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Whistleblower News From The Inside — February 8, 2016

Posted  February 8, 2016

By the C|C Whistleblower Lawyer Team

HSBC to Pay $470 Million to Settle State and Federal Claims of Mortgage Origination, Servicing, and Foreclosure Abuses — HSBC will provide relief to consumers and payments to federal and state parties, and agrees to be bound to mortgage servicing standards and subject to independent monitoring of its compliance with the agreement.   DOJ

Commodity Futures Trading Commission has spent more on administrative costs of its Whistleblower Program than it has paid out in bounties — A Wall Street Journal analysis found that since the CFTC Whistleblower Program was launched in 2011, it has paid out two awards, totaling $530,000, while spending $4 million on administration costs over the same time period.  The CFTC declined to comment on the WSJ’s analysis.  WSJ

Former DoD Contractor Sentenced In Contracting Kickbacks Case — Robert W. Gannon plead guilty last year to using his position to arrange with executives of a U.K.-based company that they would make kickback payments to Gannon in return for a series of purchase orders Gannon’s company awarded in August 2009 with a total value of nearly $6 million. ED VA

RXpress Pharmacy under Investigation — RXpress Pharmacy is alleged to have paid sales reps commissions to market the pharmacy’s services to doctors in apparent violation of federal anti-kickback laws.  Dallas Morning News

Wells Fargo to pay $16.2 Million to Customers to Settle Kickback Claims — Mortgage brokers reportedly referred business to a Maryland title company in exchange for kickbacks and other materials, affecting more than 9,000 customers from 2009 through 2014.  Baltimore Sun

NYPD Accused of using Nuisance Abatement Law to Increase Evictions in Minority Neighborhoods — Over 1,000 such cases are filed a year, nearly half of them against residences, most commencing with ex parte court proceedings that lock residents out until the case is resolved.  As civil actions, residents are not entitled to an attorney, but can be permanently barred from their homes.    Pro Publica