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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.

				

			

			
						
					
			

	
		
		

			

				
				
October 10, 2023

				 Mobile cardiac PET scan provider Cardiac Imaging Inc. (CII), and its founder and owner Sam Kancherlapalli, have agreed to pay over $75 million and over $10 million, respectively, to resolve a qui tam case by former billing manager Lynda Pinto, which alleged the company, Kancherlapalli, and part-owner Richard Nassenstein defrauded Medicare.  In violation of the Anti-Kickback Statute, Stark Law, and False Claims Act, CII and Kancherlapalli allegedly paid kickbacks to referring cardiologists in the form of fees, ostensibly for supervising PET scans, that were far above fair market value.  The alleged misconduct occurred over a ten year period.  DOJ				 					 

						
Tagged in:
													  Anti-Kickback and Stark, 
													  FCA Federal, 
													  Healthcare Fraud, 
													  Provider Fraud, 
													  Whistleblower Case, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 2, 2023

				 Stanford University has agreed to pay nearly $2 million to resolve allegations of violating the False Claims Act in connection with 16 research grant proposals submitted to the Departments of the Army, Navy and Air Force, NASA, and the National Science Foundation (NSF).  According to the government, Stanford failed to disclose foreign funding that had been received or was expected to be received between 2015 and 2020.  DOJ				 					 

						
Tagged in:
													  FCA Federal, 
													  Grant and Research Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 2, 2023

				 BioTek reMEDys Inc. and its CEO, Chaitanya Gadde, have agreed to pay $20 million to resolve allegations of providing illegal kickbacks to patients and physicians, in violation of the False Claims Act and Anti-Kickback Statute.  Former employees Shantae Wyatt and Latoya Sparrow alleged in a qui tam suit that the specialty pharmacy induced patients to purchase drugs by routinely waiving mandatory copays, and induced physicians to make referrals by providing dinners, gifts, and free administrative or clinical support services.  One physician in particular who received kickbacks, Dr. David Tabby, has paid $480,000 to resolve allegations against him.  Wyatt and Sparrow will receive over $4 million from the settlement with BioTek and Gadde, and over $91,000 from the settlement with Tabby.  DOJ				 					 

						
Tagged in:
													  Anti-Kickback and Stark, 
													  FCA Federal, 
													  Healthcare Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 2, 2023

				 Genomic Health, Inc. (GHI), a wholly-owned subsidiary of Exact Sciences Corporation that provides clinical diagnostic tests, has agreed to pay $32.5 million to resolve two separate qui tam suits alleging violations of the False Claims Act and Anti-Kickback Statute in connection with lab tests for cancer patients.  GHI allegedly evaded Medicare’s 14-Day Rule—which prohibits labs from separately billing for the same covered tests within 14 days of a patient’s discharge from a hospital—by canceling and reordering tests so they fell within appropriate time frames, seeking reimbursement directly from Medicare, and writing off unpaid lab fees owed by hospitals.  As a result of this settlement, the whistleblowers in the case will receive over $5.5 million.  DOJ				 					 

						
Tagged in:
													  Anti-Kickback and Stark, 
													  FCA Federal, 
													  Healthcare Fraud, 
													  Laboratory and IDTF, 
													  Medicare, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 30, 2023

				 The Cigna Group has agreed to pay over $172 million and enter into a five-year Corporate Integrity Agreement in order to resolve allegations of violating the False Claims Act.  According to qui tam suit by a former part-owner of a Cigna vendor, Robert Cutler—who will receive an $8.1 million share of the settlement—the healthcare company knowingly submitted inaccurate and untruthful diagnosis codes on behalf of Medicare Advantage Plan beneficiaries in order to inflate their reimbursements from Medicare.  DOJ				 					 

						
Tagged in:
													  Certifications, 
													  FCA Federal, 
													  Healthcare Fraud, 
													  Medicare, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 29, 2023

				 SMC Systems Inc., d/b/a Skyetec, has agreed to pay $2.35 million to resolve allegations of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989.  Over a seven year period, Skyetec allegedly made false statements to the EPA regarding the results of inspections for the EPA’s Energy Star Home Certification Program, which verifies the presence and installation quality of a home's insulation.  DOJ				 					 

						
Tagged in:
													  Environmental Fraud, 
													  Misrepresentations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 29, 2023

				 North Carolina-based global specialty chemical manufacturing company Albemarle Corporation has agreed to pay over $218 million in penalties and forfeiture to the DOJ, $103.6 million in disgorgement and prejudgment interest to the SEC, and enter into a three-year non-prosecution agreement to settle charges of violating the anti-bribery, recordkeeping, and internal accounting controls provision of the Foreign Corrupt Practices Act (FCPA).  Albemarle admitted to using third-party intermediaries to pay bribes from about 2009 to 2017 in order to obtain and retain business with state-owned oil refineries in Vietnam, Indonesia, and India.  As a result, the company obtained profits of about $98.5 million.  DOJ; SEC				 					 

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

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 28, 2023

				 The Boeing Company has agreed to pay $8.1 million to resolve allegations of violating the False Claims Act.  Under a Navy contract to manufacture a tiltrotor military aircraft, Boeing allegedly failed to comply with certain manufacturing specifications, submitted false claims, and made false statements.  The claims were brought in a qui tam suit by former Boeing employees, who will receive a relator’s share of $1.5 million as a result of the settlement.  DOJ				 					 

						
Tagged in:
													  Defense Contract Fraud, 
													  FCA Federal, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 21, 2023

				 The former CFO of a Russian natural gas company has been sentenced to 7 years in prison and ordered to pay $4 million in restitution and a $350,000 fine for failing to file a Report of Foreign Bank and Financial Accounts (FBAR), making a false statement to the IRS, and failing to pay taxes on millions of dollars of income over a 10 year period.  As the CFO of Novatek, Mark Anthony Gyetvay opened two different bank accounts in Switzerland, which he put under the name of his then-wife, and in which he stored at one point up to $93 million.  Despite knowing better as a CPA and despite receiving recommendations to do so from his accountant, Gyetvay then failed to file FBARs or personal tax returns.  DOJ				 					 

						
Tagged in:
													  Tax Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 21, 2023

				 Yale University and Dr. John Krystal—who was employed at Yale in multiple roles, including as a psychiatry professor and chair with the School of Medicine, and as a clinical psychiatrist with research responsibilities at the VA Medical Center—has agreed to pay $1.5 million to resolve their liability under the False Claims Act.  According to the government, Dr. Krystal and four co-inventors failed to share royalties with the VA for several patents they obtained for discovering that depression and suicidal ideation could be treated with intranasal ketamine.  Yale and Dr. Krystal began receiving the royalties in 2015, and the royalties now total more than $3 million.  DOJ				 					 

						
Tagged in:
													  Grant and Research Fraud, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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