Whistleblower Group

Constantine Cannon Whistleblower Client Secures $34 Million Settlement in DaVita Kickback Case

Last week (July 18), DaVita Inc., a major player in the dialysis industry, agreed to pay roughly $34 million to settle allegations it violated the False Claims Act through the payment of illegal kickbacks. Constantine Cannon represented the courageous whistleblower who came forward to blow the whistle on this alleged scheme. The Denver-based healthcare giant, known for its extensive network of dialysis treatment...

CFTC Whistleblower Program at Risk?

Last week, the Commodity Futures Trading Commission (CFTC) awarded over $8 million to a whistleblower whose information led to multiple enforcement actions through the CFTC’s Whistleblower Program. Under this program, whistleblowers who provide information to the CFTC that leads to a successful enforcement action may receive up to 30% of the government’s recovery. However, there is an issue as to whether there...

SEC Makes $37 Million Whistleblower Award

Yesterday (July 17), the Securities and Exchange Commission (SEC) announced an award of roughly $37 million "to a whistleblower who provided information not previously known to the SEC and which significantly contributed to a successful enforcement action." Given the strict confidentiality the SEC maintains with its whistleblowers, the agency neither identified the whistleblower nor the enforcement action to which the...

Hospice Care for Who? Kindred and Related Entities Settle for $19.M  

Yesterday the DOJ announced that Gentiva, the successor to Kindred at Home, has agreed to a settlement of roughly $19.5 million. This resolution addresses allegations that Kindred, and its related entities violated the False Claims Act by billing the government for unnecessary hospice services and improperly retained overpayments. The accusations spanned a decade, involving numerous patients who were ineligible for...

Armstrong Group Settles False Claims Allegations

Armstrong Group, a major northeastern cable television, telecommunications and internet service provider based in Butler, Pennsylvania, has agreed to pay $6.5 million to settle allegations under the False Claims Act concerning its participation in the Federal Communications Commission’s (FCC) High-Cost Program. This program, part of the Universal Service Fund (USF), aims to ensure equitable access to modern...

Rite Aid Settles Allegations Over Improper Opioid Dispensing

Rite Aid Corporation, one of the biggest names in the retail pharmacy industry, has reached a settlement following allegations of improper practices related to opioid dispensing. This settlement, announced by the U.S. Department of Justice, involves a total payment of $7.5 million to resolve claims under the False Claims Act  and Controlled Substances Act (CSA). 

From 2014 to 2019, Rite Aid allegedly dispensed...

Clermont Labs Settle for $2.45M Over False Claims Act Violations 

Last week, the U.S. Attorney's Office for the Middle District of Florida announced a $2.45 million settlement with three Clermont-based laboratories: Vista Clinical Diagnostics, LLC; Access Dermpath, Inc.; and Advanced Clinical Laboratories, Inc. The settlement resolves allegations that the labs submitted manipulated diagnosis codes to Medicare and Medicaid, violating the False Claims Act.  For nearly 5 years, the...

In Their Own Words.... Deputy Attorney General Lisa Monaco 

“Our message to whistleblowers is clear: The Department of Justice wants to hear from you. And to those considering a voluntary self-disclosure, our message is equally clear: Knock on our door before we knock on yours.” Deputy Attorney General Lisa Monaco from the Washington Post article on the soon-to-be-launched DOJ white-collar crime whistleblower rewards program.  Stay tuned!

Paxful Inc. Co-Founder Pleads Guilty to Conspiracy Charges Over Anti-Money Laundering Failures 

Artur Schaback, the co-founder, and former Chief Technology Officer (CTO) of Paxful Inc., pleaded guilty yesterday to conspiracy charges related to his failure to maintain an effective anti-money laundering (AML) program. There are significant efforts being made to regulate virtual currency platforms and ensure compliance with the financial laws.  The conspiracy consists of consciously failing to establish,...

Former Executives Sentenced for $1B Corporate Fraud Scheme  

Last week, three former executives of Outcome Health, a Chicago-based health technology start-up, were sentenced for a massive fraud scheme in which they deceived clients, lenders, and investors, resulting in approximately $1 billion in fraudulently obtained funds.   Rishi Shah, 38, co-founder and former CEO of Outcome Health, received a sentence of seven years and six months in prison. Shradha Agarwal, 38,...