Health system to pay $12.2M to settle whistleblower suit

An Irving, Texas-based health care system and its hospital in Santa Fe, New Mexico, will pay $12.2 million to settle a whistleblower lawsuit over Medicaid payments.

Federal officials say the settlement resolves allegations that Christus Health and Christus St. Vincent Regional Medical Center made illegal payments in 2001-2009 to county governments for the state's share of Medicaid payments to the hospital.

Wells Fargo’s Testimony Left Some Feeling Shortchanged

Did Wells Fargo mislead the United States Congress during hearings last fall when it characterized its widespread opening of unauthorized bank accounts as a one-off problem in an otherwise clean operation?

That question took on greater urgency Thursday after Wells issued disturbing new disclosures about its customer dealings. The bank concluded that it had opened as many as 3.5 million unwanted accounts for customers, 1.4 million more than previous estimates. What’s more, Wells admitted a new impropriety: enrolling more than half a million accounts into its online bill pay service without customers’ permission.

The mounting infractions at Wells Fargo are getting hard to track without a scorecard. Unrequested auto insurance that affected 800,000 people — check. Unauthorized changes to mortgage repayment terms in bankruptcy — check. Improper withholding of refunds to some car loan customers — check.

All of which raises questions about statements made last September by John G. Stumpf, Wells Fargo’s former chief executive, during and after the congressional hearings. When asked if any other fraudulent activities had been uncovered across the bank, he indicated that problems were limited to the unauthorized accounts opened by the Community Banking unit. read more »

Financial advisor charged with Ponzi scheme

Allegedly bilked customers of more than $1M

Federal securities regulators on Thursday charged a Waterbury-based financial advisor with defrauding clients out of more than $1 million.

The U.S. Securities and Exchange Commission filed a 16-page complaint in U.S. District Court in New Haven claiming that 40-year-old Leon Vaccarelli of Waterbury and a limited liability investment company he operated engaged in a Ponzi scheme for more than four years. The complaint contends that Vaccarelli and his Waterbury-based investment firm used money from new investors to pay off prior ones.

The complaint also contends that Vaccarelli used some of the money he was given by investors to pay for personal expenses and that he stole money from a trust fund while he was serving as a trustee. read more »