Flash crashes prod central banks towards algo arms race

Central banks investigating whether computer programmes or an individual triggered October's sterling "flash crash", the latest to hit a major financial market, may consider computerised stabilisation programmes as a possible response.

The Financial Times reported on Wednesday that officials were looking at flows through a Tokyo-based trader at U.S. bank Citi (C.N) as they search for what caused the brief but dramatic 10 percent crash in sterling.

Citi said in response that its trading operations had functioned appropriately in a thin and illiquid market.

The FT report said the trader is not believed to have started the slide that sent the pound to a 31-year low but might have exaggerated it by placing a number of 'sell' orders after a sudden price shift at an hour when activity is typically quiet. read more »

Teva investigating allegations by tipster of bribery in Romania

Teva Pharmaceutical Industries is investigating claims by an anonymous tipster that the company bribed state healthcare workers in Romania to get them to prescribe its medication, a Teva spokeswoman said.

The internal probe, which has not previously been reported, comes as the Israel-based company prepares to settle U.S. government investigations into alleged bribery in several other countries.

The spokeswoman confirmed the internal investigation was ongoing, but declined to comment on the allegations.

The U.S. Foreign Corrupt Practices Act makes it a crime to bribe foreign government officials to win business regardless of whether the payments are made directly or through other means such as extravagant entertainment or footing the bill for international travel.

Teva is traded on the New York Stock Exchange and also has U.S. subsidiaries. read more »

Stifel, Former Executive to Pay $25 Million for Selling ‘Unsuitably Risky’ CDOs  

Financial-services firm settles SEC case involving Wisconsin school districts

Stifel Nicolaus & Co. and a former executive will pay about $25 million after admitting to wrongdoing in case where the Securities and Exchange Commission alleged it sold “unsuitably risky and complex” financial instruments to five school districts in Wisconsin.

The SEC alleged in 2011 that the financial-services firm and a former senior vice president, David Noack, knowingly sold the CDOs to the districts in 2006, causing them to suffer a complete loss of their cash investments. read more »

Deutsche Bank's 'smoking gun' evidence to expand U.S. silver rigging case

Lawyers for investors accusing several major banks of conspiring to rig silver prices are seeking to add five new defendants to the case, based what they call "smoking gun" evidence they obtained from Deutsche Bank AG following a settlement.

In papers filed in Manhattan federal court on Wednesday, the lawyers sought to revive previously-dismissed claims against UBS AG and add Barclays Plc, BNP Paribas SA , Standard Chartered Plc and Bank of America Corp as defendants.

The newly cited evidence was produced by Deutsche Bank after it reached a $38 million settlement in the case earlier this year. The plaintiffs said the evidence showed the new defendants engaged in collusive price manipulation. read more »

House Unanimously Passes Chaffetz Legislation Protecting FBI Whistleblower

the U.S. House of Representatives passed, as amended, H.R. 5790, the Federal Bureau of Investigation Whistleblower Protection Enhancement Act of 2016 (404-0). The bill clarifies Congress’s intent to protect FBI whistleblowers who make disclosures to managers and supervisors in their chain of command, bringing the agency in line with most others in the federal government. read more »

Abbott Labs Has Officially Moved to Kill Its Deal to Buy Alere

But Alere says that none of the arguments made by Abbott give it grounds to abandon the merger.

Abbott Laboratories said on Wednesday that it had moved to terminate its proposed acquisition of Alere, citing a “substantial loss” in the value of the diagnostics company since they struck a deal 10 months back.

The relationship between the two companies began to cool after Alere failed to file financial statements and disclosed probes into billing and foreign sales practices. read more »

DOJ: Orthopedic surgery practice agrees to settle False Claims Act allegations

Jacksonville-based Southeast Orthopedic Specialists to pay more than $4.4M

The Department of Justice announced Wednesday that Southeast Orthopedic Specialists, a Jacksonville, Florida-based orthopedic medical group, has agreed to pay the government $4.488 million to resolve allegations that it violated the False Claims Act.

The United States contends that it has certain civil claims against Southeast Orthopedic Specialists (SOS) arising from the medical group billing federal health care programs for services that were not medically necessary and reasonable.

Specifically, that SOS sought reimbursement for millions of dollars' of health care claims that were questionable, according to the DOJ. read more »

South Miami Hospital Agrees to Pay the United States $12 Million to Settle False Claims Act Allegations

a not-for-profit regional hospital located in South Miami, Florida has agreed to pay the United States approximately $12 million to settle allegations that it violated the False Claims Act by submitting false claims to federal healthcare programs for medically unnecessary electrophysiology studies and other procedures allegedly performed by John R. Dylewski, M.D., at South Miami Hospital. read more »

Ex-JPMorgan employee accused of $5 million scheme to defraud bank

A former JPMorgan Chase & Co employee who has been ordered to attend counseling for gambling is facing criminal charges that he engaged in a scheme to defraud the bank out of $5 million in order to pay personal debts.

Lawrence Obracanik, who worked as an operations manager for JPMorgan's broker-dealer services, was charged in a criminal complaint made public on Wednesday in federal court in Manhattan with wire fraud and attempted wire fraud.

Obracanik, a 42-year-old resident of Fort Worth, Texas, turned himself in to authorities on Tuesday in New York, according to a spokesman for U.S. Attorney Preet Bharara. read more »

Whistleblower suit: D.C. employee fired after refusing to steer contracts to Bowser donor

A fired District city employee has filed a $10 million whistleblower lawsuit alleging he was terminated because he would not steer contracts to one of Mayor Muriel E. Bowser’s largest campaign contributors.

The suit filed Monday in D.C. Superior Court by Yinka T. Alao is the latest accusation that a recent shakeup at the Department of General Services was political retaliation by the mayor’s office.

Alao, the agency’s former chief procurement officer, alleges City Administrator Rashad Young orchestrated his firing in August after he refused to reconsider denying two multimillion contracts to Fort Myer Construction, a major Bowser donor.

Another fired employee involved in the contracts, Carlos M. Sandoval, made similar allegations last week in a filing with the District’s Office of Employee Appeals.

D.C. Council member Mary M. Cheh (D-Ward 3) convened a closed-door hearing in the last week to look into their firings. read more »

Bristol-Myers Squibb to pay $19.5 mln to settle off-label promotion case

Drugmaker Bristol-Myers Squibb Co will pay $19.5 million to resolve multi-state allegations that it improperly promoted a schizophrenia treatment for uses not approved by the U.S. government, New York Attorney General Eric Schneiderman said on Thursday.

The company's agreement with 42 other states and the District of Columbia centers on charges that Bristol-Myers Squibb promoted its Abilify anti-psychotic drug for use in children and elderly patients with dementia and Alzheimer's disease. read more »