Tuesday, April 18, 2017

Schneiderman Settles Largest Whistleblower Tax Case

By Tom Precious

ALBANY – A major Alabama investment group and some of its top executives have agreed to pay New York State $40 million in the largest-ever state settlement of a tax claims case initially brought by a private individual acting as a whistleblower, Attorney General Eric T. Schneiderman said Monday.

The settlement proceeds include $8.8 million that will go to an unnamed whistleblower who first brought the case’s attention to Schneiderman’s office.

Top executives tied to Harbert Management Corp., profited heavily on investments controlled by former billionaire New York City hedge fund executive Philip Falcone, who in 2013 was banned by federal authorities for five years from participating in the securities industry. Falcone was not accused of wrongdoing in the New York tax case.

The investment group from Alabama made money on investments selected by Falcone on troubled securities and companies, including by betting against the subprime mortgage marketplace before the housing meltdown in the last decade.

Click here for the full article.

Source: The Buffalo News (via The Empire Report)

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