Archive

March 5, 2018

The SEC charged a Edwin Shaw LLC with illegally brokering dozens of investments by foreign nationals seeking U.S. residency. Between April 2014 and March 2017, Edwin Shaw solicited foreign nationals to invest in securities issued by a taxi and limousine company based in Queens, New York.  The investments were marketed to investors interested in applying for legal residency through the federal government’s EB-5 Immigrant Investor Program, which provides a path to legal residency for foreigners who invest directly in a U.S. business or private “regional centers” that promote economic development in specific areas and industries. Edwin Shaw agreed to a cease-and-desist order and agreed to pay disgorgement of $400,000 plus prejudgment interest of $54,209.20 and a penalty of $90,535. SEC

April 3, 2018

Norwegian NGO Norwegian People’s Aid, which receives funding from the US Agency for International Development, agreed to pay $2 million to settle claims it violated the False Claims Act by providing material support to Iran, Hamas, the Popular Front for the Liberation of Palestine (“PFLP”), and the Democratic Front for the Liberation of Palestine (“DFLP”), contrary to federal funding requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. DOJ (SDNY)

March 21, 2018

University of Pittsburgh professor Christian Schunn agreed to pay $132,000 to settle claims of violating the False Claims Act by submitting false documents to the National Science Foundation to obtain federal grants to fund his research. DOJ (WDPA)

February 16, 2018

The University of North Texas Health Science Center agreed to pay roughly $13 million to settle claims it violated the False Claims Act by inaccurately measuring, tracking and paying researchers for effort spent on certain NIH-sponsored research grants. DOJ (NDTX)

February 13, 2018

British Knitwear Retailer Pure Collection Ltd. and its CEO Samantha Harrison agreed to pay $908,100 to resolve allegations they violated the False Claims Act by avoiding U.S. customs duties owed on merchandise shipped from the United Kingdom to U.S. customers, including many customers in Maine. According to the government, they did so by breaking up single shipments into multiple shipments of lesser value in order to avoid the applicable duties. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Andrew Patrick. He will receive a yet-to-be determined award from the proceeds of the government’s recovery. DOJ (D. ME)

February 6, 2018

Tennessee-based Home Furnishings Resource Group Inc. (which also operates under the name Function Furniture First) agreed to pay $500,000 to resolve allegations it violated the False Claims Act by making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from China. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Home Furnishings competitor University Loft Company. University Loft will receive a whistleblower award of roughly $75,000 from the proceeds of the government's recovery. DOJ

January 31, 2018

Florida Technical College, Inc. agreed to pay $600,000 to settle claims it violated the False Claims Act through the college’s Cutler Bay Campus falsely certifying compliance with federal student aid programs’ eligibility requirements and submitting claims for 27 ineligible students. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Laurie Astacio, a former administrative assistant in the Cutler Bay admissions office. She will receive a whistleblower award from the proceeds of the government’s recovery. DOJ (SDFL)

February 2, 2018

The Securities and Exchange Commission today announced that the Miami-based businessman behind an alleged scheme involving investments in a Vermont-based ski resort has agreed to pay back more than $81 million of investor money that he used illegally. According to an SEC complaint filed in 2016 in federal court in Miami, Ariel Quiros allegedly misused more than $50 million in investor funds to purchase a different ski resort and to fund personal expenses such as income taxes and two luxury New York City condominium purchases. Investors were told their money would specifically be used for construction projects at the Jay Peak Resort and a nearby proposed biomedical research facility. Companies owned by Quiros also allegedly failed to contribute approximately $30 million in investor funds toward Jay Peak construction, with two projects going uncompleted. This jeopardized investors' investments as well as their participation in the EB-5 Immigrant Investor Program under which Quiros and his businesses solicited the money. SEC

January 16, 2018

Virginia-based home furnishings company Bassett Mirror Company agreed to pay $10.5 million to resolve allegations it violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from China. According to the government, Bassett Mirror evaded antidumping duties owed on wooden bedroom furniture imported from China by misclassifying the furniture as non-bedroom furniture which at the time of the alleged conduct was not subject to an antidumping duty. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Kelly Wells, an Alabama merchant who sells furniture on line. Ms. Wells will receive a whistleblower award of roughly $1.9 million from the proceeds of the government's recovery. DOJ

January 11, 2018

Textile importer American Dawn, Inc. and its executives Habib Rawjee, Mahmud Rawjee, and Adnan Rawjee, agreed to pay roughly $2.3 million to resolve allegations of violating the False Claims Act by intentionally misclassifying certain textiles such as bath and shop towels imported into the United States in order to pay lower tariff rates. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former employee of American Dawn. The whistleblower will receive an award of roughly $400,000 from the proceeds of the government's recovery. DOJ (NDGA)