Fla. Court Asked To Lift Freeze In $91M Fake Health Plans Suit

By David Minsky

Two siblings asked a Florida federal court Wednesday to lift an asset freeze in the Federal Trade Commission's lawsuit alleging they sold $91 million of fake health benefits on the Affordable Care Act exchange, arguing they need money to pay their attorneys. 

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Chubb Units Must Cover Environmental Contamination Claim

By Hope Patti

Two Chubb insurers must defend an upstate New York town against a state environmental department's claim concerning a regional airport's contamination by so-called forever chemicals unless and until they can establish the claim falls outside an exception to a pollution exclusion, the Second Circuit affirmed.

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4th Circ. Appears Unpersuaded By $22M Tax Fraud Appeal

By Hayley Fowler

Two attorneys and an insurance agent faced a Fourth Circuit panel Wednesday that seemed hard-pressed to overturn their convictions for orchestrating a $22 million tax avoidance scheme, with the judges casting doubt on their venue objections and claims that the false tax returns contained truthful information.

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Insurers Ask To Ignore Simplified Foreign Currency Rules

By Kevin Pinner

The insurance industry should be allowed to ignore regulations from 2024 covering how corporations determine taxable income with respect to affiliates that conduct business in a foreign currency, the American Council of Life Insurers told the U.S. Treasury in a letter released Wednesday.

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Fla. Couple Sentenced For Evading $37M In Payroll Taxes

By Asha Glover

An Orlando couple were sentenced to prison for participating in a $148 million construction payroll scheme and evading more than $37 million in payroll taxes, Florida federal prosecutors announced Wednesday.

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Lindberg Says He Owes 'Zero' Despite $1.6B Restitution Report

By Abigail Harrison

Beleaguered insurance mogul Greg Lindberg asked a North Carolina federal court to reject a special master's report recommending he pay $1.6 billion in restitution to companies he's accused of defrauding, arguing he should instead pay zilch.

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Ship Owner, Insurer To Pay $17M For Puerto Rico Reef Harm

By Danielle Ferguson

A German shipping company and a marine insurer will pay $17 million to end a dispute alleging they were liable for damage done to 7,000 square meters of coral reef off the coast of Puerto Rico when an oil tanker ran aground in 2006, according to a Puerto Rico federal judge's Tuesday order approving the agreement.

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NC Insurance Dept. Properly Revoked Appraiser's License

By Hope Patti

A North Carolina state appeals court on Wednesday affirmed the state Department of Insurance's revocation of the license of a motor vehicle damage appraiser, finding he violated ethical standards by disparaging other appraisers.

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AIG Says Homeowners Waived Bid For New Damages Trial

By Carolina Bolado

An AIG unit fought against a new trial this week in a dispute over the claims process for damage from Hurricane Irma to a $95 million oceanfront mansion, arguing that the homeowners failed to prove compensable damages at trial and waived their right to a new trial.

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Judge Won't Certify Minn. Fraud Question In Cancer Drug MDL

By Danielle Ferguson

A New Jersey federal judge won't ask the Supreme Court of Minnesota to weigh in on whether an insurer can pursue claims using a state law typically reserved for the attorney general in litigation alleging drugmaker Celgene used charitable donations to manipulate the price of cancer drugs.

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Prospect Medical Captive Insurer Files Ch. 15 In Texas

By Emily Lever

Connecticut Healthcare Insurance Company, a Cayman Islands insurance company indirectly owned by Prospect Medical Holdings, has filed a Chapter 15 petition in Texas bankruptcy court seeking recognition of its Cayman winding-up proceedings that involve a $26 million payment to Prospect.

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Documenting Business Purpose After IRS' 10th Circ. Win

Following the Tenth Circuit’s recent Liberty Global v. U.S. decision, which held the economic substance doctrine does not require a threshold relevancy determination, taxpayers can prepare for potential audits by maintaining contemporaneous documentation and taking other steps that demonstrate the business purpose of transactions, say attorneys at Crowell & Moring.

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Womble Bond Atty's 'Draconian' Penalty Gives 4th Circ. Pause

By Hayley Fowler

A Fourth Circuit panel seemed to struggle Thursday with what one judge described as a "draconian" contempt order against a Womble Bond Dickinson partner, with the panel nudging counsel for both sides toward a simpler solution that wouldn't force the court's involvement.

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Ex-Jackson Walker Atty Seeks Breakup With Romance Suit

By Adrian Cruz

A former Jackson Walker LLP partner said Thursday that she should be dropped from a suit accusing her, a former Texas bankruptcy judge she had a secret relationship with and multiple law firms of fomenting "mass corruption" in Houston's bankruptcy court.

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SEC Fines Ex-BigLaw Atty For Insider Trades On Apollo Deal

By Hailey Konnath

A former Buchalter PC shareholder has agreed to pay $71,625 to settle the U.S. Securities and Exchange Commission's allegations he purchased stock ahead of Apollo Global Management's $1.5 billion acquisition of Bridge Investment, which the commission said he was representing in an unrelated matter at the time.

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Comey Retains NC Criminal Defense Pro For 2nd Indictment

By Rachel Rippetoe

Former FBI Director James Comey has added a North Carolina white collar defense pro to his legal team fighting an indictment by the Trump administration over a social media post last year that prosecutors characterized as a threat of violence against the president, according to a court filing on Thursday.

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Judiciary Panel Punts AI Rules, Mulls Judges' Survey Results

By Jeff Overley

Buckle up: Efforts to modernize evidentiary rules amid artificial intelligence fears are getting bumpy, as judiciary advisers Thursday agreed to dramatically delay action while digesting an AI survey of nearly 1,000 judges and organizing a symposium of litigators and tech pros.

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Toss Of Ex-Shkreli Atty's Deal May Be Error, 2nd Circ. Hints

By Pete Brush

A Second Circuit judge hinted Thursday that a trial judge may have erred in rejecting a retirement-fund garnishment deal that would have protected Martin Shkreli's convicted former lawyer from a potential $1 million "punitive tax event."

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Analysis

How Litigation Funding Disclosure Could Affect ITC Cases

By Ryan Davis

The U.S. International Trade Commission's proposed rule to require disclosure of litigation funding in intellectual property cases could bring more transparency to disputes and promote settlements, but it could also discourage some suits if it's not carefully tailored, attorneys say.

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NC Judge Tosses Atty's Suit Against State Bar Panel Member

By Andrea Keckley

A North Carolina federal judge dismissed a suspended attorney's lawsuit against a State Bar Disciplinary Hearing Commission member he accused of bias and due process violations, finding Thursday that the defendant is entitled to absolute quasi-judicial immunity.

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Analysis

Why Compliance Is Getting Complicated In Latin America

By Phillip Bantz

White collar compliance is getting trickier for companies that do business in Latin America, according to experts, who say they are seeing big shifts in the region connected to cartel crackdowns and efforts to strengthen corporate regulations, including relatively recent pushes for voluntary self-disclosure.

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