Category Archives: Fraud
Former Executives Charged in Insurance Law Scheme that Led to Hundreds of Millions in Losses
A pair of former executives with Southport Lane, L.P., a private equity investment holding company that specializes in managing investment portfolios for insurance companies, were charged with participating in a massive insurance fraud scheme. According to authorities, the scheme resulted in hundreds of millions of dollars in losses for its victims. The two individuals were […]
How to Respond if Your Company Attempts to Push You
National pharmacy chain Walgreens recently settled a pair of False Claims Act (FCA) lawsuits with the federal government for a total of $269 million. The claims involved allegations of improper billing. In the first lawsuit, Walgreens was alleged to have billed federal healthcare programs (including Medicaid and Medicare) for distributing insulin pens to hundreds of […]
Eagle Home Mortgage Accused of Approving Unqualified Buyers
Eagle Home Mortgage, a subsidiary of Lennar, is the defendant in a new whistleblower lawsuit that alleges the lender routinely approved unqualified borrowers for mortgages, going so far as to falsify borrowers’ documents to increase the chances of approval. The suit also claims the company hid negative findings on audited loans from regulators. This latest […]
Identifying and Reporting a Ponzi Scheme
It is hard to believe, but we have now passed the 10-year anniversary of the federal government bringing down Bernie Madoff’s multibillion-dollar Ponzi scheme. This scheme did ultimately do some good, as it led to Congress enacting the whistleblower program at the Securities and Exchange Commission (SEC), but many people lost a whole lot of […]
Sprint to Pay $330 Million in Whistleblower Tax Fraud Settlement
Sprint, the fourth-most popular mobile phone carrier in the United States, recently agreed to settle a whistleblower lawsuit to the tune of $330 million. The whistleblower in the case alleged the company had been regularly committing tax fraud since 2005, and first brought allegations against Sprint in 2011. The Attorney General’s office decided to join […]
Sprint Will Pay $330 Million to Settle Whistleblower Tax Fraud Case
Telecommunications giant Sprint recently agreed to settle a long-running whistleblower lawsuit regarding incidents of tax fraud to the tune of $330 million. The lawsuit alleged Sprint had been committing tax fraud since 2005. It is not the greatest timing for Sprint, which is currently going through the approval process for a merger with T-Mobile. The […]
Finance of America Mortgage to Pay $14.5 Million to Settle FHA Fraud Whistleblower Lawsuit
The U.S. Department of Justice has announced that Finance of America Mortgage, LLC, has agreed to pay the federal government $14.5 million to settle a lawsuit involving mortgage fraud brought under the False Claims Act. The case related to Federal Housing Administration (FHA) loans originated by Gateway Funding Diversified Mortgage Services, a company acquired by […]
Pair of Companies Ordered to Pay More than $7 Million for Issues Related to Pet Food Ingredients
Two companies were ordered by a federal court to pay more than $7 million in fines after they introduced adulterated and misbranded pet food ingredients into products that were sold across the United States. The two companies were Wilbur-Ellis, a California LLC based in San Francisco, and Diversified Ingredients, Inc., a Missouri-based company that works […]
Facebook Ordered to Pay $69 Million in Attorney Fees in Shareholder Action
Facebook Inc. has agreed to pay nearly $69 million in attorneys’ fees in a mooted shareholder lawsuit over a scrapped plan that would have reclassified the company’s stock. The deal was reached in late October in Delaware Chancery Court. The deal marked the end of a legal battle over attorneys’ fees that that continued long […]
Memo Reveals Several Managers Knew of Medicaid Fraud in New Jersey Case
A state comptroller for New Jersey claimed that one of his employees acted of his own accord by discounting $2.6 million on how much certain fraudsters had to repay taxpayers for Medicaid. However, a new memo obtained by reporters indicates several levels of managers in the comptroller’s office knew about these deals, indicating an organized […]
