The SEC received a whistle-blower complaint alleging that the bank inflated the value of mortgage bonds on its books and masked losses around 2013, said the people, who asked not to be identified because the matter is confidential. The SEC is probing how the bank valued government-backed mortgage bonds known as Agency pass-through securities that it amassed after the 2007 U.S. housing crisis.
Blog
The U.S. Securities and Exchange Commission said on Thursday that it has awarded $17 million — its second largest award yet — to a former company employee whose detailed tip gave the regulator a major leg up in an investigation and enforcement proceeding.
Even If You Signed A "Release" With Your Company, You Should Still Report Fraud Companies that engage in fraudulent behavior don't want to get caught. And they really don't want to get caught because someone at the company reported their behavior to regulators.
A Texas federal judge on Tuesday determined that banking documents related to a state government investigation into Ocwen Loan Servicing LLC's financial practices, which the company claims to have "inadvertently disclosed" to relators bringing a pair of False Claims Act suits, are not privileged and can be used at trial.
They filed a lawsuit in federal court under the False Claims Act, a Civil-War-era law enacted to combat fraud against the federal government. To encourage whistleblowers to report fraud, it allows a private citizen to bring a lawsuit on the government's behalf; if the suit succeeds, the whistleblower can receive a share of the money that the government recovers.
Since its inception, there have been approximately 15,000 SEC whistleblower claims filed with the SEC's Office of the Whistleblower, and that number is increasing every year. Essentially, your claim – on its own – has a 1 in 15,000 chance of standing out among the many claims that are tossed at the organization each year. The odds of hitting a hole-in-one? You guessed it – about 1 in 15,000.
A whistleblower lawsuit filed against Oracle over its accounting practices underscores the pressures established computer companies face to show that they are growing in the fast-moving business known as the cloud. When the feds closed Brotherly Love Ambulance Inc. in October 2011 amid allegations of Medicare fraud, the owner's son quickly opened his own ambulance company and picked up where his mother had left off.
Two former traders at Deutsche Bank have been hit with federal criminal charges in New York for allegedly working to manipulate the London Interbank Offered Rate, the U.S. Department of Justice said Thursday.
Two former traders at Deutsche Bank have been hit with federal criminal charges in New York for allegedly working to manipulate the London Interbank Offered Rate, the U.S. Department of Justice said Thursday.
Many aspects of blowing the whistle take finesse and patience, and discussing your claim isn't always an option. Sometimes a lawyer is the only person a whistleblower can talk to for several years. Upholding this responsibility requires real discipline, but in the end, it pays off.
Deloitte Consulting will pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration (GSA) contract. Deloitte is a nationwide consulting company headquartered in New York City.
The U.S. Supreme Court agreed to hear State Farm Fire and Casualty Co.'s bid to overturn a finding that the insurance company fraudulently overbilled the government for damage from Hurricane Katrina. The case tests the U.S. False Claims Act, the law that lets whistle-blowers sue on behalf of the federal government and then collect a share of any funds recovered.
A 20-count federal indictment has been unsealed following the arrest of the owner of KMD Healthcare Services Inc., and his brother on charges they engaged in a conspiracy involving fraudulent Medicare and Medicaid billing for ambulance services, announced U.S. Attorney Kenneth Magidson.
The Securities and Exchange Commission awarded more than $450,000 jointly to two individuals Friday for a tip that led the SEC to open a corporate accounting investigation and for their help once the investigation was underway. The whistleblower award is the third announced by the SEC during May, bringing the month's payouts to $10 million, the agency said.
One mistake that whistleblowers can make is assuming that the case is closed just because initial information about the fraud at hand has already been given to the government. But the doors are still in fact open.
The Securities and Exchange Commission today announced that the mayor of Harvey, Ill., has agreed to pay $10,000 and never participate in a municipal bond offering again in order to settle whistleblower fraud charges. The SEC alleges that Eric J. Kellogg was connected to a series of fraudulent bond offerings by the city. Investors were told that their money would be used to develop and construct a Holiday Inn hotel in Harvey, but instead city officials diverted at least $1.7 million in bond proceeds to fund the city's payroll and other operational costs unrelated to the hotel project.
WHISTLEBLOWER QUOTES OF THE DAY: "Employees are often best positioned to witness wrongdoing. When they report specific and credible tips to us, we will leverage that inside knowledge to advance our enforcement of the securities laws and better protect investors and the marketplace."
WHISTLEBLOWER QUOTE OF THE DAY: "Whistleblowers can receive an award not only when their tip initiates an investigation, but also when they provide new information or documentation that advances an existing inquiry."
M&T Bank Corp. (M&T Bank) has agreed to pay the United States $64 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development's (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. M&T Bank is headquartered in Buffalo, New York.
WHISTLEBLOWER QUOTE OF THE DAY: "Issuers of securities offerings must make truthful disclosures about the company and its business operations so investors know what they're getting into when they buy the stock."
