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Whistleblower Successes

Whistleblower reward laws and whistleblower reward programs enable qualifying whistleblowers to recover anywhere from 10 to 30 percent of the government’s recovery. These whistleblower reward laws include: the federal False Claims Act; State False Claims Acts; the Securities and Exchange Commission Whistleblower Program; the Commodity Futures Trading Commission Whistleblower Program; and, the Internal Revenue Service Whistleblower Program. We have collected summaries of recent successes in cases brought by whistleblowers, and you can read them below.

Members of the Constantine Cannon Whistleblower Lawyer Team have served as lead counsel on cases that have recovered roughly $1.3 billion for the government and $240 million in whistleblower awards. You can read more about the results we have achieved for our clients in Our Successes.

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 6, 2021

Defense contractor Crane Company has agreed to pay over $4.5 million to resolve allegations of violating the False Claims Act.  According to a former Crane employee, Corla Jacobson, the failures occurred between 2011 and 2017 and involved selling the U.S. Navy high performance butterfly valves that did not conform to military specifications.  For initiating a successful qui tam action, Jacobson will receive a relator’s share of over $850,000.  USAO SDTX

September 27, 2021

The State of New York has reached a $6 million settlement with electricity provider National Grid to resolve a fraud investigation launched by a whistleblower’s qui tam suit.  As part of its contract with the Long Island Power Authority (LIPA), National Grid was tasked with reading meters, collecting payments, and providing customer service, while LIPA provided the actual electricity.  For over four years, however, National Grid allegedly underreported the amount of electricity being delivered to homes and businesses, costing LIPA and the state millions in lost revenue.  The whistleblower in this matter will receive $1.41 million, while the settlement proceeds will go toward subsidizing energy upgrades for low-income residents.  NY AG

September 24, 2021

An anonymous whistleblower received an award of $36 million from the SEC.  The SEC found that the individual provided information that significantly contributed to a previously-opened SEC investigation and recoveries by the SEC and another agency.  The SEC found that the individual had unreasonably delayed in reporting the conduct, and had participated in the underlying scheme, although they did not direct, plan, or initiate it.  Two other claimants were denied any recoveries on the grounds that the information they provided did not significantly contribute to the recoveries in the covered action or related action.  SEC

September 15, 2021

Two unnamed whistleblowers received awards totaling $114 million for recoveries in an SEC enforcement action and two related actions.  The first whistleblower, who received an award of $110 million, provided independent analysis of publicly-available information about an unnamed company, as well as a witness list and substantial ongoing assistance during investigations by the SEC and another unidentified agency.  The second whistleblower, who received an award of $4 million, provided more limited information after the SEC had already undertaken significant investigative steps.    SEC

September 8, 2021

Bayada Home Health Care, Inc. and related entities agreed to pay $17 million to resolve allegations of paying unlawful kickbacks that were initiated by a whistleblower action under the False Claims Act.  The government alleged that Bayada purchased two home health care agencies from a company that owned retirement communities in order to induce referrals from the seller to Bayada.  The whistleblower, David Freedman, was the director of strategic growth for Bayada; he will receive more than $3 million as a whistleblower reward.  DOJ; USAO NJ

August 27, 2021

Five whistleblowers whose information and assistance led to three separate SEC enforcement actions have been awarded approximately $2.6 million.  In the first award, one whistleblower received $1.2 million for developing a complex algorithm, applying it to publicly available data, and providing the agency with independent analysis that saved valuable time and resources.  In the second award, three whistleblowers received over $1 million for reporting information after reporting internally failed to achieve results.  In the third award, one whistleblower received $350,000 for providing independent analysis based on patterns detected in publicly available data, which required expertise developed over many years.  SEC

August 27, 2021

John Peter Smith Hospital (JPS) in Texas has agreed to pay more than $3.3 million to resolve a qui tam suit filed by its former Director of Compliance, Erma Lee, which alleged that the hospital routinely applied billing modifiers that essentially double-billed federal healthcare programs for certain aspects of patients’ care.  Even after raising the issue internally, JPS allegedly failed to reimburse payors, prompting Lee to file the case in 2018.  For doing so, Lee will receive over $900,000 of the settlement proceeds.  USAO NDTX

August 26, 2021

The owner of jet charter company All in Jets dba JetReady, Seth Bernstein, has agreed to pay $287,055 to resolve allegations that he misappropriated company Paycheck Protection Program loan proceeds for his personal use.  Whistleblower Victoria Hablitzel, a former JetReady employee, reported defendant’s conduct by filing a qui tam action, and will receive a relator’s share of $57,411DOJ; USAO SD FL
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