The federal False Claims Act is one the most powerful tools used by the federal government to recover fraudulently paid monies. In fiscal year 2021 (FY2021), the Department of Justice recovered over $5.6 billion with the False Claims Act in civil cases. These monies came from both cases that ended in settlements and judgments. FY2021 …
DOJ Files Complaint Against Texas Hospital and Laboratory CEOs and Physicians for Violating the Anti-Kickback Statute
Kickbacks are one of the most common types of fraud that occurs within the healthcare industry. They usually happen when a doctor or a medical provider receives money or some type of benefit in exchange for referrals. This not only erodes the patient’s trust in their doctor, but it can lead a doctor to make …
Textile Manufacturer Heytex has agreed to pay $3 million in a Settlement with the Government to Resolve Allegations of Fraud
Textile manufacturer Heytex has agreed to pay $3 million in a settlement with the government to resolve allegations of fraud. Founded in 1913 in Germany as a company that weaved sail cloth, Heytex has managed to stay in business for more than 100 years through innovation and expansion. With four manufacturing plants, they now provide …
SEC Adds More Personnel to its Cryptocurrency Fraud Fighting Cyber Unit, Nearly Doubling the Unit’s Staff
In recent years, we have seen the rise of new types of markets and investment opportunities, mainly through the creation and popularity of cryptocurrencies. Unfortunately, this has also led to an abundance of fraudsters abusing these new markets to scam people. By offering unregistered crypto assets or tricking people out of their crypto investments, many …
Company Pays $84 Million to Settle FCPA Case
Stericycle Inc. is a company that specializes in the waste management of regulated materials, like medical or pharmaceutical waste. The company is based in Illinois but has many facilities around the world. As part of its business, Stericycle enters into contracts with foreign governments to handle their hazardous wastes. Unfortunately, some of these contracts have …
FY 2021 was a Terrible year for the IRS Whistleblower Program and Some Congresspeople want a Solution
The Internal Revenue Service (IRS) Whistleblower Office pays monetary awards of 15% – 30% to eligible individuals whose information is used by the IRS to stop tax fraud where the amount involved exceeds $2 million. This program is extremely important, but unfortunately, the recently released annual report shows that the program is currently undergoing its …
Set-Aside Contract Fraud and the Recent Trimark Settlement
On February 23, 2022, the DOJ reached a settlement that constitutes “the largest-ever False Claim Act recovery based on allegations of small business contracting fraud” against TriMark USA for improperly manipulating federal small business set aside contracts. The kitchen and food services equipment supplier agreed to pay a whopping $48.5 million to resolve these allegations. …
Hospice CEO Sentenced to Prison for Over a Decade for a $60 Million Fraud Scheme
Bradley Harris, former head of Texas-based Novus Hospice, was sentenced to 13 years and 3 months in federal prison for his role in defrauding Medicare and Medicaid for millions in false healthcare claims. In addition, Texas Judge Barbara Lynn ordered him to pay around $28 million in restitution. Per U.S. Attorney Chad Meacham, “this defendant …
The SEC Paid its Largest Ever Whistleblower Rewards in 2020 and 2021
The largest ever reward paid out by the Securities and Exchange Commission (SEC) was $114 million on October 22, 2020 after the relator voluntarily provided the SEC with original, timely, and credible information that lead to a successful enforcement action. This reward is the largest ever paid out by the SEC to a single whistleblower …
Whistleblower discovers insurance giant defrauding Medicare
A whistleblower lawsuit accused the health insurance company UnitedHealth Group of a vast Medicare and Medicaid fraud. According to the suit recently made public by the Department of Justice (DOJ), the insurer made patients appear sicker than they were in order to overcharge the federal programs by hundred of millions, if not billions, of dollars. …