Close up of Court, representing Expanded Whistleblower Program

SEC Boosts AML BSA Enforcement with SARs Action

A piece of news about Vincente Martinez leaving the SEC alerted us to the first SEC enforcement action of the Bank Secrecy Act against a broker-dealer solely for failing to file suspicious activity reports (SARs) on time. Martinez was the original Director of the CFTC Whistleblower Office before returning to the SEC in 2013....

Assortment of pills in news article at Young Law Group website. Also representing REMS

Increased Spending in Compounded Drugs Could Involve Fraud

Federal spending for compounded drugs has exploded recently and there are concerns some portion of the increase is due to fraud or overbilling, according to recent media reports. Last year, we wrote a post about the increase in Tricare fraud among compounding pharmacies. Recent data reports suggests other programs, including Medicare Part D and federal...

Crop anonymous patriot showing flag of United Stated of America

Ethics Code Now Guides Accountant Whistleblowers

The International Ethics Standards Board for Accountants (IESBA) has revised the Code of Ethics for Professional Accountants to address ethical concerns about how to handle a client’s suspected non-compliance with laws and regulations (frequently referred to as “NOCLAR”). The changes to permit whistleblowing in the Ethics Code, which serve as guidance for professional accountants around...

Johnson Controls, Analogics Settle FCPA Investigations

We have now seen our second Foreign Corrupt Practices Act settlement involving vendor payments over the past three weeks as Johnson Controls settled its SEC investigation for $14 million and Analogic previously agreed to pay nearly $15 million to the SEC and DOJ. Johnson Controls Johnson Controls released a press release today concerning the settlement of its...

A Papers with Coins and Mobile Phone on the Side, representing whistleblower contracts

IRS Targets Big Business for Inbound Distributions, Basket Options, Captive Insurance and Asset Transfers

Almost a year ago (September 2015), the Internal Revenue Service announced the reorganization of its Large Business and International (LB&I) Division. Struggling to keep up with the nearly 300,000 taxpayers within its jurisdiction, and faced with significant declines in the IRS budget from the Congressional appropriation process, LB&I is moving to issue-focused examinations of taxpayer...

Close Up of Building - Settlements for Justice Department, representing government's veto power

Fourth Circuit to Weigh-In on Statistical Sampling and the Government’s Veto Power in False Claims Act Cases.

Government’s Veto Power The Fourth Circuit in U.S. ex rel. Michaels v. Agape Senior Community (Agape) has been asked to decide two important issues in False Claims Act lawsuits: (1) whether the Government can veto a settlement reached between the relator and defendant in a non-intervened case, and (2) whether statistical sampling can be used to prove...

Interior of United States Capitol rotunda with ornamental dome, an image representing US courts and Attorney General Jeff Sessions

Higher CFTC Fines Proposed in Derivatives Protection Act

Senator Warren and two other Congressional members proposed the Derivatives Oversight and Taxpayer Protection Act into Congress at the end of June in order to allow self-funding of the CFTC and increase its authority for civil penalties, among other things. As I understand the funding proposal, the CFTC would be allowed to assess and...

International Support for Whistleblowers Growing

Governments across the world continue to recognize the importance of whistleblowers with agencies in Germany and Canada opening up whistleblower programs to collect information about violations of their laws. Australia has extended its consideration of whistleblower rewards to include international tax avoidance, which it is studying. And Ontario Canada’s program to reward whistleblowers for information...

Grey Concrete Building, representing Serial Whistleblower

DOJ Doubles FCA Statutory Penalties

The statutory penalties for each false claim or false statement will nearly double as the U.S. Government adjusts the False Claims Act fines for inflation. Under the Civil Monetary Penalties Inflation Adjustment pursuant to the provisions of the Bipartisan Budget Act of 2015, the new minimum fine for each violation of the FCA will be $10,781, with a maximum...

100 Us Dollar Banknotes, representing False Claims Act

Whistleblowers Help Secure $415M Merrill Lynch Settlement

The Customer Protection Rule was the subject of a $415 million settlement last week by Bank of America’s Merrill Lynch. It was the largest ever for misuse of client funds under Rule 15c3-3. According to media reports, former executives of the bank provided information to the U.S. Government through the SEC Whistleblower program. After the...

Category: News