Yearly Archives: 2012
Boca Raton Man Accused of Running Ponzi Scheme
Donald R. French, Jr., a 25-year-old former Florida Atlantic University student, is accused of running a $10 million Ponzi scheme. According to federal law enforcement, in March 2008, French began a company called D3 Capital Management, LLC to solicit funds from investors. The FBI claims that French, an aspiring actor, used his charm and… Read More »
Morton Plant Mease Agrees to Settle Whistleblower Suit For $10.1 Million
The U.S. Justice Department announced that Morton Plant Mease Health Care, Inc., and some of its affiliates (collectively “Morton Plant’), have agreed to pay $10.1 million to settle allegations that they violated the False Claims Act. According to Morton Plant’s website, it operates a group of hospitals, outpatient and surgical centers, urgent care facilities,… Read More »
South Carolina Hospice Care Provider Agrees to Settle Whistleblower Suit
The U.S. Department of Justice announced that Harmony Care Hospice, Inc. (“Harmony”), a hospice company located in South Carolina, and its CEO Daniel J. Burton, have agreed to settle a whistleblower suit for $1.28 million. According to Harmony’s website, it has four offices located in Columbia, Greenville, Hartsville, and Union, and serves patients in… Read More »
J.P. Morgan and Credit Suisse Agree to Settle Charges That the Firms Misled Investors
The Securities and Exchange Commission (“SEC”) announced that J.P. Morgan Securities LLC (“J.P. Morgan”) and Credit Suisse Securities (USA) (“Credit Suisse”) have agreed to settle charges that the firms made misrepresentations to investors relating to offerings of residential mortgage-backed securities (“RMBS”). In its Complaint filed in Washington D.C., the SEC alleged that J.P. Morgan… Read More »
SEC Settles With Insurer Over Inadequate Variable Annuity Disclosures
The Securities and Exchange Commission (“SEC”) announced a settlement with Massachusetts Mutual Life Insurance Company (“Mass Mutual”) for $1.65 million concerning allegedly inadequate disclosures on two of its variable annuity riders. The settlement concerns Mass Mutual’s two guaranteed minimum income benefit riders offered between 2007 and 2009: GMIB 5 and GMIB 6. According to… Read More »
Lawyers Who Drafted Private Offering Memo Sued By Florida Investors
A group of disgruntled investors have filed a lawsuit in Broward County against the law firm that helped create the offering memorandum for a failed dot-com company, Fundster.com. According to the Daily Business Review (“DBR”), a group of investors from Plantation, Florida sued law firm Edwards Wildman Palmer LLP, based in Boston, after Fundster.com… Read More »
Florida Resident Accused of Recruiting Ponzi Scheme Victims
A 69 year old Florida man, James F. Ellis of Wilton Manors, has been charged by the Securities and Exchange Commission (“SEC”) with securities fraud for making fraudulent statements to investors to induce them to invest with alleged Ponzi schemer George Elia. According to the SEC’s Complaint, Ellis made knowingly false statements to at… Read More »
Government Intervenes in Whistleblower Suit Alleging Misuse of Funds
The Department of Justice announced that the U.S. has intervened in a qui tam action against Texas-based Fluor Hanford, Inc. and its parent corporation, Fluor Corporation (collectively “Fluor”). The complaint was initially filed in the Eastern District of Washington in 2011 by former Fluor employee Loydene Rambo under the qui tam provisions of the… Read More »
Think Carefully Before Accepting an Annuity Buyout Offer From Your Insurance Company
In recent months, several insurers, including Hartford, Transamerica Life and AXA Equitable, have announced offers to buy out to certain of their variable annuity contract holders. The insurers are offering some of their annuity holders lump sum payouts greater than their current account values in return for surrendering their benefit riders. According to InvestmentNews,… Read More »
WR Rice Financial and its Owner Charged With Securities Fraud
The Financial Industry Regulatory Authority (“FINRA”) has initiated a disciplinary proceeding against FINRA member firm WR Rice Financial Services, Inc. (“WR Rice”) and its owner, Joel I. Wilson (“Wilson”). According to FINRA, between April 2011 and September 2012, Wilson and other WR Rice brokers, made fraudulent misrepresentations to around 100 investors in connection with… Read More »