Whistleblower News From The Inside — November 9, 2015
By the C|C Whistleblower Lawyer Team
Engineer-whistleblower at Volkswagen behind new revelations of cheating on CO2 testing — Under a new chief executive promising a new management culture, Volkswagen admits that it was an insider who recently revealed to internal investigators that employees had manipulated carbon dioxide and fuel-economy tests, affecting some 800,000 cars. NYT
The pain isn’t over for compounding pharmacies suspected of falsely billing military health insurance program — Although four compounding pharmacies have agreed to pay millions for alleged kickbacks to doctors for writing prescriptions for Tricare beneficiaries, numerous federal and state criminal investigations remain active for other compounding pharmacies. WSJ
Peabody Energy agrees to share climate-change regulatory risks in SEC filings — Agreement resolves accusations that coal giant violated NY securities laws by not fully disclosing the potential effect of climate regulations intended to reduce carbon emissions. Law 360
UBS whistleblower who was both jailed for his involvement in offshore tax scheme and paid a handsome reward for providing related evidence speaks out as his probation nearly ends — “Brad Birkenfeld’s incredible tale begins in 2007 when he turned evidence against one of the biggest and most secretive banks in the world. Still, he insists the real scandal isn’t what happened to him – it’s what happened to U.S. taxpayers.” WKRC (Sinclair Broadcast Group).
Jury convicts former CEO of TierOne Bank of fraud and falsifying bank entries in scheme to cover-up massive losses in risky real estate loans — The trial evidence showed that former CEO Gilbert Lundstrom and his co-conspirators hid over $100 million in losses from shareholders and regulators by inflating reports to the SEC and misrepresenting information in its financial statements and shareholder meetings. DOJ
Jury convicts owner of medical supply company in $4 million Medicare fraud scheme — A federal jury found Valery Bogomolny guilty in a fraudulent scheme involving the sale of medically unnecessary power wheelchairs, back braces, and knee braces. The evidence at trial also showed that the defendant at times did not provide the equipment to beneficiaries at all, created fake reports of home assessments that never occurred, and falsified documentation to support false bills. DOJ