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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 14, 2018

				 Christopher McCray was sentenced to federal prison for accepting illegal kickbacks from an Afghan trucking company that acted as a subcontractor to his former employer, a U.S. government contractor in Afghanistan. McCray admitted to accepting 15 percent of the trucking company’s revenues on the subcontract, which involved moving cargo for the Army and Air Force Exchange Service to military bases in Afghanistan. USAO NDGA				 					 

						
Tagged in:
													  Defense Contract Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 14, 2018

				 Philadelphia investment adviser Carl Frederic Sealy pleaded guilty to fraud charges in connection with a $1.6 million Ponzi scheme he operated. Sealy told investors their funds would be used to finance real estate deals, but the deals were non-existent. Instead, Sealy used his clients’ investments to fund lavish personal expenditures, including spa services, hotels, and restaurants.  USAO EDPA				 					 

						
Tagged in:
													  Misrepresentations, 
													  Ponzi Schemes, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 13, 2018

				 Brothers David Nicoll and Scott Nicoll, who held senior positions at New Jersey-based Biodiagnostic Laboratory Services LLC, were sentenced to prison terms for their respective roles in a physician kickback scheme that resulted in over $100 million in blood sample referrals to the diagnostic lab company. To date, 53 defendants have been convicted as a result of the investigation. The now defunct lab company pleaded guilty and was ordered to forfeit all of its assets in June 2016. USAO NJ				 					 

						
Tagged in:
													  Anti-Kickback and Stark, 
													  Healthcare Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 11, 2018

				 Two Massachusetts landlords, Latchmin Nannan and David Nannan, and a property manager, Rhea Nannan, will collectively pay $57,000 to resolve whistleblower Kafer Nevins’s allegations they overcharged low income Section 8 tenants, and thus improperly collected housing subsidies from the government in violation of the False Claims Act. The whistleblower, one of the overcharged tenants, will receive a share of the government’s recovery. USAO MA				 					 

						
Tagged in:
													  FCA Federal, 
													  Grant and Research Fraud, 
													  Whistleblower Case, 
													  Whistleblower Eligibility, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 13, 2018

				 The founder and former CEO of Alliance Fiber Optic Products, Inc., Peter Chang, was sentenced to two years in prison following his guilty plea on charges of insider trading.  Chang used brokerage accounts in his brother’s and his wife’s name to purchase and sell company stock at times when he was in possession of material nonpublic information about the company.  ND Cal				 					 

						
Tagged in:
													  Insider Trading, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 13, 2018

				 Venkat Guntpally was sentenced to 30 months in prison following his guilty plea on charges of visa fraud and related crimes.  Guntpally admitted that employment staffing companies that he founded submitted fraudulent petitions to the U.S. government for foreign workers to receive H-1B visas, including by misrepresenting the companies at which the workers would be employed.  ND Cal				 					 

						
Tagged in:
													  Visa Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 8, 2018

				 New Jersey couple Babu Metgud and Shubhada Kalyani, who operated defense contractor Shubhada Industries, were ordered to pay more than $232,000 for overcharging the Defense Logistics Agency for, and failing to disclose the origin of, munition vehicle light assemblies it had acquired from third parties and marked up by 5,400%. The case was decided on the government’s summary judgement motion. USAO EDPA				 					 

						
Tagged in:
													  Defense Contract Fraud, 
													  Falsifying Invoices, 
													  FCA Federal, 
													  Government Procurement Fraud, 
													  Trade Agreements, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 8, 2018

				 Disgraced former neurologist Rassan Tarabein-who operated Alabama’s Eastern Shore Neurology and Pain Center-was sentenced to 60 months in prison and ordered to pay over $15 million and forfeit his medical license after he pled guilty to orchestrating a thirteen-year scheme in which he induced  Medicare, Medicaid, and privately-insured patients to visit his clinic and undergo medically unnecessary tests and procedures. USAO SDAL				 					 

						
Tagged in:
													  Lack of Medical Necessity, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 8, 2018

				 Skilled nursing facility company Signature HealthCARE, LLC will pay more than $30 million to the federal and Tennessee state governments to resolve False Claims Act allegations it placed patients in the highest therapy reimbursement level regardless of need; limited its therapy services to the minimum number of minutes required to bill at a given reimbursement level and discouraged the provision of care beyond that minimum; and pressured therapists to complete therapy even when patients were too ill or declined to participate. The suit was brought by two former employees and whistleblowers, who will receive a portion of the recovery. DOJ				 					 

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

					
	
							
	
		
		
	


 			


											

						

								

									
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