1. Home
  2. Practices
  3. Whistleblower Representation
  4. Recent Government Enforcement
  5. State Enforcement Actions
Have a Claim?

Click here for a confidential contact or call:

1-212-350-2774 
								
			


								
						
			


								
			

	
Whistleblower Quiz

	
Would you blow the whistle?

 Take our Quiz


									
	
						

		

			
			

				

					
State Enforcement Actions

					
Each state enforces its laws and defends its interests, and states often work with the federal government in investigating and prosecuting corporate frauds.  Whistleblowers with knowledge of fraud or wrongful conduct that involves state or local funds or programs may be able to bring a claim under a state or local False Claims Act, and may be eligible to receive a monetary reward and protection against retaliation.


Below are summaries of recent settlements, successful prosecutions, and enforcement actions by states. If you believe you have information about fraud which could give rise to a claim under a State or Local False Claims Act or other whistleblower reward provision, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
July 7, 2016

				 A Bedford-based transportation service provider has agreed to pay more than $700,000 to resolve allegations that it submitted false claims to the state’s Medicaid program (MassHealth) for medically unnecessary wheelchair van rides, Massachusetts announced. It also allegedly submitted claims for services that should have been provided at a lower cost through a MassHealth transportation broker. The AG’s investigation revealed that REM Transportation Services, LLC (REM) submitted the false claims from January 5, 2010 to December 31, 2014. Many of the MassHealth members allegedly receiving the rides were ambulatory and did not use wheelchairs or need assistance, as required under MassHealth regulations. MA				 					 

						
Tagged in:
													  FCA State, 
													  Lack of Medical Necessity, 
													  Medicaid, 
													  Medical Billing Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
July 7, 2016

				 Massachusetts announced that it has reached an agreement with INDYCAR, LLC. that will refund customers $925,000 for advance tickets purchased to the cancelled Boston Grand Prix. AG Healey also filed suit against Boston Grand Prix, LLC (BGP) and CEO John Casey, seeking full refunds for all ticket purchasers. Nearly 4,000 individuals purchased tickets in advance of the planned Labor Day race, spending an estimated $2,086,798.67. BGP refunded customers approximately $400,000 before they stopped giving refunds. INDYCAR, the race’s sanctioning body, has agreed to pay $925,000 of the amount due. MA				 			
	
		
		
	


 			




	
		
		

			

				
				
July 6, 2016

				 A Superior Court Judge has permanently barred New York-based Leroy N. Brown, an unregistered home improvement contractor who did business as “B&K Masonry & Chimney,” from performing home improvement work in New Jersey, and ordered him to pay $1.1 million after finding that he committed 410 violations of the State’s consumer protection laws and regulations, following an action brought by the Attorney General’s Office and the Division of Consumer Affairs. The State’s eight-count Verified Complaint, filed last December, alleged that Brown, d/b/a “B&K Masonry & Chimney,” committed multiple violations of the Consumer Fraud Act, the Contractors’ Registration Act, and related regulations by, among other things, misrepresenting himself as a registered contractor and using deceptive sales tactics, including proclamations of imminent health and safety risks, to induce mostly elderly consumers into purchasing expensive chimney repairs that were never completed. NJ				 			
	
		
		
	


 			




	
		
		

			

				
				
June 28, 2016

				 New York announced its participation in an interrelated series of partial settlements with Volkswagen AG and its Audi and Porsche affiliates arising from Volkswagen’s violations of emissions standards and state consumer protection laws. As part of the settlements, some of which are still subject to court approval, all owners of 2.0 liter, 4-cylinder engine VW and Audi diesel cars in New York will be entitled to be paid full, pre-scandal fair market value for their vehicle, in addition to a cash payment of at least $5,100. Under the deal, car owners may also choose to keep their vehicle and wait to see if VW and Audi develop acceptable emissions fixes; car owners who exercise this option will also receive a cash payment of at least $5,100. The settlements will also direct to New York over $115 million for environmental projects to improve New York’s air quality, as well as over $30 million in additional monetary recoveries for the state’s general fund. NY, FL, TX				 					 

						
Tagged in:
													  Environmental Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 27, 2016

				 Massachusetts announced that a Chicopee-based mechanical contractor has agreed to pay more than $220,000 to resolve allegations it falsely certified compliance with equal opportunity requirements on two public contracts. The assurance of discontinuance alleges B-G Mechanical Contractors, Inc. (B-G) violated the state’s consumer protection laws and False Claims Act by failing to abide by provisions in two public design-build energy contracts requiring B-G to subcontract a certain percentage of work to Minority/Women Business Enterprises (M/WBEs). For both contracts, the AG’s Office alleges B-G improperly claimed full M/WBE credit for supplies subcontractors sold to and then repurchased from M/WBEs in sham transactions. MA				 					 

						
Tagged in:
													  FCA State, 
													  Set-Asides and Preferences, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 24, 2016

