Recent Blog Posts
U.S. Intervenes in Qui Tam Action Against AseraCare Hospice
The Justice Department announced that the United States has intervened in a qui tam lawsuit filed by whistleblowers Dawn Richardson and Marsha Brown against Golden Gate Ancillary LLC dba AseraCare Hospice (“AseraCare”) in the United States District Court for the Northern District of Alabama. A qui tam action is a whistleblower lawsuit brought by… Read More »
Patient Exposes $150 Million Medicaid Fraud
Maxim Healthcare Services Inc. (“Maxim”), one of the nation’s largest providers of home healthcare services, has agreed to settle criminal and civil charges relating to a nationwide scheme to defraud Medicaid and the U.S. Department of Veterans Affairs of more than $61 million. To date, nine individuals, including two Florida residents, have pleaded guilty… Read More »
Maersk Line Whistleblower to Receive $3.6 Million From Qui Tam Settlement
Maersk Line Limited, a wholly-owned subsidiary of Denmark-based A.P. Moller Maersk, has agreed to pay $31.9 million to settle a qui tam lawsuit initiated by whistleblower Jerry H. Brown II, a former industry insider, under the False Claims Act. A qui tam action is a whistleblower lawsuit brought by an individual as a “relator”… Read More »
Johnson and Johnson Settles Texas Qui Tam Action
Johnson and Johnson (“J&J”) has agreed to settle a Texas qui tam lawsuit brought by whistleblower Allen Jones for $158 million. The settlement ended the trial which had begun earlier this month. The qui tam complaint filed in 2004 alleged that J&J used false marketing practices in order to influence Medicaid officials to spend… Read More »
Boeing Settles Qui Tam Lawsuit
The Boeing Company (“Boeing”), one of the world’s largest aerospace companies, has agreed to settle a lawsuit filed under the qui tam provisions of the False Claims Act relating to bills submitted to the United States Department of Defense (“DOD”) for the production and modification of Chinook helicopters. According to the Complaint, in 2003,… Read More »
FINRA to Brokerage Firms: Heightened Supervision Required for Complex Products
Last week, the Financial Industry Regulatory Authorized (“FINRA”) issued Notice to Members 12-03 (“Notice”) informing its members of the traits which may make an investment “complex,” requiring heightened supervision and compliance procedures. FINRA stated that any investment with multiple features that impact its returns under different scenarios is potentially complex. This is especially true… Read More »
Defunct Brokerage Firm CapWest Ordered to Pay $9M Award
A Financial Industry Regulatory Authority (FINRA) arbitration panel issued an Award on January 13, 2012 ordering CapWest Securities, Inc. (“CapWest”) to pay $7,925,763 in compensatory damages, plus $1,188,863 in attorney’s fees to a group of 40 investor claimants. The Award is related to losses in Provident Royalties LLC, Medical Capital Holdings, Inc. and DBSI,… Read More »
Florida Man Sentenced to 51 Months in Prison For Investment Fraud
The Florida Office of Financial Regulation announced that Boynton Beach resident, Anthony Cutaia, was sentenced yesterday to 51 months in prison for his role in a $6 million Ponzi scheme perpetrated on 35 Florida investors. Cutaia pleaded guilty to mail and wire fraud for misleading investors and misappropriating funds. Cutaia began soliciting potential investors… Read More »
$67 Million Verdict Against TD Bank in Scott Rothstein Related Case
In the first trial related to Scott Rothstein’s $1.2 billion Ponzi scheme, a Miami federal jury took less than a day to return a $67 million verdict against TD Bank, including $32 million in compensatory damages and $35 million in punitive damages. The jury determined that TD Bank helped Rothstein defraud a group of… Read More »
Qui Tam Lawsuit Against New York City Settled for $70 Million
A qui tam action filed against New York City has settled for $70 million. A qui tam action is a whistleblower lawsuit brought by an individual as a “relator” on behalf of the federal government. The whistleblower lawsuit alleged that the New York City Human Resources Administration improperly overcharged the Federal Medicaid program for… Read More »