Whistleblower Rewards

December 1, 2017

Skin Care Doctors, P.A. and its founder and CEO Michael J. Ebertz, M.D., agreed to pay $850,000 to resolve allegations of violating the False Claims Act by submitting false claims to Medicare in connection with certain dermatology products and procedures.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a doctor who formerly worked with Ebertz.  The whistleblower will receive a yet-to-be-determined award from the proceeds of the government's recovery.  DOJ (DMN)

December 1, 2017

Dr. Arthur S. Portnow, the owner and operator of Arthur S. Portnow, P.A. (d/b/a Apple Medical and Cardiovascular Group) agreed to pay $1.95 million to resolve allegations that he and his practice violated the False Claims Act by knowingly seeking reimbursement for medically unnecessary ultrasound tests that were performed on Medicare beneficiaries.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act Kathleen Siwicki, a former employee of Dr. Portnow’s practice.  She will receive a whistleblower award of roughly $350,000 from the proceeds of the government's recovery.  DOJ (MDFL)

November 16, 2017

Georgia-based not-for-profit Hyperion Foundation, its former president Julie Mittleider, Georgia-based nursing home management company AltaCare Corporation, its CEO Douglas Mittleider, and related companies Long Term Care Services Inc. and Sentry Healthcare Acquirors Inc. agreed to pay $1.25 million to resolve allegations of violating the False Claims Act by providing grossly substandard care to residents at the Oxford Health and Rehabilitation nursing home in Mississippi when it was operated by AltaCare under a contract with Hyperion.  The allegations originated in a whistleblower lawsuit under the qui tam provisions of the False Claims Act by Academy Health Center Inc., the owner and landlord of the Mississippi skilled nursing facility.  Academy will receive a whistleblower award in an undisclosed amount from the proceeds of the government's recovery.  DOJ

November 16, 2017

Four San Diego-area nursing homes owned by Los Angeles-based Brius Management Co. agreed to pay as much as $6.9 million to resolve allegations of violating the False Claims Act and Anti-Kickbacks Statute by paying kickbacks for patient referrals to discharge planners at Scripps Mercy Hospital San Diego.  The four nursing homes involved are Point Loma Convalescent Hospital, Brighton Place – San Diego, Brighton Place – Spring Valley, and Amaya Springs Health Care Center.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Viki Bell-Manako, a former employee of one of the Brius nursing homes.  She will receive a whistleblower award of 20% of the proceeds of the government's recovery.  DOJ (CDCA)

November 14, 2017

Ohio-based Progressive Casualty Insurance Co. and New Jersey-based Progressive Garden State Insurance Co., part of the Progressive Group of Insurance Companies, one of the nation’s largest auto insurance providers, agreed to pay more than $2 million to resolve allegations they violated the False Claims Act by causing Medicare and Medicaid to pay for claims for which the companies were responsible. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblower will receive an award of more than $600,000 from the proceeds of the government's recovery. DOJ (DNJ)

December 4, 2017

The SEC announced an award of more than $4.1 million to a former company insider who alerted the agency to a widespread, multi-year securities law violation and continued to provide important information and assistance throughout the SEC’s investigation. The SEC’s whistleblower program has now awarded more than $179 million to 50 whistleblowers since issuing its first award in 2012. SEC

November 30, 2017

The SEC announced awards of more than $8 million each to two whistleblowers whose critical information and continuing assistance helped the agency bring the successful underlying enforcement action. The first whistleblower alerted SEC enforcement staff of the particular misconduct that would become the focus of the staff’s investigation and the cornerstone of the agency’s subsequent enforcement action. The second whistleblower provided additional significant information and ongoing cooperation to the staff during the investigation that saved a substantial amount of time and agency resources. The SEC’s whistleblower program has now awarded more than $175 million to 49 whistleblowers since issuing its first award in 2012. SEC

October 12, 2017

The Securities and Exchange Commission today announced that a whistleblower has earned an award of more than $1 million for providing the SEC with new information and substantial corroborating documentation of a securities law violation by a registered entity that impacted retail customers. “Today’s award reflects the impact that whistleblower information can have in uncovering violations that harm the retail investor,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “We welcome high-quality information about potential securities-law violations from those in and outside a company.” More than $162 million has been awarded to 47 whistleblowers.  By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.  Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. SEC