Category: Financial Industry

Calling Insiders With Information on Pandemic Fraud, Waste & Abuse

On April 16, 2020, the Honorable William M. McSwain, United States Attorney for the Eastern District of Pennsylvania, issued a sweeping request for help in identifying companies and individuals who seek to “exploit the devastating effects of the coronavirus pandemic for their own benefit.” The Philadelphia United States Attorney’s Office has a long history fighting […]

International Whistleblowing Legislation and America’s False Claims Act

This is the second part of a two-part article. In the first of this two-part series, we discussed the success of the United States’ federal False Claims Act (FCA),[1] the rise of international whistleblowers through a study of the Michael Epp case,[2] and what global companies need to do to prepare. In this follow-up, we review exemplary […]

Storm Clouds: Private Equity and the False Claims Act

The United States recently filed a False Claims Act Complaint in Intervention against Florida-based compounding pharmacy Patient Care America (“PCA”), two PCA employees, as well as the private equity (“PE”) firm that acquired PCA and helped manage the company.1 The scheme alleged by the government was a common one: the payment of kickbacks for referrals of […]

1st – Ever Whistleblower Retaliation Case Brought by SEC

In the first-of-its-kind enforcement action, The Securities and Exchange Commission accused a hedge fund adviser, Paradigm Capital Management, Inc. and its owner Candace King Weir, of squashing a top trader after learning that he reported trade violations at the firm. Paradigm had failed to meet their obligations to obtain client’s consent prior to conducting trades. […]

JP Morgan Pays $614 Million In Mortgage Fraud Case

JP Morgan is the most recent Wall Street firm to write a check, a whopping $614 million,  to the government to settle allegations that it violated the False Claims Act by knowingly underwriting non-compliant mortgages that received federal insurance coverage from the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA) […]

More Incentives For Whistleblowers: New York Considers A New Law To Reward And Protect Whistleblowers

Tracking the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, new legislation would establish whistleblower bounties and protections for information given to the New York State Department of Financial Services (“DFS”) – a super agency formed in October 2011 to regulate banks and insurance companies in New York.  Since its inception, […]

The 2012 IRS Whistleblower Report Is Out!

A quick summary: In FY  2011, the IRS received 314 submissions identifying 734 taxpayers that, based on the face of the submissions, appear to meet the section 7623(b) criteria.  In FY 2012, the IRS received 332 submissions identifying 671 taxpayers that, based on the face of the submissions, appear to meet the section 7623(b) criteria.  […]

Commodity Options Fraud And Misappropriation Result In $2.5 Million In Sanctions Against Abraham Gutterman And His Companies

Abraham Gutterman and his companies, Alliance Capital Metals LLC and AR Goldman Wealth Management, LLC, are barred from the commodities industry by a court order from Judge Marcia G. Cook, of the U.S. District Court for the Southern District of Florida.  As a result from a Commodity Futures Trading Commission (CFTC) complaint associated with a […]

$14.5 Million Dollar Payment To Bank Of America/Countrywide Whistleblower

Kyle Lagow, a former home appraiser with Countrywide Financial brought suit under the Federal False Claims Act accusing his employer of defrauding the Federal Government by inflating appraisals on government backed loans.  Lagow along with four other whistleblowers, initiated suits that were combined and ultimately led to a $25 billion settlement reached between state and federal […]

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