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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.

				

			

			
						
					
			

	
		
		

			

				
				
June 22, 2018

				 Tax preparers Joseph Racine and Arnouse Merlien pled guilty to conspiracy to violate the Internal Revenue Code by falsely claiming tax credits and deductions for their clients. Racine and Merlien defrauded taxpayers of over $3.5 million. The investigation showed that Racine and Merlien improperly claimed the tax credits and deductions for their clients to increase the amount of fees they could charge their clients. USAO NDGA				 					 

						
Tagged in:
													  Tax Credit and Deduction Fraud, 
													  Tax Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 22, 2018

				 David Laughton, a New Hampshire resident, has pleaded guilty to theft of public money. Laughton collected his deceased mother’s checks from the Social Security Administration and the Pension Benefit Guaranty Corporation for over a decade. In total, he collected over $180K of money meant for his mother. USAO New Hampshire				 			
	
		
		
	


 			


 			




	
		
		

			

				
				
June 21, 2018

				 Jasmin Polanco, a Boston-based real estate lawyer, was sentenced to 15 months in prison and ordered to pay $1.2M in restitution for her role in a large mortgage fraud conspiracy. According to prosecutors, Polanco and other defendants engaged in a scheme to defraud banks via fake short sales of homes, artificially decreasing their value, before another member of the conspiracy purchased the home at the artificially low value. USAO Massachusetts				 					 

						
Tagged in:
													  Housing and Mortgage Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 20, 2018

				 Healogics, a Florida-based company which runs a chain of wound care centers, has settled FCA allegations that it improperly billed for hyperbaric oxygen therapy (a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds). The company paid $22.5M to settle allegations that it billed for unnecessary or unreasonable hyperbaric oxygen therapy. The allegations were brought to the government’s attention by four whistleblowers, James Wilcox, Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtangh. The whistleblowers will receive a $4.28M reward. Separately, Healogics also paid $398K to settle another FCA case alleging that it improperly applied Modifier 25, which signifies that a separate evaluation and management service was performed on the same day as another procedure, to claims that were sent to Medicare, Medicaid, and TRICARE. The allegations were brought to light by a whistleblower, who will receive a $91K reward. DOJ;  USAO Northern District of Iowa				 					 

						
Tagged in:
													  FCA Federal, 
													  Lack of Medical Necessity, 
													  Medical Billing Fraud, 
													  Provider Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 19, 2018

				 Luis Diaz and Luis J. Diaz, owners of a Miami-based export business, were convicted of operating an unlicensed money transmitting business and running a large, international money laundering scheme. The Diaz brothers avoided the anti-money laundering safeguards required of licensed institutions and moved over $100M through US banks and other financial institutions. Both brothers were sentenced to two years in prison. USAO Southern District of New York				 					 

						
Tagged in:
													  Financial Institution Fraud, 
													  Money Laundering, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 18, 2018

				 Ronald Grusd, a Beverly Hills radiologist, was sentenced to 10 years in prison for his role in a massive worker’s comp scheme. The scheme involved the payment of over $100k in kickbacks in exchange for referrals or workers’ comp patients for a variety of services, including MRIs and ultrasound scans. Dr. Grusd billed over $22M in services based on these referrals. USAO Southern District of California				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 15, 2018

				 Adam Hand, a California-based former stock broker, was sentenced to 30 months in prison relating to charges of conspiracy to commit securities fraud. Hand and his brother participated in a “pump and dump” scheme that involved manipulating the price of Crown Marketing, a penny stock. Due to the scheme, investors lost over $1.5M. USAO Massachusetts				 					 

						
Tagged in:
													  Misrepresentations, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			


 			




	
		
		

			

				
				
June 18, 2018

				 Rosenbaum & Associates, a Philadelphia-based personal injury firm, has settled allegations that it violated Medicare’s secondary payor rules, resulting in losses to Medicare. After achieving certain recoveries, the firm was obligated to reimburse the United States for certain costs the government incurred. The settlement amounts was $28k. USAO Eastern District of Pennsylvania				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Medicare, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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