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DOJ Enforcement Actions

					
The Department of Justice is the principal federal agency authorized to enforce the laws and defend the interests of the United States. As such, it oversees the enforcement of the False Claims Act, the foundation of the American whistleblower system, as well as numerous other laws.


The agency traces its origins to the Judiciary Act of 1789 which created the Office of the Attorney General, and the 1870 Act to Establish the Department of Justice, which established the agency as “an executive department of the government of the United States” with the Attorney General as its head.


The agency is comprised of numerous divisions with the Civil Division and in some instances, the Criminal Division, overseeing investigations and prosecutions under the False Claims Act. The U.S. Attorneys Office of the federal district where the False Claims Act case is filed also plays a key role in False Claims Act enforcement.


Below are summaries of recent DOJ settlements or successful resolutions under the False Claims Act as well as other successful prosecutions for fraud and misconduct. If you believe you have information about fraud which could give  rise to a claim for a whistleblower reward, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
February 28, 2023

				 Seven defendants who previously pleaded guilty to defrauding a federal program that provides technology to underprivileged schools has been sentenced to up to 4 years in prison each and ordered to pay up to $1 million each in restitution.  Four of the defendants—Peretz Klein, Susan Klein, Ben Klein, and Sholem Steinberg—misrepresented themselves and their companies as vendors to schools participating in the federal E-Rate program, receiving over $14 million in federal funds even though they failed to provide much of the equipment ordered.  Two other defendants—Simon Goldbrener and Moshe Schwartz—misrepresented themselves as consultants who helped schools participate in the E-Rate program, when in fact, they took hundreds of thousands of dollars in bribes from the above vendors to circumvent the bidding process.  A final defendant, Aron Melber, was a school official who falsely certified to having obtained E-Rate-funded equipment and services through a fair and open bidding process.  USAO SDNY				 					 

						
Tagged in:
													  Bribery and Bid-Rigging, 
													  Certifications, 
													  Education Fraud, 
													  Government Programs Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 27, 2023

				 Several individuals and entities involved with the Saratoga Center for Rehabilitation and Skilled Nursing Care have agreed to pay over $7.1 million to resolve allegations of violating the False Claims Act by submitting claims for essentially worthless services.  From 2017 until the center closed in 2021, while receiving reimbursements from New York’s Medicaid program, the center’s owners and operators failed to provide adequate staffing, hot water, and clean linens, and failed to dispose of solid waste.  As a result of these failures, conditions fell below regulatory standards, and residents suffered from unnecessary errors and neglect.  NY AG; DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  FCA State, 
													  Healthcare Fraud, 
													  Medicaid, 
													  SNF, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 27, 2023

				 The University of Pittsburgh Medical Center (“UPMC”), University of Pittsburgh Physicians (“UPP”), and Dr. James Luketich have agreed to pay $8.5 million to settle a False Claims Act suit launched by a former UPMC surgeon, Dr. Jonathan D’Cunha.  According to the qui tam suit, which was joined by the government, Dr. Luketich regularly billed Medicare for concurrently performed complex cardiothoracic surgeries, often as many as three at a time, in violation of statutes and regulations.  The practice increased the risk of surgical complications to patients, as it meant the physician was not present for key portions of the surgeries, and patients were under anesthesia for longer than necessary.  USAO WDPA				 					 

						
Tagged in:
													  FCA Federal, 
													  Healthcare Fraud, 
													  Medicare, 
													  Provider Fraud, 
													  Whistleblower Case, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 22, 2023

				 In the FTC and DOJ’s first enforcement action under the Health Breach Notification Rule, online prescription drug discount provider GoodRx Holdings Inc.—which does business as GoodRx Gold, GoodRx Care, and Hey Doctor—has been ordered to pay $1.5 million in civil penalties and take corrective action, after it was found to have disclosed the personal health information of millions of its users without their knowledge or consent, despite assuring users it would not.  The disclosure involved personally identifying information, including health conditions and medications used, which were shared with Facebook, Google, and other third parties for advertising purposes.  FTC, DOJ				 					 

