Top 10 False Claims Act Recoveries for 2024

It was another big year of recoveries under the False Claims Act, the government's primary enforcement tool to combat fraud.  And as usual, whistleblowers paved the way by originating the bulk of the actions that led to these recoveries. As the Department of Justice (DOJ) just reported in its annual roundup of False Claims Act successes, the government and whistleblowers recovered roughly $2.9 billion this past fiscal year (ending September...

DOJ Ends 2024 with a Flood of False Claims Act Successes

While many of us are enjoying the slowdown typically accompanying the holiday season, the Department of Justice (DOJ) has been hard at work with a flood of False Claims Act successes to usher in the New Year.  In the last two weeks alone, DOJ has secured roughly a dozen such settlements, returning roughly $165 million to the government's coffers. The False Claims Act is the government’s primary fraud-fighting tool through...

West Virginia Business Owner Sentenced for COVID Relief Fund Fraud

It appears there is a new name on the list of COVID relief fraudsters—Mark William Bailey, a business owner who evidently couldn’t resist misusing taxpayer-funded pandemic relief for personal luxuries, according to the DOJ this week. After misappropriating approximately $451,237.51 in COVID-19 relief funds guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, through his company RMR Delivery Service Inc., Bailey now...

The Ongoing Effects of COVID-19 Fraud

The legal world continues to navigate the lingering effects posed by the COVID-19 pandemic. Fraud related to relief efforts and financial aid programs remains a significant concern. The DOJ has been cracking down on investigations, and we’re seeing more and more settlements this year. Yesterday, August 13, DOJ reaffirmed its commitment to combating COVID-19 fraud, emphasizing the need for vigilance and public cooperation in detecting and reporting fraudulent activities. Businesses,...

SO-CAL Dental Offices Pay $6.3 Million Settlement for Misuse of COVID-19 Relief Loans

Not looking so sunny for one Southern California Dental company. Yesterday (August 8) it was announced that West Coast Dental Administrative Services LLC (previously known as West Coast Dental Services Inc.), along with its former founders and owners, have agreed to pay $6.3 million to resolve allegations of violating the False Claims Act. This will settle accusations related to the improper acquisition of Paycheck Protection Program (PPP) loans intended for...

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...

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, including two private country clubs and two homeowner associations, knowingly submitted...

DOJ Catch of the Week: Kabbage Inc.

This week's Department of Justice (DOJ) Catch of the Week goes to bankrupt financial technology company Kabbage Inc. (doing business as KServicing).  On Monday (May 13), DOJ announced that the company agreed to pay up to $120 million to settle charges it violated the False Claims Act by improperly securing Small Business Administration (SBA) loans through the COVID relief Paycheck Protection Program (PPP).  The ultimate payout will depend on the...

DOJ Releases False Claims Act Results for 2023

The Department of Justice (DOJ) just released its False Claims Act results for 2023.  By all accounts, it was another big year for the government's primary fraud-fighting tool.  The top-line numbers are roughly $2.7 billion in total recoveries from 543 settlements and judgments, the highest number of settlements and judgments in a single year.  This brings the total tally of False Claims Act recoveries to more than $75 billion since...

Top Ten Non-Healthcare False Claims Act Recoveries for 2023

It was another big year for DOJ enforcement under the False Claims Act, the government's primary fraud-fighting tool.  As usual, most of the recoveries were in the healthcare space with seven of the Top Ten recoveries involving various schemes to defraud Medicare and Medicaid.  See our Top Ten FCA and Top Ten Healthcare FCA listings. While healthcare recoveries dominated the Top Ten, two of the top five recoveries involved government...