Deutsche Bank Whistleblower Should Accept SEC Whistleblower Award

Deutsche Bank Whistleblower Should Accept SEC Whistleblower Award

There are more effective ways to protest lax enforcement of financial fraud

Last week, it was widely reported that Eric Ben-Artzi, a Deutsche Bank whistleblower stated he will refuse a portion of his whistleblower award from the U.S. Securities and Exchange Commission’s whistleblower program.   Mr. Ben-Artzi had worked at the bank as a vice president and he tells an all too-familiar story of a loyal corporate insider reporting serious fraud internally only to be betrayed by corporate compliance officials and then getting fired by management.

Mr. Ben-Artzi next reported the wrongdoing to the SEC and later formally asked the SEC in 2015 to grant him a monetary award for helping the SEC to fine Deutsche Bank. After being awarded more than $8 million he says he will refuse to accept a portion of that whistleblower award (but allow his ex-wife and attorney to collect a portion of his share) as a form of protest to the SEC’s collusion with Wall Street.

However, refusing the award makes little sense, because there are more effective ways the whistleblower can protest lax enforcement and corporate fraud. Continue Reading

SEC Adopts Rules for Resource Extraction Issuers Under Dodd-Frank Act

oil-extraction

June 27, 2016. The Securities and Exchange Commission adopted rules to require resource extraction issuers to disclose payments made to governments for the commercial development of oil, natural gas or minerals.  The rules, mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, are intended to further the statutory objective to advance U.S. foreign policy interests by promoting greater transparency about payments related to resource extraction. Continue Reading

SEC Cracking Down on Companies Trying to Silence Whistleblowers

StopFraudgraphic

The Securities and Exchange Commission announced on August 16 that California-based health insurance provider, Health Net Inc. agreed to pay a $340,000 penalty for illegally using severance agreements requiring outgoing employees to waive their ability to obtain monetary awards from the SEC’s whistleblower program. Continue Reading

Whistleblower Rewarded for Exposing Medicare Scam

False Claims Act Settlements

July 13, 2016: Evercare Hospice and Palliative Care will pay $18 million to resolve False Claims Act allegations that it claimed Medicare reimbursement for hospice care for patients who were not eligible for such care because they were not terminally ill.  Evercare, now known as Optum Palliative and Hospice Care, is a Minnesota-based provider of hospice care in Arizona, Colorado and other states across the United States. Continue Reading

LAN Airlines Settles FCPA Charges

Foreign Corrupt Practices

On July 25, 2016, the Securities and Exchange Commission announced that South American-based LAN Airlines has agreed to pay more than $22 million to settle parallel civil and criminal cases related to improper payments it authorized during a dispute between the airline and its union employees in Argentina. Continue Reading

Fraud in Humanitarian Food Aid Program Uncovered by Whistleblower

AP photo

August 1, 2016: Jacintoport International LLC (Jacintoport) and Seaboard Marine Ltd. (Seaboard Marine) have agreed to pay $1.075 million to settle a lawsuit alleging that the companies violated the False Claims Act in connection with a warehousing and logistics contract for the storage and redelivery of humanitarian food aid.  Jacintoport is a cargo handling and stevedoring firm headquartered in Houston, Texas, and Seaboard Marine, an affiliate of Jacintoport, is an ocean transportation company headquartered in Miami, Florida. Continue Reading

DOJ Intervenes in Whistleblower Lawsuit Alleging Fraud in Afghanistan and Iraq Reconstruction Contracts

Reconstruction Contract Fraud

July 28, 2016: The Justice Department announced it filed suit under the False Claims Act against Derish M. Wolff and Salvatore J. Pepe, respectively the former CEO and CFO of Louis Berger Group Inc. (LBG), for conspiring to overbill the U.S. Agency for International Development (USAID) and other government agencies for costs incurred performing reconstruction contracts in Afghanistan, Iraq, and other countries.  Continue Reading

SEC Charges Medical Device Manufacturer With FCPA Violations

Bribery-Corruption

On June 21, 2016, the Securities and Exchange Commission announced that Massachusetts-based medical device manufacturer Analogic Corp. and its wholly-owned Danish subsidiary have agreed to pay nearly $15 million to settle parallel civil and criminal actions involving Foreign Corrupt Practices Act (FCPA) violations. Continue Reading

Illegal Physician Kick-back Scheme Brought to Light by Whistleblower

False Claims Act Settlements

The Lexington County Health Services District Inc. d/b/a Lexington Medical Center located in West Columbia, South Carolina, has agreed to pay $17 million to resolve allegations that it violated the Physician Self-Referral Law (the Stark Law) and the False Claims Act by maintaining improper financial arrangements with 28 physicians. Continue Reading

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