Argosy Healthcare Partners (AHP) has announced it has completed a recapitalization of Specialty Care Management (SCM).

SCM, based in Bucks County, Pa., is a payor services company focused on healthcare cost containment and claims management services for the self-insured market. Founded in 2002, the company specializes in program design for catastrophic claims.

AHP,…

Last week, the Supreme Court (Court) heard oral arguments in companion cases Ruan v. United States and Kahn v. United States, concerning the application of the Controlled Substances Act (“CSA” or “the Act”) to medical practitioners. Through these cases, the Court is expected to resolve a circuit split over the role of “good faith” as a defense for medical practitioners charged with unlawfully distributing narcotics under Section 841(a) of the Act (see our previous article about the issues before the Court and the different approaches to good faith taken by the circuit courts). While arguments did not offer a clear view into the direction the Court is headed, three points of friction emerged that may inform the Court’s decision.

On March 8, the U.S. Department of Justice announced a $930,000 settlement with Comprehensive Health Services, LLC for alleged violations of the False Claims Act. As DOJ’s first resolution of a False Claims Act enforcement action involving cyber fraud since launching its Civil Cyber-Fraud Initiative in October 2021, this settlement signals the DOJ’s eagerness to…

On March 8, 2022, the U.S. Department of Justice (DOJ) announced a $930,000 settlement with Comprehensive Health Services, LLC (CHS) for alleged violations of the False Claims Act (FCA). This settlement marks DOJ’s first resolution of an FCA enforcement action involving cyber fraud after launching its Civil Cyber-Fraud Initiative in October 2021, signaling DOJ’s eagerness to combat cybersecurity violations and misrepresentations.

On March 7, the Federal Acquisition Regulatory Council promulgated a final rule aimed at increasing federal government preferences for goods and construction materials that are domestically manufactured and increasing the required domestic content threshold for purchases governed by the Buy American Act.

Read on for highlights from the rule and next steps for government contractors…

On February 14, 2022, the Securities and Exchange Commission announced a settlement with a crypto lending company in a “first-of-its-kind enforcement action” for failing to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”).  In the novel settlement, BlockFi Lending LLC (“BlockFi”) agreed to pay $100 million in penalties — $50 million of which will be paid to the SEC, and the remaining $50 million allocated to 32 different state regulators for similar charges.  As part of the settlement, BlockFi has undertaken to comply with the Investment Company Act either by registering as an investment company or by proving to the SEC Staff that it is not required to do so.  BlockFi has 60 days from entry of the order to comply and may obtain an extension of another 30 days.  Should BlockFi successfully come into compliance, it could be the first SEC-registered entity to offer a digital asset lending product.[1]  Despite BlockFi’s groundbreaking settlement, BlockFi still faces a putative class action by investors.

RELATED UPDATES:
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 New Revelations in Ukraine Lead to Tightening Global Sanctions (April 8, 2022)
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Last week, the U.S. Department of Justice (DOJ) announced the launch of an aggressive interagency law enforcement task force, Task Force KleptoCapture. The Task Force represents another U.S. enforcement initiative in response to the Russian invasion of Ukraine in which DOJ plans to target Russian officials and “government-aligned elites” for violations of law related to economic sanctions and corruption. In an address to the American Bar Association on Friday, Attorney General Merrick Garland described the task force as a “force multiplier” and stated: “Together with our federal and international partners, we will leave no stone unturned in our efforts to investigate, arrest and prosecute those whose criminal acts enable the Russian government to continue its unjust war against Ukraine.”

Varsity Healthcare Partners has announced the close of its sale of Probo Medical to Avista Capital Partners.

Probo, based in Fishers, Ind., is a supplier of refurbished diagnostic imaging equipment. Founded in 2014, the company’s set of services include equipment sales, part sales, equipment rentals, depot repair service, equipment installation and de-installation, and field-based…

Aarus Enterprises LLC v. Burgerim Group USA, Inc. was filed in the Superior Court of California for the County of Los Angeles on February 15, 2022, seeking civil damages from a fraudulent investment scheme involving the purchase and sale of fast-food burger franchises. Specifically, the complaint alleges promissory fraud, intentional misrepresentation, and concealment.

Plaintiffs include over fifteen individuals and entities who invested in the burger franchises. The Defendants are the burger franchise Burgerim Group USA, Inc. (“Burgerim”) and unnamed individuals who participated in the scheme.

Plaintiffs contend they were presented the chance to invest in Burgerim, which represented itself as the fastest growing fast-food burger franchise.  Burgerim told investors they could purchase a franchise for $50,000, a portion of which could be financed or paid later.  Burgerim also offered to assist with real estate transactions in opening the franchise restaurants.  But Burgerim did not deliver on those promises.  Instead, it gave investors unrealistic financing options and unworkable estimates for construction timelines and costs.  Burgerim also hid from investors that it used new franchisees’ fees to repay existing franchisees and received kickbacks from vendors, real estate agents, and other representatives.