The U.S. Dept. of Justice has filed a False Claims Act suit that accuses three investors and Sovereign Bancorp. Inc. of defrauding the Small Business Administration.
The suit alleges that they disguised their ownership stake in Acorn Technology Fund, failed to disclose conflicts of interest and awarded themselves improper management fees, cheating the government out of $32 million.
The Boston Globe ran the story on December 30, 2006.