Whistleblower Rewards

April 14, 2017

HSBC Bank agreed to pay roughly $2.1 million to resolve charges it violated the False Claims Act for misconduct in connection with HSBC’s participation in the Small Business Administration (SBA) Express loan program.  According to the government, HSBC sought reimbursement from the SBA without revealing facts suggesting that borrowers submitted false information to HSBC to obtain many of the loans, or the fact that HSBC had included the loans on an internal list of fraudulent or potentially fraudulent loans.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ (SDNY)

April 11, 2017

Norman Regional Hospital Authority (d/b/a Norman Regional Health System) and certain employees and physicians of Norman Regional agreed to pay roughly $1.6 million to settle charges of violating the False Claims Act by submitting false claims to Medicare for radiological services performed without the proper supervision by a physician.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Norman Regional radiologist Dr. Lance Garber.  He will receive a yet-to-be-identified whistleblower award from the proceeds of the government's recovery. DOJ (WDOK)

April 20, 2017

California announced a $9.8 million settlement with Walgreens, one of the largest drugstore chains in the United States. The settlement involved allegations that Walgreens failed to adhere fully to requirements imposed by California law for the dispensing of certain prescriptions drugs under Medi‑Cal. The settlement is the result of lawsuits filed by whistleblowers and investigated and resolved by federal and state prosecutors. The lawsuits alleged that for more than five years, Walgreens falsely certified that it had complied with diagnosis-related requirements for the lawful dispensing of prescriptions to Medi‑Cal patients. Through the Bureau of Medi‑Cal Fraud and Elder Abuse (BMFEA), the Attorney General’s office regularly works with whistleblowers and law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi‑Cal program. False claims lawsuits pursued by the Attorney General in the last two years have recovered tens of millions of dollars from some of the nation’s largest pharmaceutical companies for allegations of improper marketing, falsifying reports to inflate prices, and other wrongful practices. CA

March 10, 2017

New York based information technology management software company CA Inc. agreed to pay $45 million to resolve allegations it violated the False Claims Act by making false claims in the negotiation and administration of a General Services Administration contract.  According to the government, CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated and also violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.  The allegations originated a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD.  Shemesh will receive a whistleblower award of roughly $10.2 million from the proceeds of the government's recovery. DOJ

March 1, 2017

Florida-based information technology company People, Technology and Processes, LLC and the company's CEO and CFO, Victor Buonamia and Nicole Buonamia, agreed to pay $320,000 to resolve allegations they violated the False Claims Act by submitting improper invoices for work allegedly performed for the United States in support of the U.S. Army in Afghanistan.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former company employee Aidan Tamer Toprakci.  He will receive a whistleblower award of roughly $64,000 from the proceeds of the government's recovery. DOJ (MDFL)

March 16, 2017

Northern California Record discusses Constantine Cannon’s matter against Bay Sleep Clinic.  Click here to read its article: Government settles $2.6 M whistleblower suit against sleep clinics.

February 8, 2017

Florida-based Comprehensive Health Services, Inc., one of the country’s largest providers of workforce medical services, agreed to pay roughly $3.8 million to settle charges it violated the False Claims Act by double-billing and mischarging the government for medical services in connection with work it performed on an Internal Revenue Service contract.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by James J. Kerr, Jr.  He will receive a whistleblower reward of roughly $645,000 from the proceeds of the government’s recovery.  Whistleblower Insider

February 7, 2017

Florida physician Gary L. Marder, and the owner of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, stipulated to a consent final judgment of over $18 million to settle False Claims Act allegations that Dr. Marder submitted claims to federal healthcare programs for medically unnecessary biopsies and radiation therapy services, radiation therapy services performed in contravention of standard practice regarding the amount of time between radiation treatments, and radiation therapy services performed without direct supervision and by unlicensed and/or unqualified physician assistants.  Dr. Kendall also allegedly submitted false claims to federal and state healthcare programs for laboratory services tainted by kickbacks to, and improper financial relationships with, Dr. Marder.  The allegations originated in a whistleblower lawsuit filed by Dr. Theodore A. Schiff under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery.  DOJ (SDFL)