Yearly Archives: 2012
U.S. Intervenes in False Claims Act Case Naming For-Profit Career Schools
The Department of Justice announced that it has intervened in a whistleblower lawsuit against Texas-based ATI Enterprises, Inc. (“ATI”) for allegedly abusing the federal student aid program in violation of the False Claims Act. ATI operates sixteen for-profit career schools in Florida, Texas, Oklahoma and New Mexico under the names ATI Technical Training Center,… Read More »
Florida Brokers Charged In Illegal Markup Scheme
The Securities and Exchange Commission (“SEC”) charged two former Florida brokers, Fabrizio Neves and Jose Luna, who were employed by now-defunct FINRA member LatAm Investments, LLC (“LatAm”), with overcharging customers approximately $36 million. In addition, the SEC charged LatAm’s former president, Angelica Aguilera, with failing to adequately supervise the pair, allowing them to carry… Read More »
US Joins Whistleblower Suit Against The Gallup Organization
According to the Department of Justice, the federal government has decided to partially intervene in a lawsuit against The Gallup Organization initially brought by a whistleblower under the qui tam provisions of the False Claims Act. Gallup, based in Washington, D.C. is the country’s most well-known polling firm. The whistleblower, Michael Lindley, was Gallup’s… Read More »
First SEC Whistleblower Receives Payout
The Securities and Exchange Commission (“SEC”) announced that it has paid out the first whistleblower award under the new whistleblower award program created in 2010. The SEC’s whistleblower program was created as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act to reward individuals who come forward and report possible violations of… Read More »
FINRA Issues Investor Alert Regarding Public Non-Traded REITS
The Financial Industry Regulatory Authority (“FINRA”) has issued Investor Alert: Public Non-Traded REITs – Perform a Careful Review Before Investing. A real estate investment trust (“REIT”) pools capital from numerous investors to purchase a portfolio of real property that may include apartment buildings, office buildings, medical facilities, shopping centers or other income generating properties…. Read More »
$600 Million Ponzi Scheme Halted by SEC
The Securities and Exchange Commission (“SEC”) has charged Rex Venture Group, LLC (“Rex”) d/b/a ZeekRewards.com and its principal, Paul Burks of Lexington, North Carolina, with fraud in connection with an alleged $600 million Ponzi scheme. According to the SEC’s Complaint, since January 2011, Rex and Burks raised more than $600 million from over 1… Read More »
College Hall of Fame Coach Jim Donnan Charged With Running Ponzi Scheme
The Securities and Exchange Commission (“SEC”) has charged College Football Hall of Fame coach Jim Donnan and his business partner, Gregory Crabtree, with running an $80 million dollar Ponzi scheme. Donnan was a head football coach at Marshall University from 1990 through 1995 and at the University of Georgia from 1996 through 2000. Later,… Read More »
Mizuho Securities USA Agrees to Settle SEC Charges for $127 Million
Mizuho Securities USA, Inc. (“Mizuho”), a U.S. subsidiary of Japan-based Mizuho Financial Group and member of FINRA, has agreed to settle charges by the Securities and Exchange Commission (“SEC”) that it misled investors about a collateralized debt obligation (“CDO”) named Delphinus CDO 2007-1 (“Delphinus”). According to the SEC, Mizuho received fees of approximately $10… Read More »
Wells Fargo Agrees to $6.5 Million Settlement With SEC
Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC (“Wells Fargo”) and Shawn McMurty of Minnesota, the former vice-president of its Institutional Brokerage and Sales Division, have agreed to settle charges by the Securities and Exchange Commission (“SEC”) relating to the sales of certain asset-backed commercial paper investments to certain institutional customers, including… Read More »
Bi-Partisan Bill Aims to Stop Scammers Who Target Veterans
According to the U.S. Department of Veterans Affairs (“VA”), Palm Beach County, Florida is home to more than 112,000 veterans – many of which are potential victims of scammers who prey on elderly and disable veterans. U.S. Representatives Tom Rooney (R-FL), Gus Bilirakis (R-FL), Kurt Schrader (D-OR), and Ron Barber (D-AZ) aim to discourage… Read More »