Attorney General Martha Coakley has announced that during 2008, her office’s Insurance & Financial Services Division recovered more than $77 million for Massachusetts cities, towns, and other government entities under the state’s civil False Claims Act.
The recoveries for 26 municipalities and authorities were obtained as part of an initiative by Coakley to investigate misleading and unlawful investment marketing to local governments. As a result of these efforts, all involved government entities recovered their investments in full.
"We are pleased that through our false claims initiative, we were able to promptly return to cities and town the funds they had invested," Coakley said. "Cities and towns need every dollar available in their budget, particularly during these tough economic times. Our office will continue to aggressively pursue investment advisors and brokers whose deceptive practices threaten to harm the financial wellbeing of our cities, towns, and state offices."
