Yearly Archives: 2012
TriWest Healthcare Settles Qui Tam Action for $10 Million
TriWest Healthcare Alliance Corporation, a contractor for TRICARE, has agreed to resolve a qui tam, or whistleblower, lawsuit for $10 million. TRICARE is the medical benefit plan for the U.S. military, retirees, their dependents and reserve components. The settlement resolves a qui tam lawsuit filed by former TriWest employees, Judi Jerdee, Deborah Thornton, Linda… Read More »
Dava Pharmaceuticals to Pay $11 Million to Settle Whistleblower Suit
The Justice Department announced that Dava Pharmaceuticals (“Dava”) has agreed to pay $11 million to settle a qui tam, or whistleblower, suit alleging that it violated the False Claims Act. The whistleblower, Jim Conrad, alleged that, between October 1, 2005 and September 30, 2009, Dava knowingly underpaid its drug rebate obligations under the Medicaid… Read More »
14 Hospitals Settle False Claims Act Litigation For $12 Million
The Department of Justice announced that 14 hospitals in New York, Mississippi, North Carolina, Washington, Indiana, Missouri and Florida have agreed to settle a False Claims Act lawsuit regarding allegations that they overbilled Medicare for kyphoplasty procedures performed between 2000 and 2008. Kyphoplasty is a procedure that is used to treat some kinds of… Read More »
U.S. Charges Medical Imaging Company With Paying Kickbacks In Return For Medicare Test Referrals
The United States has filed suit against Universal Imaging, Inc. (“Universal”) and its current and former owners, Phillip J. Young (“Young”) and Mark Lauhoff (“Lauhoff”), under the False Claims Act seeking $150 million in damages and penalties. According to the U.S. Department of Justice, many of the facts in the case were first brought… Read More »
NASAA Cautions Investors Against Blindly Chasing Higher Returns
Following the recent announcement by the Federal Reserve that interest rates are expected to remain low until at least 2014, the North American Securities Administrators Association (“NASAA”) issued a warning to investors to be cautious about investments offering higher returns. The NASAA cautioned that investors should not abandon their slower growing, safe investments in… Read More »
Illinois Resident Charged With $4 Million Investment Fraud
The Securities and Exchange Commission (“SEC”) charged Illinois resident Kenneth A. Dachman (“Dachman”) with misappropriating more than $1.8 million in investor funds and making material misrepresentations to potential investors in connection with offerings for three companies for which he was the Chairman – Central Sleep Diagnostics, LLC, Central Sleep Diagnostics of Florida, LLC, and… Read More »
Florida Resident Convicted in $7 Million Stock Manipulation Scheme
Jonathan Curshen of Sarasota, Florida and San Jose, Costa Rica and Nathan Montgomery of Las Vegas, Nevada were found guilty of conspiracy to commit securities fraud and wire fraud for their roles in a $7 million stock manipulation scheme that defrauded investors. Curshen was the principal of Red Sea Management (“Red Sea”) and Sentry… Read More »
Charles Schwab & Co. Charged With FINRA Violations
The Financial Industry Regulatory Authority has filed a complaint alleging that Charles Schwab & Company (“Schwab”) violated FINRA rules by including a provision in its customer agreement requiring customers to waive their rights to participate in class actions against the firm. According to FINRA’s complaint, Schwab changed its customer account agreement in October 2011… Read More »
FINRA Adds Allegations to Pending Complaint Against David Lerner & Associates
The Financial Industry Regulatory Authority (“FINRA”) has amended its pending complaint against David Lerner & Associates (“DLA”) to add claims against David Lerner (“Lerner”), personally, and to add allegations that DLA continues to make false and misleading claims to potential investors with regard to Apple REITs, non-traded real estate investment trusts. FINRA’s initial complaint… Read More »
SEC Charges Florida-Based Company and Its Founder With Running Boiler Room Stock Scheme
The Securities and Exchange Commission (“SEC”) has charged Fort Lauderdale-based First Resource Group LLC (“First Resource”) and its principal, David Stern (“Stern”) of Tamarac, Florida, with running a boiler room stock scheme. The SEC’s complaint alleges that First Resource employed telemarketers who fraudulently solicited investors to purchase securities in two microcap companies, TrinityCare Senior… Read More »