Whistleblower News From The Inside — January 30, 2017

By the C|C Whistleblower Lawyer Team

Will Trump’s Pentagon be a fraud magnet? – With plans to add an additional $1 trillion over 10 years to the current $600 billion per year defense budget, the Trump administration could make defense contracting fraud even more attractive. The new president has railed against the cost of specific programs, but observers say the real test will be the staffing of the Operational Test & Evaluation Office, which has a quasi-quality-control role. Defense contractors contend DOT&E delays acquisitions and drives up costs.  CNBC

Sticking point in resolution of Wal-Mart’s FCPA case: eligibility to receive food stamps – Wal-Mart is reportedly engaged in discussions with the Justice Dept. regarding allegations that the company violated the Foreign Corrupt Practices Act by paying bribes to foreign government officials. “A company that pleads guilty to a federal crime can lose its right to win government contracts—a penalty that could block Wal-Mart from the $71 billion food-stamp program. The retailer, one of the largest sellers of groceries, is also one of the biggest beneficiaries of food-stamp spending.” WSJ

Ponzi scheme lured investors by claiming they would purchase and resell Hamilton tickets – The SEC and the US Attorney’s Office, SD NY, announced fraud charges against two men who allegedly misrepresented to investors that their money would be pooled to buy large blocks of high-demand tickets that would be resold at a profit. The bulk of investor funds were used to make Ponzi payments to prior investors, with another $2 million diverted to the personal expenses of the two men, who raised more than $81 million from at least 125 investors in 13 states, according to the complaint. SEC