						
Tagged in:
													  Misrepresentations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 17, 2023

				 Two individuals who ran a Ponzi scheme involving cattle and marijuana have been sentenced to 6 years in prison and ordered to pay almost $16 million in restitution each.  Additionally, Reva Joyce Stachniw was ordered to forfeit $6 million, and Ron Throgmartin was ordered to forfeit $1 million.  DOJ				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Ponzi Schemes, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 17, 2023

				 Two more defendants in a massive fraud scheme against the IRS and Paycheck Protection Program (PPP) have been sentenced to roughly 3 years in prison each.  Using his California-based tax preparation business, Mana Tax Services, Thanh Rudin and co-conspirator Seir Havana submitted false income tax returns for at least nine professional athletes, causing $19 million in losses to the IRS.  Rudin and Havana then submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities, causing millions more in losses to the PPP.  In October 2022, Rudin’s brother, Quin Rudin, was sentenced to 10 years for his role in the scheme.  USAO EDVA				 					 

						
Tagged in:
													  Government Loan Programs, 
													  Tax Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 16, 2023

				 Texas-based ELPSS Career Institute LLC and its director have been ordered to pay $9 million for violating the Post-9/11 GI Bill and False Claims Act.  Under the Post-9/11 GI Bill, the school was required to operate for at least two years before enrolling students receiving benefits.  ELPSS, however, did so less than a year after applying for approval, falsely certified to its compliance with all requirements, and as a result, received more than $2.3 million in reimbursements it was not entitled to.  USAO WDTX				 					 

						
Tagged in:
													  Certifications, 
													  Education Fraud, 
													  FCA Federal, 
													  Government Programs Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 13, 2023

				 Spacelabs Healthcare, LLC has agreed to pay $2.5 million to settle claims of violating the False Claims Act by overcharging the Department of Veteran Affairs and Department of Defense between 2014 and 2019.  According to a qui tam suit filed by two former Spacelabs employees, Marci Gebhardt and Christopher Kelley, the company agreed to contract clauses in which they would sell patient monitoring equipment to the government at lower rates.  However, Spacelabs then failed to comply when billing the VA and Defense Logistics Agency.  For their role in bringing a successful enforcement action, Gebhardt and Kelley will share in a $437,500 reward.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Government Procurement Fraud, 
													  Healthcare Fraud, 
													  Medical Devices and DME, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 10, 2023

				 A public organization working on behalf of the City of Detroit and the Detroit Building Authority has agreed to pay the federal government $1.5 million to resolve allegations of violating the False Claims Act.  In connection with a project to demolish blighted properties in the city, the Detroit Land Bank Authority (“DLBA”) allegedly paid demolition contractors for six years’ worth of unsubstantiated backfill dirt costs using funds from the Hardest Hit Fund, which is funded by the federal Troubled Asset Relief Program.  USAO EDMI				 					 

						
Tagged in:
													  FCA Federal, 
													  Government Programs Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
February 7, 2023

				 United Energy Workers Healthcare, Corp., which provides home health services in multiple states, has paid $9 million to resolve allegations of submitting false claims to the U.S. Department of Labor on behalf of beneficiaries of the Energy Employees Occupational Illness Compensation Program Act (EEOICPA).  Multiple whistleblowers alleged that between 2013 and 2021, the defendant and related entities billed for services that were either not covered under EEOICPA program rules, not medically necessary, not provided by appropriately licensed individuals, or not provided entirely.  USAO SDOH				 					 

						
Tagged in:
													  FCA Federal, 
													  Healthcare Fraud, 
													  Home Health and Hospice, 
													  Improper Medical Personnel, 
													  Lack of Medical Necessity, 
													  Other Government Health Programs, 
													  Provider Fraud, 
													  Whistleblower Case, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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