Recent Settlement with Florida Physician Practice Highlights Continuing Risks of Upfront “Rebates”

On October 3, 2022, the U.S. Attorney’s Office in Boston announced that a Florida physician practice, Southeast Florida Hematology and Oncology Group, P.A. (“SEFHOG”), had agreed to pay $130,000 to resolve allegations that, among other things, it took an upfront “transition rebate” from Cardinal Health, a large drug distributor, in exchange...
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Kim Kardashian will pay $1.26 Million to settle Securities and Exchange Commission probe on her promotion of cryptocurrency

Kim Kardashian will pay $1.26 million to settle regulatory allegations that she failed to disclose money she was paid for promoting a cryptocurrency to investors, the Securities and Exchange Commission said. Ms. Kardashian should have revealed that she was paid when she promoted EthereumMax crypto tokens on her Instagram account, the SEC...
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Barclays agrees to pay $361 million to settle Securities & Exchange Commission charges of over-issuances of Securities and insufficient internal controls

The Securities and Exchange Commission charged Barclays PLC and Barclays Bank PLC (BBPLC) in connection with the unregistered offer and sale of a large amount of securities due to a failure to implement any internal control to track such transactions in real time. Both firms restated their year-end...
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Securities and Exchange Commission charges six Wall Street firms with widespread recordkeeping failures and improper use of text messaging in violation of securities laws. Total penalties exceed $1.1 Billion

The Securities and Exchange Commission has filed charges against 15 broker-dealers and an affiliated investment adviser for widespread failures by the firms and employees to maintain and preserve electronic communications in violation of securities laws. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct...
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Morgan Stanley to pay $35 million to settle allegations that it failed to protect client information according to the Securities & Exchange Commission

Morgan Stanley will pay $35 million to settle allegations that it scrapped computer servers and hard drives without ensuring they no longer held sensitive customer information, regulators said. The SEC also alleged that Morgan Stanley lost track of 42 computer servers that potentially contained unencrypted customer data. The missing servers...
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Securities and Exchange Commission orders wealth managers Waddell & Reed to pay $776,000 for failure to ensure wrap fee investment program was appropriate for clients

The Securities and Exchange Commission ordered  Waddell & Reed to pay close to $776,000 over alleged failures to prevent reverse churning in a wrap fee investment advisory program. Waddell & Reed — whose wealth management business was acquired by LPL last year — allegedly failed to ensure that the program,...
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Newman & Shapiro Announces $7.9 Million False Claims Act Settlement with Pharmaceutical Company Akorn Operating Company LLC

We’re pleased to announce that pharmaceutical company Akorn Operating Company LLC (Akorn) has agreed to pay $7.9 million to resolve allegations arising from a False Claims Act qui tam lawsuit Newman Shapiro filed in June 2021 on behalf of its whistleblower client, Albermarle, LLC (Albermarle). Akorn manufactured and sold...
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Senate Finance Committee report recommends enhancing IRS whistleblower program to eliminate offshore shell company loopholes

A year long investigation by the Senate Finance Committe resulted in a scathing report. It just released the findings of a year-long investigation into the largest allegedindividual tax evasion scheme involving a “shell bank” loophole in the Foreign Account Tax Compliance Act (FATCA), a loophole that allows banks offshore to accept...
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The Securities & Exchange Commission strengthens its whistleblower program with new changes

The Securities and Exchange Commission has added two amendments to its whistleblower program. The first allows the Commission to pay whistleblowers for their information and assistance in connection with non-SEC actions in additional circumstances. The second affirms the Commission’s authority to consider the dollar amount of a potential award for the limited...
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