Category: Financial Industry
- January 18, 2021
- Construction, Defense Industry, Federal False Claims Act, Financial Industry, Government Contracts, Healthcare, Investigations, Medicaid, Medicare, Medicare Part D, Pharmaceuticals, Research, State False Claims Acts
- Over $300 million awarded to whistleblowers.
- Dip in recoveries reflects pandemic and economic challenges.
- Number of FCA filings hits a record.
- Healthcare continues to dominate FCA recoveries with kickbacks a major focus.
- Rebound in recoveries is likely as defendants regain financial footing.
On April 16, 2020, the Honorable William M. McSwain, United
States Attorney for the Eastern District of Pennsylvania, issued a sweeping
request for help in identifying companies and individuals who seek to “exploit
the devastating effects of the coronavirus pandemic for their own benefit.” The
Philadelphia United States Attorney’s Office has a long history fighting fraud.
- January 06, 2020
- Construction, Defense Industry, Federal False Claims Act, Financial Industry, Government Contracts, Medicaid, Medicare, Medicare Part D, Pharmaceuticals, State False Claims Acts
This is the second part of a two-part article.
In the first of this two-part series, we discussed the success of the United States’ federal False Claims Act (FCA), the rise of international whistleblowers through a study of the Michael Epp case,
The United States recently filed a False Claims Act Complaint in Intervention against Florida-based compounding pharmacy Patient Care America (“PCA”), two PCA employees, as well as the private equity (“PE”) firm that acquired PCA and helped manage the company.1 The scheme alleged by the government was a common one: the payment of kickbacks for referrals of expensive compound drugs,
In the first-of-its-kind enforcement action, The Securities and Exchange Commission accused a hedge fund adviser, Paradigm Capital Management, Inc. and its owner Candace King Weir, of squashing a top trader after learning that he reported trade violations at the firm.
Paradigm had failed to meet their obligations to obtain client’s consent prior to conducting trades.
JP Morgan is the most recent Wall Street firm to write a check, a whopping $614 million, to the government to settle allegations that it violated the False Claims Act by knowingly underwriting non-compliant mortgages that received federal insurance coverage from the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA).
Tracking the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, new legislation would establish whistleblower bounties and protections for information given to the New York State Department of Financial Services (“DFS”) – a super agency formed in October 2011 to regulate banks and insurance companies in New York.
A quick summary:
- In FY 2011, the IRS received 314 submissions identifying 734 taxpayers that, based on the face of the submissions, appear to meet the section 7623(b) criteria. In FY 2012, the IRS received 332 submissions identifying 671 taxpayers that, based on the face of the submissions,
Relator Bradley Birkenfeld will receive a $104 million award, for his part in revealing UBS Bank’s illegal offshore banking scheme. It is believed to be the largest award to an individual Relator and the first major award under the IRS Whistleblower Act. Birkenfeld will have to settle for online shopping for the time being as he is currently finishing out his felony sentence for his part in the scheme,
Abraham Gutterman and his companies, Alliance Capital Metals LLC and AR Goldman Wealth Management, LLC, are barred from the commodities industry by a court order from Judge Marcia G. Cook, of the U.S. District Court for the Southern District of Florida. As a result from a Commodity Futures Trading Commission (CFTC) complaint associated with a fraudulent gold and oil commodity options scheme,