Whistleblower Group

CFTC Follows SEC Lead in Striking Down Employment Agreement For Impeding Whistleblowers

Last week (June 17), the Commodity Futures Trading Commission (CFTC) announced that Houston-based commodities merchant Trafigura Trading agreed to pay $55 million to settle charges of violating the Commodity Exchange Act. Specifically, Trafigura traded gasoline based on misappropriated confidential information and manipulated a fuel oil benchmark to benefit its futures and swaps positions.  But what has really...

Guilty Verdict in Whistleblower Case Against Janssen Could Lead to $1 Billion Payout 

A monumental jury verdict was handed down on June 13, 2024, marking a historic win. Johnson & Johnson subsidiary Janssen Products, LP, was found liable for the illegal off-label promotion and marketing of its HIV/AIDS-treatment drugs, Prezista and Intelence. This judgment, stemming from violations of the federal False Claims Act and various state False Claims Acts, could ultimately exceed $1 billion.  The...

Attorney General Letitia James Strikes Again: $50 Million Settlement Reached with Crypto Firm Gemini

In another significant victory for cryptocurrency investors (following this one we wrote about 3 weeks ago), New York Attorney General Letitia James has secured at $50 million settlement from Gemini Trust Company, LLC. This recovery benefits over 230,000 investors nationwide who were allegedly defrauded through the Gemini Earn program.   In the Gemini Earn downfall, Gemini, in collaboration with Genesis Global...

CFTC Makes $8 Million Whistleblower Award

On June 17, the Commodity Futures Trading Commission (CFTC) awarded over $8 million to an insider whistleblower whose critical information and assistance led to multiple enforcement actions by the CFTC and other agencies. This significant payout underscores the vital role of whistleblowers in maintaining the integrity of the commodities markets. This follows the $4.5 million whistleblower award the agency made earlier...

Constantine Cannon Partner Marlene Koury Featured in LAW360 to Discuss DOJ Intervention in Compounding Pharmacy Kickback Case

In a recent feature on LAW360, Marlene Koury, a partner at Constantine Cannon, weighed in on the Department of Justice's (DOJ) decision to intervene in the case of U.S. v. All Heart Pharmacy Inc. et al. This case, which centers around a Florida-based compounding pharmacy, highlights the DOJ's intensified efforts to combat kickback schemes within the healthcare industry.  Koury explained that the DOJ has high...

False Claims Act Suit for Fraudulent Billing of Covid-19 Tests Against LabQ Clinical Diagnostics, LLC and Its CEO

The U.S. Attorney’s Office for the Southern District of New York has filed a civil fraud suit against LabQ Clinical Diagnostics, LLC (LABQ), Community Mobile Testing, Inc. (CMT), Dart Medical Laboratory, Inc. (DART MEDICAL), and their CEO, Moshe Landau. According to a June 13, 2024, press release by the US Attorney, the suit alleges that Defendants fraudulently billed the federal program that reimbursed health care...

Another Busy Week For DOJ False Claims Act Enforcement

While the lazy days of summer may be upon us, there seems to be no slowing down in the efforts of the Department of Justice (DOJ) to combat fraud with the agency settling several False Claims Act matters covering a wide range of fraud and misconduct. This follows a similar post we wrote only three weeks ago highlighting an equally prolific week of DOJ fraud enforcement activity with multiple civil and criminal False...

San Diego Nonprofits Settle for $5.8 Million Over Fraudulent Pandemic Loan Claims 

Several nonprofit organizations have agreed to pay over $5.8 million in a settlement for allegations of obtaining Paycheck Protection Program (PPP) loans, the DOJ reported. The U.S. Attorney's Office for the Southern District of California announced these settlements on June 12, 2024.  The allegations revolve around violations of the False Claims Act. According to the government, the nonprofits in question,...

CityMD Agrees To $12M Settlement for Misusing COVID-19 Relief Funds

Last Friday, the DOJ (Department of Justice) reported that City Medical of the Upper East Side, PLLC, and its affiliates, collectively known as CityMD, agreed to a settlement of $12 million in connection with alleged fraud related to COVID-19 testing, treatment, and vaccine administration for uninsured individuals.  Between a two-year period, CityMD allegedly violated the False Claims Act by submitting claims for...

Constantine Cannon Partners Featured in LAW360 for Victory Against Sutter Health

Constantine Cannon partners Matthew L. Cantor, Jean Kim, James J. Kovacs, and J. Wyatt Fore were recognized as Law360’s “Legal Lions of the Week” for their Ninth Circuit appellate victory in ongoing antitrust litigation against Sutter Health. Read the full story here.