The Inherent Risks of Securities-Backed Lines of Credit

For investors seeking quick—and virtually unrestricted—cash without having to sell their investments, securities-backed lines of credit (“SBLOC”) have emerged as an exceedingly popular option. The SBLOC concept is simple. For monthly interest-only payments, brokerage firms extend to investors a revolving line of credit that is collateralized against assets in the investors’ portfolios. With SBLOCs, investors [...]

U.S. Supreme Court to Consider Specificity Requirements Under False Claims Act

Earlier this week, the U.S. Supreme Court engaged the U.S. Solicitor General to provide additional information and background about the pleading requirements contained within the False Claims Act. The Court is particularly interested in the level of factual background necessary in a whistleblower’s initial Complaint in order for the case to continue. As you may [...]

False Claim Cases Beyond the False Claims Act

We regularly report about cases involving false claims for reimbursement under the False Claims Act. But did you know there are several other statutes providing for whistleblower causes of action? The following article explores some other areas of fraud, including tax, securities and commodities trading fraud. Each of these statutes allows for qui tam plaintiffs [...]

More Details Emerge in Trial Against Bank of America

As we reported earlier last week, the trial has begun against Bank of America regarding allegations of impropriety surrounding the underwriting and approval processes for sub-prime loans – the processes that contributed to the massive housing market meltdown. On Thursday of last week, a former Bank of America executive testified that the practices in question [...]

Whistleblower Lawsuit Reveals Millions in False Claims by Roofing Contractor

The False Claims Act is designed to protect American taxpayers from fraud, waste and abuse by those holding contracts with the United States government. Known as whistleblowers, these individuals stand to gain a sizable portion of any recovery obtained by the government – usually between 15 and 25 percent of the settlement or verdict. In [...]