Government Enforcement Actions

May 25, 2016

The CFTC ordered Citibank and its Japanese affiliates to pay a $175 million penalty for attempting to manipulate the Yen LIBOR and Euroyen TIBOR rates and false reporting of the Euroyen TIBOR and U.S. dollar LIBOR rates.  CFTC

May 25, 2016

The CFTC ordered Citibank to pay $250 million for attempting to manipulate and falsely report the U.S. dollar ISDAFIX benchmark rate.  CFTC

May 25, 2016

The FTC and the State of Florida have taken action against the Consumer Assistance LLC, Consumer Assistance Project Corp. and Palermo Global LLC with running phony student loan debt relief schemes, and defendants in a similar FTC action brought earlier this year have agreed to a ban on participating in any debt relief business, as part of a consumer protection crackdown to combat such frauds. “The FTC is not going to stand on the sidelines when it uncovers evidence of fraudsters targeting students,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Consumers should be wary of any company that claims it can eliminate or greatly reduce debt, especially if they ask for money in advance.” FTC

May 25, 2016

A DeSoto, Texas, resident was indicted on 29 counts of aiding and assisting in the preparation of false income tax returns and three counts of willfully failing to file income tax returns, announced the Justice Department’s Tax Division. According to court documents, Vicki Louise Walker, was a tax preparer doing business under the name Vicki Walker Tax Services LLC in Dallas, Texas. Walker is alleged to have prepared numerous tax returns for tax years 2010 through 2013 on which she reported false items, including false filing status, false business expenses, false capital losses and false charitable donations. It is further alleged that Walker willfully failed to file her own tax returns with the Internal Revenue Service (IRS) for tax years 2011 through 2013. DOJ

May 24, 2016

California filed a lawsuit against Johnson & Johnson (J&J) for false advertising and deceptive marketing of its surgical mesh products for women. The complaint alleges that J&J neglected to inform both patients and doctors of possible severe complications and misrepresented the frequency and severity of risks. California co-led a multistate investigation, including 46 states and the District of Columbia, into J&J’s surgical mesh products for women, and is seeking injunctive relief and monetary penalties to ensure that J&J stops its deceptive practices. The suit further claims that J&J knew about potential risks and side effects prior to the launch of their mesh products, yet omitted that information from educational and marketing materials provided to doctors and patients. CA, WA

May 23, 2016

A San Diego, California, workers’ compensation attorney pleaded guilty in the Western District of Missouri to one count of filing a false tax return, the Justice Department’s Tax Division announced. According to court documents, Ron Mix, 78, entered into an arrangement where he received professional athlete referrals from a non-attorney so Mix and his law firm, the Law Offices of Ron Mix, could file workers’ compensation claims in California on the former athletes’ behalf. After receiving these referrals, Mix agreed to make donations to Project Contact Africa (PCA), as directed by the non-attorney. Mix admitted that between 2010 and 2013, he made approximately $155,000 in donations to PCA and that these payments represented illegal referral payments that he falsely claimed on his personal income tax return as charitable deductions. DOJ

May 20, 2016

Hospicio La Paz, Inc. agreed to pay $2.5 million to settle charges of violating the False Claims Act in connection with approximately $1.5 million in questionable billings it submitted for payment to the Medicare Part A program.  DOJ (D.PR)

May 18, 2016

Missouri physician Randall E. Meyer pleaded guilty to (and agreed to pay roughly $75,000) violating the False Claims Act.  Meyer, a surgeon with Central Missouri Cardiology, P.C., admitted claiming the percentage of patients’ lesions and stenosis in their arteries was 70 percent or greater when it was substantially less.  The health care benefit programs would not have reimbursed claims if the programs had known Meyer was inflating the percentage of patient lesion and stenosis.  DOJ (W.D.MO)

May 16, 2016

Tokyo-based Corning International Kabushiki Kaisha agreed to plead guilty and pay a $66.5 million criminal fine for conspiring to fix prices, rig bids and allocate the market for ceramic substrates sold in the United States and elsewhere.  The products were installed in automotive emissions control systems and supplied to automobile manufacturers including Ford, General Motors, and Honda.  DOJ

May 16, 2016

Mountain States Contractors, an affiliated company of Jones Brothers, agreed to pay $2.25 million to settle charges of violating the False Claims Act by submitting false claims for payment in connection with the Department of Transportation’s Disadvantaged Business Enterprise Program.  The allegations originated in a whistleblower lawsuit by a former Mountain States employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of $500,000 from the proceeds of the government’s recovery.  Whistleblower Insider