SEC Charges Real Estate Fund Manager With Misappropriating Over $7 Million From Retail Investors

SEC

The Securities and Exchange Commission today charged fund manager Eric C. Malley and his company MG Capital Management L.P. with defrauding retail investors in two real estate funds managed by MG Capital.

According to the SEC’s complaint, beginning in 2014, Malley – a licensed real estate broker with no investment management experience – and MG Capital solicited investments in two real estate funds, MG Capital Management Residential Funds III and IV, respectively, raising a total of $58 million primarily on the strength of a fabricated investment track record. read more »

Patient Recruiter Convicted in $2.8 Million Telemedicine Scheme Against Medicare

DOJ

The owner of an Orlando-area telemarketing call center was convicted for his role in a kickback scheme involving expensive genetic tests and fraudulent telemedicine services that resulted in the payment of approximately $2.8 million in false and fraudulent claims to Medicare.

The evidence showed that the telemedicine doctors approved the expensive testing even though they were not treating the beneficiary for cancer or symptoms of cancer, and often without even speaking with the beneficiary. read more »

Montana House Labor Committee hears whistleblower bill

MISSOULA CURRENT

Members of the House Business and Labor Committee heard testimony Monday about a bill that would protect and reward whistleblowers who report  possible securities fraud.

The Whistleblower Award and Protection Act would help people bring information to the Commissioner of Securities and Insurance.

The act would award up to 30 percent of fines and fees involved in the case to the whistleblower. Restitutions would not be affected. It also provides protection for the whistleblower by ensuring they cannot be fired or harassed as a result of their actions. read more »