Category: State False Claims Acts

Will the CFTC’s New Top Cop Usher in an Era of Increased Investigation and Related Rewards for Whistleblowers?

On February 14, 2025, the Commodity Futures Trading Commission (CFTC) signaled some “love” for whistleblowers and the future of the CFTC’s whistleblower program when announcing that Brian Young had been appointed as a new enforcement director. Young, whose career included a stint as a federal prosecutor, had most recently been the CFTC’s whistleblower chief.

Is Tax Whistleblowing Making a Comeback?

Takeaways:

  • The IRS is modernizing its somewhat anemic whistleblower program.
  • IRS whistleblower awards are finally rebounding.
  • The IRS is aggressively targeting high-net-worth taxpayers and large corporations.
  • Meanwhile, state false claims acts allowing tax-related claims continue to grow in number and have already yielded hundreds of millions of dollars in recoveries.

$40 Million Settlement with Bitcoin Billionaire and Company Shows the D.C. False Claims Act’s New Tax Provision has Sharp Teeth

Takeaways:

  • The Office of the Attorney General for D.C. announced a $40 million settlement with Michael Saylor and MicroStrategy, Inc., marking the largest income tax recovery in D.C. history.
  • The resolution arose from a qui tam lawsuit filed under the D.C. False Claims Act relating to allegations of a longstanding income tax evasion scheme.

2020 False Claims Act Recoveries: $2.2 Billion in Recoveries and Over $309M in Awards to Whistleblowers

Takeaways:

  • 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.

Calling Insiders With Information on Pandemic Fraud, Waste & Abuse

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.

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Experienced Attorneys

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.

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