Whistleblower News From The Inside -- May 5, 2017

By the C|C Whistleblower Lawyer Team

Former Military Sealift Command Contractor Charged with Bribery and Fraud — A former contractor at the Military Sealift Command was indicted for his role in a bribery and fraud conspiracy from approximately 1999 to 2014, in which he allegedly received almost $3 million dollars in bribes in exchange for assisting a government contractor and his company in obtaining and expanding a commission agreement with a telecommunications company that sold maritime satellite services to MSC. DOJ

Firm, CEO Settle Charges in Ponzi-Like Scheme Involving Life Settlements — According to the SEC, Verto Capital Management and William Schantz III raised approximately $12.5 million selling promissory notes to purportedly fund Verto Capital’s purchase and sale of life settlements, which are life insurance policies sold in the secondary market.  The SEC alleges that they misrepresented to investors that Verto Capital was a profitable company and improperly used new investor money to repay earlier investors. SEC

Whistleblower Lawsuit Settled Against a West Virginia Agency — A lawsuit filed by two former West Virginia Department of Health and Human Resources employees who said they faced retaliation for whistleblowing has been settled for an undisclosed amount.  The lawsuit alleged the whistleblowers were fired after raising issues with the agency’s handling of bids. US News