Fulcrum Capital Partners Agrees to Pay $2.51 Million to Resolve False Claims Act Violation Charges
New York, NY- A Texas- grounded investment establishment, Fulcrum Capital mates, has reached a agreement with theU.S. Department of Justice, agreeing to pay$2.51 million to resolve allegations of fraudulently carrying payments from the Madoff Victim Fund( MVF). The action, which indicted Fulcrum of violating the civil False Claims Act, stems from their involvement in trading worried means related to Bernard Madoff's massive Ponzi scheme.
Between October 2016 and October 2022, Fulcrum was set up to have orchestrated exaggerated payouts to victims of the Madoff scheme, which were latterly channeled back to the establishment, despite not being victims themselves. The Justice Department's civil complaint, filed in Manhattan civil court, revealed that Fulcrum had bought recovery rights from Madoff victims, all while concealing the factual quantities paid for those rights from the MVF.
FormerU.S. Securities and Exchange Commission president Richard Breeden, who oversees the Madoff fund, stated," Fulcrum is a claim- buying fiscal establishment that noway lost a penny from Madoff's conduct. The ineluctable consequence of orchestrating false reports to MVF was dwindling the help that could be handed to real fraud victims."
This agreement comes in the wake of the Justice Department joining a private whistleblower action initiated in 2018, utmost of which remains under seal. As part of the agreement, Fulcrum has committed not to seek farther payouts from the Madoff fund.
A prophet for Fulcrum reflected on the resolution, stating," Fulcrum fulfilled a critical need for victims ofMr. Madoff's fraud by furnishing immediate compensation for claims. We concluded that resolving this disagreement to avoid the expenditure and distraction of ongoing action was in the stylish interests of Fulcrum and our limited mates, and we're glad to put this matter behind us and look toward the future."
The Madoff Victim Fund was established in 2013, primarily through agreements with Madoff's former bank, JPMorgan Chase, and the estate of former Madoff investor Jeffry Picower. To date, the fund has distributed further than$ 4 billion to victims, and an fresh$14.6 billion has been recouped for former Madoff guests by the trustee standing Madoff's fraudulent establishment.
Bernard Madoff, who contended shamefaced to 11 felonious counts after his Ponzi scheme was uncovered in December 2008, was serving a 150- time captivity judgment until his death in April 2021 at the age of 82.