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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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January 8, 2021

Ducci Electrical Contractors, Inc. has agreed to pay more than $3.2 million to resolve criminal and civil charges alleging fraud on two public construction contracts in Connecticut that were largely funded by the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) program.  The two contracts—one from 2007 that was valued at over $79 million, and the other from 2012 that was valued at nearly $7 million—Ducci indicated that it would subcontract with a particular DBE at 13% and 12% respectively.  However, in violation of the terms of the program, Ducci controlled most of the decisions made by the DBE, preventing the DBE from performing a commercially useful function on either contract, and falsely submitted to the government that the DBE had performed the work.  USAO CT

Top Ten State Healthcare and Financial Fraud Recoveries of 2020

Posted  01/8/21
person raising the U.S. flag
State and local governments are on the front lines of enforcing anti-fraud laws and play a critical role in ensuring that businesses and individuals are held accountable.  Whistleblowers with information about corporate misconduct involving healthcare, government procurement, financial regulation, and tax may find that state proceedings offer them the best option. More than 30 states have False Claims Acts that...

Top Ten Healthcare Fraud Recoveries of 2020

Posted  01/5/21
Healthcare Fraud
Consistent with the trend in prior years, the bulk of the Justice Department’s fraud and false claims recoveries in 2019 stemmed from healthcare fraud matters, and with the Biden administration eyeing a bigger role for the federal government in our healthcare system, this trend is likely to accelerate. Most of the funds recovered arose from cases originated by whistleblowers under the qui tam provisions of the False...

State False Claims Acts: A Key Tool in the Fight against COVID Frauds

Posted  12/16/20
woman wearing a mask and pouring hand sanitizer on hand
We all remember the early days of the pandemic when coordination at the Federal level was lacking and states were left to their own devices. States reacted in a variety of ways to fight this public health catastrophe, they created subnational coalitions, struck their own deals for secret mask shipments from China, and conducted their own foreign policy to buy tests from South Korea. Things were chaotic and, and as...

COVID Frauds of the Week: PPP, Puppies, and Securities Fraud

Posted  12/11/20
golden retriever puppies sitting in a grass field
As COVID-19 cases continue to rise across the country, the government has remained vigilant in rooting out fraudsters who seek to capitalize on the crisis to line their own pockets.  Over the past week, federal prosecutors have advanced cases against multiple individuals who fraudulently obtained government funds that were supposed to help struggling small businesses.  And in another colorful case, DOJ busted a...

November 4, 2020

T-Mobile will pay a $200 million penalty to resolve allegations that Sprint, prior to its merger with T-Mobile, falsely claimed monthly Lifeline subsidies for hundreds of thousands of low-income consumers who were not in fact using services.  FCC rules require that telecommunications providers claiming Lifeline subsidies must de-enroll subscribers who don't used their service at least once a month, so that the government does not continue to pay for unused Lifeline services.  FCC

November 3, 2020

Illinois-based charter school management company Concept Schools, NFP, will pay $4.5 million to settle allegations that it violated the False Claims Act by rigging the bidding process for E-Rate contracts with its network of charter schools between 2009 and 2012 so that its preferred technology vendors received contract awards, despite the fact that they provided equipment at higher prices than those approved by the FCC for equipment with the same functionality.  DOJ

A better approach to stop feeding the fraudsters with CARES Act relief

Posted  10/29/20
By Gordon Schnell, Max Voldman
blue gloves holding a mask
(Published in Tennessean) The federal government has yet to come up with an appropriate answer for the feeding frenzy of fraud that is looming with billions in CARES Act funding in play and trillions more likely on the way. Despite its best efforts, the government loses tens of billions of dollars from fraud every year, much of it committed by the very same companies now benefitting from CARES Act relief. Unless...

October 27, 2020

In what appears to be one of the largest Post-9/11 G.I. Bill fraud cases ever prosecuted in the country, the owner of a technical training school in San Diego has been sentenced to over three years in prison and ordered to pay almost $30 million in restitution for defrauding the VA out of almost $30 million.  To conceal the fact that Blue Star Learning had close to 100% veteran students—which violated the VA’s “85/15 Rule” that required 85% non-veteran students per course—and to conceal the fact that most of the school’s graduates did not obtain jobs in the fields they were trained in, owner Nimesh Shah allegedly created and submitted elaborate student and graduate files to the California State Approving Agency for Veterans Education (CSAAVE) and the VA.  Because he knew the fake students and employers could be contacted by the agencies, Shah went so far as to have an employee buy 30 mobile phones outfitted with fake company voicemails, as well as hire overseas individuals to man fake email addresses that he created.  As a result of the fraud scheme, Blue Star Learning was paid over $11 million in tuition and over $18 million in housing allowances and stipends.  USAO SDCA

COVID Frauds of the Week: Fraudulently Claiming PPP Loans

Posted  10/2/20
person following a trail of money
This week, DOJ took action against two large alleged frauds on the Paycheck Protection Program.  In Hawaii and North Carolina, individuals were charged with fraudulently claiming loans from the critical relief program. In North Carolina, Tristan Pan found himself charged with wire and bank fraud, plus unlawful monetary transactions, for an alleged scheme to get bogus PPP loans.  He allegedly cooked up a series of...
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