Whistleblower Insider Blog

Monthly Roundup -- July 2014

By the C|C Whistleblower Lawyer Team Here is our look-back at the key whistleblower and fraud developments we have written about over the past month: Featured Posts and Commentary

• “Modest” Changes, or All-Out Assault on the False Claims Act?

The House Judiciary Committee held a hearing yesterday with the innocuous title “Oversight of the False Claims Act.”  At issue was a set of proposed changes to the...

“Modest” Changes, or All-Out Assault on the False Claims Act?

By Jason Enzler The House Judiciary Committee held a hearing yesterday with the innocuous title “Oversight of the False Claims Act.” At issue was a set of proposed changes to the law offered by the U.S. Chamber Institute for Legal Reform (“ILR”). According to an ILR representative’s testimony, the amendments would be “modest” and focused on correcting “flaws” and improving the “effectiveness”...

UK Continues to Say No to US-Styled Whistleblower Rewards

By Gordon Schnell It was only two months ago that the United Kingdom first made official its absolute rejection of US-styled whistleblower rewards. It came out of the response by the Department for Business Innovation & Skills to the “Call for Evidence” it put out last year soliciting comments on how to improve the country’s burgeoning whistleblower system. See UK Rejects Whistleblower Rewards. One of the key...

Whistleblower News from the Inside - July 29, 2014

By the C|C Whistleblower Lawyer Team Flood of SEC whistleblower complaints continues -- According to SEC Whistleblower Chief Sean McKessy, a "critical mass" of tips will soon yield more investigations, fines and bounties: "We're getting close to the sweet spot."  WSJ Lloyds Banking Group to pay $380M for LIBOR rate-fixing -- The British lender is the latest big bank to admit criminal wrongdoing by its employees in...

Whistleblower News from the Inside - July 25, 2014

By the C|C Whistleblower Lawyer Team Judge orders SEC to turn over whistleblower tip to defense attorneys –  The agency normally shields this information from disclosure to protect whistleblowers.  Wall Street Journal Morgan Stanley settles mortgage-backed securities allegations for $275 million – The settlement with the SEC over charges the bank mislead investors is the latest in a string of similar deals...

DOJ Catch Of The Week -- Infirmary Health System Inc.

By the C|C Whistleblower Lawyer Team This week's Department of Justice "catch of the week" goes to Infirmary Health System Inc. On Monday, the Alabama-based hospital system, along with two affiliated clinics and Diagnostic Physicians Group (DPG), agreed to pay $24.5 million to resolve government allegations they violated the False Claims Act. Specifically, the government charged the group with violating the...

Unlocking the Mystery Behind the Government's Terrorist Watch List

By Jason Enzler For over a decade, the government has kept secret how it decides who should be included in the terrorist watch list system.  That all changed yesterday when The Intercept, an internet publication created by a group of intrepid journalists, published a 166 page set of guidelines, which finally unlocks the mystery behind how the government tries to catalogue suspected terrorists.  The contents are...

States Go After 5-Hour Energy for Deceptive Advertising

By Gordon Schnell In the ever-expanding market for high-octane energy drinks, 5-Hour Energy has been the standout success story.  These two-ounce power surges are purchased 9,000,000 times a week for a total takeaway of more than $1 billion a year for the crafty vendors of this wonder blend, Living Essentials and Innovation Ventures.  And it took them only ten years to get there.  Sitting proudly and seductively...

Whistleblower News from the Inside - July 22, 2014

By the C|C Whistleblower Lawyer Team New NSA whistleblower comes forward -- Former State Department official John Napier Tye warns that the National Security Agency is illegally spying on Americans' digital communications under the auspices of an executive order from 1981.  The Atlantic Halifax Health to settle whistleblower case -- $100 million and 5 years of litigation later, the hospital has decided to settle...

DOJ Catch of the Week -- Citigroup

By the C|C Whistleblower Lawyer Team This week's Department of Justice "catch of the week" goes to Citigroup.  On Monday, the bank agreed to pay $7 billion to resolve government claims related to Citigroup’s packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS).  According to Attorney General Eric Holder, it was the bank's misconduct in this area that...