Hedgefund/Whistleblower Gets Bounty vs. Lender in False Claims Act Case

Ciena Capital LLC a New York City lender, has settled a False Claims Act case which was filed by a prominent hedge fund run by David Einhorn. The settlement with the DOJ resolves the allegation that Ciena and its business loan center falsely certified their compliance with Small Business Administration regulations when they sought federally backed loans they made and serviced. Einhorn’s hedge fund Greenlight Capital as well as co-plaintiff James Brickman will receive $4.3 million of the receovery. This case is one of a growing number of False Claims Act cases being filed by corporate entities to stop fraud.