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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 7, 2018

				 Mississippi physician Albert Diaz was sentenced to 42 months in prison for prescribing medically unnecessary compounded medications to TRICARE patients he had not examined and falsifying medical records to make it appear he had treated the patients. The fraud cost TRICARE and other insurers more than $3 million. DOJ				 					 

						
Tagged in:
													  Compounding Pharmacy Fraud, 
													  Other Government Health Programs, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 6, 2018

				 Utah financial advisor Henry Brock was sentenced to 72 months in prison for marketing and selling fraudulent a tax-avoidance and investment strategy to clients, and causing his clients to file false tax returns; over an eight year period, Brock promised investors his “IRA Exit Strategy” would allow them to avoid paying tax on IRA withdrawals. The scheme caused investors to lose over $10 million, and resulted in more than $1 million in tax losses. USAO DUT				 					 

						
Tagged in:
													  Tax Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 6, 2018

				 California-based fraudsters Maher Obagi and Mohamed Salah each received prison sentences and orders to pay millions in restitution for perpetrating a mortgage fraud scheme during the 2008 financial crisis. Obagi and Salah propped up struggling condo developments by buying multiple units at a discount, then concealed these kickbacks from lenders, who funded loans in excess of actual purchase prices; many of the loans went into default, costing mortgage lenders, including Fannie Mae and Freddie Mac, more than $10 million. USAO CDCA				 					 

						
Tagged in:
													  Housing and Mortgage Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 6, 2018

				 Jaquon Mucsarney was sentenced to 12 years in prison for devising a scheme in which he created roughly 50 fake businesses for which he filed fictitious U.S. corporate income tax returns; Mucsarney used stolen names and social security numbers to obtain EIN numbers for some of the businesses, he used his own, his wife’s, and his mother’s SSNs for others. From 2011 to 2016, Mucsarney fraudulently claimed more than $2 million in refunds and ultimately collected more than $300,000. USAO DCO				 					 

						
Tagged in:
													  Tax Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 5, 2018

				 Louisiana-based post-acute healthcare management company Allegiance Health Management will pay over $1.7 million to resolve False Claims Act allegations it billed Medicare for intensive outpatient psychotherapy services to hospitalized patients who did not need the services, received inappropriate levels of treatment, or were provided nontherapeutic treatment. The settlement also resolves claims Allegiance Health Management failed to provide treatment pursuant to an individualized treatment plan and neither tracked nor document patient progress adequately. The suit was brought by whistleblower and former Allegiance employee Ryan Ladner, who will receive a $300,000 share of the settlement. DOJ				 					 

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

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 5, 2018

				 Great Western Drilling Company agreed to pay $600,000 to settle allegations it violated the False Claims Act by underreporting and underpaying federal royalties due on natural gas extracted from New Mexico sites the company leased from the federal government. USAO DCO				 					 

						
Tagged in:
													  Environmental Fraud, 
													  FCA Federal, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 4, 2018

				 Registered commodities trader and repeat fraudster Rawle Gerard Suite was sentenced to more than 10 years in federal prison for orchestrating a fraudulent investment scheme in which he concealed his identity, misrepresented the true nature of a number of shell companies he claimed were trading soybeans, gold, oil, and other commodities; the scheme caused losses of $1.6 million. USAO CDCA				 					 

						
Tagged in:
													  Fraud in CFTC-Regulated Markets, 
													  Misrepresentations, 
													  Regulatory Violations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 7, 2018

				 A prime contractor joint venture between AECOM, Bechtel, and CH2M Hill, Washington Closure Hanford, LLC, performing environmental clean-up at the Department of Energy's Hanford Site, has agreed to pay $3.2 million to settle a case first brought by whistleblowers under the False Claims Act.  The case alleged that defendant awarded subcontracts reserved for small disadvantaged business to a company that purported to be eligible for such contracts but was in fact a pass-through front company for a larger entity.  The whistleblowers will receive $643,000 as a result of the settlement.  ED WA				 					 

						
Tagged in:
													  Environmental Fraud, 
													  FCA Federal, 
													  Government Procurement Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 4, 2018

				 France-based global financial services institution Société Générale S.A. and a wholly-owned subsidiary agreed to collectively pay penalties and disgorgement in excess of $1 billion to resolve U.S. and French charges related to the bribery of Libyan officials between 2004 and 2009 in exchange for various investments worth more than $3 billion, as well as the manipulation of LIBOR through the issuance of false financial data. USAO EDNY				 					 

						
Tagged in:
													  FCPA, 
													  Financial Institution Fraud, 
													  Fraud in CFTC-Regulated Markets, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 4, 2018

				 Maryland-based investment management firm Legg Mason, Inc. will pay $64.2 million to end an FCPA investigation into Legg Mason’s participation in a scheme to bribe Gaddafi-era Libyan officials; Legg Mason’s involvement, through subsidiary Permal Group Ltd., was in partnership with Société Générale S.A., which also settled today. USAO EDNY				 					 

						
Tagged in:
													  FCPA, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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