Whistleblower Insider

Whistleblower Insider is written by the Constantine Cannon law firm team of experienced qui tam and whistleblower lawyers. It is updated daily to provide the latest whistleblower and fraud news and developments.
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April 20, 2018

Constantine Cannon Partner Mary Inman Discusses UK Enforcement Action Against Barclays CEO Jes Staley

By the C|C Whistleblower Lawyer Team

Two UK regulators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority, have concluded their investigation into Barclays CEO Jes Staley’s actions and have told him to pay a “financial penalty” as punishment.  Staley reportedly tried to hunt down an internal whistleblower that raised concerns about the recruitment of Tim Main as head of the bank’s financial institutions group in New York.  Staley is expected to keep his job despite his attempts to improperly unmask an internal whistleblower. The amount of the financial penalty has not yet been disclosed.  click here for more »

April 20, 2018

Whistleblower News From The Inside — April 20, 2018

By the C|C Whistleblower Lawyer Team

Wells Fargo Fined $1 Billion Over Consumer-Business Missteps – Wells Fargo & Co. will pay $1 billion to settle U.S. probes into mistreatment of consumers, the largest sanction of a U.S. bank under President Donald Trump, as the firm tries to resolve a year and a half of scandals across its operations. Bloomberg

Lance Armstrong Agrees to Pay $5 Million to Settle False Claims Allegations – Former professional cyclist Lance Armstrong agreed to pay the United States $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (“PEDs”) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (“USPS”), which sponsored Armstrong’s cycling team during six of the seven years Armstrong appeared to have won the Tour de France, the Department of Justice announced today. DOJ

5 indicted in alleged $80 million California recycling fraud – California has charged five people with defrauding the state’s recycling program out of $80.3 million — the largest alleged fraud scheme in the program’s history, officials said Thursday. ABC News

April 19, 2018

New York Attorney General Seeks Power to Bypass Presidential Pardons

By the C|C Whistleblower Lawyer Team

New York Attorney General Eric Schneiderman sent a letter to state lawmakers this week urging them to close a loophole in New York’s double jeopardy law. Under the plan, Mr. Schneiderman, seeks to exempt New York’s double jeopardy law from cases involving presidential pardons, according to the letter, a copy of which was obtained by The New York Times. The current law and the concept of double jeopardy in general mean that a person cannot be tried for the same crime twice. click here for more »

April 19, 2018

Whistleblower News From The Inside — April 19, 2018

By the C|C Whistleblower Lawyer Team

California insurer faces whistleblower complaint over health law taxes — A federal whistleblower complaint alleges that a major California insurer failed to pay an estimated $89 million in taxes on premium revenue as required under the Affordable Care Act. The complaint against Blue Shield of California focuses on the taxation of certain health plans that are funded by both an employer and insurer. It could spark more scrutiny by federal officials into whether all insurers are paying their fair share of taxes on premiums. Daily News

Whistleblower lawsuit alleges improper spending at NCCU, including a luxury SUV — A former vice chancellor at N.C. Central has sued the university, alleging that he was wrongfully terminated for raising concerns about the chancellor’s luxury vehicle and reporting that UNC Board of Governors members were trying to steer a multimillion-dollar campus housing contract to a Raleigh company. NCCU

Florida Lawyer Gets Prison for Role in $23M PIP Fraud Scheme — A Florida man has been sentenced to more than a year in prison for his role in a $23 million auto insurance fraud involving chiropractors’ clinics. The SunSentinel reports 55-year-old Jason Dalley wept in court Monday as a judge sentenced him to spend a year and nine months in prison and pay more than $1.8 million in restitution. Claims Journal

April 18, 2018

Question of the Week — Should Sean Hannity have disclosed Michael Cohen was his attorney?

