Tagged Articles

financial fraud 35 articles

New Mexico Health Department settles retaliation allegations with whistleblower

SANTA FE, N.M. – The New Mexico Department of Health (DOH) has settled a lawsuit brought by a former manager who alleged the agency retaliated against him for making allegations of rampant fraud in a series of local newspaper reports. Robert Ortiz, deputy director of the DOH’s administrative services division, alleged he was fired in June 2012 for exposing financial fraud within the agency’s federally funded Women, Infants and Children (WIC) program. The Santa Fe Reporter picked up the story, interviewing Mr. Ortiz and another whistleblower who made additional allegations of financial fraud and nepotistic hiring practices by the agency’s upper ... Read More

SEC awards whistleblower $14 million for exposing financial fraud

A whistleblower who provided information to the U.S. Securities and Exchange Commission (SEC) that helped federal regulators recover millions of dollars in investor funds was awarded $14 million, the largest award made by the SEC’s whistleblower program to date. SEC officials said that the whistleblower, who wants to remain anonymous in media reports, provided original information and assistance that allowed the agency to investigate a case of financial fraud more quickly than otherwise would have been possible. “Less than six months after receiving the whistleblower’s tip, the SEC was able to bring an enforcement action against the perpetrators and secure ... Read More

Imprisoned Enron CEO resentenced to 14 years, ordered to pay $42 million to fraud victims

Thousands of workers who lost their employment and retirement pensions in the massive Enron fraud scheme more than a decade ago may soon see some relief. A U.S. District in Houston has resentenced former Enron CEO Jeffrey Skilling to 14 years (168 months) in prison on multiple conspiracy, securities fraud, and other charges that led to the company’s collapse, and ordered him to forfeit approximately $42 million, which will be applied toward restitution of the victims of the giant fraud scheme. Skilling’s convictions stemmed from an elaborate scheme to deceive investors, the U.S. Securities and Exchange Commission (SEC), and others ... Read More

New SEC whistleblower office receiving better financial fraud tip-offs, Commissioner says

So far, so good was the message behind Securities and Exchange Commissioner Luis Aguilar’s assessment of the agency’s new whistleblower program, designed in response to the 2008 financial crisis to curb widespread financial fraud. Speaking to a panel of enforcement officials Thursday, Mr. Aguilar said that the SEC’s whistleblower office, established by the Dodd-Frank Act in 2010, has received nearly 3,000 tips from the U.S. and 45 foreign countries. But it’s not just the quantity of information pouring into the whistleblower office, it’s the quality as well. Mr. Aguilar said the incentives to report fraud and other wrongdoing have made ... Read More

SEC awards first whistleblower under new fraud-busting law

The Securities and Exchange Commission (SEC) awarded its first payout under a new whistleblower program to an individual who provided the regulatory agency with information that helped expose an active Ponzi scheme. The whistleblower received $50,000 for handing over documents that provided specific, credible, and timely information to the SEC, which prompted the agency to take enforcement action against the offending company. In awarding the informant, the SEC chose to pay the maximum percentage allowable under the law – 30 percent of $150,000 it has so far recovered in the case. Additional court-ordered sanctions against the company amount to more ... Read More