Expanded Connecticut State False Claims Act is Win for Whistleblowers
Posted 07/7/23
Whistleblowers take note: the Connecticut State False Claims Act (CT FCA) has been significantly expanded beyond healthcare fraud claims. Historically, the CT FCA was limited to fraud on Medicaid and other programs within health and human services. The amended statute now reaches fraud across a variety of sectors, such as government contracting, education, employment, immigration, housing, mortgage and insurance...
CFTC Targets Cybersecurity and Environmental Fraud
Posted 07/6/23
Last week, the Commodity Futures Trading Commission (CFTC) announced the creation of two new task forces. One is the Cybersecurity and Emerging Technologies Task Force, to address fraud relating to cybersecurity and other emerging technologies. The other is the Environmental Fraud Task Force, to go after environmental fraud and misconduct in derivatives and relevant spot markets. The CFTC is the federal agency...
FTC Warns Against Rise of Text Message Scams - What to Watch Out For
Posted 06/26/23
Scammers are everywhere these days. There is no escaping. And, as the Federal Trade Commission (FTC) has recently warned, bogus text messages are becoming their latest vehicle of choice. An analysis the agency just published found consumers reported losing $330 million to text message scams in 2022, with a median reported loss of around $1,000. That total is more than double the reported losses in 2021 and...
CFTC Whistleblower Alert: Whistleblowers Wanted Relating to Misconduct in Carbon Markets
Posted 06/22/23
On Tuesday, the Commodity Futures Trading Commission (CFTC) issued a Whistleblower Alert calling for help in identifying fraud or manipulation in the carbon markets. The CFTC is the principal federal watchdog for fraud involving the commodities markets. Under the CFTC Whistleblower Program, those who voluntarily provide information that leads to a successful CFTC enforcement action are entitled to an award of up...
Earlier this week, the Securities and Exchange Commission (SEC) unveiled a public service campaign to help older investors protect themselves against securities fraud. The campaign centers around a new TV spot called NeverStop Learning and several short and catchy informational videos highlighting various steps seniors and their caregivers should take to ward off fraud and safeguard retirement savings. In all...
It is the largest award ever made to a whistleblower on record under any of the ever-expanding list of whistleblower rewards programs. $279 million by the Securities and Exchange Commission (SEC) "to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions." That is pretty much all the SEC disclosed in announcing the award because of the agency's strong...
Tax fraud can take many forms, but each form results in shortchanging government coffers. More seriously, with our tax system depending heavily on taxpayers’ willingness to voluntarily file tax returns and pay taxes, tax fraud undermines confidence in the system. Enforcement of tax laws builds confidence in the system, and deserves to be a law enforcement priority.
The top tax recoveries in 2022 start with...
Top Ten Federal Financial and Healthcare Fraud Prison Sentences of 2022
Posted 02/2/23
Financial and healthcare fraud often can carry stiff monetary penalties for entities facing government enforcement, as shown on our other Top Ten Lists. Whistleblowers reporting wrongful conduct under one of the federal whistleblower reward laws sometimes find that criminal authorities are as interested in their allegations as civil enforcement agencies and authorities. Fraud can also result in criminal charges and...
In 2022, the SEC and CFTC redoubled their efforts to preserve market integrity and shut down financial frauds. Both in size and composition, the agencies’ major recoveries look quite different from a year prior. 2021 was all about crypto, with four of the top ten recoveries relating to crypto offerings or exchanges. With the recent collapse of the crypto market—exposing some of the biggest frauds since the...