Posts Tagged With Cases of Interest

CVS Pharmacy, Inc. to Pay $1.5 Million to Settle Civil Penalty Claims for Violations of The Controlled Substances Act

CVS Pharmacy, Inc. (“CVS”) agreed to pay $1.5 million to resolve a federal investigation into pharmacy stores located in Nassau and Suffolk counties on Long Island, New York.  The pharmacies were under investigation for potentially violating the Controlled Substances Act, a federal law that requires pharmacies to timely report the loss or theft of controlled substances to the DEA.  This civil settlement is the latest in a series of cases enforced by the United States ... Continue Reading

As Part of National Healthcare Fraud Sweep, Los Angeles-Based Prosecutors Filed 16 Cases Alleging $660 Million in Fraudulent Bills

On June 28, 2018, federal authorities in Los Angeles, California announced criminal cases naming a total of 33 defendants charged with a variety of schemes to defraud public and private insurance programs out of more than $660 million.  As part of a nationwide effort to target healthcare fraud, prosecutors charged numerous defendants, including doctors, pharmacists, marketers, and an attorney.  First, nine defendants were charged in Operation “Spinal Cap,” which targeted a healthcare fraud scheme involving ... Continue Reading

Three Men Arrested and Charged With Trading on Inside Information Misappropriated From a Credit Rating Agency

On June 26, three men were arrested and charged with participation in a scheme to trade on material nonpublic information which one of the men, Sebastian Pinto-Thomaz, received through his job at a credit rating agency.  Pinto-Thomaz gave two friends information regarding an upcoming acquisition of the Valspar Corporation by the Sherwin-Williams Company.  Each of Pinto-Thomaz’s friends reaped more than $100,000 in profits as a result of trades executed on the basis of this information.   ... Continue Reading

Theranos Founder and Former Chief Operating Officer Charged In Alleged Wire Fraud Schemes

On June 15, 2018, a federal grand jury indicted Elizabeth A. Holmes and Ramesh “Sunny” Balwani with two counts of conspiracy to commit wire fraud and nine counts of wire fraud.  According to the indictment, Holmes, the founder of Theranos, and Balwani, the former chief operating officer, engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients.  Theranos, based in Palo Alto, California, is a private healthcare ... Continue Reading

Former Brooklyn Assemblywoman Pleads Guilty to Multiple Fraud Schemes and Witness Tampering

On June 12, 2018, former New York State Assemblywoman Pamela Harris pleaded guilty to two counts of wire fraud, one count of making false statements to the Federal Emergency Management Administration (FEMA), and one count of witness tampering.  DOJ alleged that from 2012 to 2014 Harris defrauded FEMA of nearly $25,000 by submitting falsified lease agreements that allegedly showed she was forced out of her residence by Hurricane Sandy.  In reality, Harris continued to live ... Continue Reading

Eight Foreign Businessmen Indicted On Charges of Conspiracy to Violate Economic Sanctions Against Syria, Crimea

On June 12, 2018, five Russian nationals and three Syrian nationals were charged with conspiring to violate U.S. economic sanctions against Syria and Crimea.  The charges were based on transactions conducted through a Russian shipping company, Sovracht, which had previously been designated for violating sanctions against Crimea and was not permitted to transact in U.S. dollars without first receiving a license from OFAC.  The alleged conspirators used fake companies and fabricated shipping records to conceal ... Continue Reading

Legg Mason, Inc. Agrees to Pay $64 Million in Criminal Penalties and Disgorgement to Resolve FCPA Charges Related to Bribery of Gaddafi-Era Libyan Officials

On June 4, 2018, DOJ officials announced a non-prosecution agreement with investment management firm Legg Mason, Inc., which agreed to pay $64 million in penalties and disgorgement to resolve FCPA liability related to bribery of officials of Libyan state-owned financial institutions.  According to the agreed-upon statement of facts in the resolution, Legg Mason subsidiary Permal Group Ltd. (“Permal”) partnered with Paris-based multinational bank Société Générale S.A. (“SocGen”) to solicit investment management business from Libyan state-owned ... Continue Reading

Société Générale S.A. Agrees to Pay $860 Million in Criminal Penalties for Bribing Gaddafi-Era Libyan Officials and Manipulating LIBOR Rate

On June 4, 2018, U.S. officials announced agreements with Paris-based multinational bank Société Générale S.A. (“SocGen”) and one of its subsidiaries to resolve charges related to a multi-year scheme to bribe Libyan government officials and separate charges related to manipulation of the London Interbank Offered Rate (“LIBOR”).  SocGen and subsidiary SGA Société Générale Acceptance N.V. (“SGA”) agreed to pay more than $1 billion in penalties and disgorgement in connection with the resolutions, and SGA agreed ... Continue Reading

