Texas Doctor and Hospital Owner Convicted in Multimillion Dollar Health Care Fraud Scheme

A federal jury found an internal medicine doctor and hospital owner guilty today for their roles in a multimillion health care fraud scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.

Following a two-week trial, Harcharan Narangc Dayakar Moparty were found guilty of one count of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering. read more »

United States Joins False Claims Act Lawsuit Against Arriva Medical LLC and Alere Inc.

The United States has intervened in a False Claims Act case alleging that Arriva Medical LLC (Arriva) and its parent Alere Inc. (Alere) submitted or caused false claims to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and copayment waivers, the Justice Department announced today.

The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery.  The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here in part.  A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties. read more »    

Credit Suisse loses bid to dismiss lawsuit in U.S. over writedowns

A U.S. judge has rejected Credit Suisse Group AG’s bid to dismiss a lawsuit accusing the Swiss bank of defrauding shareholders about its risk appetite and risk management before taking $1 billion of writedowns on souring debt.

The decision by U.S. District Judge Lorna Schofield in Manhattan was made public on Wednesday.

Schofield said investors who lost money in Credit Suisse’s American depositary receipts could pursue claims that the bank, Chief Executive Tidjane Thiam and other defendants intended to mislead them, by touting its “comprehensive” risk controls and “binding” limits on its exposure to risky and illiquid debt. read more »

Fed permanently bars former JPMorgan banker over China hiring scandal

The U.S. Federal Reserve said on Thursday it was barring former JPMorgan Chase & Co Managing Director Timothy Fletcher from the industry for life over his role in a China hiring program for which the bank was fined $264 million in 2016.

The Fed alleged that Fletcher had “improperly administered” the program to hire relatives of Chinese officials “in order to obtain improper business advantages for the firm.” The Fed said Fletcher consented to the prohibition.

In 2016 the bank agreed to pay a total of $264 million to the U.S. Securities and Exchange Commission, the Justice Department and the Fed, to resolve the allegations its hiring program had violated the U.S. Foreign Corrupt Practices Act. read more »

U.S. Regulator Warns Japan’s Biggest Bank Again on Money Laundering

Japan’s largest bank, Mitsubishi UFJ Financial Group, was already being investigated by United States prosecutors over whether it had failed to detect money laundering and sanctions violations at its branches. On Friday, the bank got a fresh warning that it needed to address the issue, and quickly.

State regulators and other federal authorities have said for years that MUFG failed to properly monitor who its customers were and where their money came from. The problems were so severe that one former employee likened the bank’s anti-money laundering program to “a dumpster fire.” read more »