Catch of the Week: Dental Clinics to Pay $2.7M for Using Unsterilized Tools on Medicaid Patients
For over five years, Upper Allegheny Health Systems, a health care system operating several dental clinics in New York and Pennsylvania, allegedly performed dental services without sterilizing equipment between patients and falsely billed Medicaid for those services. After a former employee blew the whistle, the United States and the State of New York stepped in to investigate, and the defendant agreed to a $2.7...
DOJ Lowers The Boom On COVID-19 Healthcare Scams, Again
Hey, fraudsters, did you hear? There was a global pandemic, so the government pumped trillions of dollars into the economy. Probably a good time to get a piece of the cut, you ask? They’ll never find out, right? So many ways to grift!
Well, not so much. From the start, the cops on the beat, led by the United States Department of Justice, have screamed from the rooftops: “Don’t do it. We WILL...
Private-Equity Red Flags Signal Potential False Claims Act Liability
Private equity (PE) firms that manage healthcare entities have further reason to take note of the growing record of exposure for False Claims Act (FCA) liability.
In the latest shot across the bow, the PE firm, a majority shareholder of a for-profit mental-health provider, knew about the false claims and played a sufficiently active role in operations potentially to have caused them. Evidence...
Constantine Cannon Client Receives Maximum Award for Blowing the Whistle on ITG
The SEC has made a multi-million-dollar award to a Constantine Cannon client whose original information and assistance led to an enforcement action against the brokerage firm ITG. The award—30% of the recovery—is the maximum allowed under the SEC Whistleblower Program.
The SEC has taken three enforcement actions against ITG in recent years, two of which involve ITG’s dark pool POSIT. POSIT is an alternate...
CFTC Whistleblower Program Faces Challenges of its Success: What Whistleblowers Should Know
In May, 2021, the Wall Street Journalreported (paywall) on “turmoil” in the CFTC Whistleblower Program. According to the article, the CFTC has under consideration a whistleblower award based on a claim by a whistleblower in the 2015 $2.5 billion Deutsche Bank LIBOR manipulation settlement. Given the size of the Deutsche Bank settlement, the potential whistleblower award is substantial: the Journal reports that...
When it comes to their respective whistleblower programs, the Commodity Futures Trading Commission (CFTC) does not get the same respect or attention the Securities and Exchange Commission (SEC) does. That is largely because the SEC Whistleblower Program has been an unparalleled success, with whistleblower awards being made (and highly promoted) virtually every week or two. Last year was a record-breaking year for...
Want to Fix the Trillion Dollar Tax Gap? How Whistleblowers Can Help
Earlier this month, Internal Revenue Service Commissioner Charles P. Rettig testified before the Senate Finance Committee, addressing the 2021 filing season and the “21st Century IRS.” At the hearing, Committee Chairman Ron Wyden (D-OR) raised the topic of the tax gap, referring to the difference between the total taxes that are legally owed, and the total taxes that are paid by individuals and entities. ...
As COVID-19 Stimulus Funds Flow, DOJ Puts Fraudsters on Notice and Calls Whistleblowers “Essential”
On March 11th, President Biden signed The American Rescue Plan Act of 2021 (ARPA), a sweeping economic stimulus plan that will pump $1.9 trillion into the US economy. In addition to direct relief to Americans, ARPA includes record-setting government spending in numerous areas to speed recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.
As we have previously written,...