Whistleblower Insider is written by the Constantine Cannon law firm team of experienced qui tam and whistleblower lawyers. It is updated regularly to provide the latest whistleblower and fraud news and developments.
Flood of SEC Whistleblower Awards Continues
It has been less than two months since SEC Whistleblower Chief Jane Norberg left the agency for private practice. As we previously wrote, her five years running the agency's Whistleblower Program were groundbreaking in the number and amount of awards the SEC made and in the agency's efforts to champion the critical role whistleblowers play within the SEC enforcement regime.
As we also wrote at the time, the SEC...
Catch of the Week: SEC Cracks Down Again on Cybersecurity Disclosures
This week’s Catch of the Week goes to the Securities and Exchange Commission for its latest settlement involving cybersecurity risks. The SEC charged First American Financial Corporation, an insurance company listed on the New York Stock Exchange, with failing to adequately control for cybersecurity risks. According to the SEC’s Order, a journalist alerted First American that it had a major vulnerability in...
This Week in Whistleblower History: 50th Anniversary of the Publication of the “Pentagon Papers,” Leaked by Daniel Ellsberg
This week marks the 50th Anniversary of the publication by The New York Times, starting on June 13, 1971, of a series of reports on the secret history of the Vietnam War based on thousands of pages of highly classified government documents. The documents, which became known as the “Pentagon Papers,” were leaked by Daniel Ellsberg, a former U.S. Marine with a Ph.D. in Economics working as a military analyst for...
Auto-safety regulators finally take steps to stand up nation’s only safety-focused whistleblower program, but challenges lie ahead
Back in 2015, the public seethed over the auto industry’s historic failures. Takata’s air-bag scandal, Toyota’s unintended-acceleration deceptions, and General Motors’s deadly ignition-switch cover-up were in the headlines. Hundreds died and millions were exposed to grave dangers because of the industry’s propensity to bury known safety defects.
In 2015, Congress tried to turn the tide, passing the
If you travel often, you probably hate the rote sales pitch of a la carte add-ons at the car rental counter. Perhaps you check in online not just to save time but to avoid the whole spiel.
Wouldn’t you like the peace of mind of adding on the collision damage waiver? The loss damage waiver? Supplemental liability coverage, also known as additional liability insurance? Personal accident insurance? ...
Whistleblowers Without Borders: International Whistleblowers are Increasingly Important Contributors of Tips to the SEC Whistleblower Reward Program
On March 4, 2021, the SEC announced an award of over $5 million to joint foreign whistleblowers whose tip, providing significant information about misconduct abroad, caused the opening of an investigation that resulted in a successful SEC enforcement action.
According to Jane Norberg, former Chief of the SEC’s Office of the Whistleblower, “The whistleblowers’ information alerted the staff to misconduct...
Whistleblowing is crossing paths with antitrust enforcement. Expect the trend to accelerate.
In the past few years, whistleblowers have become increasingly instrumental in detecting and addressing corporate wrongdoing. Increased protections and financial incentives have encouraged whistleblowers to expose corruption and other wrongdoing, much of which would otherwise often go unnoticed.This phenomenon is also...
Catch of the Week: Second Conspirator Pleads Guilty in Jay Peak EB-5 Fraud Case
William Kelly pleaded guilty to two felony charges in connection with EB-5 securities fraud in the development of the Jay Peak Biomedical Research Park, also called the AnC Vermont project. Kelly, who served as the chief operating officer for the project, was a long-time advisor to project owner Ariel Quiros, who previously pleaded guilty to related charges. Co-defendant William Stenger, the project’s CEO, pleaded...
Last October, Purdue Pharma, the inventor, manufacturer, and marketer of Oxycontin, the drug at the center of the opioid crisis, reached a massive healthcare fraud settlement with the Department of Justice. The Department advertised the settlement as an $8.3 billion dollar recovery, which would make it one of the largest healthcare fraud settlements in history. In his book Empire of Pain, Patrick Radden Keefe explores...
Catch of the Week: Dental Clinics to Pay $2.7M for Using Unsterilized Tools on Medicaid Patients
For over five years, Upper Allegheny Health Systems, a health care system operating several dental clinics in New York and Pennsylvania, allegedly performed dental services without sterilizing equipment between patients and falsely billed Medicaid for those services. After a former employee blew the whistle, the United States and the State of New York stepped in to investigate, and the defendant agreed to a $2.7...