Government Fraud

June 3, 2013
American Commercial Colleges Inc. (ACC), a Texas-based for-profit corporation, has agreed to pay the United States government up to $2.5 million, including interest, to resolve allegations that they knowingly submitted or caused the submission of false claims to federal student aid programs, the U.S. Department of Justice announced last week. In order to be eligible for...
April 24, 2013
The U.S. government filed its complaint against former cycling champion Lance Armstrong in Washington, D.C., Reuters reported yesterday.  Armstrong, now stripped of his seven Tour de France wins, is accused of defrauding his sponsor, the U.S. Postal Service, by taking millions of dollars in sponsorship money while at the same time engaging in prohibited substance and...
April 18, 2013
California-based biotechnology company Amgen, Inc. will pay the United States $24.9 million to settle allegations that Amgen knowingly caused the filing of false claims to the federal government, the U.S. Department of Justice announced. Amgen allegedly gave kickbacks to pharmacy providers Omnicare, Inc., PharMerica Corporation, and Kindred Healthcare, Inc. in return for...
April 10, 2013
A federal jury found for whistleblowers in reaching a verdict that State Farm Fire and Casualty Co. knowingly provided fraudulent claims to the federal government under the flood insurance program for Hurricane Katrina regarding damage to at least one home, the San Francisco Chronicle reported on Tuesday.  In reaching its special verdict, the jury found that State Farm...
April 3, 2013
Fluor Corp. has agreed to pay a $1.1 million settlement to resolve allegations that it violated the False Claims Act when it allegedly used federal money to pay lobbyists, the U.S. Department of Justice announced today. Fluor Hanford operated the Hazardous Materials Management and Emergency Response (HAMMER) training center for the Department of Energy from 2005 to 2009....
March 29, 2013
CDW-Government LLC (CDW-G), a wholly owned subsidiary of Illinois company CDW Corporation, has agreed to pay $5.66 million to resolve false claims allegations in connection with a U.S. General Services Administration (GSA) contract, the U.S. Department of Justice announced today. CDW-G allegedly improperly charged government purchasers for shipping, sold products to the U.S....
March 28, 2013
The University of California has agreed to pay a $1.2 million settlement to resolve allegations of falsification of medical records and poor supervision of patients, the Los Angeles Times reported yesterday. The suit was brought by whistleblower Dr. Dennis O’Connor, a former professor of anesthesiology at the UC Irvine School of Medicine.  He alleged that anesthesia...
March 27, 2013
On March 21, the U.S. Court of Appeals for the Seventh Circuit upheld the district court’s decision to find Anchor Mortgage Corporation and its CEO John Munson liable for false claims submitted in loan guaranty applications to the U.S. government, but reversed the “gross trebling” calculation of the damages in favor of “net trebling,” which...
March 26, 2013
Alabama-based Caddell Construction has agreed to pay a $1.15 million settlement to resolve allegations that they violated the False Claims Act by knowingly making false reports to the Army Corps of Engineers that they had hired and were mentoring a Native American-owned company to work construction projects, the U.S. Department of Justice announced. The United States alleged...
March 15, 2013
Earlier this month, the U.S. Court of Appeals for the Eighth Circuit upheld the federal district court's decision that the two whistleblowers, or relators, in Rille et al v. Accenture, LLP et al, No. 11-2054 (8th Cir. 2013) were entitled to a 15% share of the federal government's $46 million False Claims Act settlement with Hewlett-Packard, amounting to a $6.9 million...