Yearly Archives: 2012
UPDATED 3.30.12: Broward Man Accused of Running a Ponzi Scheme Arrested
A Ft. Lauderdale man, George Elia, currently under investigation by the Florida Office of Financial Regulation, is also facing a $4 million lawsuit alleging that he has been running a Ponzi scheme. In October 2011, Michael Imbesi of San Diego, along with his father, step-mother and sister, filed the Broward Circuit Court lawsuit against… Read More »
Whistleblower Settlement With Tampa-Based WellCare Health Plans, Inc. Finalized
WellCare Health Plans, Inc. (“WellCare”), based in Tampa, Florida, announced that the $137.5 million settlement of four qui tam complaints and related civil investigations by the United States’ Attorneys for the Middle District of Florida and District of Connecticut has been finalized. WellCare is a managed care services company that administers federal health care… Read More »
Chicago-Area LifeWatch Services Settles Whistleblower Suits for $18.5 Million
LifeWatch Services, Inc., (“LifeWatch”) has agreed to settle two pending qui tam complaints for $18.5 million. The whistleblowers, Ryan Sims and Sara Collins, both former LifeWatch employees, alleged that LifeWatch improperly billed Medicare for ambulatory cardiac telemetry (“ACT”) services. ACT is a type of cardiac monitoring that uses mobile phone technology to record cardiac… Read More »
Lockheed Martin Settles Whistleblower Suit for $15.85 Million
Defense contractor Lockheed Martin (“Lockheed”) has agreed to settle a whistleblower suit involving one of its subcontractors, Tools & Metals of Fort Worth, Texas. The qui tam complaints by whistleblowers Robert B. Spencer and John Becker, both former employees of Tools & Metals, alleged that Tools & Metals improperly inflated the cost of tools… Read More »
Construction Companies Pony Up $47 Million To Settle Qui Tam Action
The Department of Justice announced that Harbert Corporation, Harbert International, Inc., Bill Harbert International Constructions Inc., Harbert Construction Services (U.K.) Ltd. and Bilhar International Establishment (collectively “Harbert Companies”) have agreed to pay $47 Million to settle a whistleblower suit first filed in 1995. The whistleblower action, filed under the qui tam provisions of the… Read More »
SEC Issues Investor Bulletin Regarding Municipal Bonds
The Securities and Exchange Commission’s (“SEC”) Office of Investor Education has issued an Investor Bulletin to help inform investors about municipal bonds (“muni bonds”). Muni bonds are debt securities issued by states, cities, counties and other governmental entities to provide financing for capital projects such as building roads and schools. An investor who purchases… Read More »
FINRA FINES CITI INTERNATIONAL FINANCIAL AND ORDERS RESTITUTION FOR EXCESSIVE MARKUPS AND MARKDOWNS CHARGED TO CUSTOMERS
The Financial Industry Regulatory Authority (FINRA) has fined Citi International Financial Services, LLC (“Citi”), a subsidiary of Citigroup, Inc., $600,000 and ordered it to pay $648,000 in restitution for excessive markups and markdowns charged to customers on bond transactions. FINRA’s investigation revealed that, from July 2007 through September 2010, Citi charged its customers markups… Read More »
Three Florida Companies Sue The Original Brooklyn Water Bagel Co. For Fraud
Three Florida companies, Florida Bagels LLC, Arsenal Holdings LLC and Egg Ventures LLC (collectively “Plaintiffs”), are suing Brooklyn Water Enterprises, Inc. formerly known as The Original Brooklyn Water Bagel Co. (“Company”) and two of its founders, Steven Fassberg and Ira Marcus, a Ft. Lauderdale attorney and former Senior Vice President and General Counsel for… Read More »
JP Morgan Agrees to Settle Whistleblower Suit for $45 Million
JP Morgan Chase Bank (“JP Morgan”) has agreed to settle a qui tam lawsuit filed in 2006 in the United States District Court in Atlanta, Georgia. The whistleblower suit, initiated by two mortgage brokers, alleges that JP Morgan, as well as several other banks and mortgage companies, violated the False Claims Act in connection… Read More »
Pacific West Securities Hit With $2.1 Million FINRA Award
A Financial Industry Regulatory Authority (“FINRA”) arbitration panel issued a significant Award against Pacific West Securities (“Pacific West”), a FINRA broker-dealer that previously announced it will shut down. The Award, issued March 6, awarded compensatory damages in the amount of $1.9 Million plus $200,000 in attorneys’ fees to claimants Joseph and Marilyn Lightfoot for… Read More »