FCA Whistleblowers Are More Important Than Ever

Weekly Newsletter | January 8, 2021 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Law360: FCA Whistleblowers Are More Important Than Ever Before The 35-year track record of the anti-fraud Federal False Claims Act and its qui tam whistleblower provisions is a story of great success. Key to that result was the establishment over time of a new paradigm in the form of a public/private partnership. Today, lawyers who represent whistleblowers carry on that tradition by offering needed resources to government officials, in the fight against fraud, waste and abuse of COVID-19 disaster relief funds.

NBC New York: Minority-Owned Companies Waited Months for Loans, Data Shows After news organizations sued the SBA to make data on all PPP loans public, a new report was released that showed that minority-owned companies were some of the last to receive government aid, some not even getting aid until the program’s last weeks. The report showed that aid went to well-known and well-financed companies such as the LA Lakers and chains such as Shake Shack and Ruth’s Chris Steakhouse before the smaller, minority-owned companies.

Case Settlements & Opinions


AP News: Justice Department, federal court system hit by Russian hack “[T]he Administrative Office of U.S. Courts informed federal judicial bodies across the nation that the courts’ nationwide case management system was breached. That potentially gave the hackers access to sealed court documents, whose contents are highly sensitive.”

Dept. of Justice: Government Contractor Admits Scheme to Inflate Costs on Federal Projects and Pays $11 Million to Resolve Criminal and Civil Probes Schneider Electric Buildings Americas Inc. agreed to pay $11 million to resolve criminal and civil investigations relating to kickbacks and overcharges on eight federally-funded energy savings performance contracts. According to the settlement, Schneider Electric would “bury” or “hide” design costs so government agencies would pay the amounts without knowing Schneider Electric was prohibited from charging the government.

Dept. of Justice: The United States and Tennessee Resolve Claims with Three Providers for False Claims Act Liability Relating To "P-Stim" Devices for A Total Of $1.72 Million Three different providers and owners of Affiliated Neurologists, PLC, Total Family Physicians Center, and Chiro2Med of Tennessee P.C. agreed to pay $1.72 million to resolve liability under the False Claims Act for the alleged improper billing for electro-acupuncture using a device called P-Stim which doesn’t qualify for reimbursement under Medicare or TennCare.

Dept. of Justice: Acting Manhattan U.S. Attorney Announces Settlement with Substance Abuse Treatment Center and Its Owner for Enrolling Patients Through Kickbacks and Using Falsified Patient Admissions Forms Addiction Care Intervention Chemical Dependency Treatment Centers (ACI) and its owner agreed to a $6 million settlement to resolve allegations that it provided kickbacks and engaged in fraudulent conduct in connection with the enrollment of Medicaid beneficiaries into ACI’s inpatient treatment program. ACI allegedly paid a kickback to an individual in the form of a sham job with a compensation of more than $75,0000 to induce her to refer patients to ACI programs, and it allegedly had drivers target homeless individuals and offer food and money for drugs and/or alcohol in order to enroll them in its inpatient treatment program.

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