Federal Court Orders Nearly $1.5 Million in Disgorgement and a Monetary Penalty for Defrauding Clients through a Bogus Commodity Futures Trading System

The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Consent Order for Permanent Injunction against Defendants Ghassan Tawachi of Irvine, California, and his firm, Intelligent Trades, LLC, a Florida limited liability company, requiring them to jointly and severally disgorge $479,755 of ill-gotten gains and pay a $1 million civil monetary penalty for defrauding clients through the operation of a commodity futures software trading system. In addition, the Order finds that Tawachi acted as a Commodity Trading Advisor without being registered with the CFTC as required by the Commodity Exchange Act (CEA).

The Order also permanently prohibits the Defendants from trading on any registered entity (as defined in the CEA) and from registering with the CFTC, and also permanently bars them from engaging in any commodity-related activities. The Order also requires them to cease and desist from violating the provisions of the CEA, as charged. read more »

Bank whistleblower turned UMKC professor dishes on busting swindlers on $150 billion in fraud

What's it like to catch billions in fraud? We asked William Black , a bank whistleblower turned UMKC professor of economics and law. 

What's it like being a whistleblower?

If you see something say something. Well we saw something, we said something, and things got really weird at that point. You would expect any honest boss would react by saying, 'Oh thank you for telling me that we're screwing up our loans,' or, 'Thank you for going after people who are really powerful that could ruin your career.' But exactly the opposite happened.

Tenet posts $44M net loss in Q2, increases reserve to settle kickback allegations

Dallas-based Tenet Healthcare reported a net loss of $44 million in the second quarter of 2016, compared to a $60 million net loss in the same period of 2015.

The for-profit hospital operator previously disclosed it is the subject of a criminal investigation by the Department of Justice. The criminal lawsuit arose out of a civil lawsuit filed under the qui tam provision of the False Claims Act. The suit alleges four Tenet hospitals paid illegal kickbacks to clinics that referred undocumented pregnant patients to them for Medicaid-covered deliveries. Undocumented patients are not eligible for regular Medicaid coverage. However, they typically qualify for emergency medical assistance when they deliver their babies.

Tenet believes it has reached an agreement in principle with the government to resolve the criminal investigation and civil litigation for $514 million. Based on the agreement, Tenet increased its reserve for the litigation from $407 million to $516 million. read more »

At mountain resort, it’s downhill for foreign investors

A project to turn a depressed Vermont ski slope into a bustling year-round resort has become a cautionary tale for foreign investors hoping to get U.S. green cards through the EB-5 cash-for-visas program. Economics correspondent Paul Solman reports on charges of massive fraud filed by the SEC against the developers of Jay Peak, who allegedly misused $200 million in investments. read more »

Federal Court in Illinois Orders John D. Briner, a Disbarred Canadian Attorney, and His Former Law Firm, MetroWest Law Corporation, to Pay $280,000 Penalty for a Money Pass Scheme

The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Milton I. Shadur of the U.S. District Court for the Northern District of Illinois entered an Order of Default Final Judgment (Order) against John D. Briner, a disbarred Canadian attorney who resides in Abbotsford, British Columbia, Canada, and his former law firm, MetroWest Law Corporation (MetroWest), located in Vancouver, Canada, that now is under the custodianship of the Law Society of British Columbia. The Order imposes a civil monetary penalty of $280,000 and permanent registration, trading and solicitation bans on the Defendants as sanctions for their role in a money pass scheme read more »