[Updated through 2020] We originally wrote this post in August 2013. That is when the federal government filed suit against PharMerica Corp, a major long-term care pharmacy. The lawsuit was originally begun in 2009 by a former PharMerica employee turned whistleblower. Eleven years and 31.5 million later, the company still hasn’t learned its lesson. That […]
College Pays Millions In Whistleblower Suit
Northwestern University settled federal fraud charges yesterday following a suit filed by a whistleblower under the federal False Claims Act. University administrators agreed to repay the government $3 million although admitted no wrongdoing. False claims act cases against non-profits are still rare but are increasing in frequency. According to the complaint unsealed yesterday, Professor Charles […]
Heads on Beds – Assisted Living Facility Whistleblowers Post
[Post Updated through 2019] Whistleblowers play a critical role in the fight against rising healthcare costs. The biggest area of fraud – one that costs the government billions of dollars in fraud annually – is the Medicare program. Because Medicare is subsidized with tax dollars, healthcare providers that bill for unnecessary or poor quality services […]
Whistleblowers to Receive $361,000 in Land Mine Detector Case
Two former executives of CyTerra Corporation became whistleblowers and are now slated to receive $361,000 for their efforts in uncovering pricing problems with their former company. CyTerra manufactures portable land mine detectors for the U.S. military. Earlier this month federal prosecutors settled with the company for $1.9 million. In 2003, the Army contracted with CyTerra […]
Whistleblowers Key to Fighting Government Fraud
The federal government loses billions of dollars to fraud every year. Mortgage companies falsify documents in order to earn commissions on loans. When the borrower can’t pay, the FHA or Fannie Mae steps in – your tax dollars. Ditto for doctors that bill Medicare for unnecessary services or services not even performed. Same for vendors […]
Defense Contractor Whistleblower Gets $1.8 Award
A former project manager for Science Applications International was awarded $1.8 million for exposing a massive overbilling scheme according to an AP story carried in the Ventura County Star. Prosecutors claimed the company over charged the government for homeland security training programs. Science Applications is a Virginia based defense contractor that employs over 40,000 people […]
Whistleblower Law Used To Prosecute Section 8 Housing Fraud
Over 3 million households rely on HUD’s Section 8 rent subsidy program. The law was designed to insure that low income families have access to safe, decent and sanitary housing. Landlords receive a subsidy from the the government and agree to charge those eligible for the program a below market rental rate. Unfortunately, some landlords […]
Feds Charge 89 With Medicare Fraud – Whistleblowers Rejoice
Earlier this month, federal officials arrested 89 people in Miami, Detroit, Tampa, Houston, New York and Los Angeles and charged them with health care fraud. The action was a coordinated effort involving the FBI, Postal Inspectors, IRS, Department of Health and Human Services and local officials. Historically, many of these cases come to light because of […]
Lance Armstrong Named In Whistleblower Suit
by Brian Mahany Almost 2 years ago, Floyd Landis filed a false claims act (whistleblower) suit against teammate Lance Armstrong. That complaint remained under seal for over two years while the government investigated. Several weeks ago, the government intervened and adopted the action against Armstrong. The government seeks return of some $17 million in sponsorship […]
Nursing Homes – Next Wave Of Whistleblower Cases? (False Claims Act)
by Brian Mahany The front page headline of today’s Wall Street Journal says it all – “As America Ages, Shortage Of Help Hits Nursing Homes.” The fastest growing segment of America’s population are baby boomers and they are starting to hit their mid 60’s. As the demand for nursing home beds increases, the amount of […]
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