COVID-19 Frauds of the Week: Fake Employees and Fake Treatments

Taxpayers, rightfully upset about large companies such as Shake Shack and Ruth’s Chris Steakhouse claiming large sums of Paycheck Protection Program money from the Small Business Administration, should consider shifting some of their ire to applicants posing as the original intended recipients—small businesses—who are getting in on the grift. And for fraudsters who prefer to market unproven products rather than fabricate employee headcounts and loan documentation, opportunities abound amidst the...

Top Ten Federal Financial Fraud Recoveries of 2019

The U.S. government has a range on enforcement options for financial and investment fraud, including those that provide for whistleblower rewards such as the SEC Whistleblower Program, the CFTC Whistleblower Program, and the IRS Whistleblower Program, each of which are very much open for business and continuing to pay millions of dollars in whistleblower awards in exchange for their assistance in exposing fraud. However, financial fraud is as pervasive as...

How to Report Visa Fraud for a Whistleblower Reward

A settlement with India-based management consulting firm Mu Sigma shows how whistleblowers can make a difference in visa enforcement. In September, 2019, Mu Sigma agreed to pay the U.S. $2.5 million to settle claims that it evaded H-1B visa requirements and brought employees to the U.S. on B1 visitor visas, misrepresenting the nature of their intended employment. In announcing the settlement, Immigration and Customs Enforcement stated that the Mu Sigma...

Top Ten Federal Financial Fraud Recoveries of 2018

While 2018 has been a banner year for FCPA, Tax, and SEC & CFTC recoveries, in the bottomless pit of financial frauds that hurt taxpayers, the government, consumers, investors, and the American economy, 2018 brought us additional stunning recoveries for violations related to residential-mortgage backed securities, international economic sanctions, consumer protection, anti-money-laundering, EB-5 investment fraud, and even investment fraud in the Fyre Festival. Constantine Cannon's Top Ten Financial Fraud Recoveries...

Top-10 DOJ Environmental Fraud Settlements for 2017

Here is our look-back at the top-10 Department of Justice environmental fraud settlements for 2017.  Click here for a full chronological listing of all DOJ fraud settlements for 2017. Click for our new 2018 Top 10 List Volkswagen AG -- The German auto maker agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company’s long-running scheme to sell approximately 590,000 diesel vehicles in...

Bassett Mirror Company Will Pay $10.5M to Settle Whistleblower’s Customs Duties FCA Allegations

By the C|C Whistleblower Lawyer Team Bassett Mirror Company, a Virginia-based home furnishings company, has agreed to pay the United States $10.5 million to resolve allegations it evaded antidumping duties on wooden bedroom furniture imported from the People’s Republic of China over a five year period. Antidumping duties level the playing field for U.S. companies by protecting against foreign companies “dumping” products on the U.S. market at unfairly low prices....

Top-10 DOJ Fraud Recoveries for 2017

Here is our look-back at the Top-10 Department of Justice fraud recoveries for 2017. Click here for a full chronological listing of all DOJ fraud recoveries for 2017. Deutsche Bank-- The German banking giant agreed to pay $7.2 billion to resolve charges it misled investors in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) in the years leading up to the Great Recession.  It is the largest RMBS...

Fraud in Other Government Programs

Federal and state False Claims Acts prohibit any person from knowingly presenting a false or fraudulent claim to the government, and from knowingly underpaying an obligation to the government.  The prohibitions include causing the submission of false claims, and in some cases false claims made not directly to the government but to government contractors or grantees.  Thus, even where the government is not directly paying for goods or services, claims...

Fyre Festival Organizers Accused of Fraud in $100M Class Action Suit

By the C|C Whistleblower Lawyer Team A $100 million proposed class-action lawsuit filed on Sunday accused the Fyre Festival and its organizers of fraud, alleging the music festival's "lack of adequate food, water, shelter, and medical care created a dangerous and panicked situation among attendees—suddenly finding themselves stranded on a remote island without basic provisions." The lawsuit, which seeks $100 million and class-action status, was filed by Mark J. Geragos,...

DOJ Has Banner Week In False Claims Act And Other Fraud Recoveries

By the C|C Whistleblower Lawyer Team Ushering in the New Year with a bang, the Department of Justice last week had what may be its biggest week ever in terms of the number and size of recoveries under the False Claims Act and other fraud statutes. Indeed, in the last three days of the week alone, the agency secured roughly $ 6.6 billion from ten different settlements. Perhaps this highly...