News Coverage

Bank of America to Pay $17 Billion in Justice Department Settlement

Deal with Justice Department could be announced as early as Thursday.

Aug 20 - The Wall Street Journal

Bank of America Corp. is expected to pay nearly $17 billion to settle U.S. Department of Justice accusations it packaged shoddy mortgages into securities and sold them to investors in the run-up to the financial crisis, according to a person familiar with the negotiations.
The agreement, which could come as early as Thursday, would mark the biggest settlement between the U.S. government and a single company. The roughly $17 billion will be a combination of cash and consumer aid – an...

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Fraud Case Surge Calls for Better Compliance

Aug 4 - Agenda

The Department of Justice has raked in more than $2 billion already this year in settlements and judgments over acts of fraud perpetrated against the government, and the number of cases is expected to rise.
The issue has been brought to a head over allegations that software company Symantec overcharged government agencies and could face penalties of $145 million.
Now, experts are saying, the cure for this expensive type of litigation may be tougher compliance and whistle-blower...

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Vanguard Associate Counsel Alleges Tax Evasion Against Company

Jul 30 - Tax Analysts

A former associate counsel with Vanguard Group Inc. turned whistleblower has alleged that the investment management company has evaded more than $1 billion in taxes.
In a qui tam action under New York's False Claims Act (FCA), David Danon filed a lawsuit in New York state court claiming that Vanguard has operated as an illegal tax shelter for nearly 40 years and has avoided $1 billion in federal taxes and at least $20 million in New York taxes over the last 10 years. As an employee of...

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Ex-Employee Alleges Vanguard Functioned as Illegal Tax Shelter

A lawsuit alleges mutual fund giant Vanguard avoided paying $1 billion in state and federal taxes over last decade

Jul 30 - Value Walk

A former Vanguard Group employee sued the largest U.S. mutual fund company, accusing it of operating an illegal tax shelter for around 40 years by providing services at prices designed to avoid federal and state income tax.
The complaint was filed under the False Claims Act, a whistleblower law in New York State.
Vanguard Group avoided taxes The lawsuit was filed in New York last year by a then-Vanguard Group Inc. tax attorney, and unsealed Friday in state court in Manhattan. The...

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Suit alleges Vanguard wrongly avoids paying taxes

Jul 27 - The Philadelphia Inquirer

A lawsuit filed in New York last year by a then-Vanguard Group Inc. tax attorney, and unsealed Friday in state court in Manhattan, alleges that Vanguard, the nation's largest mutual fund company, has wrongly avoided paying federal and state income taxes since its creation in the 1970s.
Vanguard "has operated as an illegal tax shelter for nearly 40 years, providing services to [its] funds at prices designed to avoid federal and state income tax, sheltering hundreds of millions of dollars...

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Former Employee Sues Vanguard, Alleges False Tax Filing

Mutual-Fund Company Says Case Is Without Merit, Will Defend Matter Vigorously

Jul 26 - The Wall Street Journal

A former employee of Vanguard Group Inc. has sued the mutual-fund company in New York, saying it has avoided paying federal and state taxes and sheltered hundreds of millions of dollars annually.
The civil suit, unsealed in the Supreme Court of New York on Friday, accuses the Malvern, Pa.-based firm of operating an illegal tax shelter for nearly 40 years, thus avoiding $1 billion of U.S. federal income tax and at least $20 million of New York tax over the last 10 years, according to a...

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Whistleblower lawsuit claims Vanguard failed to pay "hundreds of millions" in taxes

Jul 26 - Phildelphia Business Journal

A former Vanguard Group employee sued the mutual fund giant, claiming it has operated a massive tax shelter for all of its nearly 40 years of existence. The suit, unsealed in the New York Supreme Court in Manhattan Friday, said the Malvern, Pa.-based company avoided paying hundreds of millions of dollars worth of state and federal income taxes each year.
Vanguard denies the charges, levied in a lawsuit filed on May 8, 2013 by David Danon, a former tax manager in the company’s...

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Whistleblower lawsuit claims Vanguard failed to pay "hundreds of millions" in taxes

Jul 26 - The Trust Advisor

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Former Vanguard employee sues company in tax evasion suit

Jul 26 - Reuters

A former employee of Vanguard Group Inc has filed a whistleblower lawsuit against Vanguard in New York, claiming the company avoided paying federal and state taxes, The Wall Street Journal reported.
The civil suit, which was unsealed in the Supreme Court of New York on Friday, alleges that Vanguard, the largest U.S. largest mutual fund company, has been operating an illegal tax shelter for around 40 years, the Journal said, citing a copy of the complaint. (on.wsj.com/1xdo5RR)
The...

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Ex-S&C Atty’s FCA Suit Claims Vanguard Ducked $1B Tax Bill

Jul 25 - Law360

A former Vanguard Group Inc. in-house attorney and ex-Sullivan & Cromwell LLP associate has hit the investment manager with a False Claims Act suit in New York state court alleging it illegally evaded more than $1 billion in federal and state taxes over the past decade, the plaintiff's attorney said Friday.
Former Vanguard associate counsel David Danon's complaint against Vanguard was filed last year and unsealed Friday, according to Danon's attorney, Brian Mahany of Mahany & Ertl...

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