Yearly Archives: 2012
Precedent Setting Bankruptcy By Public Pension Plan
In what appears to be an unprecedented move for a public defined-benefit plan, a government employee pension plan has filed for bankruptcy protection. The Northern Mariana Island Retirement Fund (“Fund”) filed for Chapter 11 Bankruptcy protection in the U.S Bankruptcy Court for the Northern Mariana Islands on Tuesday. The Fund was established in 1980… Read More »
FINRA Panel Awards Punitive Damages
Earlier this month, a Financial Industry Regulatory Authority (“FINRA”) arbitration panel awarded a customer $1.5 million, including $900,000 in punitive damages, against Dallas-based Cambridge Legacy Securities, LLC (“Cambridge”). The FINRA claim alleged that Cambridge recommended unsuitable limited partnerships to the customer who was in his 70s. The customer alleged that his Cambridge broker invested… Read More »
Century City Ponzi Scheme Halted by SEC
The Securities and Exchange Commission (“SEC”) has obtained a temporary restraining order and order freezing the assets of Shervin Neman (“Neman”) and the entities he controls, including Neman Financial L.P. The complaint filed by the SEC in the United States District Court for the Central District of California accuses Neman, of Century City, California,… Read More »
AmMed Direct Settles Whistleblower Complaint For $18 Million
Tennessee-based AmMed Direct, LLC (“AmMed”) has agreed to settle a whistleblower action with the payment of $18 million to the United States and the state of Tennessee. The complaint was initially brought by whistleblower Bryan McNeese, a former AmMed employee, in 2009 under the qui tam provisions of the False Claims Act. The qui… Read More »
FINRA Panel Hits Merrill With $10 Million Award
A Boca Raton, Florida Financial Industry Regulatory Authority (“FINRA”) Arbitration Panel has rendered a large award in favor of two former Merrill Lynch, Pierce, Fenner & Smith (“Merrill”) brokers. The FINRA claim filed by the former brokers, Tamara Smolchek and Meri Ramazio, alleged breach of contract, defamation and unfair competition, among other things, and… Read More »
Radiotherapy Clinics of Georgia, LLC Settles False Claims Act Case for $3.8 Million
Radiotherapy Clinics of Georgia, LLC, located in Decatur, Georgia, and its affiliates RCOG Cancer Centers LLC, Physician Oncology Services Management Company LLC, and Physician Oncology Services L.P. (collectively “RCOG”) have agreed to settle a consolidated qui tam action for $3.8 million. RCOG was named in two separate complaints filed under the qui tam provisions… Read More »
David Lerner & Associates Fined $2.3 Million
A Financial Industry Regulatory Authority (“FINRA”) Hearing Panel has fined David Lerner & Associates (“DLA”) $2.3 million for charging excessive markups on municipal bond and collateralized mortgage obligations (“CMOs”) during the period January 2005 to January 2007. In addition to the fine, DLA has been ordered to pay $1.4 million in restitution to its… Read More »
Former Deutsche Bank AG Executive Awarded Damages By FINRA Panel
A Financial Industry Regulatory Authority arbitration panel has ruled in favor of James Zeigon, a former executive for Deutsche Bank AG, in an investment loss case. First Republic Securities Company, LLC (“First Republic”) was ordered to pay Zeigon $870,000 for losses in collateralized bond obligations and the TW Tax Advantaged Fund LP. The arbitration… Read More »
State of Florida Fines Schwab $1.1 Million
In a Final Order dated March 26, 2012, the Florida Office of Financial Regulation (“OFR”) fined Charles Schwab & Co., Inc. (“Schwab”) $1.1 million for distributing inaccurate information to Florida investors. In May 2010, OFR commenced an administrative examination of Schwab based upon a complaint received from a Florida investor. According to OFR, it… Read More »
Universal Health Services Pays $6.85 Million to Settle Qui Tam Action
Universal Health Services, Inc. (“UHS”) and its subsidiaries, Keystone Education and Youth Services LLC and Keystone Marion LLC, have agreed to settle a whistleblower suit filed under the qui tam provisions of the False Claims Act. The qui tam action was initially filed by whistleblowers, Megan Johnson, Leslie Webb and Kimberly Stafford-Payne, former employees… Read More »