Ousted Bio-Rad GC Wins Whistleblower Case

After deliberating for less than three hours, a federal jury has sided with former Bio-Rad Laboratories Inc. general counsel Sanford “Sandy” Wadler in his whistleblower retaliation lawsuit against the company.

The jury awarded Wadler $2.9 million in back pay and stock compensation and $5 million for punitive damages. The jury awarded Wadler zero dollars for future losses and emotional distress.

The verdict is a significant win for Wadler, who was fired by the company in June 2013, and his lawyers at Kerr & Wagstaffe.

“I’m extraordinarily grateful to the jury for its very thoughtful verdict in finding that whistleblowers need protection,” lead attorney James Wagstaffe said immediately after the verdict was read. “You’re not supposed to fault whistleblowers for raising legitimate concerns about potential corruption.” read more »

Traffic camera firm to pay Chicago $20 mln after bribery scheme

A company that operates red-light traffic cameras will pay Chicago $20 million to settle a lawsuit arising from a bribery scheme between the firm's former chief executive and a city transportation official, officials said on Monday.

Redflex Traffic Systems Inc previously operated Chicago's red-light enforcement program, which used camera systems to catch motorists running red lights. As in other cities where similar systems are in place, it has been unpopular with drivers who were cited for traffic infractions.

The city's settlement with the firm and its Australian parent company, Redflex Holdings Ltd, ends Chicago's civil lawsuit accusing the firm of fraudulent dealings, according to Chicago Mayor Rahm Emanuel's office. read more »

Healthcare Service Provider to Pay $60 Million to Settle Medicare and Medicaid False Claims Act Allegations

A major U.S. hospital service provider, TeamHealth Holdings, as successor in interest to IPC Healthcare Inc., f/k/a IPC The Hospitalists Inc. (IPC), has agreed to resolve allegations that IPC violated the False Claims Act by billing Medicare, Medicaid, the Defense Health Agency and the Federal Employees Health Benefits Program for higher and more expensive levels of medical service than were actually performed (a practice known as “up-coding”), the Department of Justice announced today. Under the settlement agreement, TeamHealth has agreed to pay $60 million, plus interest.

“This settlement reflects our ongoing commitment to ensure that health care providers appropriately bill government programs vital to patient health care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.

The government contended that IPC knowingly and systematically encouraged false billings by its hospitalists, who are medical professionals whose primary focus is the medical care of hospitalized patients. Specifically, the government alleged that IPC encouraged its hospitalists to bill for a higher level of service than actually provided. IPC’s scheme to improperly maximize billings allegedly included corporate pressure on hospitalists with lower billing levels to “catch up” to their peers. read more »

$7 Million Penalty for Defrauding of Retail Forex Customers

The U.S. Commodity Futures Trading Commission today issued an Order filing and settling charges against Forex Capital Markets, LLC

FXCM engaged in false and misleading solicitations of FXCM’s retail foreign exchange customers by concealing its relationship with its most important market maker and by misrepresenting that its “No Dealing Desk” platform had no conflicts of interest with its customers. read more »

That ‘Hamilton’ Ponzi Scheme Reportedly Caught Billionaires Like Michael Dell

Scalpers were quick to capitalize when resold tickets for the hit Broadway musical Hamilton began fetching up to $2,500 last year, with one criminally industrious group even establishing a gigantic Ponzi scheme based on how lucrative ticket-selling was.

They lured investors to contribute cash to a pool they said they'd use to buy hot concert and show tickets in bulk—promising money back plus 10%. And among those caught in the fray, Bloomberg reported Monday, was a smattering of big names, including several billionaires.

Hedge fund manager Paul Tudor Jones, founder of the eponymous technology company Michael Dell, and an executive at Och-Ziff Capital Management Group were reportedly among the some 125 people lured into pouring money into the pool. The Securities and Exchange Commission estimates the scammers ended up collecting over $81 million. read more »

Utah man who claimed to operate ‘legal Ponzi’ scheme sent to prison

businessman gets up to 30 years for scheme that bilked retirees out of $36M.

A 66-year-old Kaysville man who once touted his business as a "legal Ponzi scheme" was handcuffed Monday in a Salt Lake City courtroom and led off to prison for up to 30 years for the system that left 542 investors owed nearly $37 million.

Investor after investor walked to the podium in a crammed 3rd District courtroom and told Judge Mark Kouris how they came to trust Dee Allen Randall with hundreds of thousands of dollars of their money, only to see it disappear — along with their comfortable retirements, ability to visit grandchildren, and even knee and hip replacements. read more »