Sunshine State Local Elections Shine Light on How Dark Shell Company Data Can Be

Amidst the ongoing saga of the US national elections, Florida local elections may not have made much of a ripple.  But one small scandal in the Sunshine State reveals a lot about the ongoing problem the US has with shell corporations and their hidden ownership structures. The story is convoluted, as most shell company stories are.  A political donor, Proclivity, who had never donated money in Florida before, appeared suddenly...

Constantine Cannon partner Mary Inman and Nick Gallo, Co-CEO of ComplianceLine, discuss whistleblowing in the US and around the globe

On October 26, 2020, international whistleblower lawyer, Mary Inman, joined Nick Gallo, CEO of ComplianceLine, on a podcast “The Ethics Experts,” which is part of the Compliance Podcast Network. Discussions commenced with Mary explaining the various US whistleblower reward programs (CFTC, SEC, IRS, and the False Claims Act). She then described the vital role whistleblower lawyers play in guiding individuals from the beginning of the process, when they struggle whether to come forward, all the way...

Catch of the Week: Interactive Brokers Pays $38 Million for Failures in Money-Laundering and Supervision

Brokerage firm Interactive Brokers LLC will pay $38 million in penalties to settle charges from multiple U.S. market regulators regarding its anti-money laundering practices, including alleged failures to file suspicious activity reports (SARs).  The discount broker has paid an $11.5 million penalty to settle charges with the Securities and Exchange Commission over the deficiencies in its internal controls that failed to spot suspicious trades involving microcap stocks, known as penny...

COVID Leaves Bags of Illicit Cash with Nowhere to Go

Few people may have given much thought to the actual mechanics of money laundering beyond rooting (or not) for Skyler and Walt’s carwash business.  Many non-television criminals do, in fact, use otherwise legitimate small businesses to “launder” their money, mixing ill-gotten gains in with legitimate profits.  The shutdown of the international economy has thus had a surprising consequence: illicit funds have nowhere to go to get “clean.” The Los Angeles...

London Events from the Constantine Cannon Whistleblowing Team

With the actions of whistleblowers regularly in the news, and media organizations considering issues about the role of whistleblowers, the Constantine Cannon London Whistleblower Team has continued to be an active voice in advocating for whistleblowers before many different audiences.  Among our recent events: Mary Inman on Closed Circuit On January 29, 2020, Partner Mary Inman was tapped to appear on the Closed Circuit talk show, hosted by the Centre...

IBM Inks $14.8 Million False Claims Act Settlement

On Friday, the Department of Justice announced that IBM and its subsidiary Cúram Software had agreed to pay $14.8 million to resolve allegations that they lied to the State of Maryland while bidding on a contract to develop the state’s Health Insurance Exchange (HIX) website and IT platform. DOJ sued IBM under the False Claims Act, which imposes liability on companies and individuals that defraud government programs ranging from publicly-funded...

WATCH THIS SPACE: New U.S. Development Agency for High-Risk Investment in Developing Countries a Magnet for Fraud

Combine 60 billion U.S. dollars, newly authorized private investment, vulnerable foreign countries, and competition with Russia and China - What could go wrong? Amid the daily D.C. drama plaguing the fall of 2018, Congress quietly passed the Better Utilization of Investments Leading to Development (BUILD) Act to create a new U.S. development agency: the U.S. International Development Finance Corporation (IDFC). The Act is a shot in the arm for U.S.-backed...

Watch: “Taking Advantage” Highlights Medicare Risk Adjustment Fraud

Constantine Cannon partner Mary Inman and two Constantine Cannon whistleblower clients are featured in Episode 3 of the PBS series “Playing by the Rules: Ethics at Work.” The episode investigates ”risk adjustment” in the Medicare Advantage program and practices by some of America’s largest insurance companies to make patients look sicker than they really are-which boosts payments to the insurance companies from the Medicare program. Watch the 30-minute episode, Taking...

Banamex USA Agrees to Forfeit $97 Million in Connection with Bank Secrecy Act Violations

By the C|C Whistleblower Lawyer Team As reported in today's New York Times, Los Angeles Times, and other news outlets On Monday, Citigroup agreed to pay $97.4 million in a settlement after a long federal investigation into Banamex USA. In exchange, the Justice Department will not file criminal charges against the bank in connection with inadequate oversight of Banamex USA, which is based in California. Even as the Citigroup unit...

Case Tests Tension Between False Claims Act and First Amendment

By Marlene Koury The much claimed but never proven tension between the False Claims Act (“FCA”) and First Amendment is being tested again in United States v. Millenium Pharmaceuticals Inc., currently pending in the Eastern District of California.  The whistleblower, a former pharmaceutical sales representative, alleges in his complaint that Millennium Pharmaceuticals illegally promoted the off-label use of Integrilin, a drug used to prevent blood clots during surgery.  The government...