Investment Bank Vice President Arrested, Charged with Conspiracy and Securities Fraud in Insider Trading Scheme

On May 31, a complaint filed in Manhattan federal court charged Woojae Jung, the vice president at an investment bank, with conspiracy and securities fraud in connection with an insider trading scheme.  The complaint alleges that Jung obtained material non-public information through his position at the investment bank and, working with a co-conspirator located in South Korea, used this information to conduct securities trades through a brokerage account held in the co-conspirator’s name.  The complaint ... Continue Reading

Former CEO, CFO and Director of Healthcare Services Company Charged in Elaborate $300 Million Investment Fraud Scheme

On May 16, 2018, three former executives of a publicly traded healthcare services company were charged with conspiracy to commit securities fraud and securities fraud for their respective roles in an alleged scheme to defraud investors in connection with a purported $300 million going-private transaction.  According to authorities, New Jersey residents Parmjit “Paul” Parmar, Sotirios “Sam” Zaharis, and Ravi Chivukula used a variety of fraudulent methods to inflate the value of unnamed “Company A” to ... Continue Reading

Turkish Banker Sentenced to 32 Months for Conspiring to Violate U.S. Sanctions Against Iran and Other Offenses

On May 16, 2018, Mehmet Hakan Atilla, the former Deputy General Manager of International Banking of a Turkish bank, was sentenced to 32 months in prison for his role in a scheme to violate U.S. economic sanctions against Iranian entities.  In January, a jury convicted Atilla of bank fraud and conspiracy charges in connection with the scheme, which involved the facilitation of billions of dollars in transactions in the proceeds of oil sales held in ... Continue Reading

Former Currency Trader Indicted for Participating in Antitrust Conspiracy

On May 10, 2018, officials announced that a federal grand jury returned an indictment against a former currency trader at a large U.S. bank for his alleged role in a conspiracy to manipulate foreign currency prices.  Akshay Aiyer is accused of participating in a conspiracy with other New York based traders who worked for rival institutions to fix prices and suppress competition in the markets for Central and Eastern European, Middle Eastern, and African (“CEEMEA”) ... Continue Reading

Four Defendants, Including Centers for Medicare and Medicaid Services Employee, Convicted in Insider Trading Scheme

On May 4, 2018, four defendants were convicted of trading on confidential nonpublic government information, following a four-week jury trial.  As part of defendants’ insider trading scheme, Christopher Worrall, an employee of the Centers for Medicare and Medicaid Services, provided confidential information to David Blaszczak, a political intelligence consultant.  Blaszczak then passed this information along to several employees at Deerfield Management Company, a hedge fund that retained Blaszczak as a consultant during the relevant time ... Continue Reading

Former CEO of Volkswagen AG Charged with Conspiracy and Wire Fraud in Diesel Emissions Investigation

On May 3, 2018, authorities announced the unsealing of wire fraud and conspiracy charges against former Volkswagen AG (“VW”) CEO and board chairman Martin Winterkorn in connection with VW’s use of so-called “defeat device” software to cheat U.S. vehicle emissions testing.  Winterkorn is accused of conspiring with other VW executives and employees to defraud the United States, defraud VW’s U.S. customers, and to violate the Clean Air Act through false representations regarding the compliance of ... Continue Reading

Panasonic Avionics Corporation Agrees to Pay $137 Million to Resolve Foreign Corrupt Practices Act Charges

On April 30, 2018, DOJ officials announced that Panasonic Avionics Corp. (“PAC”), a subsidiary of publicly traded Panasonic Corporation (“Panasonic”), agreed to pay a $137 million criminal penalty under a deferred prosecution agreement to resolve FCPA liability.  According to the agreement, PAC caused parent Panasonic to falsify its books and records with respect to improper payments that PAC made to third-party consultants and sales agents, in violation of the FCPA’s accounting provisions.  In addition to ... Continue Reading

Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme

On April 19, 2018, Cesar David Rincon Godoy, a former general manager of the procurement subsidiary of Venezuelan state-owned energy company Petroleos de Venezuela S.A. (“PDVSA”), pleaded guilty to one count of conspiracy to commit money laundering.  The charge stemmed from an alleged scheme involving the payment of bribes by the owners of U.S.-based companies to Venezuelan government officials to secure contracts with PDVSA and payment priority on outstanding invoices.  According to admissions made in ... Continue Reading

