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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.

				

			

			
						
					
			

	
		
		

			

				
				
November 20, 2023

				 Two U.K.-based reinsurance brokers, Tysers Insurance Brokers Limited and H.W. Wood Limited, have agreed to pay $36 million and $22.5 million in criminal penalties respectively for participating in a scheme to bribe Ecuadorian officials through transactions based in Florida.  Tysers—then known as Integro Insurance Brokers Limited—and H.W. Wood were found to have violated the Foreign Corrupt Practices Act when they paid $2.8 million in bribes to the chairman of two government-owned insurance companies and three government officials, by way of almost $30 million in commissions paid to third parties.  In addition to the criminal penalties, Tysers will forfeit $10.5 million, and H.W. Wood will forfeit $2.3 million, with H.W. Wood’s penalties reduced due to demonstrated inability to pay.  DOJ				 					 

						
Tagged in:
													  Bribery and Bid-Rigging, 
													  Criminal Proceedings, 
													  FCPA, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
November 16, 2023

				 A Florida man who was the Chief Compliance Officer of pharmacy holding company A1C Holdings LLC has been ordered to pay $21.7 million in restitution for his role in a $50 million fraud scheme against Medicare.  Pharmacies associated with Steven King and his co-conspirators allegedly secured prescriptions and refills for medically unnecessary lidocaine and diabetic testing supplies, and took steps to avoid oversight by registering as brick-and-mortar pharmacies, concealing their ownership, and shipping expensive prescriptions without patient authorization.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Healthcare Fraud, 
													  Lack of Medical Necessity, 
													  Medicare, 
													  Pharma Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
November 16, 2023

				 A doctor and a clinic owner were sentenced to 10 years and 12 years in prison for their roles in a $5 million pill mill scheme.  Jonathan Rosenfield, M.D. owned and operated two clinics with co-owner and co-operator Elmer Taylor.  Together, the two issued prescriptions for over 750,000 oxycodone pills and nearly 420,000 hydrocodone pills that were ultimately diverted to the illegal market.  DOJ				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
November 6, 2023

				 One of Puerto Rico’s largest distributors of pharmaceutical drugs, Droguería Betances LLC has been ordered to pay $12 million following a DOJ complaint that it failed to report hundreds of suspicious ordered to the DEA.  According to the complaint, the suspicious orders included at least 655 for fentanyl and 113 for oxycodone.  Additionally, Betances committed recordkeeping violations by filling orders for these drugs using defective order forms and reporting inaccurate shipping and delivery information to the DEA.  Betances must now make extensive improvements to its compliance program.  DOJ				 					 

						
Tagged in:
													  Healthcare Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
November 6, 2023

				 Drogueria Betances LLC will pay $12 million and will make extensive compliance and reporting improvements as required under a consent decree, for its failures to report suspicious orders and make required reports to the DEA. One of Puerto Rico's largest pharmaceutical drugs distributors, Betances failed to report to the DEA hundreds of "suspicious orders" for fentanyl and oxycodone from 2016 through at least June 2019. Additionally, from May 2017 to July 2018, Betances failed to report to the DEA all of the more than 7.8 million dosage units of Schedule II opioids distributed, committed hundreds of recordkeeping violations, filled orders placed with defective order forms, and gave inaccurate shipping or delivery information to the DEA. DOJ				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Pharma Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
November 1, 2023

				 XTO Energy Inc. has agreed to pay $16 million to resolve allegations of violating the False Claims Act.  In exchange for producing natural gas on federal and Native American lands, XTO was supposed to put the gas in marketable condition and pay royalties on the value of the gas produced.  However, over an 8 year period, XTO improperly deducted the costs of transporting carbon dioxide.  With this settlement, the Department of Interior has now recovered $25 million from energy companies who similarly withheld required royalties from the government.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Government Programs Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 30, 2023

				 Nostrum Laboratories Inc. and its founder, Nirmal Mulye, Ph.D., have agreed to pay up to $50 million, with a minimum of $3.8 million, to resolve allegations of defrauding Medicaid in connection with one of their drugs.  As part of the settlement, Nostrum and Mulye admitted that they knowingly failed to pay required drug rebates to Medicaid, in violation of the False Claims Act, despite being notified by CMS that they should do so.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Healthcare Fraud, 
													  Medicaid, 
													  Pharma Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 24, 2023

				 AECOM, an architecture and engineering firm in Texas, has agreed to pay $11.8 million to resolve allegations of defrauding FEMA and violating the False Claims Act in connection with efforts to rebuild educational facilities damaged by Hurricane Katrina.  While serving as a technical assistance contractor for FEMA, AECOM allegedly helped applicants submit fraudulent requests for disaster assistance funds, resulting in some applicants receiving funds in excess of what was permitted.  The misconduct was revealed by whistleblower Robert Romero, who will receive a relator’s share of $2.4 million as part of the settlement.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Government Programs Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 18, 2023

				 The president of a California-based medical technology company has been sentenced to 8 years in prison and ordered to pay $24 million in restitution in the first COVID-related criminal securities fraud case charged by DOJ and the first COVID-related criminal healthcare fraud case brought to trial.  Among many things, Mark Schena of Arrayit Corporation was found to have taken advantage of the pandemic by claiming he and his company had developed a technology to test for just about any disease, including COVID, using a single drop of blood.  In doing so, Schena and Arrayit lied to investors to give them a false sense of credibility, paid illegal kickbacks to marketers to run deceptive plans about the accuracy of its tests, and submitted false claims to Medicare and private insurers for medically unnecessary allergy testing.  DOJ				 					 

						
Tagged in:
													  Anti-Kickback and Stark, 
													  FCA Federal, 
													  Financial and Investment Fraud, 
													  Healthcare Fraud, 
													  Laboratory and IDTF, 
													  Lack of Medical Necessity, 
													  Medicare, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 11, 2023

				 Automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million for allegedly providing false information on a Paycheck Protection Program (PPP) loan forgiveness application.  In order to be eligible for a PPP loan under the Coronavirus Aid, Relief and Economic Security (CARES) Act, VAG allegedly falsely certified that it was a small business with fewer than 500 employees, when in fact it and its affiliates cumulatively had over 3,000 employees across the country.  The misconduct was reported by a whistleblower in a qui tam suit; the whistleblower will receive a relator’s share of about $1.63 million.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Government Programs Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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