Criminal Cases

US – Apr 2017 – “DB Group Services (UK) Limited (DBGS), a wholly owned subsidiary of Deutsche Bank AG (Deutsche Bank), was sentenced today for its role in manipulating London Interbank Offered Rates (LIBOR) for U.S. Dollar and several other currencies.  LIBOR is a leading benchmark used in financial products and transactions around the world.”

US – Mar 2017 – healthcare fraud (manipulation of data) – “Gottfried Kellermann, 76, Osceola, Wis., was sentenced today by U.S. District Judge James D. Peterson to a six-month period of home confinement, a $50,000 fine, and five years of probation, for intentionally violating Clinical Laboratory Improvement Amendments regulations. Kellerman’s co-defendant, NeuroScience, Inc., was sentenced to a five-year period of probation and a $140,000 fine for conspiring to defraud the United States. The defendants pleaded guilty to these charges on October 14, 2016.”

US – Feb 2017 – wire fraud – Takata airbag scandal – “Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, pleaded guilty to one count of wire fraud and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.  According to admissions made during the course of the guilty plea, from 2000 through and including 2015, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.”

Aus – Aug 16 – White Collar – PNG, Jury Trial (71 days) – Found guilty of 18 fraud and insolvent trading offences; acquitted of one charge – prosecuted by CDPP, ASIC as informant – Brisbane District Court – 9 years’ imprisonmentR v Bradley Wendell Young. (Kleenmaid group director.)

Infringement Notices

 

Civil Cases

USA – April 2017 – “The Justice Department announced today that Energy & Process Corporation (E&P) of Tucker, Georgia, has agreed to pay $4.6 million to resolve the government’s lawsuit filed under the False Claims Act alleging that it knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy (DOE) nuclear waste treatment facility.”

USA – Feb 2017 – “On January 26, 2017, the Honorable Kathleen Williams of the United States District Court for the Southern District of Florida entered consent final judgments against defendants Thomas A. Guerriero and Oxford City Football Club, Inc. (“Oxford City”), and relief defendant GCE Wealth, Inc., in SEC v. Oxford City Football Club, Inc., et al., Civil Action No. 15-CV-62594-KMW (S.D. Fla.), a fraudulent stock offering case that the SEC filed on December 10, 2015. The SEC’s complaint alleged that Guerriero, the CEO of Oxford City, used deceptive tactics and a boiler room to raise more than $6.5 million from investors who were misled to believe that Oxford City was a thriving conglomerate of sports teams, academic institutions, and real estate holdings, when in reality the company was losing millions of dollars each year and turning no profits from its two lower-division soccer teams in the U.K.”

USA – Feb 2017 – “Today the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General filed a lawsuit against RD Legal Funding, LLC, two related entities, and Roni Dersovitz, the companies’ founder and owner, for allegedly scamming 9/11 heroes out of money intended to cover medical costs, lost income, and other critical needs. RD Legal also allegedly conned National Football League (NFL) concussion victims. The CFPB and New York Attorney General allege that the illegal scheme deceived 9/11 first responders with cancer and other illnesses and football players with brain injuries out of millions of dollars by luring them into costly advances on settlement payouts with lies about the terms of the deals. In the suit filed in federal court, the CFPB and the New York Attorney General seek to put an end to the company’s illegal practices, obtain relief for the victims, and impose penalties.

USA – Jan 2017 – Credit Suisse and Deutsche Bank have entered civil settlements with the US DOJ for their 2005/6-2007 contraventions of the Financial Institutions Reform, Recovery and Enforcement Act that contributed to the GFC.  Credit Suisse’s settlement includes a $2.48 billion penalty and $2.8 billion in relief for affected consumers and communities.  Deutsche Bank will pay a $3.1 billion penalty and provide $4.1 in relief: described by P/D/A Att-Gen Bill Baer as a deservedly “painful penalty” for the bank.  The settlements do not preclude criminal prosecution of the banks or any individuals involved.  The statement of agreed facts (Credit Suisse; Deutsche Bank) provide a formal narrative of the banks’ cultural decline

USA – Jan 2017 – “Credit Suisse has entered a civil settlement with the US DOJ for its 2005-2007 contraventions of the Financial Institutions Reform, Recovery and Enforcement Act that contributed to the precipitation of the GFC.  The settlement includes a $2.48 billion penalty and $2.8 billion in relief for affected consumers and communities.  The settlement does not preclude criminal prosecution of the bank or any individuals involved.”

USA – Dec 2016 – “United Shore Financial Services LLC (USFS) has agreed to pay the United States $48 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements

USA – Oct 2016 – “Best Choice Home Health Care Agency Inc. (Best Choice) and its owner, Reginald King, have agreed to pay $1.8 million to resolve allegations that Best Choice and King violated the False Claims Act by paying kickbacks for the referral of Medicaid-covered patients for home and community-based healthcare services from Best Choice.”

USA – Sep 2016 – “Regions Bank (Regions) has agreed to pay $52.4 million to the United States to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Department of Justice announced today.” No admissions.

USA – Sep 2016 – “U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. and the two owners and presidents of those companies have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment, the U.S. Department of Justice announced.”  The suit is settled without admissions.

USA – Aug 2016 – Civil suit settled with admissions – hospitals/health providers  failed to repay medicaid moneys that were improperly claimed. DOJ brought the suit; court-approved settlement for $2.95M here.

USA – Aug 2016 – Qui Tam lawsuit taken up by the USA (DOJ) and State of New York against St. Joseph’s Hospital Health Centre, alleging “it violated the federal and New York False Claims Acts by presenting false claims for payment to the state Medicaid program for mental health services rendered by unqualified staff.”  The matter resolved in a $3.2M settlement, with admissions.

USA – Aug 2016 – Qui Tam lawsuit taken up by the US Attorney’s office for the District of Colombia, alleging that two companies with contracts with the US government to ship humanitarian aid around the world charged contractors higher stevedoring charges than their contracts allowed, and passed those costs on to the government. The matter resolved out-of-court for just over $1M.  No admissions.

Administrative Actions

 

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