The False Claims Act enables a private citizen with unique knowledge of fraud committed against the federal government (such as health care fraud, contract fraud, and tax fraud) to file a lawsuit under seal (not accessible to the public) seeking treble (triple the amount) damages on behalf of the government... Read more about the False Claims Act
The Internal Revenue Service released its Fiscal Year 2012 Report to Congress, which details awards paid to whistleblowers under the Tax Relief and Health Care Act of 2006. The whistleblower award program generally requires the IRS to pay awards if information an individual provides substantially contributes to the collection of tax, penalties, interest, and other amounts when the amounts in dispute are more than $2,000,000. Awards are based on percentages of the collected proceeds... full text
A dermatologist in Venice, Florida, has agreed to pay $26.1 million to resolve allegations that he violated the False Claims Act by accepting illegal kickbacks from a pathology laboratory and by billing Medicare for medically unnecessary services, the U.S. Justice Department announced today. The settlement is the largest ever with an individual under the False Claims Act in the Middle District of Florida and one of the largest with an individual under the False Claims Act in U.S. history... full text
A jury ordered a nursing home in Illinois to pay a total of $29 million in penalties for false Medicare claims to the government. Two former employees at the facility filed a complaint that the home allegedly destroyed and/or forged records to make it appear that residents were receiving appropriate care and medications, while residents allegedly went without food or medication, developed bedsores and scabies, and were left to lie in their own waste. The jury found that the... full text
On February 5, 2013, California Attorney General Kamala Harris filed a lawsuit against Standard and Poor's Financial Services LLC and the McGraw-Hill Companies, Inc. , alleging violations of the California False Claims Act and other state law for inflating ratings of investments, which caused California's teachers public employees' pension funds, among others, to lose billions of dollars. The suit seeks treble (triple the amount of) damages, civil penalties, and a... full text
The Wall Street Journal reports today that Justice Department officials have recommended joining a federal whistleblower lawsuit filed by former teammate Floyd Landis that alleges that Lance Armstrong and team managers defrauded the U.S. government when they accepted money from the U.S. Postal Service and then violated their contract by using performance-enhancing drugs. Under the Federal False Claims Act, private citizen whistleblowers are allowed to sue for alleged fraud against... full text
On January 1, 2013, the amendments to the California False Claims Act, signed into law last year by Governor Jerry Brown, took effect. The amendments, among other things, expand the definition of a claim under the state False Claims Act, increase the civil penalties for each violation of the law, and provide qui tam plaintiffs with up to 33% of the proceeds of the action or settlement. Read the Amended California False Claims Act.
The Chanler Group, in association with the Hirst Law Group,... full text
The Journal of Accountancy reports that the Internal Revenue Service has proposed regulations for whistleblower awards in violation of tax law cases and for the disclosure of tax return information. The proposed regulations are intended to provide general rules for submitting claims to the IRS, rules for proceedings, and factors to evaluate the size of an award. Read the Proposed Regulations.
The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action... full text
The U.S. Secretary of Labor announced the creation of the Whistleblower Protection Advisory Committee (WPAC), to advise, consult with and make recommendations to the Department of Labor on ways to improve the fairness, efficiency, effectiveness and transparency of the Occupational Safety and Health Administration's whistleblower protection programs. The WPAC members will use their expertise to provide valuable advice and recommendations to help OSHA strengthen and improve its whistleblower... full text
Healthpoint Ltd. and DFB Pharmaceuticals have agreed to pay up to $48 million to resolve allegations that Healthpoint caused false claims to be submitted to Medicare and Medicaid programs for a non-FDA approved skin ointment, Xenaderm. The U.S. Department of Justice alleges that Healthpoint misrepresented Xenaderm’s regulatory status in its government reports and knowingly caused false claims to be submitted for the product.
The lawsuit was brought under the qui tam, or... full text
The U.S. Department of Justice announced today that it has secured $4.9 billion in settlements and judgments in civil cases involving fraud against the government in the fiscal year ending September 30, 2012. This figure tops the Justice Department's 2011 recoveries by $1.7 billion. Of the $4.9 billion in fiscal year 2012 recoveries, a record $3.3 billion was recovered in whistleblower suits. In fiscal year 2012 alone, relators filed 647 qui tam suits. Since 1986, whistleblowers have been... full text
