Whistleblower News from the Inside - October 25, 2013

Whistleblower enforcement provides 20-to-1 return – A report by Taxpayers Against Fraud finds the government recovers $20 for every $1 it spends prosecuting healthcare fraud under the False Claims Act whistleblower statute.  TAF  

Top executive rushed security clearances – Employees at USIS, which performed checks on whistleblower Edward Snowden and alleged Navy Yard shooter Aaron Alexis (and millions of others with access to sensitive information and locations) were told to rush security checks by a top executive even if that meant they were not thoroughly completed.  WSJ

Omnicare pays $120M for illegal kickbacks – The payment was to settle a whistleblower lawsuit charging the company, a leading provider of pharmacy services to the elderly, with giving nursing homes steep discounts on prescription drugs in exchange for patient referrals.  Reuters

Jury finds BofA guilty of mortgage fraud – Following on the heels of the $13B JP Morgan mortgage fraud settlement, a Manhattan jury finds Bank of America liable for selling defective mortgages through a program called the “Hustle.”  NYT

Study shows higher surgery rates for doctors selling implants – The report from the HHS Office of Inspector General raises the concern that surgeons who profit from implants they insert in patients may not always act in the patients’ best interest.  WSJ

Government wastes $297M on spy ship – The Army’s so-called Long Endurance Multi-Intelligence Vehicle, designed to be a state-of-the-art floating spy center, is scrapped because of construction problems and budget cuts.  LA Times