Gupta Sentenced to Two Years, $5 Million Fine

October 25, 2012

On October 24, 2012, Rajat Gupta, the former McKinsey CEO and Goldman Sachs director who was convicted of one count of conspiracy to commit securities fraud and three counts of securities fraud in connection with his involvement in former hedge fund manager Raj Rajaratnam’s insider trading scheme, was sentenced to two years in prison. Gupta […]

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DOJ Charges 91 Individuals in Massive Health Care Fraud Takedown

October 6, 2012

On October 4, 2012, the government announced that its Medicare Fraud Strike Force operations had charged 91 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving nearly $430 million in false billing.  Dozens of individuals were arrested or surrendered as the indictments were unsealed, and the […]

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Guilty Plea in Insider Trading Scheme

September 30, 2012

On September 28, 2012, Jon Horvath, a former research analyst at New York hedge fund Sigma Capital, a unit of SAC Capital, pleaded guilty on charges of insider trading and agreed to cooperate with the U.S. government in a continuing investigation of what prosecutors call a $61.8 million insider trading scheme.  The case is part […]

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Suit Alleges Donor Network Pressured Staff to Declare Live Patients Brain Dead

September 27, 2012

In a lawsuit filed on September 26, 2012, plaintiff Patrick McMahon charges that the New York Organ Donor Network (“NYODN”) improperly pressured hospital staff members to declare living patients brain dead in order to harvest their organs for the transplant program. McMahon, a former Air Force Flight Nurse and nurse practitioner, worked as a transplant […]

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Key Rajaratnam Cooperator Receives Two-Year Probation Sentence

September 26, 2012

Rajiv Goel, a former Intel Corporation executive and a key cooperator in the case against Galleon CEO Raj Rajaratnam, was sentenced on September 24 to two years of probation for his participation in the biggest hedge fund insider-trading scandal in U.S. history.  In 2010, Goel pleaded guilty to one count of conspiracy to commit securities […]

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IRS Whistleblower Receives $104 Million Payout

September 13, 2012

Bradley Birkenfeld, a former employee at Swiss bank UBS, received a $104 million payment for information he provided to the IRS related to tax fraud at UBS AG.  The sum paid to Birkenfeld is the most ever paid to an individual whistleblower. In 2009, UBS entered into a deferred prosecution agreement with the US government and […]

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SEC Announces Payment to Anonymous Whistleblower

August 24, 2012

On August 21, 2012, the SEC announced its first payment under its Dodd-Frank Whistleblower Program.  Although the size of the initial payment is relatively small—the recipient will receive approximately $50,000—the SEC’s press release hinted that additional rewards might be possible if more funds are recovered. Under the Whistleblower Program, the SEC rewards individuals who come […]

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More Brady Violations

August 6, 2012

On August 2, 2012, the Second Circuit handed down an opinion addressing yet another government violation of its Brady obligations.  In United States v. Mahaffy, defendants Kenneth Mahaffy, Linus Nwaigwe, Timothy O’Connell, David Ghysels, Keevin Leonard and Robert Malin appealed their convictions of conspiracy to commit honest services fraud and property fraud over the government’s failure to […]

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Eighth Circuit Issues Ruling on Antidepressant Suicide

August 4, 2012

On August 3, 2012, the Eighth Circuit rendered a decision reversing the district court’s grant of summary judgment in Schlif v. Eli Lilly.  Parents Paul and Cynthia Schlif sued Eli Lilly, alleging that Lilly’s failure to warn and deceit caused the death of their 16 year-old son, Peter, who had taken Lilly’s prescription antidepressant Cymbalta, […]

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Jury Clears Stoker of SEC Charges

August 1, 2012

A federal jury in the Southern District of New York disagreed with the SEC’s allegations against a Citigroup executive charged with wrongdoing in connection with Citi’s sale of mortgage-related investments during the housing boom.  Brian Stoker, a former midlevel Citi executive, had been charged with negligence related to his role in creating mortgage securities known […]

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