SeaWorld and Former CEO to Pay More Than $5 Million to Settle Fraud Charges

Company, Two Former Executives Charged With Misleading Investors About the Impact of Documentary on Business

The Securities and Exchange Commission today announced that SeaWorld Entertainment Inc. and its former CEO have agreed to pay more than $5 million to settle fraud charges for misleading investors about the impact the documentary film Blackfish had on the company’s reputation and business. SeaWorld’s former vice president of communications also agreed to settle a fraud charge for his role in misleading SeaWorld’s investors. read more »

SEC Shuts Down $345 Million Fraud and Obtains Asset Freeze

The Securities and Exchange Commission today announced it has obtained a court order halting an ongoing Ponzi-like scheme that raised more than $345 million from over 230 investors across the U.S. The SEC also obtained an emergency asset freeze and the appointment of a receiver.

An SEC complaint unsealed yesterday alleges that Kevin B. Merrill, Jay B. Ledford and Cameron Jezierski attracted investors to their scheme by promising significant profits from the purchase and resale of consumer debt portfolios. But in fact, the defendants were allegedly using a web of lies, fabricated documents, and forged signatures in an elaborate scheme to entice investors and perpetuate the fraud. Rather than direct investor funds to the acquisition and servicing of debt portfolios as promised, the defendants allegedly used the funds to make Ponzi-like payments to earlier investors. The SEC also alleges that Merrill and Ledford stole at least $85 million of the investor funds to maintain lavish lifestyles, spending millions of dollars on luxury items, including $10.2 million on at least 25 high-end cars, $330,000 for a 7-carat diamond ring, $168,000 for a 23-carat diamond bracelet, millions of dollars on luxury homes, and $100,000 to a private fitness club.  

"The defendants touted their purported investment expertise to siphon millions of dollars from unsuspecting investors," said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement. "We filed this action on an emergency basis to put a stop to this fraud and protect investors from further harm."

"We allege that the defendants engaged in a brazen fraud, deceiving investors to perpetuate their wrongdoing and line their pockets with ill-gotten gains," said Kelly L. Gibson, Associate Regional Director of the SEC's Philadelphia Regional Office. "Investors should be warned that low-risk, high-return investments that never lose should be a red flag." read more »

Physician and Two Clinic Operators Found Guilty for Their Roles in $17 Million Medicare Fraud Scheme

A federal jury found a physician and two clinic owners and operators guilty yesterday for their roles in a $17 million Medicare fraud scheme.

Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

John P. Ramirez (Ramirez), M.D., 64; Ann Nwoko Shepherd (Shepherd), 62; and Yvette Nwoko (Nwoko), 30, all of Houston, Texas, were convicted of one count of conspiracy to commit health care fraud after a six-day trial.  In addition, Nwoko was convicted of three counts of health care fraud, Shepherd was convicted of six counts of health care fraud and Ramirez was convicted of three counts of false statements relating to health care matters.  Sentencing is scheduled for Dec. 12 before U.S. District Judge David Hittner of the Southern District of Texas, who presided over the trial. read more »