A new bill that will further regulate the federal acquisition process, called The Close the Contractor Fraud Loophole Act, was approved by the House Oversight and Government Reform Committee last week, according to a report by Federal Computer Week, and is now
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More proof that price-fixing can take place in any industry: the owner of Adult Fire, an Australian company that puts on various X-rated strip shows for men and women, sued two of its Sydney rivals, Bombshells and Sex Bomb Promotions, for price-fixing. Sadly for Adult Fire the case was “quickly dismissed” after Bombshells and […]
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The CEO of Denver-based Grynberg Productions is trying a new strategy to escape possible FCPA violations: suing a bunch of his rivals. This month Jack Grynberg, the eponymous chairman of the oil company, sued British oil company BP, BP Chief Executive Tony Hayward, Former BP Chief Executive John Browne, Norway’s Statoil and others, accusing […]
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The South African Competition Commission decided that there have been so many reports of price fixing involving producers of bread, milk and other food items that they’re just going to go ahead and probe the entire South African food industry, according to a report by sabcnews.com. The Commission will focus primarily
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Last year Stryker Corp came under fire for illegal payments to U.S. doctors. This year, that might be topped. The company announced in an SEC filing last month that it is being investigated by the Department of Justice for “possible violations of the Foreign Corrupt Practices Act.” While not many specific details […]
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Becoming a whistle-blower is now a financially sound career move, thanks to the UK’s Office of Fair Trade (OFT). The British watch dog announced last Friday that it will offer as much as £100,000 for information leading to the discovery and dismantling of illegal corporate cartels. The OFT will offer the rewards for […]
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Alcoa was sued yesterday by Aluminum Bahrain BSC in a U.S. federal court for allegations of overcharging, fraud and bribery. Aluminum Bahrain BSC, better known as Alba, says it was overcharged by Alcoa for alumina (pictured), a key ingredient in creating aluminum. The company says it paid excesses of about $65 million per […]
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Will there ever be an end to the Oil-for-Food abuses? Flowserve Corporation announced last Thursday that it will pay nearly $10.6 million to the U.S. Securities and Exchange Commission and the U.S. Department of Justice for violating the United Nation’s Iraq Oil-for-Food humanitarian program. A Dutch and French-based subsidiary of the company, Flowserve […]
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The large percentage of Germans that regularly avoid taxes isn’t terribly surprising, considering the nation’s top income tax rate is 45 percent and the tax laws are notoriously confusing, according to Bloomberg. Nevertheless, the problem is huge for the country and getting worse. The issue is making a lot of headlines right now, […]
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One day you’re labeled the “best health-insurance chief financial officer for each of the past four years” by Institutional Investor, the next you’re frantically texting “ABORT!!” to one of your many girlfriends/fiancees, hoping that your double life isn’t discovered. Such is the life of ex-Wellpoint CFO David Colby. Colby allegedly carried on relationships […]
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For several years, Ernesto Tapanes was a simple, ordinary “oceanography survey consultant,” doing contracting work for the treasure-hunting firm Odyssey Marine Exploration Inc. One spring day in 2007, however, his life abruptly changed when he discovered an anomaly off the coast of Gibraltar. Upon further investigation, it turned out to be a sunken
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Two former sales representatives for Amgen have brought suit against the company, alleging it used questionable and illegal sales tactics to help push sales of its psoriasis-treating drug, Enbrel. The suit alleges that Amgen pressured its sales team to 1) obtain physician’s records for patients suffering from psoriasis and 2) encourage insurance companies to reimburse […]
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Bribery, according to the DOJ. Lucent technologies helped wrap up a DOJ investigation on Tuesday by agreeing to pay $1 million for FCPA violations. From 2000 to 2003 the company reportedly spent over $10 million on about 315 various trips for approximately 1,000 Chinese government officials. This included all expense paid trips […]
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Staples and HP have been sued by a California man, who accuses the two of price-fixing. Ranjit Bedi claims that HP approached Staples, asking that the company stop selling third party ink cartridges for HP printers. In turn, Bedi claims, Staples was given over $100 million in market development funds to only sell HP […]
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conradblack.jpgConvicted of defrauding Hollinger International last July, Canadian-turned-British media mogul Conrad Black was sentenced yesterday to six and a half years in prison, fined $125,000 and forced to forfeit $6.1 million dollars. Mr. Black, aka Lord Black of Crossharbour, was allowed to keep his Florida home despite prosecutors’ requests to the
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William McGuire, former CEO of United Health, agreed to give back about $620 million to resolve a government investigation into whether or not he illegally backdated millions of stock options. Sure, this is a hefty sum, but the blow is softened when considering McGuire still floated home with a billion dollar golden parachute, even […]
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Stolt-Nielsen’s amnesty has been reinstated and the company’s Chief Executive, Niels G. Stolt-Nielsen, is “pleased” that he doesn’t have to go to jail - a fate suffered by three top brass of the company’s co-conspirators in a 2002 antitrust case. This is the latest (and final?) development in an ongoing case of “he said, […]
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David Brooks, the former CEO of DHB Industries, was recently indicted by the Department of Justice for insider trading, fraud, obstruction of justice and tax evasion. Even after all those charges, the most gripping piece of information is what Brooks allegedly spent company money on, including $101,500 on an armored vehicle for himself and […]
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Cisco employees in Brazil got a surprise when over 600 federal police and tax officers, armed with over 90 different subpoenas, stormed Cisco System’s Brazilian operations earlier this week. Their target was any information regarding the company’s alleged tax evasion, dodging an estimated $826 million. The raid was the dramatic climax of a two-year […]
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After investigating a former Enron employee’s high profile whistle-blower story, USA Today discovered she’s not everything she claims to be.
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A federal judge sentenced four people today for administering unnecessary medical tests on elderly Vietnamese immigrants as part of a multimillion dollar Medicare scheme.
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Oral arguments in the much anticipated Stoneridge Investment Partners v. Scientific Atlanta Inc. and Motorola Inc. case began before the Supreme Court today.
The plaintiffs, shareholders of Charter Communications, allege that Scientific Atlanta and Motorola knowingly participated in a scheme with Charter to artificially inflate the company’s annual earnings.
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The former chief financial officer of Safenet Inc. pleaded guilty on Friday to backdating stock options for herself and the former CEO.
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Two men were charged in unrelated fraud cases yesterday. The common denominator? Michael R. Bloomberg, the billionaire mayor of New York City.
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The U.S. Securities and Exchange Commission (SEC) has been cracking down on General Counsels this year more than ever, according to an article released today by the National Law Journal. Experts say the increased prosecution comes from the SEC’s backlash after a proposed regulation in the Sarbanes-Oxley Act was revoked.
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