Whistleblower News From The Inside -- July 5, 2017

By the C|C Whistleblower Lawyer Team

Carolina Healthcare System settles FCA suit for $6.5M — The settlement resolves allegations CHS overcharged the government by upcoding claims for urine drug tests. A former laboratory director for CHS will receive over $1.3M for blowing the whistle and initiating the lawsuit. DOJ

Judge to Martin Shkreli: Keep your mouth shut — U.S. District Judge Kiyo Matsumoto “chastised Martin Shkreli, the boisterous former hedge-fund manager and pharmaceutical-industry executive, for speaking to the media during the early days of his trial for securities fraud.” Washington Post

SEC files fraud charges in Bitcoin and office space investment schemes —The Commission announced it filed fraud charges against Renwick Haddow, “the clandestine founder of a purported Bitcoin platform and a chain of co-working spaces located in former bars and restaurants, alleging that he bilked investors in both companies while hiding his connection given his checkered past with regulators in the U.K.”  According to the SEC’s Andrew Calamari, “Haddow created two trendy companies and misled investors into believing that highly-qualified executives were leading them to quick profitability.  In reality, Haddow controlled the companies from behind the scenes and they were far from profitable.” SEC