On June 12, 2013, the SEC issued its second whistleblower award and a top SEC official has predicted additional larger awards will soon be forthcoming. The award was issued in connection with an enforcement action against Andrey Hicks and his company, Locust Offshore Management, LLC. The SEC charged that both Hicks and Locust sold shares in a pooled investment fund that turned out to be fictitious.
Not only was the IRS allegedly scrutinizing conservative groups more closely than their liberal counterparts, but apparently the Service was spending enough money to make even the wealthiest world travelers blush. The Treasury Inspector General for Tax Administration has completed an audit of the IRS’ spending over a three-year span beginning in fiscal year 2010.
We had previously reported that plans were in the works to renew efforts for Pennsylvania to adopt a False Claims Act. House Bill 1493 has now been introduced in the Pennsylvania House of Representatives. This proposed legislation, if enacted, would give the Pennsylvania Attorney General’s office primary responsibility for investigating and prosecuting suits against those who are suspected of committing fraud against the Commonwealth of Pennsylvania.
The U.S. Department of Transportation has a program – the Disadvantaged Business Enterprise (DBE) Program – which encourages the use of minority and women owned businesses on federally-funded transportation projects. Contractors on these projects are required to make a good faith effort to meet DBE participation goals in order to receive federal monies.
Under the Affordable Care Act, all providers had to go through a reapplication process in order to participate in Medicare. Those who didn’t meet certain requirements, had felony convictions, incorrect addresses or didn’t have the proper licenses were removed from participation in the Medicare program.
In the 1970’s, the Florida Medical Association and individual physicians filed suit objecting to the release of a list by the U.S. Department of Health and Human Services identifying physicians or practices which received annual payments of $100,000 or more in Medicare reimbursements. On October 22, 1979, a federal district court judge found that the doctors’ privacy interests outweighed the public’s interest in disclosure and prohibited the Department from revealing “any ….
American Commercial College, which is based in Lubock, Texas, will pay $1 million over the next five years to settle allegations that it falsified financial records in order to qualify for federal student aid money. The college may also have to pay an additional $1.5 million. However, it is unclear under what circumstances more money would have to be paid.
Connecticut has settled claims against Gary Anusavice of North Kingstown, Rhode Island and six of Anusavice’s management and consulting companies in a civil suit revolving around an allegedly fraudulent Medicaid billing scheme. The suit, which was brought last May, alleged that Anusavice, his companies and other defendants took part in an elaborate plot covering a two year period which led to the payment of more than $24 million in fraudulent Medicaid claims.
Tony West, the acting Associate Attorney General, claimed that the Justice Department is a “friend” of whistleblowers in his testimony before Capitol Hill regarding his nomination. West noted that it was his leadership as Chief of the Civil Division that led to the filing of a greater number of whistleblower suits and greater recovery of taxpayer dollars than at any other time in history.
Dallas-based hospital, Parkland Memorial, agreed to pay $1.4 million to the federal government to settle allegations that Parkland and University of Texas Southwestern Medical Center submitted false claims for rehabilitation consultations that did not occur. Additionally, the settlement resolves allegations that Parkland billed for certain medical procedures without required physician supervision.
If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.