NY AG Obtains $410 Million Settlement with Alleged Madoff Ponzi Scheme Middleman
- New York AG Eric Schneiderman announced this week that his office has obtained a record $410 million settlement with J. Ezra Merkin, who controlled funds that invested over $2 billion with Bernie Madoff on behalf of hundreds of investors and charitable organizations.
- The settlement resolves a lawsuit AG Schneiderman filed in April 2009 against Merkin for allegedly concealing Madoff’s control of the funds and for breaches of his fiduciary duty to manage the funds prudently.
- Under the terms of the settlement, Merkin will pay $405 million to compensate investors and $5 million to the State of New York to cover fees and costs.
OH AG Announces Arrests in National Telemarketing Fraud Ring
- This week Ohio AG Mike DeWine announced with Miami County Prosecutor Gary Nasal that felony charges have been brought against 18 suspects accused of running a telemarketing fraud ring from Ohio and Florida.
- The indictment is based on allegations that the suspects operated companies that targeted owners of inexpensive, vacant land by calling them to convince them that they could sell their land at a high value if they paid certain fees for the sales transaction. It is alleged that the companies never actually sold any of the properties.
Maryland, Virginia AGs and Federal Government Settle with Toll Brothers over Alleged Clean Water Act Violations
- Last week Maryland, Virginia, and the United States entered into a consent decree with homebuilders Toll Brothers, Inc. for $741,000 to resolve alleged Clean Water Act violations at its construction sites relating to storm water management and permitting requirements.
- Under the terms of the settlement, Toll Brothers must invest in a companywide stormwater compliance program, increase management oversight at all current and future residential construction sites in 23 states, and routinely inspect its sites to minimize stormwater runoff.
- The consent decree is subject to a 30-day public comment period and approval by the U.S. District Court for the Eastern District of Pennsylvania.
Oklahoma AG and U.S. Attorney Announce Settlement with Hospital and Physician Based on Alleged Federal and State False Claims Act Violations
- Oklahoma AG Scott Pruitt and U.S. Attorney Sanford C. Coats recently announced that they have entered into a settlement agreement with Harmon County Healthcare Authority (Harmon Memorial Hospital) and Dr. Akram Abraham to resolve allegations that they violated the federal and state false claims acts.
- The settlement resolves allegations that there was a prohibited contractual relationship between the hospital and the physician, which resulted in excessive remuneration that was not commercially reasonable in the absence of health care referrals and that they made false certifications about the Medicare and Medicaid claims they submitted.
- As part of the settlement, the hospital agreed to pay $550,000 and Dr. Abraham agreed to pay $1,000,000 to resolve the claims, in addition to entering into five year corporate integrity agreements with the United States Department of Health and Human Services Office of the Inspector General.
Missouri AG Announces Settlement with In-Home Health Care Service Company Over Alleged False Medicaid Claims
- Missouri AG Chris Koster recently announced that his office has entered into a settlement for $124,164.75 with Reliable Home Health Services and its owner/operator, Sharon Smith, for allegedly submitting false claims to Medicaid.
- The settlement is based on allegations that Smith and her company failed to ensure that the personal care attendants employed by her company were actually providing the services to Medicaid recipients they claimed.