Whistleblower Actions
Phone: (601) 842-5588
Email: bill@rosenblattlawoffice.com
In 2019, whistleblowers assisted the United States government in recovering over $1.9 billion against individuals and or entities that defrauded the United States government.
Under the False Claims Act, individuals who are aware of fraud are encouraged to initiate civil actions, known as qui tam actions, against alleged individuals and or entities who are believed to be committing fraud against the United States Government. Those who choose to act are commonly known as whistleblowers. Successful whistleblowers may receive up to 30% of the money collected from the party that defrauded the United States Government. The percentage is a considerable amount since the United States Government is entitled to three times damages and privileged to collects fines anywhere between $5,000 to $10,000 per occurrence that the alleged individual and or entity falsely billed the United States Government.
Fraud is most prevalent in the healthcare industry but also procurement relationships where an individual and or entity is in a contract with the United States government. Examples of healthcare fraud are as follows [1]:
Billing for medically unnecessary or worthless services;
Promoting drugs and medical devices for non-covered uses;
Falsely inflating drug prices;
Providing false information with respect to diagnoses and electronic health record capabilities.
Examples of procurement fraud are as follows [2]:
Providing kickbacks;
Defective pricing that inflates contract prices;
False representations to win contracts:
Such as falsely claiming eligibility for contracts set aside for small disadvantaged businesses or veterans;
Unallowable costs passed on to the government.
Other common areas are financial fraud, conflicts of interest fraud, disaster relief fraud, and grant fraud [3]:
Financial fraud may occur when an individual and or entity makes false or fraudulent claims to federal agencies to gain access to federally guaranteed loan programs:
Such as misrepresenting one’s business size or payroll cost to induce the government to issue a Small Business Administration (SBA) guaranteed loan;
Conflicts of interest fraud may occur when allegations of improper and undisclosed financial conflicts or allegations that employees have taken official action to benefit themselves, their family, or outside business interests;
Disaster relief fraud may occur in a disaster zone where federal dollars are misused, services contracted for are not provided, and etc;
Grant fraud may occur when an entity misrepresents data and or results to the government agency in which the institution received funding and or an entity misrepresenting itself to receive federal grants.
The following are just a few examples of where the United States Government and whistleblowers collected considerable amounts of funds:
United States Government through a global resolution with Insys Therapeutics receives $225 million. https://www.justice.gov/opa/pr/opioid-manufacturer-insys-therapeutics-agrees-enter-225-million-global-resolution-criminal
AmerisourceBergen Corporation agrees to pay $625 million to resolve allegations that it illegally repackaged cancer-supportive injectable drugs to profit from overfill. https://www.justice.gov/opa/pr/amerisourcebergen-corporation-agrees-pay-625-million-resolve-allegations-it-illegally
Duke University agrees to pay the United States $112.5 million to settle false claims act allegations related to scientific research misconduct. https://www.justice.gov/opa/pr/duke-university-agrees-pay-us-1125-million-settle-false-claims-act-allegations-related
VMWare and Carahsoft agree to pay $75.5 million to settle claims that they concealed commercial pricing and overcharged the government. https://www.justice.gov/opa/pr/vmware-and-carahsoft-agree-pay-755-million-settle-claims-they-concealed-commercial-pricing
CA Inc. to pay $45 million for alleged false claims on government-wide information technology contract. https://www.justice.gov/opa/pr/ca-inc-pay-45-million-alleged-false-claims-government-wide-information-technology-contract
Iron Mountain Companies pay $44.5 million to settle alleged false billings for storing government documents and data. https://www.justice.gov/opa/pr/iron-mountain-companies-pay-445-million-settle-alleged-false-billings-storing-government
Alere to Pay United States $33.2 million to settle false claims act allegations relating to unreliable Diagnostic Testing Devices. https://www.justice.gov/opa/pr/alere-pay-us-332-million-settle-false-claims-act-allegations-relating-unreliable-diagnostic
Dental Management Company Benevis and its affiliated Koll Smiles Dental Clinics to pay $23.9 million to settle false claims act allegations relating to medically unnecessary pediatric dental services. https://www.justice.gov/opa/pr/dental-management-company-benevis-and-its-affiliated-kool-smiles-dental-clinics-pay-239
Defense Contractor ADS Inc. Agrees to Pay $16 million to settle false claims act allegations concerning fraudulently obtained small business contracts. https://www.justice.gov/opa/pr/defense-contractor-ads-inc-agrees-pay-16-million-settle-false-claims-act-allegations
Rotech Agrees to Pay $9.68 million to settle false claims act liability related to improper billing for portable oxygen. https://www.justice.gov/opa/pr/rotech-agrees-pay-968-million-settle-false-claims-act-liability-related-improper-billing
If you are aware of fraud or suspect fraud, contact Bill by phone at (601) 842-5588, or email at bill@rosenblattlawoffice.com for a free and confidential consultation. He will be more than welcome to speak with you.