				 Florida arrested two Panama City mental health counselors for allegedly defrauding the Florida Medicaid program out of more than $360,000. The investigation revealed that Laurie Lynne Kidd, 54, who has a doctorate in psychology, hired Courtney Ann Hill, 27, to provide individual and group therapy to assisted living facilities. Hill is an unlicensed and unqualified employee and allegedly submitted false reports claiming that Hill provided therapy to the residents, when, in fact the defendant did not. Kidd billed Medicaid for the services never rendered as if Kidd herself performed the services. Kidd allegedly submitted more than $400,000 in fraudulent claims and received more than $360,000 from the Florida Medicaid program due to the fraudulent claims. Hill is allegedly responsible for $99,000 of Kidd’s fraudulent claims. FL				 					 

						
Tagged in:
													  Improper Medical Personnel, 
													  Medicaid, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 23, 2016

				 Palmco Power NJ, LLC  and Palmco Energy NJ, LLC (collectively, “Palmco”) have agreed to pay $5.28 million, including up to $4.5 million in consumer restitution, and to significantly revise its business practices, in order to resolve the State’s allegations that Palmco engaged in aggressive and deceptive marketing practices, and failed to provide promised energy rates that were competitive, lower than the utility companies, or consistent with the pricing mechanisms in Palmco’s contracts. A Complaint filed in May 2014 by the Attorney General’s Office alleged that the Brooklyn-based Palmco violated the Electric Discount and Energy Competition Act, the Consumer Fraud Act, and multiple regulations concerning energy licensing and registration, retail choice consumer protection, anti-slamming requirements and advertising, among other things, through its aggressive door-to-door and telephone solicitations, and representations as to “competitive prices” for gas and electric. NJ				 			
	
		
		
	


 			




	
		
		

			

				
				
June 22, 2016

				 New York announced a $28 million settlement of a civil lawsuit that claimed the owners of Medford Multicare Center for Living, Inc. (“Medford”) located in Medford, New York looted the corporation and committed fraud and illegality in operating a business. The civil lawsuits claims were based on a history of criminal conduct by employees of the nursing home, staffing and service cuts and diversion of Medicaid funds to themselves and their controlled entities. The assurance of discontinuance provides that the settlement funds, which will be administered by an Independent Financial Monitor, will in part be used to establish a “Resident Care Fund” to fund care recommendations by the Independent Operator. That fund will provide the much needed reforms and improvements in the delivery of care and services to Medford’s elderly and frail residents. In addition, ten million dollars will be returned to the Medicaid program. The Medford corporation was also sentenced for its role in the cover-up of a patient death in 2012.‎ NY				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Medicaid, 
													  SNF, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 20, 2016

				 Florida and the Federal Trade Commission announced a settlement with Vast Tech Support, LLC, its owner, founder, and Chief Operating Officer Mark Donohue and OMG Tech Support, LLC. In November 2014, Attorney General Bondi’s Office and the FTC filed a complaint against Vast Tech Support, Donohue, OMG Tech Help and the companies’ principals and related entities for deceptively marketing computer software and tech support services. The Vast Tech Support and OMG Tech Support defendants agreed to a judgment of more than $27 million and to surrender all assets to the court-appointed receiver, who will liquidate the assets and wind down the companies. Vast Tech Support advertised a registry software product, PC HealthBoost, claiming the product could dramatically increase computer speed and protect from errors, crashes and freezes. After consumers downloaded a free version of the software, a system scan allegedly misled consumers to believe that their computer had hundreds or thousands of errors in need of repair, regardless of whether the computer had any performance issues. Another defendant in this matter, Boost Software, urged consumers to pay $29.97 for the registered version of PC HealthBoost to fix the non-existent errors. FL				 			
	
		
		
	


 			




	
		
		

			

				
				
June 20, 2016

				 New York announced the arrest of Joseph Wright, 52, of Middletown NY, for allegedly stealing over $5 million dollars from Medicaid. Prosecutors allege that Wright, as owner of a purportedly not-for-profit organization “Assistance By Improv II, Inc.” (ABI), located at 953 Southern Boulevard in the Bronx, lured thousands of low-income New Yorkers to ABI with the promise of affordable housing, arranged to have them subjected to unnecessary medical tests and then filed false claims for reimbursement with the State Medicaid program. Prosecutors alleged in papers filed in court that Wright unlawfully owns and operates ABI as a medical mill that masquerades as a charitable housing organization. Prosecutors allege that Wright ignored ABI’s professed charitable mission and duped potential clients, most of whom were Medicaid recipients, into surrendering their personal health care information and undergoing purported medical screening to qualify for housing. NY				 					 

						
Tagged in:
													  Healthcare Fraud, 
													  Lack of Medical Necessity, 
													  Medicaid, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
1
…
48
49
50
51
52
53
54
…
78
								

						

					

												
		
 
	
 

 



	


	

		

			

								
							
Learn about Whistleblower Rewards Programs
			
	
		

		
	
			

									

													False Claims Act					  							State & Local False Claims Acts					  							SEC Program					  							CFTC Program					  							IRS Program					  					

								See More			
	
		

	
		

	




	


	

		

			

				

					

						
Newsletter

						
Subscribe to receive email updates from the Constantine Cannon blogs

					
	
				
	
			
	
			
	
				
Sign up for: