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Other Federal Enforcement Actions

					
Numerous federal agencies have authority to institute enforcement proceedings against wrongdoers.  These agencies include:


    

  • The Department of the Treasury and its divisions including the Financial Crimes Enforcement Network (FINCEN), which is responsible for safeguarding the U.S. financial system from illicit use and money laundering including through enforcement of the Bank Secrecy Act, and the Office of Foreign Assets Control (OFAC), which enforces economic and trade sanctions. Whistleblowers with knowledge of violations of the Bank Secrecy Act can submit a claim under the Anti-Money Laundering Whistleblower Program.  Violations of other laws enforced by the Department of Treasury may give rise to claims under different whistleblower reward programs.
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  • The Federal Trade Commission (FTC), which is charged with preventing anticompetitive, deceptive, and unfair business practices. The FTC can bring enforcement actions under U.S. antitrust laws and to stop unfair, deceptive and fraudulent business practices. The FTC does not have any authority to pay financial rewards to whistleblowers; however, conduct that is regulated by the FTC may also give rise to a claim under a different whistleblower reward program.
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  • The Consumer Financial Protection Bureau (CFPB), created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which regulates the offering and provision of consumer financial products or services under the federal consumer financial laws, and has the authority to bring enforcement actions against financial service providers. While the CFPB accepts tips from whistleblowers, and applicable laws offer whistleblowers protection from retaliation, there is currently no provision for CFPB whistleblowers to receive financial rewards. However, conduct that is regulated by the CFPB may also give rise to a claim under a different whistleblower reward program.
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  • The Environmental Protection Agency, which enforces federal environmental laws and regulations. The EPA does not currently have any authority to pay financial rewards to whistleblowers; however, conduct that is regulated by the EPA may also give rise to a claim under a different whistleblower reward program, and a number of federal environmental laws protect government or private employees reporting environmental violations under the statutes from retaliation.
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Below are summaries of recent settlements and successful enforcement actions involving these agencies. If you believe you have information about fraud which could give rise to a claim under a whistleblower reward program, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
June 22, 2016

				 The Federal Trade Commission is mailing checks totaling approximately $6.3 million to consumers who bought Kevin Trudeau’s book, “The Weight Loss Cure ‘They’ Don’t Want You to Know About.” In 2009, a federal judge ordered Trudeau to repay millions of dollars to consumers after he violated a 2004 FTC stipulated order by misrepresenting the book’s content. FTC				 			
	
		
		
	


 			




	
		
		

			

				
				
June 20, 2016

				 The defendants behind a tech scam have agreed to settle FTC and State of Florida charges that they scammed thousands of consumers out of millions of dollars by selling them bogus technical support services. Under the settlement, Vast Tech Support, LLC and OMG Tech Help, LLC and their chief operating officer, Mark Donohue are prohibited from misleading consumers about the nature of the products they sell or market, as well as from deceptive telemarketing.  The FTC’s complaint alleges that the defendants used software designed to trick consumers into thinking there were problems with their computers, and directed consumers to telemarketers who subjected those consumers to high-pressure deceptive sales pitches for tech support products and services.  FTC				 			
	
		
		
	


 			




	
		
		

			

				
				
June 14, 2016

				 The FTC is mailing 191,748 refund checks totaling $9,190,842.68 to consumers who bought Pure Health or Genesis Today green coffee bean extract weight-loss supplements. Consumers who purchased the products online will receive a full refund, with the average check totaling $47.93.  Consumers who bought the supplements in a retail store such as Walmart did not receive a check in this mailing. These consumers can file a claim form with the FTC, and may be eligible for a partial refund. FTC				 			
	
		
		
	


 			




	
		
		

			

				
				
June 6, 2016

				 The CFPB took action against payment processer Intercept Corporation and two of its executives, Bryan Smith and Craig Dresser, for allegedly enabling unauthorized and other illegal withdrawals from consumer accounts by their clients.  The complaint alleges Intercept, Smith, and Dresser processed payments for clients without adequately investigating, monitoring, or responding to red flags that indicated some clients were breaking the law or deceiving customers.  CFPB				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 3, 2016

				 The FTC charged a nationally advertised gold and silver marketing operation with bilking millions from consumers.  According to the FTC’s complaint, the defendants marketed gold and silver as investments, but often failed to deliver the goods. Operating as Discount Gold Brokers, the defendants offered gold and silver “at discounted prices,” with “zero commissions, fees, or expenses,” and at “zero percent above dealer cost.”  In response, many consumers used their retirement savings to buy the precious metals, with individual orders ranging from $1,000 to $300,000.  FTC

				 			
	
		
		
	


 			




	
		
		

			

				
				
May 26, 2016

				 The CFPB filed a lawsuit against former Wells Fargo employee David Eghbali for orchestrating an illegal mortgage fee-shifting scheme.  Eghbali had an agreement with escrow company New Millennium Escrow, Inc. to reduce the escrow fees charged to his price-conscious customers and make up for the loss by overcharging other customers.  In return, Eghbali referred nearly all of his clients to New Millennium.  The scheme enabled Eghbali to close more loans and increase his commissions.  CFPB				 					 

						
Tagged in:
													  Housing and Mortgage Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
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				 					 

						
Tagged in:
													  Education Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
May 20, 2016

				 Lunada Biomedical, Inc. and its three principals have settled FTC charges that they deceptively marketed Amberen, a dietary supplement, to women over 40 who are perimenopausal or menopausal, making a range of unsupported claims about its ability to help users lose weight and belly fat, and relieve menopause-related symptoms such as hot flashes and night sweats. “The Lunada defendants made strong claims about the effectiveness of their supplement without the scientific evidence to back them up,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The relief provided by this court order is intended to prevent the defendants from making unsupported health benefit claims in the future.”  FTC				 			
	
		
		
	


 			




	
		
		

			

				
				
May 18, 2016

				 The developers and marketers of the LearningRx “brain training” programs have agreed to stop making a range of false and unsubstantiated claims and pay $200,000 under a settlement with the FTC.  According to the FTC’s complaint, LearningRx Franchise Corp. and its CEO, Dr. Ken Gibson, deceptively claimed that their programs were clinically proven to permanently improve serious health conditions like ADHD, autism, dementia, Alzheimer’s disease, strokes, and concussions and that the training substantially improved school grades and college admission test scores, career earnings, and job and athletic performance. FTC				 			
	
		
		
	


 			




	
		
		

			

				
				
May 11, 2016

				 The CFPB took action against All American Check Cashing, Inc., which offers check cashing and payday loans, and its owner Michael Gray, for allegedly tricking and trapping consumers.  The complaint alleges that All American tried to keep consumers from learning how much they would be charged to cash a check, used deceptive tactics to stop consumers from backing out of transactions, made deceptive statements about the benefits of its high-cost payday loans, and also failed to provide refunds after consumers made overpayments on their loans.  CFPB				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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