Whistleblower News From The Inside -- January 13, 2017
By the C|C Whistleblower Lawyer Team
Ex-Visium trader tells New York jury how he turned whistleblower — A former trader at Visium Asset Management LP, Jason Thorell, testified about how he turned whistleblower and helped U.S. authorities investigate Visium. Thorell said Visium employees routinely sought sham quotes from brokers to justify inflated values for debt securities, and deviated from prices set by third-parties on a magnitude beyond what was usual. When Thorell tried to report it, his concerns were dismissed. Reuters
SRCTec, LLC to pay over $6.3M to resolve FCA allegations — SRCTec, which manufactures a lightweight counter mortar radar system and associated replacement parts, will pay over $6.3 million to resolve False Claims Act allegations concerning its knowledge of anomalies in source-of-fire accuracy data in certain combinations of initial system columns and column spares it sold to the US Army. NDNY
Baxter to pay more than $18.2M to settle allegations over mold at manufacturing facility — Baxter Healthcare Corporation has agreed to pay $18 million to resolve criminal and civil liability arising from its failure to follow current Good Manufacturing Practices at its North Carolina plant. The government charged that Baxter introduced into interstate commerce adulterated drugs because Baxter manufactured IV solutions for several months while moldy air filters identified by an employee turned whistleblower remained in place. DOJ
France investigating Renault on suspicion of emissions fraud — French authorities are investigating carmaker Renault in connection with suspected fraud in its diesel emissions controls, denting the company’s share price as the global fallout spreads from revelations of emissions cheating at Volkswagen. LA Times
Woman pleads guilty in $7.8 million Medicaid fraud scheme – The administrator of five Houston-area home health agencies has pleaded guilty for her role in a $7.8 million Medicaid fraud scheme. Federal prosecutors say Idia Oriakhi and others obtained patients for her family’s home health agencies by paying kickbacks to patient recruiters and physicians for referring and certifying Medicaid patients for in-home attendant and community-based services that were medically unnecessary. Washington Times
Leader of Wells Fargo criminal fraud ring sentenced to seven years in prison — Prosecutors said former Wells Fargo employee Ronald Charles Reed recruited several other employees at Wells Fargo branches and paid them to steal customer information, including account and Social Security numbers. Reed then gave that information to “runners” who, using fake IDs, went to tellers and were able to withdraw $580,332 from 75 customer accounts. LA Times