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Whistleblower Group

This archive page contains posts by the Whistleblower Practice Group.  For all Whistleblower pages, please see: 

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Trump Tower Intrigue

Posted  02/26/21
Silhouette of Man in Front of Trump Tower Building
There may now be informants in Trump Tower.  Most reports of former President Trump’s objections to the National Defense Authorization Act cited his anger about the removal of symbols of the Confederacy and failure to repeal protection for social media companies.  But perhaps Mr. Trump should have paid more attention to a provision buried deep within the law that offers big rewards to whistleblowers who reveal...

POGO Reveals Possible “Unholy Alliance” Between ADS, Inc. and the Pentagon

Posted  02/26/21
Business sign saying "Come In We're Open" in white on blue background
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...

Catch of the Week: The Long Tail of an Infamous Ponzi Scheme

Posted  02/26/21
gavel with handcuffs and money scattered around
In 2012, R. Allen Stanford, former head of Stanford International Bank (SIB), was sentenced to 110 years’ imprisonment for masterminding a massive Ponzi scheme through which he misappropriated $7 billion from bank customers.  That scheme had been running for twenty years when it was shut down in 2009. Now, in February 2021, ten years after Stanford’s conviction and thirty years after his scheme began, the...

February 26, 2021

United Airlines will pay a total of $49 million to resolve criminal and civil claims that its cargo division fraudulently overcharged the U.S. Postal Service under International Commercial Air (ICAIR) contracts by which United transported U.S. mail internationally.  While the contracts required United to bill the government based on the delivery of mail receptacles, as supported by departure and arrival scans of the receptacles, United submitted false data that was not based on actual scans or the movement of mail, and United employees who knew about the false data and billings took steps to conceal this information.  To resolve the criminal claims, United will pay $17.3 million in penalties and enter into a non-prosecution agreement including specific compliance and reporting requirements; to resolve civil claims under the False Claims Act, United will pay $32.2 million.  DOJ

February 25, 2021

Texas Center for Orthopedic and Spinal Disorders and its owner, osteopath Mark Kuper, have agreed to a judgment of $11.2 million to resolve claims arising from their fraudulent billing of government healthcare programs.  Kuper also pleaded guilty to healthcare fraud, and was sentenced to 10 years in prison.  Defendants admitted that they submitted claims for services that were never rendered, including claims for one-on-one physical therapy pursuant to an individualized plan of care, when patients were actually attending group sessions with an athletic trainer, and claims for 60-minute psychotherapy sessions when patients actually spoke with unqualified individuals for just 15-20 minutes.  In addition, Kuper permitted his wife to use his credentials to issue prescriptions for controlled substances.  The civil investigation was initiated by a qui tam complaint filed by Richard Brown, who will receive 17% of the government’s recovery.  USAO ND TX

February 24, 2021

William Taylor, the former chief operating officer of publicly-traded biopharmaceutical company MiMedx Group, Inc., was sentenced to one year in prison and ordered to pay a fine or $250,000 following his jury trial conviction on charges arising from accounting fraud.  The government presented evidence at trial that Taylor authorized the false recognition of revenue upon the shipment of MiMedx products to distributors despite knowing that the GAAP criteria for such revenue recognition had not been met.  Instead, MiMedx had promised the distributors that they could return the product or did not need to pay for it, in some cases knowing that the distributors were unable to pay for the product.  As a result, MiMedx reported materially inflated revenue in 2015.  USAO SDNY

February 24, 2021

Florida man David John Ridling was sentenced to 15 years in prison following his guilty plea on charges that he defrauded five financial institutions, securing over $40 million in loan proceeds and lines of credit, some of which he used to pay amounts to earlier victims.  Ridling, who owned and ran a farm, used fabricated and forged brokerage account statements, financial statements, and tax returns, and impersonated brokerage company personnel to misrepresent his financial condition.  USAO MD FL

February 24, 2021

Leroy King, the former chief of Antigua’s Financial Services Regulatory Commission, was sentenced to 10 years in prison for his role in obstructing the SEC’s investigation into the $7 billion Ponzi scheme perpetrated by R. Allen Stanford and the Stanford International Bank.  Stanford provided King with cash and luxury gifts, and in exchange King improperly denied his agency’s assistance to the SEC.  DOJ

February 24, 2021

Constantine Cannon attorneys Mary Inman and Max Voldman were quoted in the Bloomberg Law article, Pfizer Lawsuit Tests Crackdown on Drugmakers Picking Up Copays.  Click here to read more.

February 23, 2021

Chicken producer Pilgrim’s Pride Corporation has pleaded guilty to criminal antitrust violations and agreed to pay a fine of $107 million.  According to the plea agreement, Pilgrim’s participated in a conspiracy to fix prices and rig bids for broiler chicken products and thereby suppress and eliminate competition. DOJ
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