Schwartz v. McGregor was filed in the District Court of Denver County, Colorado on January 10, 2022, seeking relief under Colorado’s Uniform Fraudulent Transfer Act, C.R.S. § 38-8-101-112 (“CUFTA”), including a turnover and accounting and damages for actual and constructive fraud.

Plaintiff Gary Schwartz is a court-appointed Receiver (“Receiver”) on behalf of a multi-million-dollar fraudulent investment scheme perpetrated by Mark Ray (“Ray”).  The Receiver was appointed over Mark Ray, Custom Consulting & Product Services, LLC, MR Cattle Production Services, LLC, Universal Herbs, LLC, DBC Limited, LLC, RM Farm & Livestock, LLC, Sunshine Enterprises (the “Estate entities”). Defendant Eric McGregor (“Defendant”) was an investor in the Ponzi scheme who allegedly received numerous avoidable transfers from the Estate entities.

Freitag, as Receiver for ANI Development LLC v. Dean Libs, et al. was filed in the Southern District of California on January 25, 2022, asserting one claim for fraudulent transfer.

Plaintiff is the court-appointed permeant receiver for ANI Development LLC (“ANI Development”), American National Investments, Inc., and their subsidiaries and affiliates (“Receivership Entities”) in an action titled SEC v. Gina Champion-Cain, et al., Case No. 3:19-cv-01628-LAB-AHG (“SEC Action”).  Plaintiff was appointed Receiver in the SEC Action and was vested with exclusive authority and control over the assets of the Receivership Entities, as well as investigatory powers.  This action is against Defendant Dean Libs, in his individual capacity, and Defendant Dean Libs Inc., a California corporation.

Investing in artificial intelligence (AI) companies has become a riskier and more involved process than in previous years.  Companies need new processes and tools to follow the more stringent AI regulations that are on the horizon (at least in Europe and the United States).  Regulators are discussing how best to structure AI regulations in order to align risk management with optimizing the potential value creation of these technologies.  Investors should take a similar approach in their investment strategy. Read on for a discussion of the considerations investors should keep in mind as they vet their investment pipeline.

Every year the U.S. Department of Health and Human Services’ (HHS) Office of Inspector General (OIG) releases an annual Solutions to Reduce Fraud, Waste, and Abuse in HHS Programs: OIG’s Top Unimplemented Recommendations. HHS released its most recent in Nov. 2021, outlining OIG’s top 25 unimplemented recommendations that, in OIG’s view, would most positively affect HHS programs in terms of cost savings, program effectiveness and efficiency, and public health and safety. These recommendations stem from OIG audits and evaluations through the end of 2020 and suggest changes coming to the federal healthcare programs that may impact healthcare facilities in the future. OIG’s recommendations outline where providers could focus their own compliance program to prepare for any further government scrutiny.

Threats to cybersecurity and data privacy are constantly increasing both in volume and complexity.  This trend is expected to continue in 2022.  In a bid to protect cybersecurity and ensure data is properly safeguarded, countries around the world are introducing new laws focused on cybersecurity and data protection.  Armed with new legal frameworks, regulators and law enforcement are placing onerous obligations on organisations who fall victim to cybersecurity breaches.  There are shorter deadlines in which to notify the authorities of data breaches and ever increasing fines and penalties for businesses that fail to respond swiftly and appropriately to a cyberattack.

In this ever-changing area what is on the horizon for 2022?

In U.S. v. Georges, 2021 WL 3887183 (S.D. Oh. Aug. 30, 2021), a federal court recently dismissed a defendant’s motion to dismiss a superseding indictment, denying her claim of prosecutorial vindictiveness related to multiple alleged violations of the Federal Anti-Kickback Statute. The defendant, Nicole Georges, was a pharmaceutical representative who coordinated speaking arrangements with physicians that allegedly induced increased drug prescriptions.  Ms. Georges was initially indicted on a single count for her participation in a single speaking event, however, the government later filed a superseding incitement alleging an additional violation of the Anti-Kickback Statute after plea negotiations failed twelve days before trial.  Despite her due process claims of prosecutorial vindictiveness, the court allowed the superseding indictment to stand.

On January 27, 2022, the Division of Examinations (“EXAMS”) of the U.S. Securities and Exchange Commission (“SEC”) published a Risk Alert with its Observations from Examinations of Private Fund Advisers. This Risk Alert is one of a series of signals of the SEC’s focus on private fund advisers under Chairman Gensler, including Form PF amendments proposed the day before the Risk Alert was published.

Harbour Point Capital (HPC) has announced it has completed an investment in Midwest Medical Transport.

Midwest Medical Transport (MMT), based in Columbus, Neb., is a provider of ambulance transportation services. Founded in 1987, the company states that it currently serves more than 200,000 patients annually for health systems in 10 states.

HPC, based in New…