Our top tax recoveries for 2021 total over $7 billion, an impressive number that is due largely to just one of our top ten tax recoveries. Tax evaders were creative last year, utilizing offshore banking, good old tax fraud, and forum shopping for an accounting opinion that fits—all with the intention of cheating the IRS and, in return, the taxpaying public. IRS Criminal Investigation flexed its muscles and went...
2021 was another banner year for whistleblowers, who once again collectively recovered billions of dollars for the government and hundreds of millions of dollars in whistleblower rewards under the various government whistleblower programs. This includes awards under the qui tam provisions of the federal False Claims Act and various state False Claims Act programs. It includes awards under the Dodd-Frank SEC...
Catch of the Week: Private Equity Firm and Former Executives of a Mental Health Center Reach $25 Million Medicaid Settlement
Posted 10/15/21
In recent years there has been a proliferation of private equity firms taking oversight of healthcare entities. These private equity firms have increased their exposure to False Claims Act liability by playing active roles in the operation of healthcare entities, and multiple settlements have been reached over the last two years (on kickbacks and promotion of unapproved use of drug-device systems on pediatric...
This week brought not one but two newly announced False Claims Act (FCA) settlements with companies in the energy sector: (1) Oklahoma-based energy company Devon Energy Coporationsettled claims it underpaid royalties for natural resources, and (2) National Grid, a utility company in New York settled claims it falsified reports to a local power authority to cover up mismanagement and wasted State electricity. The two...
POGO Reveals Possible “Unholy Alliance” Between ADS, Inc. and the Pentagon
Posted 02/26/21
As small businesses throughout the United States struggle to survive the economic devastation caused by the COVID-19 pandemic, one company claiming to be a small business but with hundreds of employees and more than $3 billion in annual sales, as well as a long history of fraud allegations and settlements, continues to reap huge rewards from government contracts. The company—Atlantic Diving Supply, Inc. (ADS)—is...
A Better Approach for Encouraging Would-Be Whistleblowers to Stand Up and Be Heard
Posted 02/17/21
There is a clear recognition these days that whistleblowers play a critical role in rooting out fraud and misconduct. That is why Congress has passed an ever-increasing array of legislation aimed at protecting and rewarding whistleblowers.
There is the False Claims Act, which rewards and protects whistleblowers who report fraud against the federal government. A majority of states have passed analogous state...
Tax fraud and tax evasion, unfortunately, continued apace last year. Yet even in the face of waning tax resources, enforcement authorities chalked up some key wins in 2020.
Criminal recoveries tend to dominate the headlines because many of the biggest tax recoveries are not public: the IRS scrupulously protects taxpayer privacy, and no announcements are made for civil tax recoveries. Thus only those that result...
2020 was another strong year for whistleblowers, who once again collectively recovered billions of dollars for the government and hundreds of millions of dollars in whistleblower rewards through their filing of lawsuits under the qui tam provisions of the False Claims Act. Whistleblowers this past year also continued to secure financial rewards under the Dodd-Frank SEC Whistleblower and CFTC Whistleblower programs,...