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Whistleblower Rewards

This archive displays posts tagged as including whistleblower rewards. You may also be interested in the following pages:

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CFTC Announces Multiple “Game Changing” Whistleblower Awards Totaling More than $45 Million

Posted  08/3/18
The Commodity Futures Trading Commission (CFTC) announced multiple whistleblower awards totaling more than $45 million.  Christopher Ehrman, Director of the CFTC’s Whistleblower Office, stated that “the sheer magnitude of the $45 million in monetary awards announced [] demonstrates the game-changing nature of the Whistleblower Program.”  CFTC Chairman, J. Christopher Giancarlo, added “the CFTC is committed...

August 2, 2018

William Beaumont Hospital will pay $82.74 million to the federal government and $1.76 million to the state of Michigan to settle allegations made by four separate whistleblowers that between 2004 and 2012 it paid doctors above fair market value and provided them with perks such as free or discounted office space in return for patient referrals. Beaumont also allegedly falsely claimed that a CT radiology center qualified as an outpatient department. Beaumont has now entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General. It is not yet determined how much money the four whistleblowers will receive. DOJ

August 1, 2018

Early Autism Project, Inc. (“EAP”) agreed to pay the United States $8,833,615 to settle allegations brought by whistleblower and former employee of EAP, Olivia Zeigler, that it submitted false claims to TRICARE (a military insurance program) and South Carolina’s Medicaid program for therapy services for children with autism. The therapy services were misrepresented or were never provided. EAP allegedly also created a program under which it billed Medicaid for functions that were not related to therapy services at all and permitted its therapists to regularly bill for more hours than they actually provided therapy services. Olivia Zeigler will be awarded $435,000. DOJ

July 26, 2018

3M Company has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended Combat Arms Earplugs, Version 2 (CAEv2) to the US military without disclosing defects that hampered the effectiveness of the hearing protection device.  As part of the settlement, the whistleblower who initiated the lawsuit will receive $1,911,000. DOJ

Congratulations to Puerto Rico for Adopting a False Claims Act

Posted  07/27/18
On July 23, 2018, Puerto Rico Governor Ricardo Rosselló, signed into law anti-fraud legislation that includes provisions modeled after the federal False Claims Act. The Puerto Rico law, called the Fraudulent Claims to Programs, Contracts, and Services of the Government of Puerto Rico Act, has features critical to effective false claims acts:
  1. The Puerto Rico law permits whistleblowers to file qui tam lawsuits on...

Catch of the Week – 3M Company

Posted  07/27/18
On July 26, 2018, DOJ announced that Saint Paul, Minnesota-based 3M Company would pay $9.1 million to settle allegations that it knowingly sold defective dual-ended “Combat Arms” earplugs to the United States military without disclosing defects that made the devices ineffective and may have caused thousands of soldiers to suffer significant hearing loss and tinnitus (or ringing in the ears). Caught for its...

Catch of the Week -- AngioDynamics

Posted  07/20/18
This week's Department of Justice "Catch of the Week" goes to New York-based medical device maker AngioDynamics, Inc. On Wednesday, the company agreed to pay $12.5 million to resolve allegations it violated the False Claims Act by making false and misleading promotional claims about the LC Bead and Perforator Vein Ablation Kit (PVAK) medical devices. Angio served as the U.S. distributor for Biocompatibles plc, the...

July 18, 2018

Two consulting companies and nine nursing homes will pay $10M to resolve allegations that they submitted claims for medically unnecessary rehabilitation services to Medicare. Medicare reimburses nursing homes based on Resource Utilization Group (RUG) levels, which are supposed to determine the amount of skilled therapy required by a patient. The government alleges that the nursing homes, as advised by the consulting companies, encouraged medically unreasonable and unnecessary therapy to inflate RUG levels. The case was filed by three whistleblower, who will receive a total award of $2M. DOJ

July 18, 2018

AngioDynamics, a New York-based medical device manufacturer, will pay $12.5M to settle allegations that it caused healthcare providers to submit false claims to Medicare and Medicaid. $11.5M of settlement resolves allegations that the aggressively marketed an unapproved drug delivery device, the LC Bead, with false and misleading statements. The remaining $1M resolved allegations that the company sold a device that was approved to collapse malfunctioning superficial veins to collapse malfunctioning perforator veins, also using false and misleading statements. The LC Bead-related fraud was brought to light by a whistleblower who will receive an award of $2.3M. DOJ

CFTC Announces First Award to a Foreign Whistleblower

Posted  07/19/18
Earlier this week, the Commodity Futures Trading Commission (CFTC) announced an award of more than $70,000 to a whistleblower "who significantly contributed to an ongoing CFTC investigation and led the CFTC to a successful settlement." It is the first award under the CFTC’s Whistleblower Program to a foreign whistleblower and follows on the heels of last week's record-breaking $30 million award, by far the largest...
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