Yearly Archives: 2012
R. Allen Stanford Receives 110-Year Sentence for $7 Billion Investment Fraud
Robert Allen Stanford (“Stanford”), founder of Stanford Financial Group and former Chairman of the Board of Antigua-based Stanford International Bank (“SIB”), was sentenced yesterday to a prison term of 110 years, plus forfeiture of $5.9 billion. More than 300 victims’ letters were received by the court prior to the sentencing. Stanford was convicted by… Read More »
Brookstone Securities Ordered to Pay $2.6 Million for Fraudulent Sales to Elderly Investors
A Financial Industry Regulatory Authority (“FINRA”) hearing panel has ordered Lakeland, Florida-based Brookstone Securities, Inc. (“Brookstone”) to pay a $1 million fine and $1.6 million in restitution to investors for the firm’s fraudulent sales of collateralized mortgage obligations (CMOs) to unsophisticated, elderly and retired investors. According to the panel, from July 2005 to July… Read More »
St. Jude Medical Settles Whistleblower Case for $3.65 Million
St. Jude Medical, Inc. (“St. Jude”), based in St. Paul, Minnesota, is a developer and manufacturer of cardiovascular and implantable neurostimulation devices, such as pacemakers and defibrillators. St. Jude has agreed to pay $3.65 million to resolve allegations that it knowingly overcharged the Department of Defense and Department of Veterans Affairs for replacement pacemakers… Read More »
Orthofix Agrees to Settle Civil Case For $34 Million and Pay $7 Million Criminal Fine
Texas-based Orthofix, Inc., a medical device manufacturer, has settled civil and criminal charges related to its sale of bone-growth stimulator devices. The settlement requires Orthofix to pay $34 million to the United States to settle the civil charges and plead guilty to felony obstruction of a federal audit, as well as pay a $7.8… Read More »
Calnet Agrees to Settle Whistleblower Suit For $18.1 Million
Virginia-based Calnet, Inc., an intelligence analysis, information technology and linguist services company, has agreed to settle False Claims Act allegations for $18.1 million. The allegations were initially brought in a whistleblower suit filed in 2009 by former Calnet employee, Kimthy Chao, under the qui tam provisions of the False Claims Act. The whistleblower’s complaint… Read More »
Boxer Floyd Mayweather, Jr. Sues Over $4 Million Investment Loss
Floyd Mayweather, Jr. (“Mayweather”), a five-division world champion boxer with a 43-0 record, has filed suit in Miami-Dade Circuit Court against his former investment advisers, Jeff Rubin and Pro Sports Financial, Inc., to recover more than $4 million lost in an Alabama real estate investment, allegedly recommended by Rubin. According to the Complaint, in… Read More »
Oppenheimer Settles With SEC For $35 Million
OppenheimerFunds, Inc. has agreed to pay $35 million to settle charges by the Securities and Exchange Commission (“SEC”) that it made misleading statements to investors about the Oppenheimer Core Bond Fund (Symbol: OPIGX) and Oppenheimer Champion Income Fund (Symbol: OPCHX) (collectively “Funds”). An investigation by the SEC found that OppenheimerFunds didn’t adequately disclose the… Read More »
Quantek Asset Management Settles With SEC for $3.1 Million
Miami-based Quantek Asset Management LLC (“QAM”) has settled claims by the Securities and Exchange Commission (“SEC”) that it falsely represented that its managers had personally invested in the Quantek Opportunity Fund (“Quantek Fund”). The Quantek Fund is a $1 billion Latin America-focused hedge fund. The SEC claims that, contrary to statements made to prospective… Read More »
Fraudster Sentenced to 12 Years in Prison
Michigan resident, Alan James Watson (“Watson”), was sentenced to 12 years in prison in connection with a scheme to defraud more than 900 investors out of $40 million through his investment club, Cash Flow Financial LLC (“CFF”). As a part of his sentence, he was ordered to forfeit more than $36 million in ill-gotten… Read More »
Lerner Loses the First Apple REIT Arbitration
On Monday, a Financial Industry Regulatory Authority (“FINRA”) arbitrator ruled in favor of customers, Joseph Graziose and Florence Hechtel (collectively “Customers”), and ordered David Lerner Associates, Inc. (“Lerner”) to pay them one-hundred cents on the dollar for the Apple REIT Nine they purchased from Lerner. The Customers were ordered to return the Apple REIT… Read More »