Jul 22
The US Court of Appeals for the Ninth Circuit has opened the door significantly wider for those who wish to pursue qui tam False Claims Act suits by reversing a dismissal of two such matters. Ruling en banc in United States ex rel. Hartpence v. Kinetic Concepts, Inc., the Ninth Circuit has removed a prior …
Permanent link to this article: https://betweenthenumbers.net/2015/07/ninth-circuit-invites-more-qui-tam-cases/
Jul 20
The Securities and Exchange Commission recently announced its first fraud charges derived from tracking behavior using data analytics of large volumes of investment advisors’ trade allocation detail. The enforcement target is Welhouse & Associates Inc. and its owner Mark P. Welhouse. Mr. Welhouse is accused of “cherry-picking”, a practice whereby one improperly allocates option trades …
Permanent link to this article: https://betweenthenumbers.net/2015/07/sec-utilizes-big-data-and-statistics-to-target-trading-fraud/
Jun 14
The recently released report by the Canadian Auditor General details numerous incidents of inappropriate spending by members of the Canadian Senate. The report investigated 116 current and former senators and 80,000 expense items totaling CAD $45,000,000 over a period from April 1, 2011 to March 31, 2013. 30 of the senators under investigation were found …
Permanent link to this article: https://betweenthenumbers.net/2015/06/canada-audits-dubious-senator-expenses-at-great-cost/
Jun 01
CtW Investments Group (“CtW”), which represents a group of minority shareholders in Wal-Mart, has accused the firm’s external auditor Ernst & Young (“E&Y) of having had early knowledge of Wal-Mart’s violation of the Foreign Corrupt Practices Act related to bribery allegations in Mexico. In a letter to the Public Accounting Oversight Board, CtW reports that …
Permanent link to this article: https://betweenthenumbers.net/2015/06/investors-accuse-ernst-young-accused-of-being-complicit-in-bribery-scandal/
May 31
An alleged fraud was recently uncovered at The Cancer Fund of America and its related entities, including The Breast Cancer Society and The Children’s Cancer Fund of America. James Reynolds and his family members are believed to have stolen $187 million from donors in these charities over five years and spent the monies on lavish …
Permanent link to this article: https://betweenthenumbers.net/2015/05/the-cancer-fund-of-america-and-its-related-charities-are-called-a-fraud/
May 17
On Tuesday May 12, 2015 the Securities and Exchange Commission (“SEC”) charged the CEO and CFO of ITT Educational Services Inc. (NYSE: ESI) with fraud. The company which runs a popular nationwide chain of for-profit technical colleges under the name ITT Technical Institute (“ITT Tech”) allegedly defrauded investors by materially misstating the financial performance of …
Permanent link to this article: https://betweenthenumbers.net/2015/05/investors-allegedly-defrauded-by-itt-technical-institute-executives/
May 04
The U.S. Securities and Exchange Commission (“SEC”) recently announced an award of $1.4 – $1.6 million provided to a compliance officer of a large company. Neither the company’s nor the officer’s name was made public due to confidentiality laws, but the information was reported to having pertained to significant financial harm to the company and/or …
Permanent link to this article: https://betweenthenumbers.net/2015/05/compliance-officer-gets-whistleblower-award/
Apr 15
A recent enforcement action by the Securities and Exchange Commission (“SEC”) is the first of its kind, concerning improperly restrictive language contained in a company’s confidentiality agreements that could potentially impede whistleblower rules and protections. The SEC charged KBR Inc. with violating Rule 21F-17 under the Dodd-Frank Act by requiring witnesses in internal investigations to …
Permanent link to this article: https://betweenthenumbers.net/2015/04/sec-takes-action-on-overly-restrictive-confidentiality-agreements-affecting-whistleblowers/
Apr 12
A Florida based financial advisory involved in professional athlete lending has been charged with defrauding its clients. On April 7th the Securities and Exchange Commission (“SEC”) charged William D. Allen and his business partner Susan C. Daub with running a Ponzi scheme which promised investors 18% returns, however a sizable portion of these “returns” were …
Permanent link to this article: https://betweenthenumbers.net/2015/04/pro-athlete-lending-firm-is-an-alleged-ponzi-scheme/
Apr 06
The New Yorker magazine recently ran a scathing review of the collapse of The International Banking Corporation (“TICB”), the largest credit default and potential Ponzi scheme ever experienced in the Middle East. At its core was a man named Maan al-Sanea, a son-in-law to a prestigious Saudi Arabian family, who borrowed billions of dollars from …
Permanent link to this article: https://betweenthenumbers.net/2015/04/massive-fraud-in-the-middle-east/
