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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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Expanded Connecticut State False Claims Act is Win for Whistleblowers

Posted  07/7/23
Front View of Hartford Connecticut Capitol Building
Whistleblowers take note: the Connecticut State False Claims Act (CT FCA) has been significantly expanded beyond healthcare fraud claims. Historically, the CT FCA was limited to fraud on Medicaid and other programs within health and human services. The amended statute now reaches fraud across a variety of sectors, such as government contracting, education, employment, immigration, housing, mortgage and insurance...

June 26, 2023

In the largest ever Post-9/11 GI Bill fraud case, co-conspirators Michael Bostock, Eric Bostock, and Philip Abod, through their VA-approved technical training school, California Technical Academy, defrauded the federal government out of nearly $105 million by making false and fraudulent representation to the VA. More specifically, from January 2012 through June 2022, the co-conspirators submitted falsified course completion records for enrolled veterans, including approved courses of study, class attendance, and grades. To conceal their fraud, they falsified veterans’ contact information so that when regulators called veteran-students to verify information, one of the three co-conspirators answered the line instead. DOJ

April 14, 2023

Rudean Weir and Jerome Weah will spend 30 and 46 months in prison, respectively, for defrauding the Enhanced One Shot Deal, a New York City Human Resources Administration program which provides cash assistance to homeless veterans seeking permanent housing. Weir and Weah submitted over 340 fraudulent EOSD applications using fake documentation and residency information and received approximately $5.4 million from the program as a result. Both defendants were ordered to pay $5.4 million in restitution. Weir will forfeit nearly $3.8 million, including his interest in two bank accounts, and six real estate properties. Weah will forfeit nearly $2.2 million, including his interest in two bank accounts and one real estate property. SNDY

As States Look to Expand Health Coverage, State FCAs Become More Important than Ever

Posted  03/22/23
Continental US Map
The increasing burden of healthcare costs has state governments looking at new programs to expand government healthcare options for their residents.  Such an expansion of government spending will require a corresponding expansion of efforts to root out fraud, waste, and abuse that steals taxpayer dollars and reduces the benefits available.  Existing anti-fraud measures, including state False Claims Acts, will play a...

March 17, 2023

A man in New York who laundered millions of dollars of criminal proceeds from a panoply of illegal schemes—including computer hacking, healthcare fraud, loan fraud involving Small Business Administration (SBA) funds, and operating an unlicensed international money transmitting business—has been sentenced to 10 years in prison.  According to the DOJ, Djonibek Rahmankulov worked with computer hackers to gain control of U.S. bank accounts, then executed millions of dollars of fraudulent wire transfers into accounts controlled by him and his associates.  He also worked with pharmacies to launder millions of dollars of Medicare and Medicaid reimbursements for HIV medications that were not actually dispensed or legally obtained.  During the pandemic, Rahmankulov submitted fraudulent applications to the SBA for his companies, laundered the proceeds, and made false statements to financial institutions regarding his activities.  Finally during his trial, he repeatedly sought to obstruct justice by threatening a witness and producing fraudulent letters of support from the community.  USAO SDNY

Healthcare Fraud Jury Verdict Demonstrates DOJ’s Commitment to Prosecuting Kickbacks

Posted  03/13/23
Very few cases ever filed reach jury trial. The vast majority are dismissed or settle long before that stage. This trend is particularly true for cases filed under the False Claims Act (FCA), where defendants face treble damages and penalties if they are found liable at trial.  In FCA trials where the Government and/or whistleblower prevails, the judge, unbeknownst to the jury, is required to triple the amount of...

February 28, 2023

Seven defendants who previously pleaded guilty to defrauding a federal program that provides technology to underprivileged schools has been sentenced to up to 4 years in prison each and ordered to pay up to $1 million each in restitution.  Four of the defendants—Peretz Klein, Susan Klein, Ben Klein, and Sholem Steinberg—misrepresented themselves and their companies as vendors to schools participating in the federal E-Rate program, receiving over $14 million in federal funds even though they failed to provide much of the equipment ordered.  Two other defendants—Simon Goldbrener and Moshe Schwartz—misrepresented themselves as consultants who helped schools participate in the E-Rate program, when in fact, they took hundreds of thousands of dollars in bribes from the above vendors to circumvent the bidding process.  A final defendant, Aron Melber, was a school official who falsely certified to having obtained E-Rate-funded equipment and services through a fair and open bidding process.  USAO SDNY

February 16, 2023

Texas-based ELPSS Career Institute LLC and its director have been ordered to pay $9 million for violating the Post-9/11 GI Bill and False Claims Act.  Under the Post-9/11 GI Bill, the school was required to operate for at least two years before enrolling students receiving benefits.  ELPSS, however, did so less than a year after applying for approval, falsely certified to its compliance with all requirements, and as a result, received more than $2.3 million in reimbursements it was not entitled to.  USAO WDTX

February 10, 2023

A public organization working on behalf of the City of Detroit and the Detroit Building Authority has agreed to pay the federal government $1.5 million to resolve allegations of violating the False Claims Act.  In connection with a project to demolish blighted properties in the city, the Detroit Land Bank Authority (“DLBA”) allegedly paid demolition contractors for six years’ worth of unsubstantiated backfill dirt costs using funds from the Hardest Hit Fund, which is funded by the federal Troubled Asset Relief Program.  USAO EDMI

Top Ten Non-Healthcare False Claims Act Recoveries of 2022

Posted  01/27/23
This year’s Top Ten Non-Healthcare False Claims Act Recoveries exhibit the False Claim Act’s (FCA) enduring ability to combat corporate misconduct across distinct industries.  In 2022, the United States recovered hundreds of millions in taxpayer funds falsely obtained by defendants through bribery and bid-rigging schemes, mortgage underwriting fraud, fraudulent loan applications, fraud in the energy sector, and...
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