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Whistleblower Rewards

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Today's Whistleblower FAQ - Whistleblower Rewards

Posted  06/22/18
Frequently Asked Question: Am I entitled to a whistleblower award if I report fraud or misconduct to the government? Answer: You might be, depending on the nature of the fraud or misconduct you are reporting, the government agency you report it to, and the manner and timing of your reporting. More Information: Under the whistleblower provisions of the federal False Claims Act, various State False Claims...

Catch of the Week -- Healogics

Posted  06/22/18
This week's Department of Justice "Catch of the Week" goes to Healogics, Inc. On Wednesday, the Florida-based operator of hundreds of wound care centers agreed to pay up to $22.5 million to settle claims it violated the False Claims Act by billing Medicare for medically unnecessary and unreasonable hyperbaric oxygen therapy. See DOJ Press Release. Hyperbaric therapy involves breathing oxygen inside a pressurized...

June 20, 2018

Healogics, a Florida-based company which runs a chain of wound care centers, has settled FCA allegations that it improperly billed for hyperbaric oxygen therapy (a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds). The company paid $22.5M to settle allegations that it billed for unnecessary or unreasonable hyperbaric oxygen therapy. The allegations were brought to the government’s attention by four whistleblowers, James Wilcox, Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtangh. The whistleblowers will receive a $4.28M reward. Separately, Healogics also paid $398K to settle another FCA case alleging that it improperly applied Modifier 25, which signifies that a separate evaluation and management service was performed on the same day as another procedure, to claims that were sent to Medicare, Medicaid, and TRICARE. The allegations were brought to light by a whistleblower, who will receive a $91K reward. DOJUSAO Northern District of Iowa

June 11, 2018

Two Massachusetts landlords, Latchmin Nannan and David Nannan, and a property manager, Rhea Nannan, will collectively pay $57,000 to resolve whistleblower Kafer Nevins’s allegations they overcharged low income Section 8 tenants, and thus improperly collected housing subsidies from the government in violation of the False Claims Act. The whistleblower, one of the overcharged tenants, will receive a share of the government’s recovery. USAO MA

June 8, 2018

Skilled nursing facility company Signature HealthCARE, LLC will pay more than $30 million to the federal and Tennessee state governments to resolve False Claims Act allegations it placed patients in the highest therapy reimbursement level regardless of need; limited its therapy services to the minimum number of minutes required to bill at a given reimbursement level and discouraged the provision of care beyond that minimum; and pressured therapists to complete therapy even when patients were too ill or declined to participate. The suit was brought by two former employees and whistleblowers, who will receive a portion of the recovery. DOJ

June 5, 2018

Louisiana-based post-acute healthcare management company Allegiance Health Management will pay over $1.7 million to resolve False Claims Act allegations it billed Medicare for intensive outpatient psychotherapy services to hospitalized patients who did not need the services, received inappropriate levels of treatment, or were provided nontherapeutic treatment. The settlement also resolves claims Allegiance Health Management failed to provide treatment pursuant to an individualized treatment plan and neither tracked nor document patient progress adequately. The suit was brought by whistleblower and former Allegiance employee Ryan Ladner, who will receive a $300,000 share of the settlement. DOJ

June 7, 2018

A prime contractor joint venture between AECOM, Bechtel, and CH2M Hill, Washington Closure Hanford, LLC, performing environmental clean-up at the Department of Energy's Hanford Site, has agreed to pay $3.2 million to settle a case first brought by whistleblowers under the False Claims Act.  The case alleged that defendant awarded subcontracts reserved for small disadvantaged business to a company that purported to be eligible for such contracts but was in fact a pass-through front company for a larger entity.  The whistleblowers will receive $643,000 as a result of the settlement.  ED WA

June 1, 2018

Richmond, Virginia-based James River Air Conditioning Company agreed to pay $625,000 to settle allegations that it violated prevailing wage requirements, underpaid workers, and submitted false payroll reports to the government related to plumbing, heating, and HVAC work the company performed under seven federal renovation and construction project contracts.  The case was originally filed as a whistleblower complaint under the False Claims Act by Nathan Kirchgessner, who will receive $106,250 from the settlement. USAO EDVA

May 29, 2018

Following a two-week jury trial, LaTonya Mallory, Floyd Calhoun Dent III, and Robert Bradford Johnson were collectively found liable for $114 million for violating the False Claims Act and Anti-Kickback Statute by paying physicians for patient referrals to two blood-testing laboratories, and for causing those laboratories to bill federal health care programs for medically unnecessary testing. The verdict resolves three separate whistleblower suits filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel, who will receive a yet-to-be-determined share of any recoveries. USAO DDC

May 29, 2018

UK-headquartered marine services contractor Inchcape will pay $20 million to resolve allegations the company and its subsidiaries defrauded the U.S. Navy by submitted exaggerated invoices, double-billing, and billing at rates in excess of agreed-upon rates under contracts for ship "husbanding" services, including ship-to-shore and local transportation, force protection services, food provision, and waste removal. The case was originally filed under the False Claims Act by former employees of Inchcape, Noah Rudolph, Andrea Ford, and Lawrence Cosgriff, who will receive approximately $4.4 million of the settlement. USAO DDC
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