SEC Awards Nearly $4 Million to Whistleblower

The Securities and Exchange Commission today announced an award of nearly $4 million to a whistleblower who tipped the agency with detailed and specific information about serious misconduct and provided additional assistance during the ensuing investigation, including industry-specific knowledge and expertise.

“Not only did this whistleblower step forward and report suspicious conduct, but continued to help after we opened our investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “Whistleblowers with specialized experience or expertise can help us expend fewer resources in our investigations and bring enforcement actions more efficiently.”

Approximately $153 million has now been awarded to 43 whistleblowers who became eligible for an award after voluntarily providing the SEC with original and useful information that led to successful enforcement actions. read more »

Bank Meetings and White-Collar Crime

Where do you go if you have a sense of grievance, a fondness for cliché, and too much time on your hands? The obvious answer is "the internet," but true connoisseurs, and those who prefer to do their shouting face to face, know that the best answer is "corporate shareholder meetings." Nothing particularly happens at these meetings -- all the big institutional shareholders who own most of the shares vote ahead of the meeting by proxy, so the meeting itself is just a formality -- but they're a rare opportunity to show up at a random hotel ballroom and yell at some rich people.

Yesterday Wells Fargo & Co., which has inspired a lot of anger recently with its fake-accounts scandal, had its annual meeting at a Marriott in Florida, and it was everything you could hope for from a bank annual meeting. read more »

Airbus CEO Investigated by Austrian Prosecutors Over Eurofighter

Airbus SE said Austrian prosecutors are investigating Chief Executive Officer Tom Enders as part of a probe into alleged fraud in the 2 billion-euro ($2.2 billion) sale of Eurofighter jets to that country’s government in 2003.

Vienna prosecutors on Wednesday informed Airbus that everyone identified in a defense ministry report issued in February -- including Enders -- is under investigation, Airbus said in an email. The report alleged that Airbus knew that the jets wouldn’t be available on time in the right configuration and that Austria was overcharged by about 183 million euros for expenses that included lobbying and kickbacks. read more »

Lloyds appoints ex-high court judge to review handling of HBOS fraud

Banking group to start paying compensation totalling up to £100m next month to customers who lost out

Lloyds Banking Group has appointed a retired high court judge to investigate its handling of fraud its HBOS branch in Reading.

The bank also announced it will start to make compensation payments next month to customers who lost out as a result of the incident. Six people were jailed in February after a jury was told how they spent the proceeds on superyachts and sex parties. read more »

Novato Company To Pay $11.4M In Whistleblower Lawsuit

A Novato-based medical equipment supplier has agreed to pay $11.4 million to resolve allegations that it submitted false claims to Medicare and other federal healthcare programs, the U.S. Justice Department announced this week.

The supplier, Pacific Pulmonary Services, provides oxygen tanks, related supplies and sleep therapy equipment. read more »