Cambridge, Massachusetts Man Sentenced in Manhattan Federal Court for Insider Trading

On March 30, 2018, Fei Yan, a post-doctoral associate at a university located in Cambridge, Massachusetts, was sentenced to 15 months in prison for insider trading.  Yan’s spouse worked at an international law firm where she learned material nonpublic information concerning the acquisition of Stillwater Mining Company, a publicly traded company whose shares are listed on the New York Stock Exchange.  According to court filings, while his spouse was working on the potential merger, Yan ... Continue Reading

Yevgeniy Nikulin Appears in U.S. Court Following Extradition

On March 30, 2018, a Russian national charged with illegally accessing and stealing data from the computers of LinkedIn, DropBox, and Formspring made his initial appearance in federal court, following his extradition from the Czech Republic.  The defendant, Yevgeniy Aleksandrovich Nikulin, had been indicted for the crimes in 2016 and was detained on an international warrant. United States v. Nikulin, 16-cr-00440 (N.D. Cal.)

DOJ Press Release ... Continue Reading

Barclays Agrees to Pay $2 Billion in Civil Penalties to Resolve Claims for Fraud in the Sale of Residential Mortgage-Backed Securities

On March 29, 2018, officials announced that Barclays Capital, Inc. and several of its affiliates agreed to settle a civil action brought in December 2016 in relation to the underwriting and issuance of residential mortgage-backed securities (“RMBS”) between 2005 and 2007.  Barclays agreed to pay $2 billion in civil penalties in exchange for dismissal of the government’s amended complaint.  The complaint alleged that Barclays misled investors about the quality of underlying mortgage loans in 36 ... Continue Reading

Indictment Charges Nine Iranian Citizens with Massive Cyber Theft of Documents and Data on Behalf of Iranian Government

On March 23, 2018, an indictment was unsealed charging nine Iranian citizens, all affiliated with the Iran-based Mabna Institute, with involvement in a coordinated campaign to steal intellectual property and academic data from a variety of U.S. and foreign targets.  The indictment alleged that, in total, the defendants stole more than 31 terabytes of material from targets that included universities, private sector companies, the U.S. Department of Labor, and the United Nations Children’s Fund.  Many ... Continue Reading

Iranian Citizen Charged with Involvement in Scheme to Avoid U.S. Economic Sanctions Against Iran by Funneling $115 Million from Venezuela Through U.S. Banks

On March 20, 2018, an indictment was unsealed alleging that Ali Sadr Hashemi Nejad, an Iranian citizen, evaded U.S. sanctions by funneling his company’s proceeds from a Venezuelan infrastructure project through the U.S. financial system.  According to the indictment, Nejad and a co-conspirator used false passports to incorporate entities in Switzerland and Turkey and to set up U.S.-dollar bank accounts for these entities in Switzerland.  By concealing the Iranian nexus to the payments, Nejad was ... Continue Reading

Former Siemens Executive Pleads Guilty to Involvement in $100 Million Bribery of Argentine Government Officials

On March 15, 2018, Eberhard Reichart, the former Technical Manager of Siemens Business Services’ Major Projects division, pleaded guilty to one count of conspiracy to bribe Argentine government officials.  According to court documents, Reichert was involved in a decades-long scheme to pay tens of millions of dollars in bribes to the Argentine officials in order to secure a contract to create national identity cards.  To effectuate payment of the bribes, Reichert and his co-conspirators created ... Continue Reading

Chief Executive and Four Associates Indicted for Conspiring with Global Drug Traffickers by Providing Encryption Services to Evade Law Enforcement and Obstruct Justice

On March 15, 2018, officials announced the indictment of the CEO of Canada-based encrypted communication device and services Phantom Secure, along with four associates, on charges of racketeering conspiracy and narcotics distribution conspiracy.  According to court documents, Phantom Secure advertised its devices and services as impervious to decryption, wiretapping, or legal records requests, and guaranteed that the company would remotely destroy evidence contained on customer devices in the event of compromise by informants or law ... Continue Reading

Transport Logistics International Inc. Agrees to Pay $2 Million Penalty to Resolve Foreign Bribery Case

On March 13, 2018, federal officials announced that they had resolved FCPA charges through a deferred-prosecution agreement (“DPA”) against a Maryland-based nuclear material transportation company.  According to court documents, Transport Logistics International, Inc. (“TLI”) conspired with others to pay more than $1.7 million in bribes to an official of Russian state-owned JSC Techsnabexport to secure improper business advantages and obtain or retain business.  TLI executives reportedly caused fake invoices to be prepared to create the ... Continue Reading

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