July 12, 2018

The CFTC announced an award of approximately $30 million to a whistleblower who voluntarily provided key original information that led to a successful enforcement action. The award is the largest award made by the CFTC’s Whistleblower Program to date and is the fifth award made by the program. Previously, the highest award amount paid to a CFTC whistleblower was in March 2016 of more than $10 million (see CFTC Press...

The Catch of the Week -- Société Générale S.A.

In a joint effort by the DOJ, CFTC, and French authorities, Société Générale agreed on June 4th to pay penalties and disgorgement in excess of $1 billion arising out of two separate wrongful schemes, making them our Catch of the Week. First, in connection with alleged violations arising from manipulation of the London InterBank Offered Rate (LIBOR), Société Générale agreed to pay $275 million in a settlement with DOJ and...

In Their Own Words -- McDonald

-- “The Whistleblower Program is an integral part of the Division’s efforts to identify and prosecute unlawful conduct. The Commission’s approval of these rules today will further strengthen and enhance our efforts to protect customers and promote market integrity.” James McDonald, the CFTC’s Director of the Division of Enforcement, in his comments on changes to the CFTC Whistleblower Rules. Click here for more.

In Their Own Words — Burns

-- "The first step in a real war on fraud is for the federal government to declare war.  The new CTFC whistleblower web site is a very good step in the right direction, but it can’t be the last." Patrick Burns, Director of Taxpayers Against Fraud, a non-profit organization dedicated to promoting and strengthening federal and state whistleblower laws, on whether it is time to reconsider the CFTC Whistleblower Program. ...

South Dakota Surgical Hospital Agrees to Pay $12.7 Million to Settle Kickback and Stark Law Violations

The DOJ announced Dunes Surgical Hospital in South Dakota and United Surgical Partners International (USPI) and its subsidiary, USP Siouxland, have agreed to pay $12.7 million to settle a False Claims Act case alleging the hospital engaged in illegal financial relationships with two physician groups. These arrangements spanned from 2014 to 2019 and involved payments that led to improper patient referrals to Dunes in violation of the Anti-Kickback Statute (AKS)...

RFSUNY Paid $300K to Settle Allegations of UAlbany Scientist's Undisclosed Foreign Ties in NASA and NOAA-Funded Research

The Research Foundation of the State University of New York (RFSUNY) has agreed to pay $313,574 to settle allegations that a SUNY at Albany (UAlbany) research scientist failed to disclose affiliations with and support from a foreign government while receiving federal research grants. The settlement addresses claims that Dr. Qilong Min withheld information about his connections and funding from the Chinese government while working on projects funded by National Aeronautics...

The Ongoing Effects of COVID-19 Fraud

The legal world continues to navigate the lingering effects posed by the COVID-19 pandemic. Fraud related to relief efforts and financial aid programs remains a significant concern. The DOJ has been cracking down on investigations, and we’re seeing more and more settlements this year. Yesterday, August 13, DOJ reaffirmed its commitment to combating COVID-19 fraud, emphasizing the need for vigilance and public cooperation in detecting and reporting fraudulent activities. Businesses,...

Swiss-Based Commodities Trading Company Pays $661 Million for FCPA Violations

Last Friday (March 1), the Department of Justice (DOJ) announced that Swiss-based international commodities trading company Gunvor S.A. pleaded guilty and agreed to pay roughly $661 million to settle charges of violating the Foreign Corrupt Practices Act (FCPA).  The DOJ's action stemmed from Gunvor's scheme to bribe Ecuadorean officials to secure business with Ecuador’s state-owned oil company Petroecuador. The FCPA bars payments to foreign officials for any kind of business...

FTC: Consumers Lost Over $10 Billion to Fraudsters in 2023

The Federal Trade Commission released its consumer-reported fraud data for 2023, showing consumer losses rocketed to a new high--over $10 billion, with nearly half of that being lost to investment scams. Deploying the usual targeting methods—email, phone calls, and text messages—fraudsters convinced consumers to dump their cash into fake investment opportunities ($4.6 billion) and imposter scams ($2.7 billion); online shopping fraud; prizes, sweepstakes, and lotteries; investment-related reports; and business and...

Constantine|Cannon Files Historic Antitrust Litigation Targeting Exploitation of Major Junior Hockey Players

Constantine|Cannon LLP, along with five other leading antitrust and labor law firms, filed a landmark antitrust case in New York federal court today, aimed at exposing what plaintiffs allege to be egregiously anticompetitive collusion that targets teenage players across North America. The class action lawsuit, which names as defendants the National Hockey League, the Canadian Hockey League, the Ontario Hockey League, the Western Hockey League, the Québec Maritimes Junior Hockey...