida; and medical expert Dr. Sidney Gilman of Michigan with perpetrating a $276 million insider trading scheme. The alleged scheme involved a clinical trial for an Alzheimer’s… Read More »