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Qui Tam Action Leaves Ambulance Company Paying $800,000 Settlement

Williston Ambulance

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According to a recent statement from the Department of Justice, a South Carolina rescue squad has agreed to settle a qui tam lawsuit for $800,000. Williston Rescue Squad, Inc. is based in Williston, SC and provides emergency ambulance services for citizens living in the southwestern portion of the state.

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SEC Files Securities Fraud Charges Against Venture Capitalist for Stealing Investor Funds

Craig Berkman

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The Securities and Exchange Commission (SEC) recently charged a former Oregon gubernatorial political candidate and his lawyer with operating an investment scam selling pre-IPO shares of Facebook, LinkedIn, Groupon, and Zynga.

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Court Rules Lockheed Martin Can be Sued for Underbidding on Government Projects

Lockheed Martin

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The act of deliberately underbidding on projects in order to win federal government contracts is not an uncommon practice.  Contractors submit extremely low bids for certain projects, knowing that the contract will cost the government much more in the end. Contractors underbid on these government projects for several reasons, such as hoping to gain access to a lucrative federal marketplace or the belief that contract modifications will result in a higher revenue for the company. Industry insiders know the practice of underbidding as “buying in” and, according to the U.S. Court of Appeals for the Ninth Circuit, underbidding and/or giving false estimates in the context of a cost reimbursement contract violates the False Claims Act.

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Corning Pays Millions to Settle False Claims Act Lawsuit

Corning

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The New York based company, Corning Incorporated, recently settled a False Claims Act lawsuit for $5.65 million dollars, according to an official statement by the Department of Justice.  The settlement resolves allegations that Corning submitted numerous false claims to federal government agencies in order to receive reimbursement for laboratory research products such as lasers and optic fiber.

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Identity of IRS Whistleblower Leaked: Former IRS Employee Faces Charges

IRS Building

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According to a Department of Justice press release, the U.S. Attorney’s Office for the Southern District of New York in Manhattan announced the unsealing of a complaint that charged a former IRS official with violating conflict of interest laws during the time he was an IRS employee and continuing to do so after leaving his position with the IRS. Dennis Lerner, a former International Examiner in the New York office of the IRS, was also charged with illegally disclosing confidential IRS information. This sensitive information included pending audit data, along with revealing the identity of an IRS whistleblower. Lerner was arrested on September 27 at his home in Edgewater, N.J., and appeared that day in a Manhattan federal court before Magistrate Judge Gabriel W. Gorenstein.

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Tennessee Nursing Home Settles False Claims Act Lawsuit for $2.7 Million

Eric Holder

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According to an official announcement by the Department of Justice, a Tennessee nursing home manager and an affiliate have agreed to a settlement of $2.7 million, including accrued interest, in an effort to resolve charges of violating the False Claims Act.

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False Claims Act Lawsuit: Hospice of Arizona to Pay $12 Million Settlement

American Hospice

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The Department of Justice (DOJ) recently announced it successfully reached a $12 million dollar settlement with Hospice of Arizona L.C., American Hospice Management LLC and their parent corporation, American Hospice Management Holdings LLC. The settlement resolves a False Claims Act (whistleblower) case that alleges Hospice of Arizona knowingly and fraudulently submitted claims to Medicare between September 1, 2002, and December 31, 2010, for patients who did not need end of life care or for whom the hospice billed Medicare at a higher reimbursement rate than it was entitled.

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Extensive Medicare Fraud Investigation Results in a List of Charges for Five Defendants

FBI Press Conference

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The Department of Justice, the FBI and the Department of Health and Human Services (HHS) have announced that five individuals have been charged for their participation in an elaborate Medicare fraud scheme involving purported home health and psychotherapy services. Court documents unsealed in the Eastern District of Michigan revealed that the scheme involved more than $24.7 million in fraudulent medical claims, which were submitted to Medicare for home healthcare and psychotherapy services that were medically unnecessary and/or never actually performed.

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Whistleblower Lawsuit Alleges U.S. Government was Illegally Billed for Unqualified Security

Canopy Patch

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A Virginia-based defense contractor is now facing charges due to a complaint filed by the U.S. Department of Justice. The qui tam lawsuit alleges that the company, Triple Canopy, submitted false claims by hiring unqualified security guards after they were awarded a one-year $10 million contract to provide security in Iraq.

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Whistleblower Exposes Massive Defense Fraud in Faulty Military Satellite Parts Case

TRW

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The Justice Department recently announced that Northrop Grumman Corporation, their subsidiary Northrop Grumman Space and Mission Systems Corporation, and its predecessor TRW Incorporated agreed to settle a False Claims Act lawsuit for $325 million. The qui tam suit alleged that TRW, which Northrop Grumman acquired in 2002, sold the United States government components known as Heterojunction Bipolar Transistors (HBTs) that TRW knew were likely to fail in government satellites. TRW then billed the National Reconnaissance Office (NRO) for those defective microelectronic parts.

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