Danske Bank Must Fight Shareholder Suit Over Laundering Scandal

A U.S. class action lawsuit against the Danish bank at the center of Europe’s biggest money laundering scandal will go forward after a court rejected its request to dismiss the case.

Danske Bank A/S must respond to an investor complaint by mid-September, according to an Aug. 7 order by the U.S. District Court for the Southern District of New York.

Investors in American depositary receipts of Danske, which is the target of criminal investigations in the U.S. and across Europe, want compensation for a share-price slump that was precipitated by the laundering scandal. read more »

Former CEO of Israeli Company Found Guilty of Orchestrating $145 Million Binary Options Fraud Scheme

The former CEO of the Israel-based company Yukom Communications, a purported sales and marketing company, was found guilty yesterday for orchestrating a scheme to defraud investors in the United States and worldwide by fraudulently marketing approximately $145 million in financial instruments known as “binary options.”

According to the evidence presented at trial, the defendant and her co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption.  The evidence showed that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money. read more »

Medicare Advantage Provider and Physician to Pay $5 Million to Settle False Claims Act Allegations

Beaver Medical Group L.P. (Beaver) and one of its physicians, Dr. Sherif Khalil, have agreed to pay a total of $5,039,180 to resolve allegations that they reported invalid diagnoses to Medicare Advantage plans and thereby caused those plans to receive inflated payments from Medicare, the Justice Department announced. Beaver is headquartered in Redlands, California.   

The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Dr. David Nutter, a former employee of Beaver. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Dr. Nutter will receive approximately $850,000. read more »