Wells Fargo agrees to $65-million settlement with New York over unauthorized accounts scandal

Wells Fargo & Co. will pay a $65-million penalty to New York state related to cross-selling practices that led employees to create millions of accounts without customer authorization.

The bank failed to disclose to investors that the success of its cross-selling — the pitching of additional financial products to existing clients — was built on “sales practice misconduct at the bank,” state Atty. Gen. Barbara Underwood’s office said in a statement Monday. read more »

Government files False Claims Act complaint against ophthalmologist

ATLANTA - The government intervened and filed a complaint in a False Claims Act lawsuit against Aarti D. Pandya, M.D. a/k/a Arati D. Pandya, M.D., an ophthalmologist from Conyers, Georgia, and her practice Aarti D. Pandya, M.D., P.C. (“the Pandya Defendants”).  The lawsuit alleges that the Pandya Defendants submitted false claims to Medicare for surgical procedures, diagnostic tests, and office visits that were medically unnecessary, of worthless value, upcoded, and in some cases, not provided at all.

The lawsuit was initially filed by Laura Dildine, a former office manager for the Pandya Defendants, under the qui tam, or whistleblower, provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The act permits the government to intervene in such lawsuits, as it has done in this case.  Defendants found liable under the act are subject to treble damages and penalties. read more »

Ericsson sacks 50 employees following US corruption probe

Mobile telecom gear maker Ericsson said this week that it has dismissed 50 people over a US corruption probe it warned could lead to a financial penalty.

The Swedish company has previously said that it initially received questions from US authorities in March 2013 and that it has been cooperating with the US Securities and Exchange Commission and the US Department of Justice.

Findings of corruption by US authorities can result in hefty fines for companies under the Foreign Corrupt Practices Act. read more »

$13.2 Million to Resolve False Claims Act Allegations Related to Loan Guarantees

Universal American Mortgage Company LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain loans

The allegations resolved by this settlement include a whistleblower lawsuit filed under the False Claims Act by a former employee of a related UAMC entity, Kat Nguyen-Seligman. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery.  Ms. Nguyen-Seligman will receive $1,980,000 from the settlement. read more »

Former U.S. Navy Commander Sentenced to Prison for Bribery Conspiracy with Foreign Defense Contractor in Massive U.S. Navy Corruption and Fraud Case

A former U.S. Navy Commander was sentenced Friday to 30 months in prison, followed by three years of supervised release, a $10,000 fine and $21,625.60 in restitution by the Honorable Janis L. Sammartino of the U.S. District Court for the Southern District of California.  The case relates to a wide-ranging corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based company, Glenn Defense Marine Asia (GDMA). read more »