Misrepresentations Archives - Page 12 of 60

January 12, 2022

Six medical practices affiliated with Interventional Pain Management Center P.C. (IPMC), as well as physician-owner Dr. Amit Poonia, have agreed to pay nearly $7.5 million to resolve allegations of defrauding Medicare and the Federal Employees Health Benefit Program. In a qui tam suit by Anu Doddapaneni and Christian Reyes, the whistleblowers alleged that Poonia and IPMC violated the False Claims Act by using a billing code that mischaracterized P-Stim and NeuroStim treatments—which transmit electrical pulses through needles placed just under the skin of a patient’s ear—as surgical implantation requiring anesthesia. USAO EDNY

Tagged in: FCA Federal, Healthcare Fraud, Medical Billing Fraud, Medicare, Misrepresentations, Other Government Health Programs, Provider Fraud, Whistleblower Case,

Top Ten SEC and CFTC Recoveries of 2021

Posted 01/7/22

As we recently detailed, 2021 proved to be a blockbuster year for whistleblowers under the CFTC and SEC Whistleblower Programs. Seven of the ten largest whistleblower awards of 2021 were made to SEC and CFTC whistleblowers, including a massive $200 million CFTC award that was roughly twice as large as all prior CFTC awards combined. In total, the SEC paid more awards—both in total dollars and individual...

Tagged in: Accounting Fraud, CFTC Whistleblower Reward Program, Cryptocurrency, Financial and Investment Fraud, Financial Institution Fraud, Fraud in CFTC-Regulated Markets, Misrepresentations, Money Laundering, Regulatory Violations, SEC Whistleblower Reward Program, Securities Fraud, Top 10,

January 3, 2022

Previous metals dealer Lear Capital, Inc., and its founder, Kevin DeMeritt, have agreed to pay $5 million to settle a lawsuit by the New York Attorney General that alleged the company fraudulently charged investors up to 33% in undisclosed commissions, in violation of state laws requiring commodity broker-dealers and telemarketers to register with the state. As part of the settlement, Lear has agreed to begin providing clear and conspicuous disclosures of the fees, enhance its complaint tracking procedures, and provide better training to its personnel. NY AG

Tagged in: Financial and Investment Fraud, Misrepresentations, Regulatory Violations,

December 21, 2021

Nikola Corporation will pay $125 million to resolve charges that the transportation systems provider, which designs and manufactures electric trucks and hydrogen fuel systems, misrepresented or omitted material facts about its products, technical advancements, and commercial prospects. Many of these statements were made by Nikola’s founder and former CEO, Trevor Milton, on social media and otherwise, both before and after Nikola went public through a merger with a special purpose acquisition company (SPAC). An SEC action against Milton is continuing. SEC

Tagged in: Financial and Investment Fraud, Misrepresentations, Securities Fraud,

December 20, 2021

Private equity fund adviser Global Infrastructure Management, LLC will pay a $4.5 million civil penalty to resolve SEC charges that the company overcharged clients by failing to offset certain portfolio company fees against management fees charged to clients, as it was required to do under the offering and governing documents. Global has previously repaid $5.4 million to affected clients. SEC

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Misrepresentations,

December 17, 2021

Easterday Ranches, Inc. has been ordered to pay a $30 million civil penalty and $233 million in restitution following an investigation into claims that the company, which has since filed for bankruptcy, sold more than 200,000 head of non-existent cattle to a beef processor and falsely reported information about its cattle inventory, purchases, and sales to the Chicago Mercantile Exchange in two hedge exemption applications seeking permission to exceed the exchange’s position limits. CFTC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Misrepresentations,

December 13, 2021

Paul Ricky Mata, who worked as a financial advisor, was sentenced to 14 years in prison and ordered to pay $12.6 million in restitution following his guilty plea on charges related to his fraudulent solicitation of customers for investment in his companies including Secured Capital, which he claimed offered guaranteed returns through investments in “government-backed tax liens,” “asset-backed deed certificates,” and distressed commercial and residential properties. In fact, Mata, who concealed his long history of disciplinary action by regulators, used investor funds to pay his personal expenses. USAO CD Cal

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Misrepresentations, Ponzi Schemes,

December 6, 2021

Dialysis provider American Renal Associates Holdings, Inc. and three of its former financial executives have entered into a settlement agreement resolving allegations of accounting fraud; ARA will pay a $2 million civil penalty. The company and it executives allegedly manipulated revenue by improperly recognizing payments from insurance companies for patient services, overstating net income by more than 30% in 2017 and by more than 200% for the first three quarters of 2018. The company issued restated financial in 2019. SEC

Tagged in: Accounting Fraud, Financial and Investment Fraud, Misrepresentations,

November 29, 2021

Denari Capital LLC and its principals Travis Capson and Arnab Sarkar have been ordered to pay a total of $4 million in penalties and restitution based on findings that they engaged in foreign exchange (forex) pool fraud and failed to register with the CFTC as a commodity pool operator and associated persons. Defendants misrepresented Denari’s trading and performance in fraudulent solicitations, issued false account statements, and improperly commingled pool funds. CFTC

Tagged in: Foreign Exchange, Fraud in CFTC-Regulated Markets, Misrepresentations, Ponzi Schemes, Regulatory Violations,

November 24, 2021

Guy Scott Griffithe, who controlled an entity called Renewable Technologies Solutions, Inc., and Robert William Russell, who owned an entity called SMRB, LLC, have been ordered to pay more than $6 million to resolve charges that they mislead investors by falsely stating that investments in Renewable would be used to operate SMRB, which held a license to grow marijuana under Washington’s recreational cannabis laws. To create the illusion that the marijuana business was profitable and paying dividends as promised, Griffithe allegedly paid out purported profit distributions to some investors, which were partially funded in a Ponzi-like fashion using funds from other investors. Griffithe was found liable for more than $5.3 million in disgorgement, prejudgment interest, and civil penalties; Russell was found liable for more than $698,000 in disgorgement, prejudgment interest, and civil penalties. SEC

Tagged in: Financial and Investment Fraud, Misrepresentations, Ponzi Schemes, Securities Fraud,

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