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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.

				

			

			
						
					
			

	
		
		

			

				
				
August 11, 2017

				 West Palm Beach-based government contractor Academy Medical, LLC and its owners, Edward D. Desser and Daniel M. Shaw, agreed to pay $335,000 to resolve allegations they violated the False Claims Act by improperly usurping federal contracting opportunities reserved for certified service-disabled veteran-owned small businesses.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive an award of $67,000 from the proceeds of the government's recovery.  DOJ (NDNY)				 					 

						
Tagged in:
													  FCA Federal, 
													  Government Procurement Fraud, 
													  Set-Asides and Preferences, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 11, 2017

				 Marie Neba, the owner and director of nursing of Houston home health agency Fiango Home Healthcare Inc., was sentenced today to 75 years in prison for her role in a $13 million Medicare fraud scheme involving the payment of illegal kickbacks to patient recruiters for referring Medicare beneficiaries to Fiango for home health services. DOJ				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Home Health and Hospice, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 10, 2017

				 Virginia Beach-based contractor ADS Inc. and its subsidiaries agreed to pay $16 million to settle allegations that they violated the False Claims Act by conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts.  The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts.  The settlement ranks as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.  The purported small businesses affiliated with ADS include Mythics Inc., London Bridge Trading Co. Ltd., and MJL Enterprises LLC, which falsely claimed to be an eligible service-disabled veteran-owned company, and SEK Solutions LLC and Karda Systems LLC, both of which falsely claimed to qualify as socially or economically disadvantaged businesses under the Small Business Administration’s 8(a) Business Development Program.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Ameliorate Partners LLP.  It will receive a whistleblower award of roughly $2.9 million.  DOJ				 					 

						
Tagged in:
													  Bribery and Bid-Rigging, 
													  FCA Federal, 
													  Government Procurement Fraud, 
													  Set-Asides and Preferences, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 8, 2017

				 PHH Corp., PHH Mortgage Corp. and PHH Home Loans agreed to pay roughly $75 million to resolve charges they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), guaranteed by the United States Department of Veterans Affairs (VA), and purchased by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) that did not meet applicable requirements.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former PHH employee Mary Bozzelli.  She will receive a whistleblower award of roughly $9 million from the proceeds of the government's recovery.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Financial and Investment Fraud, 
													  Financial Institution Fraud, 
													  Housing and Mortgage Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 3, 2017

				 The Medical Center of Central Georgia, Inc. (d/b/a The Medical Center, Navicent Health) agreed to pay roughly $2.6 million to resolve allegations it violated the False Claims Act by submitting bills for ambulance transports that were either inflated or medically unnecessary.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Navicent paramedic Andre Valentine.  He will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery.  DOJ (MDGA)				 					 

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

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 2, 2017

				 Atlanta-based pain management clinic Atlanta Medical Clinic and its owner Dr. Timothy Dembowski agreed to pay $250,000 to resolve charges they violated the False Claims Act by billing for services performed by a physician suspended from the Medicare program and administering foreign, non-FDA approved drugs, which are not eligible for reimbursement under the Medicare program.  DOJ (NDGA)				 					 

						
Tagged in:
													  FCA Federal, 
													  Medicare, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
July 24, 2017

				 Dr. James Norman, the owner and operator of Norman Parathyroid Center, agreed to pay $4 million to resolve allegations he violated the False Claims Act by billing Medicare for pre-operative examination services for which he had already received payment from the government.  These extra fees ranged from $150 to $750 for Florida residents, to $1,750 or more for patients who lived out-of-state, adding up to hundreds of thousands of dollars in illicit billing.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former patient of Dr. Norman, Myra Gross, and her husband, Dr. David Gross.  They will receive a whistleblower award of roughly $600,000 from the proceeds of the government's recovery.  DOJ (MDFL)				 					 

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

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
July 24, 2017

				 Tennessee-based Pain Management Group P.C. agreed to pay $312,000 to settle charges it violated the False Claims Act by billing for medically unnecessary urine drug tests and non-FDA approved pharmaceuticals Botox, Supartz, and Eufflexa, which the company purchased from foreign-based suppliers.  DOJ (MDTN)				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Medicare, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			


 			




	
		
		

			

				
				
July 19, 2017

				 Sreedhar Potarazu, an ophthalmic surgeon and founder of VitalSpring Technologies Inc., was sentenced to 10 years in prison for defrauding his former company’s shareholders and for failing to pay employment taxes.  He was also ordered to pay roughly $50 million in restitution to the shareholders and $7.7 million to the IRS, and forfeiture of several homes, vehicles, and bank accounts.  From at least 2008, Potarazu provided materially false and misleading information to VitalSpring’s shareholders to induce more than $49 million in capital investments in the company.  DOJ				 					 

						
Tagged in:
													  Employment Tax Fraud, 
													  Securities Fraud, 
													  Tax Fraud, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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