Catch of the Week: A Tale of Two Cons

The start of February 2022 brought resolutions in two different COVID-19 fraud cases, one in the Paycheck Protection Program and one in the Pandemic Unemployment Assistance program. Both involved scammers with previous criminal records who fraudulently obtained COVID relief money. The Department of Justice continues to prioritize enforcement against fraudsters who take advantage of the Paycheck Protection Program, even when the amounts involved are relatively low. On February 7, the...

DOJ Announces $5.7 Billion in FCA Recoveries in Fiscal Year 2021, with Boost from Purdue Settlement Claim

DOJ has released its annual announcement of recoveries in civil cases involving fraud and false claims against the government, and the total recoveries are eye-popping: $5.65 billion in settlements and judgments.  These recoveries make FY2021 the second largest year in False Claims Act history, and the largest since 2014. As in prior years, healthcare fraud dominated, with more than $5 billion of the total recoveries – 90% of the total. ...

Payments News Update – December 17, 2021

Legal and Regulatory Developments SPOTLIGHT: UK Government Outlines Plans for Regulation of Buy Now Pay Later Industry The Spectator – December 15, 2021 The buy now pay later industry has exploded in recent years, with the industry now worth $100 billion (circa £70 billion). Also known as BNPL, it is used by shoppers to delay payments on any kind of product from champagne to clothes and kitchens, and the option...

November 16, 2021

Richard Ayvazyan was sentence to 17 years in prison, his wife Marietta Terabelian to six years, and his brother Artur Ayvazyan to five years, following their convictions at trial on charges related to their scheme to fraudulently obtain more than $20 million in Paycheck Protection Program and Economic Injury Disaster Loan COVID-19 relief funds.  The defendants used dozens of false identities to submit fraudulent applications for approximately 150 PPP and...

Recent Settlements Show Kickbacks are Always a DOJ Enforcement Priority

The Department of Justice regularly highlights the areas of fraudulent conduct it intends to target as enforcement priorities.  These identified enforcement priorities tend to cover burgeoning areas of fraud or particular misbehavior especially ripe or prevalent because of the particular times we live in.  As might be expected, DOJ's current listing of priorities includes fraud related to the pandemic, opioids, the elderly, electronic health records, telehealth services, and as most...

Next Up: Infrastructure Oversight Week?

More than four years after “Infrastructure Week” was first announced by President Trump back in June 2017, Congress has finally passed an infrastructure bill and President Biden will soon sign it into law.  A staggering $1.2 trillion in taxpayer money will soon start flowing from the U.S. Treasury to private contractors to upgrade the nation’s roads, bridges, power grid, and other public works.  Is it too soon to start talking...

Three States Impose Profit Limits on Nursing Homes

New York, New Jersey, and Massachusetts have just sent a clear message to nursing home operators: patient care must be prioritized over profits.  Each state is introducing rules requiring nursing homes to spend a specific portion of their total revenue on direct patient care.  In New York, it will be at least 70%, in Massachusetts at least 75%, and in New Jersey at least 90%.  The three states are also...

Payments News Update – October 15, 2021

Legal and Regulatory Developments SPOTLIGHT: European Banks Debate Rival to US Payment Giants Politico EU – September 30, 2021 Europe’s biggest banks will decide if it’s in their interests to take on the U.S. payment duopoly of Mastercard and Visa as soon as next month, as political pressure grows to break American dominance in this space. Deutsche Bank, Commerzbank, BNP Paribas, ING, Santander, UniCredit and BBVA are among 22 backers...

The Five Developments You Should Follow if You Want to Know What Antitrust Enforcers Are Doing in the Fields of Agriculture

While you may have noticed how expensive your recent trips to the supermarket have become, have you thought about why?  Is it because of the pandemic? Shipping problems?  Is it due to problems with the food supply? The short answer is “all of the above,” but, according to the Biden administration, antitrust abuses—including consolidation in the agriculture industry—could also be playing a major role in the hefty price increases for...

Whistleblower Reveals Facebook’s Lies: Will the SEC or Congress Act to Curtail Threats to Democracy and Teens from Social Media?

For anyone who cares about the future of liberal democracy, improving the mental health and well-being of children, ending the COVID-19 pandemic, or stopping drug cartels and human trafficking, the recent series in The Wall Street Journal titled “The Facebook Files” is a must-read.  Based on a trove of internal documents shared by a Facebook whistleblower, as well as interviews with numerous current and former Facebook employees, the WSJ series...