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BANKRUPTCY Banks pay $176.5M for hiding Enron’s true state HOUSTON (AP) � The Enron Creditors Recovery Corp., formerly known as Enron Corp., has announced that UBS A.G. has agreed to pay $115 million to settle litigation arising out of Enron’s bankruptcy in December 2001. UBS was one of several financial institutions accused of helping Enron create financial structures that hid the company’s true financial condition. A few days earlier, Credit Suisse Group had agreed to pay $61.5 million to settle litigation arising out of Enron’s bankruptcy. FRAUD Firm’s ex-sales chief to pay $30M in restitution NEW YORK (AP) � Former CA Inc. sales chief Stephen Richards has agreed to pay $29.7 million in restitution after pleading guilty last year to criminal charges arising out of a scheme to boost artificially the software maker’s quarterly results by backdating contracts to make it appear that license agreements had been signed during the quarter. Richards, 42, pleaded guilty in 2006 to conspiracy, securities fraud and making false filings with the U.S. Securities and Exchange Commission, and is serving a seven-year prison term. GOVERNMENT Ark., U.S. settle billing dispute for $44 million LITTLE ROCK, ARK. (AP) � Arkansas has settled a dispute with the federal government for $44 million, ending a disagreement over state billing for telephone and computer services. The disagreement concerned the state Department of Information Systems’ method of billing for telephone and computing services for programs at certain state agencies receiving federal funds. The federal government argued that the department had based its charges on estimates or averages, rather than the actual costs, resulting in overbillings. NEGLIGENCE Quadriplegic teen gets $16M for diving accident KANSAS CITY, KAN. (AP) � A Kansas state jury has awarded $16 million to a teenager who was left quadriplegic after diving into a lake. Bradley Hudspeth, 18, was injured in August 2005 while diving with friends at Lake Quivira. Instead of diving from the end of the dock, Hudspeth dived from the side, unaware that the water there was less than four feet deep. He broke his neck. He has been diagnosed quadriplegic, and will be wheelchair-bound for the rest of his life. Hudspeth’s family sued Quivira Inc. � the corporation that owns the common areas of Lake Quivira � as well as a company hired to provide lifeguard services. The family claimed the defendants had failed to establish clear and consistently enforced rules about diving off the dock. “No Diving” signs that had been posted in the late 1990s were not replaced when the dock was resurfaced. Wash. to pay $6.2M over abused foster children SEATTLE (AP) � A Washington state jury ordered the state to pay $6.2 million to four siblings who were repeatedly abused in foster care. The trial focused on whether the state was negligent in licensing and monitoring the Seattle and Tacoma foster homes where the children stayed. The children were beaten and sexually abused at the homes. PROFESSIONAL LIABILITY Misleading sales pitch costs Citibank unit $15M NEW YORK (AP) � Citigroup Global Markets Inc. agreed to pay $15 million to settle charges that a team of financial advisers misled more than 200 BellSouth employees. The Citigroup Inc. unit, which includes brokerage firm Smith Barney, will pay $3 million to settle the allegations by the National Association of Securities Dealers. It will also pay $12.2 million in restitution to the former employees at BellSouth, now a unit of AT&T Inc. The NASD said Citigroup had failed to supervise adequately financial advisers who used misleading sales materials in dozens of seminars in which they promised 12% annual returns. They told BellSouth employees they could afford to retire early by cashing out of, and reinvesting, their pensions and 401(k)s. The investments exposed them to much greater market risk than they would have faced had they stayed in their employer-sponsored accounts. QUI TAM Hospital district settles false claims suit for $15M HOUSTON (AP) � The publicly owned hospital district of Harris County, Texas, has agreed to repay $15 million to the federal government and the state to settle a lawsuit stemming from false Medicare and Medicaid claims the district made from 2000 to 2005. The Harris County Hospital District agreed to settle the suit, originally brought by Robert E. McCaslin Jr., a hospital district employee. The suit accused the district of making false reimbursement claims to the U.S. and state governments. Under “qui tam” provisions of the False Claims Act, the federal government took over McCaslin’s suit, acting as his attorney and awarding him a portion of the hospital district’s repayment.

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