Opioid Executive Sentenced to Over Five Years in Prison for Role in Healthcare Fraud Scheme
Insys Therapeutics, an opioid manufacturer whose main product is Subsys, a spray from of fentanyl that is 100 times stronger than morphine and cost tens of thousands a month, is in the news again. The company and its former CEO, John Kapoor, have been facing a mountain of legal issues in the past three years. Last week, in a decision that most of our readers agree with, Kapoor was sentenced to 66 months in prison.
The SEC announced a reward of $277,000 to a whistleblower who provided significant information that identified a fraudulent scheme targeting retail investors and helped the SEC shut down that scheme. SEC
2019 was another strong year for whistleblowers, who once again collectively recovered billions of dollars for the government and hundreds of millions of dollars in whistleblower rewards through their filing of lawsuits under the qui tam provisions of the False Claims Act. Whistleblowers this past year also continued to secure financial rewards under the Dodd-Frank SEC Whistleblower and CFTC Whistleblower programs,...
SEC Whistleblower Program 2019 Annual Report Tells Story of Significant Impact - Despite Beginning the Year with a Government Shutdown
In its 2019 Annual Report to Congress, the SEC Office of the Whistleblower described its program as continuing to have a “significant impact” on enforcement and investor protection efforts. In the fiscal year that ended in September 2019, the SEC Whistleblower Program received the second highest number of tips in program history, and issued the third largest whistleblower award to date.
Three whistleblowers who jointly submitted a tip to the SEC were awarded $260,000. The information provided by the unidentified whistleblowers lead to a successful enforcement action against a fraud that targeted retail investors. The whistleblowers were reported to be investors who were themselves harmed by the conduct. SEC
Second Circuit Upholds SEC Denial of Whistleblower Rewards to Three Claimants in Deutsche Bank Settlement
In May 2015, Deutsche Bankagreed to pay a $55 million penalty to the SEC to settle charges that its financial statements misreported the value of a portfolio of derivatives, failing to take account of the material risk of potential losses associated with the derivatives. Subsequently, in November 2017, the SEC announced that it had awarded whistleblower rewards totaling $16 million to two whistleblowers “whose...
In Second-Ever Enforcement Action of Its Kind, SEC Stands with Whistleblower Against Company’s Attempt to Muzzle Reporting
Imagine that, after you invest in a company, you start to smell a rat. After you try to alert other investors or report what you believe is a fraudulent scheme, the company you invested in draws up an agreement that conditions your shareholding on a prohibition on speaking with regulatory agencies. If it seems illegal, that’s because it is. Yet that’s exactly what online auction and memorabilia company Collectors...
Catch of the Week: Tenet Healthcare to Pay $66M Over Kickback Allegations
Tenet Healthcare, a healthcare giant that operates 65 hospitals and conducts over 10 million patient encounters annually, has agreed in principle to pay the United States roughly $66M to settle allegations that it violated the Stark Law and the Anti-Kickback Statute. These laws generally prohibit medical providers from paying or receiving kickbacks, remuneration, or anything of value in exchange for referrals of...
How to Report Visa Fraud for a Whistleblower Reward
A settlement with India-based management consulting firm Mu Sigma shows how whistleblowers can make a difference in visa enforcement. In September, 2019, Mu Sigma agreed to pay the U.S. $2.5 million to settle claims that it evaded H-1B visa requirements and brought employees to the U.S. on B1 visitor visas, misrepresenting the nature of their intended employment. In announcing the settlement, Immigration and Customs...