Category Archives: Fraud

White Collar Year in Preview: False Claims Act Trends in 2020

Editors’ Note: This is the fourth in our start-of-year series examining important trends in white collar law and investigations in the coming year. Our previous entry discussed  anti-corruption trends in 2020. Up next: a look at State Attorney General trendsLook for additional posts throughout the month of January.

More than halfway into the Donald Trump administration,… More

White Collar Year in Preview: Healthcare Fraud Trends in 2020

Editors’ Note: This is the second in our start-of-year series examining important trends in white collar law and investigations in the coming year. Our previous entry discussed SEC enforcement in 2020. Up next: a look at trends in anti-corruption and under the Foreign Corrupt Practices Act. Look for additional posts throughout the month of January.

2019 saw ongoing action in the healthcare space.… More

White Collar Year in Preview: SEC Enforcement Trends in 2020

Editors’ Note:  This is the first in our start-of-year series examining important trends in white collar law and investigations in the coming year.  Up next:  a look at trends in health care enforcementLook for additional posts throughout the month of January.

As we look towards the SEC Division of Enforcement’s agenda for 2020,… More

Biotech CEO Convicted of Securities Fraud and Obstructing SEC Investigation

The chief executive of a Boston-based biotech company, Frank Reynolds, was convicted of defrauding investors and obstructing an SEC investigation. Reynolds founded the biopharma startup PixarBio Corp. in 2013 and took the company public in 2016. By the next year PixarBio was in a tailspin and an SEC probe was opened. Reynolds is now facing possible jail time and millions in fines after he stoked the brief meteoric rise of PixarBio with promises of ground breaking inventions,… More

Challenge to Attorneys’ Fees in False Claims Act Cases

Thanks to inexact language in a settlement agreement, a for-profit hospital chain can challenge whistleblowers’ eligibility for attorneys’ fees under the False Claims Act (“FCA”).  The single sentence that spawned nearly 5 years of litigation was: “All Parties agree that nothing in this Paragraph or this Agreement shall be construed in any way to release, waive or otherwise affect the ability of CHS to challenge or object to [whistleblower’s] claims for attorneys’ fees,… More

Supreme Court Extends Securities Fraud Liability to Knowing Dissemination of False Statements Made By Others

Recently, in Lorenzo v. Securities and Exchange Commission, No. 17-1077, the Supreme Court held that an investment banker had committed securities fraud by copying and pasting false statements prepared by his supervisor into emails to prospective investors, even though he was not on the hook for making the statements himself.

The decision focuses on Rule 10b-5 of the Securities and Exchange Commission,… More

U.S. Government Charges Chinese Conglomerate with Fraud, Conspiracy

On January 28, 2019, the Department of Justice announced that a 13-count indictment against Chinese telecommunications conglomerate Huawei Technologies Co. Ltd. and various affiliated parties was unsealed earlier that day.  Huawei is charged with bank fraud, wire fraud, violations of the International Emergency Economic Powers Act, obstruction of justice, and various related conspiracy charges.

All charges in the indictment stem from Huawei’s alleged long-standing ploy to deceive financial institutions and the U.S.… More