Yearly Archives: 2012
Alleged Fraudster Took the Money and Ran
Georgia resident, Aubrey Lee Price, formerly of Manatee County, Florida, is apparently on the run after being accused by the Securities and Exchange Commission (“SEC”) of orchestrating a $40 million investment fraud. According to the SEC, Price misappropriated or lost nearly $40 million from approximately 115 investors in Georgia and Florida. The SEC has… Read More »
Two Individuals Sentenced for Roles in Miami-Area Medicare Fraud
The Department of Justice, the FBI and the Department of Health and Human Services announced that two Miami-area residents, James Edwards and Nelson Fernandez, were recently sentenced for their roles in a $200 million Medicare fraud scheme. Edwards and Fernandez worked as patient-recruiters for American Therapeutic Corporation (“ATC”), Medlink Professional Management Group, Inc., its… Read More »
Government Contractor Agrees to Settle Whistleblower Suit
The Department of Justice announced that Ward Diesel Filter Systems, Inc. (“Ward”), a manufacturer of diesel engine filtering systems, has agreed to pay $628,000 to settle allegations that it violated the False Claims Act. The government alleged that New York-based Ward provided inaccurate commercial pricing information for its fire engine filtering systems to the… Read More »
Simplified Arbitration Rules Amended
The Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 12-30 announcing that the Securities and Exchange Commission (“SEC”) has approved identical amendments to Rules 12401 and 12800 of the FINRA Code of Arbitration Procedure for Customer Disputes, and Rules 13401 and 13800 of the FINRA Code of Arbitration Procedure for Industry Disputes (collectively “Simplified… Read More »
Hospice Companies Settle Whistleblower Suit for $6.1 Million
Hospice Care of Kansas LLC, based in Witchita, Kansas, and its parent company, Voyager HospiceCare, Inc. based in Fort Worth, Texas (collectively “HospiceCare”), have agreed to settle a whistleblower suit for $6.1 million. The qui tam, or whistleblower, action was initially brought in 2006 by Beverly Landis, a former nurse with Hospice Care of… Read More »
Hospital Pays $8.9 Million to Settle Whistleblower Suit
Overlook Hospital (“Overlook”) and its owners and operators, AHS Hospital Corp. and Atlantic Health System, Inc., have jointly agreed to settle a False Claims Act case for $8.9 million. The lawsuit was brought under the qui tam provisions of the False Claims Act by two former Overlook employees. A qui tam action is a… Read More »
Merrill Lynch Fined For Overcharging Customers
The Financial Industry Regulatory Authority (“FINRA”) announced that it has fined Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) $2.8 million. The fine relates to allegations that Merrill Lynch overcharged its customers approximately $32 million in incorrect fees and failed to provide required trade notices. In connection with the allegations, Merrill Lynch has… Read More »
Discovery of Florida Ponzi Scheme Was in the Stars
The Securities and Exchange Commission (“SEC”) has charged former broker Gurudeo “Buddy” Persaud of Orlando, Florida with operating a Ponzi scheme. According to the SEC, between July 2007 and January 2010, Persaud persuaded at least 14 investors to invest more than $1 million in his firm White Elephant Trading Company LLC. The SEC’s Complaint… Read More »
GAO Report Finds Medicaid Audit Program Costs More Than it Recovers
An investigation by the U.S. Government Accountability Office (“GAO”), the nonpartisan investigative arm of Congress, revealed that the Medicaid audit program created in 2006 has cost taxpayers more than $100 million to operate since 2008, but only found $20 million in overpayments during that period. The Centers for Medicare and Medicaid Services (“CMS”) is… Read More »
Acting Assistant Attorney General Stuart F. Delery Gives Keynote Address at the American Bar Association’s Ninth National Institute on the Civil False Claims Act and Qui Tam Enforcement
The American Bar Association recently held its Ninth National Institute on the Civil False Claims Act and Qui Tam Enforcement (“National Institute”) in Washington, D.C. The National Institute was attended by experts nationwide from the Department of Justice, state attorneys general, federal agencies, and by attorneys who specialize in False Claims Act and qui… Read More »