UBS whistleblower Birkenfeld sues bank for libel

A former UBS Group AG banker who as a whistleblower helped U.S. authorities prosecute the Swiss bank for tax fraud, only to spend 2-1/2 years in prison for helping a billionaire client evade taxes, on Monday filed a $20 million libel lawsuit against his former employer.

Bradley Birkenfeld, who in 2012 got a record $104 million award from an Internal Revenue Service whistleblower program, faulted UBS over statements published last November and this month by the New York Post and Bloomberg BNA Daily Tax Report. read more »

Ruling quickly, federal judge allows whistleblower lawsuit against Duke

A federal judge in Greensboro has rejected Duke University’s attempts to get a whistleblower lawsuit thrown out of court that accuses it of a massive research fraud.

The suit “has stated claims” that could expose Duke to damages, U.S. District Court Judge Catherine Eagles said in an order that sided with lab analyst Joseph Thomas in seeing the possibility that university medical researchers manipulated or falsified research findings to secure more federal grants for their work.

At issue, ultimately, are research grants worth $112.8 million to Duke and a further $120.9 million to other institutions, among them UNC-Chapel Hill and N.C. State University. read more »

Poplar Healthcare to Pay Nearly $900,000 to Resolve A False Claims Act Allegations

Poplar Healthcare, have entered into a civil settlement agreement with the United States, under which Poplar will pay $897,640 to resolve allegations under the federal False Claims Act. The government alleges that Poplar, directly and through a subsidiary known as GI Pathology, promoted and billed the government for diagnostic tests that the government contends were not medically necessary. read more »

Whistleblower Award of More Than Half-Million Dollars for Company Insider

The Securities and Exchange Commission today announced that a company insider has earned a whistleblower award of more than $500,000 for reporting information that prompted an SEC investigation into well-hidden misconduct that resulted in an SEC enforcement action.

“This company employee saw something wrong and did the right thing by reporting what turned out to be hard-to-detect violations of the securities laws,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “Company insiders are in a unique position to provide specific information that allows us to better protect investors and the marketplace.  We encourage insiders with information to bring it to our attention.” read more »

Semiconductor Company and Former CFO Settle Accounting Fraud Charges

The Securities and Exchange Commission today announced that a South Korea-based semiconductor manufacturer and its former CFO have agreed to settle charges related to an accounting scheme to artificially boost revenue and manipulate the financial results reported to investors.

The SEC’s order finds that MagnaChip Semiconductor Corp. overstated revenues for nearly two years in response to immense pressure placed on employees each quarter to meet revenue and gross margin targets that had been communicated to the public.  Then-CFO Margaret Sakai directed or approved several fraudulent accounting practices to make it falsely appear the company had met those targets.  For example, MagnaChip recognized revenue on sales of incomplete or unshipped products, and the company delayed booking obsolete or aged inventory to manipulate its reported gross margin.  MagnaChip also engaged in roundtrip transactions to manipulate accounts receivable balances, and concealed from auditors that there were side agreements with distributors to induce them to accept products early.

“MagnaChip engaged in a panoply of accounting tricks to artificially meet its financial targets,” said Jina L. Choi, Director of the SEC’s San Francisco Regional Office.  “Companies that sell stock in the U.S. markets should prioritize a robust accounting culture that is entirely truthful with investors.” read more »