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.
This Week in Whistleblower History: The First Whistleblower Protection Law
This week marks the eighth year in a row that Congress has designated July 30thNational Whistleblower Day, honoring the occasion, on July 30, 1778, when the Continental Congress unanimously enacted the first whistleblower protection law in the United States. The celebration this year is particularly poignant in light of the recent mistreatment of government whistleblowers, notably Lt. Colonel Alexander...
Catch of the Week: Indivior Agrees to Pay $600 Million to Settle Opioid Fraud Case
The latest in our Catch of the Week series features Indivior Solutions’ (“Indivior”) agreement to pay $600 million to resolve criminal and civil liability associated with the marketing of the opioid-addiction-treatment drug Suboxone. This is in addition to the $1.4 billion resolution with Indivior’s former parent, Reckitt Benckiser Group PLC (“RB Group”) that was previously announced in 2019. Suboxone is a...
OIG Audit Suggests Home Health Agencies Submit Unsupported Visits to Trigger Higher Medicare Reimbursement
OIG released results from its targeted audit of certain home health care claims submitted for payment and found $191.8 million of overpayments in 2017 alone. OIG's objective was to determine whether payments for home health services with five to seven visits in a payment episode complied with Medicare requirements.
During the 2017 audit period, under Medicare's home health prospective payment system, home health...
CFTC Whistleblower Hot Streak Continues with $9 Million Award
This week, the Commodity Futures Trading Commission (CFTC) announced a new whistleblower award of approximately $9 million, one of the five largest awards ever paid by the agency. It is the latest in a wave of awards—four over the last three months, all over $1 million—demonstrating the CFTC’s strong commitment to its whistleblowers.
These awards make good on CFTC Enforcement Director James McDonald’s...
COVID Fraud of the Week: Washington State Man Charged with Attempting to Launder COVID-19 Relief Money
On July 23rd, the Department of Justice announced that Mukund Mohan, a Washington state tech company executive, was taken into custody for allegedly laundering money he fraudulently received through the COVID-19 related Paycheck Protection Program (“PPP”). After receiving funds through the program, Mohan allegedly transferred over $230,000 to his personal brokerage account. These charges mark another instance of...
Constantine Cannon Client Slams the Brakes on Customs Fraud in $8 Million Settlement Against Auto Parts Distributor Centric Parts
Steve Hughes, a whistleblower represented by Constantine Cannon, slammed the brakes on a long-running scheme by his former employer to evade customs duties, resulting in an $8 million settlement of the whistleblower’s False Claims Act lawsuit against CWD, LLC. The Carson, CA-based company, which does business as Centric Parts, is one of the largest aftermarket brake and chassis parts distributors in North America....
Newly Unsealed Whistleblower Lawsuit Alleges Drug Giant McKesson Gave Doctors Illegal Kickbacks in the Form of Free Software
Constantine Cannon LLP is pleased to announce the unsealing of a whistleblower lawsuit its client brought alleging that drug wholesaler McKesson Corp. and its affiliated companies provided illegal kickbacks in the form of free business services to encourage oncologists and other doctors to buy drugs from McKesson.
The lawsuit alleges that McKesson gave doctors valuable business-management tools geared towards...
What Potential Whistleblowers Need to Know About the Dodd-Frank Act
This week marks the tenth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act. What is the Dodd-Frank Act? Passed following the 2008 financial crisis, the Dodd-Frank Act aims to prevent fraud and abuse in the financial markets.
For whistleblowers, the Dodd-Frank Act is especially significant, as it also created the SEC Whistleblower Program and CFTC Whistleblower Program.
The settlement of a fraud case against 27 skilled nursing facilities controlled by private owners demonstrates “the power of whistleblowers to shine a light on improper business practices and obtain significant recoveries on behalf of United States taxpayers.” (U.S. Attorney Nick Hanna, C.D. California.) The government’s recognition of the contributions of whistleblowers in the False Claims Act case against...