Legal / Fraud

AMEX to Pay $112MM to Settle Deceptive Practices Case

American Express has agreed to pay $112 million in refunds and fines to settle regulators’ accusations that it charged unlawful late fees and deceived customers to pressure them to pay off old debts or buy extra card services. read more

BofA to Pay $2.43B to Settle Merrill Class Action Lawsuit

Bank of America said it has agreed to pay $2.43 billion to settle a class action lawsuit brought in 2009 on behalf of investors who purchased or held BofA securities at the time the company acquired Merrill Lynch. read more

Dewey Partners Named in $71.5MM Step Toward Recovery

Reuters reported that the wind-down team of defunct Wall Street law firm Dewey & LeBoeuf revealed the identities of partners participating in a proposed $71.5 million settlement. read more

CIT Business Credit Provides DIP in Broadview Bankruptcy

Communications company Broadview Networks received bankruptcy court approval to obtain up to $25 million in DIP financing from CIT Group Business Credit. read more

Seven Indicted in $132MM Oil Rig Leasing Scam

The U.S. Attorney’s Office, District of Kansas, said Federal prosecutors have filed an indictment alleging that a team of seven men swindled investors out of $132 million by promising high returns on investments in companies that leased drilling rigs. read more

Second EFI Exec Sentenced in Loan Fraud Case

The Lancaster Intelligencer Journal reported that former EFI executive Michael J. Schlager was sentenced to 20 years in prison and ordered to pay restitution of $53 million. read more

Former EFI COO Braas Sentenced to 15 Years in Fraud

A U.S. Federal Court judge sentenced Joseph M. Braas, former COO of Equipment Finance Inc., to 15 years in prison for his role in a six-year fraud scheme that resulted in $53 million in losses to EFI and its parent companies, the Philadelphia Inquirer reported. read more

UBS Whistleblower Gets $104 Million

The Wall Street Journal reported that a former UBS banker who helped the U.S. government unleash an international crackdown on tax evasion was awarded $104 million in what is believed to be the largest ever whistleblower payout to an individual. read more

NCUA Files Suit Against UBS Securities in MBS Case

The National Credit Union Administration has filed a suit against UBS Securities, alleging the investment firm violated securities laws through misrepresentations in the sale of mortgage-backed securities to two member credit unions that subsequently failed. read more

Appeals Court Upholds Tyco’s Tax Claim Against CIT

Legal journal Law360 reported the U.S. Court of Appeals refused to erase Tyco’s $190 million claim that its former subsidiary CIT Group had wrongly scrapped a tax benefits agreement after filing for bankruptcy. read more

Former UBS Execs Convicted of Fraud in Muni Case

The Department of Justice announced that a federal jury in NYC convicted three former UBS AG executives for their participation in frauds related to bidding for contracts for the investment of muni bond proceeds and other municipal finance contracts. read more

K&L Gates Appeals Revival of Le-Nature's Malpractice Suit

An article published on Law360.com reported that K&L Gates asked the PA Supreme Court to review a lower court's decision reviving a $500 million malpractice case by the liquidating trustee of Le-Nature's accusing the firm of failing to uncover massive fraud at the now-defunct company. read more

Hawker Beechcraft Requests More Time to File Chapter 11 Plan

According to bankruptcy court documents, Hawker Beechcraft is seeking more time to file a Chapter 11 plan and to solicit acceptances of the plan for each debtor entity. read more

WSJ: Ex-Dewey Partners Agree to 'Clawback'

The Wall Street Journal reported that former partners from defunct law firm Dewey & LeBoeuf have agreed to give back at least $50 million in past earnings in exchange for immunity from lawsuits. read more

NY Supreme Court Rules in Favor of Northern Leasing Systems

Northern Leasing Systems said the New York Supreme Court has ruled in favor of the company, granting its motion to decertify a class of hundreds of thousands of merchants in a breach of contract class action brought against the company by four lessees. read more


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Terry Mulreany
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