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Government Programs Fraud

This archive displays posts tagged as relevant to fraud in government programs. You may also be interested in the following pages:

Fraud in Government Programs
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Catch of the Week – Hybrid Tech pays $29 Million to Resolve Claims of Collusive Bidding on Sale of Energy Department Loan in Case Brought by Creditors

Posted  02/6/20
Gavel close-up
Our Catch of the Week arises out of misconduct in a corporate restructuring, features a unique whistleblower, and resulted in a $29 million recovery by the government. The defendants, Hybrid Tech Holdings, LLC and related entities, were alleged to have rigged bids in a government auction of a loan made to Fisker Automotive under the Department of Energy’s Advanced Technology Vehicles Manufacturing loan...

February 6, 2020

February 6, 2020 -- The successor to the Community Redevelopment Agency of the City of Los Angeles, CRA/LA, has agreed to pay $3.1 million to resolve allegations under the False Claims Act that the agency failed to comply with federal accessibility laws while distributing federal funds to help develop affordable housing.  Federal accessibility laws require that 5% of all units in certain federally-funded housing be accessible to people with mobility issues, and an additional 2% of all units be accessible for people with visual or auditory impairments.  However, according to whistleblower and wheelchair user Mei Ling, at least nine agency-affiliated properties lacked accessible parking spaces, appropriate ramp and height access for wheelchair users, or appropriate visual and tactile signs for people with visual or auditory impairments.  DOJ; USAO CDCA

January 27, 2020

Florida Academy, a for-profit trade school, has agreed to pay $512,500 to the United States for making false certifications to the Department of Veterans Affairs (the VA) regarding its compliance with a Post-9/11 GI Bill program requirement called the 85%-15% Rule.  To ensure the VA is paying tuition rates at fair market value, the 85%-15% Rule requires participating schools to certify that at least 15% of their students are paying with private funds.   USAO MDFL

Top Ten Non-Healthcare False Claims Act Recoveries of 2019

Posted  01/10/20
False Claims Act
This year, federal and state governments recovered hundreds of millions of dollars thanks to whistleblowers who came forward to report fraud under the federal False Claims Act and state False Claims Acts.  Whistleblowers reported a wide-range of misconduct involving government contracts, including fraud by defense contractors, airlines, and even a major research university.  Defendants’ deception ran the gamut...

January 3, 2020

Following a qui tam lawsuit alleging fraud against the Post-9/11 GI Bill in violation of the False Claims Act, Caldwell University has agreed to pay more than $4.8 million to the United States.  The alleged misconduct occurred between 2011 and 2013 and involved falsely claiming to the Department of Veterans Affairs that classes were developed and taught by the university, when in fact they were developed and taught by an unapproved subcontractor.  Caldwell had also charged the Post-9/11 GI Bill up to 30 times the prices charged to others for the same courses, leading the government to pay over $24 million in tuition.  USAO NJ

December 23, 2019

The Texas Health and Human Services Commission will pay $15.3 million to the U.S. to resolve allegations that it submitted false quality control data to the USDA’s Supplemental Nutrition Assistance Program (SNAP), thereby falsely receiving performance bonuses for fiscal years 2010, 2013, and 2014 to which it was not entitled.  THHSC had contracted with Julie Osnes Consulting LLC to provide advice and recommendations to lower its SNAP quality control error rate.  Advice provided by Osnes has previously led to settlements with three other states, as well as with Osnes, with total recoveries to the U.S. exceeding $32 million.  DOJ

December 19, 2019

Michigan-based biomedical research organization the Van Andel Research Institute will pay $5.5 million to resolve allegations that it submitted false claims for National Institutes of Health funding when it failed to disclose that two of its researchers had received grants from the Chinese government, and took additional steps to conceal that funding, including making misrepresentations about that Chinese funding in response to the NIH.  USAO WD MI

December 18, 2019

Abhijit Prasad was sentenced to 3 years in prison following his conviction for visa fraud and related charges.  Prasad submitted 19 applications for H-1B visas for individuals he claimed would be performing work for Cisco Systems although Cisco had no expectation that the foreign workers would perform work for them and, in some cases, Prasad submitted forged documents purporting to be from Cisco.  Prasad was also ordered to forfeit $1.9 million.  USAO ED Cal; USAO ND Cal

EU, UK, and Canadian Whistleblowers Receive New or Enhanced Protections

Posted  12/5/19
By Ginger Buck
Silver Whistle Hanging
Three recent international developments have occurred that will further enable and encourage whistleblowers to report alleged wrongdoing, and provide guidance for employers and organizations to respond to such complaints. The European Union formally adopted a whistleblower protection directive on September 25, 2019, requiring organizations with 50 or more workers to establish internal reporting channels over the...

December 4, 2019

A small for-profit college and manager accused of defrauding the G.I. Bill program has agreed to pay $120,000 to resolve their liability under the False Claims Act.  New Horizons Spokane and its general manager, Spirit Dorris, admitted to failing to comply with a VA requirement that limited the enrollment of students funded by the G.I. Bill to no more than 85% of any given course. The “85/15 Rule,” as it is known, is meant to ensure that educational courses are offered because of public interest and value and not solely to take advantage of VA funding.  USAO EDWA
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