Whistleblower News From The Inside -- May 16, 2018

By the C|C Whistleblower Lawyer Team

DOJ Intervenes in FCA Lawsuit Against Insys Therapeutics – “As stated in the complaint, which was unsealed [yesterday], the United States alleges that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. Many of these kickbacks took the form of speaker program payments for speeches to physicians that were, in fact, shams; jobs for the prescribers’ relatives and friends; and lavish meals and entertainment. The United States also alleges that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and that Insys employees lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.” DOJ

SEC Charges Brokerage Firms and AML Officer with Anti-Money Laundering Violations – “The Securities and Exchange Commission today announced settled charges against broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failing to report suspicious sales of billions of penny stock shares. Broker-dealers are required to file Suspicious Activity Reports (SARs) for transactions suspected to involve fraud or with no apparent lawful purpose.” SEC

Whistleblower: Cambridge Analytica Aimed to Trigger Paranoia and Racial Biases – “Cambridge Analytica used Facebook to find and target Americans to trigger paranoia and racial biases, a former employee of the data analytics company told lawmakers on Wednesday.” NPR