Monthly Archives: February 2013
Ambulance Company Agrees to Settle False Claims Act Allegations
A South Carolina ambulance company, Williston Rescue Squad, Inc. (“Williston”), has agreed to pay the United States $800,000 to settle allegations that Williston billed Medicare for ambulance rides that were medically unnecessary in violation of the False Claims Act. A clinical social worker at a facility that regularly receives Medicare patients transported by Williston… Read More »
UPDATE: U.S. Joins False Claims Act Suit Against Lance Armstrong
From 1996 to 2004, the United States Postal Service (“USPS”) sponsored the racing team owned by Tailwind Sports, LLC of which Lance Armstrong was the lead rider and Johan Bruyneel was the manager. Between 2001 and 2004, the USPS paid $31 million in sponsorship fees for the team. The lawsuit, initially filed by whistleblower… Read More »
Bank of NY Mellon Settles Medical Capital Claims
The Bank of NY Mellon (“BNY Mellon”), the world’s largest custodial bank, has agreed to settle allegations in a class action that it breached its fiduciary duties in connection with its role as trustee of failed Medical Capital Holdings, Inc. private placements. The settlement, which is subject to court approval, involves payment of $114… Read More »
The Securities Class-Action May Soon Be a Thing of the Past
A Financial Industry Regulatory Authority (“FINRA”) panel has dismissed two out of three counts of an enforcement action FINRA brought against Charles Schwab & Co. in February 2012. FINRA’s Complaint was brought after Schwab revised its customer agreement in October 2011 to include provisions that 1) required customers to waive their right to participate… Read More »
ING Agrees to Settle FINRA Action for $1.2 Million
Numerous affiliates of Netherlands-based ING Groep N.V have agreed to settle allegations by the Financial Industry Regulatory Authority (“FINRA”) that they failed to retain and review millions of emails to and from their brokers. The affiliates, ING Financial Advisors LLC, ING Financial Partners Inc., ING Investment Advisors LLC, Directed Services LLC and ING America… Read More »
Blackstone Group and other Investment Firms Buying Florida Foreclosures
According to the Palm Beach Post, several hedge funds and other investment firms purchased more than 5,000 Florida homes out of foreclosure last year. RealtyTrac, an online marketplace of foreclosure properties, issued a report indicating that several big firms including New York-based Blackstone Group and Lake Success Rentals, based in Ft. Lauderdale, purchased hundreds… Read More »
Investor Education: Bond Duration
The Financial Industry Regulatory Authority (“FINRA”) has issued an Investor Alert to educate investors about the impact an increase in interest rates would have on bond investments. Interest rates influence the value of bond funds, as well as, the price of individual bonds. Investors with bond investments should know the duration of the bonds… Read More »
Florida Dermatologist Settles False Claims Act Case for $26.1 Million
The Justice Department announced the largest settlement with an individual in the Middle District of Florida under the False Claims Act. Steven J. Wasserman, M.D., a Venice dermatologist, has agreed to pay $26.1 million to settle charges that he accepted illegal kickbacks and performed skin surgeries on Medicare patients that were not medically necessary…. Read More »
Houston Panel Awards Customer $1.07 Million Against Oppenheimer
A three-member Financial Industry Regulatory Authority (“FINRA”) panel has found in favor of a Houston, Texas investor after 8 days of arbitration. The Statement of Claim filed by Lloyd Gillespie in 2009 sought $4,000,000 in collective damages against Oppenheimer & Co., Inc., Aegis Capital Corp. and Joseph Gunnar & Co., LLC. The customer alleged… Read More »
UPDATE: Massachusetts Enters Consent Order Regarding LPL’s Sales of Non-Traded REITs
A Consent Order was entered on February 6, 2013 by the Massachusetts Securities Division resolving the administrative complaint initiated in December against LPL Financial LLC relating to its sales practices of non-traded real estate investment trusts (“REITs”.) According to the Consent Order, LPL will offer to pay restitution to LPL customers who were Massachusetts… Read More »