Yearly Archives: 2012
Former NAPFA Chairman Indicted For Fraud and Money Laundering
Mark Spangler (“Spangler”), the former chairman of the National Association of Personal Financial Advisors (“NAPFA”) has been indicted by a federal grand jury for investment advisor fraud, wire fraud and money laundering. The indictment alleges that Spangler stole $47.7 million of his clients’ money and invested it in two technology companies the he or… Read More »
Before You Invest: Pre-IPO Stock Investments
Due to the media hype of the upcoming IPO of Facebook and other private companies, there is an increased interest in investing in these companies. Access to a private company’s stock prior to its IPO is very limited. Fraudsters are exploiting this limited supply and tremendous demand by offering “pre-IPO” shares of these companies,… Read More »
Center for Diagnostic Imaging Settles Whistleblower Suit
Center for Diagnostic Imaging, Inc. (“CDI”) has resolved a whistleblower suit brought by two whistleblowers under the qui tam provisions of the False Claims Act for a total of $2.8 million. CDI, one of the country’s first freestanding diagnostic imaging centers, is based in Minnesota with locations in Florida, Illinois, Indiana, Minnesota, Washington state,… Read More »
JP Morgan to Pay $1.9 Million in Auction Rate Securities Case
A Financial Industry Regulatory Authority (“FINRA”) arbitration panel has awarded Ashley Furniture Industries, Inc. (“Ashley”) $1.9 million against JP Morgan Securities, LLC (“Morgan”) for losses in auction rate securities (“ARS”). In its claim filed in August 2010, Wisconsin-based Ashley had sought actual damages of over $26 million. Ashley alleged that Morgan misrepresented ARS as… Read More »
SEC Charges A.L. Waters Capital With Creating Phony Private Placements
Arnett L. Waters, a Massachusetts resident, and his broker-dealer, A.L. Waters Capital LLC (“Waters Capital”), have been charged by the Securities and Exchange Commission (“SEC”) with creating bogus private placements – Port Huron Partners LP and Port Huron Partners II LP (collectively “Port Huron Funds”) – and bilking investors out of at least $780,000…. Read More »
Former Medical Capital Exec Pleads Guilty
Joseph J. Lampariello, former president of Medical Capital Holdings, Inc. (“Med Cap”), pleaded guilty on Monday to wire fraud and failure to file a tax return. Lampariello, who earned $6.2 million from the sales of Med Cap notes, faces up to 21 years in federal prison, and an order to pay $49 million in… Read More »
Abbott Laboratories to Pay $1.5 Billion to Resolve Criminal and Civil Investigations
Abbott Laboratories, Inc. (“Abbott”) has agreed to settle criminal and civil matters, including 4 separate whistleblower suits, related to the unlawful promotion of the drug Depakote for off-label uses. The settlement involves the payment of $700 million in criminal fines and forfeiture of assets, plus $800 million in payments to the federal government and… Read More »
Qwest Communications Fraud Victims to Receive $44 Million
The U.S. Department of Justice announced that it is returning approximately $44 million to 112,210 victims of the Qwest Communications International, Inc. (“Qwest”) securities fraud. The funds were forfeited to the United States after Joseph Nacchio, Qwest’s chief executive officer, was convicted of securities fraud in 2007. Nacchio was found guilty of issuing false… Read More »
107 Individuals Charged in $452 Million Medicare Fraud
The Department of Justice (“DOJ”) and Health and Human Services (“HHS”) announced that 107 individuals in 7 cities have been charged with various health care fraud-related crimes, including conspiracy, health care fraud, violations of the anti-kickback statutes and money laundering. At least 91 individuals, including doctors, nurses and other licensed medical professionals, were taken… Read More »
McKesson Corporation Settles Federal Whistleblower Claim for $190 Million
McKesson Corporation (“McKesson”), a large drug wholesaler, has agreed to settle the federal-portion only of a whistleblower lawsuit for $190 million. The whistleblower, David Morgan, a licensed Pennsylvania pharmacist, filed a claim under the qui tam provisions of the False Claims Act. The whistleblower alleged that McKesson fraudulently reported inflated pricing information for a… Read More »