RACs Unlikely to Report Fraud

Recovery audit contractors or “RACs” are private companies that Medicare hires to identify improper payments. When a RAC identifies an improper payment to a physician or medical facility, the RAC receives a “bounty” of between 9% and 12% of the monies recovered for the government. In a three year pilot program in six states, the […]

U.S. Arrests Three Broward County Officials on Corruption Charges

Federal agents arrested three current or former Broward County officials on charges related to official corruption or money laundering. The three complaints are unrelated, but all resulted from undercover FBI operations. The three individuals charged are the following: 1) Beverly Gallagher, a member of the Broward County school board, 2) Fitzroy Salesman, a former Miramar, […]

Bank Sued by Madoff Investors

Individuals defrauded by Bernie Madoff have brought a class action suit in Miami federal court against a bank for bilking customers out of fees charged to manage investments in a Madoff fund. The suit alleges that the bank, Standard Chartered, headquartered in London charged fees to invest in a Madoff feeder fund, Fairfield Sentry. The […]

New York AG Sues Feeder to Madoff Fraud

The New York state attorney general has filed a civil suit in state court charging money manager and philanthropist J. Ezra Merkin with fraud and breach of fiduciary duty based on New York State law. The complaint alleges that Merkin fraudulently invested approximately $2.4 billion with convicted fraudster Bernard Madoff and fraudulently derived management fees […]

10th Circuit Affirms Consultant Fraud Liability

In SEC v. Wolfson, an action alleging violations of securities fraud provisions, the Tenth Circuit Court of Appeals affirmed a decision by a Utah district court that a consultant was liable as a primary violator. In the case the consultant drafted periodic reports for the reporting company. Those reports contained material misstatements and omissions. On […]