By the C|C Whistleblower Lawyer Team

The FBI raid on President Trump’s personal attorney Michael Cohen’s office last week has now added a new character to an increasingly complicated story. In a court hearing on Monday, it was revealed that Mr. Cohen also represented Fox News personality Sean Hannity, sparking “audible gasps.” That makes Mr. Hannity one of only three legal clients Mr. Cohen represented in the last year. Mr. Cohen’s court filing on Monday showed exactly how important it was to Mr. Hannity for his relationship to Mr. Cohen to remain private.  The filing not only requested privacy for Mr. Hannity (then identified as “the third legal client”) but also stated that Mr. Hannity had “directed Mr. Cohen to appeal any order to disclose their name.” click here for more »

April 18, 2018

CTFC Brings Charges Over Fraud Involving Binary Options and “ATM Coin”

By the C|C Whistleblower Lawyer Team

Today, the Commodity Futures Trading Commission (CFTC) announced charges against two individuals and four entities for engaging in a fraudulent scheme involving binary options and a virtual currency called “ATM Coin.” The CFTC also alleges that the defendants improperly accepted customer funds without first registering with the CFTC. Earlier this week, the United States Attorney for the Eastern District of New York filed a parallel criminal action against one of the defendants. click here for more »

April 18, 2018

Whistleblower News From The Inside — April 18, 2018

By the C|C Whistleblower Lawyer Team

Chicago Bookkeeper Pleads Guilty to $24M Tax Fraud Scheme – “Serving as a tax-day cautionary tale, a bookkeeper at a Chicago-area staffing company pleaded guilty on Tuesday to defrauding the Internal Revenue Service of more than $24 million. Northbrook, Illinois resident Barry Poticha, 73, admitted to falsifying corporate tax returns and W-2 forms to reduce the taxes owed by companies and their owners, according to the U.S. Attorney’s Office of the Northern District of Chicago.” Chicago Business Journal

Uber Whistleblower Susan Fowler to Announce Bill Aimed at Ending Forced Arbitration for Workplace Abuses – “On Wednesday, former Uber engineer Susan Fowler along with California Assemblywoman Lorena Gonzalez Fletcher, the California Labor Federation, and the Economic Policy Institute will announce legislation that could have a crucial impact on fixing systemic sexual harassment and discrimination in the workplace. The bill, AB-3080, forbids employers from forcing employees or prospective job candidates into arbitration for sexual harassment and employment discrimination complaints.” Gizmodo

Second Cambridge Analytica Whistleblower Says Data Collected from More than 87 Million Facebook Users – “The data from as many as 87 million Facebook accounts obtained by Cambridge Analytica in a massive data breach was probably just the tip of the iceberg. That’s according to the written testimony that Brittany Kaiser, Cambridge Analytica’s former business development director, gave on Tuesday to the UK Parliament’s Digital, Culture, Media, and Sport Committee.” Business Insider

April 17, 2018

Supreme Court Considers Revisiting Key FCA Decision

Supreme CourtBy the C|C Whistleblower Lawyer Team

Yesterday, the justices asked the Trump Administration’s Office of the Solicitor General’s views on a petition for certiorari in United States ex rel. Campie v. Gilead Scis., a False Claims Act (FCA) suit against pharmaceutical giant Gilead Sciences. The suit, which was brought by two former Gilead employees turned whistleblowers, alleges the company made false statements about its compliance with relevant FDA regulations related to certain Gilead-produced HIV drugs. Gilead receives federal reimbursement for the drugs both directly, through the Department of Defense, Department of Veterans Affairs, Federal Bureau of Prisons, USAID, and the Public Health Service, and indirectly via reimbursement programs including Medicare, Medicaid, TRICARE, FEHBP, and the Ryan White Program. In 2008 and 2009 alone, the government paid Gilead more than $5 billion for the three relevant medications: Atripla, Truvada, and Emtiva. click here for more »

April 17, 2018

Whistleblower News From The Inside — April 17, 2018

By the C|C Whistleblower Lawyer Team

Allergan settles FCA suit for 3.5M — The company has resolved allegations that it caused providers to submit false claims to Medicare relating to the LAP-BAND system, an inflatable silicone band that is placed around a patient’s stomach during a surgical procedure. Adding or removing saline fluid through a subcutaneous access port adjusts the LAP-BAND, which in turn constricts or expands the size of the stomach pouch. The system is used to aid a patient’s weight loss. According to the allegations, the company sold devices with defective access ports, and then tried to cover up the problem, leading to providers billing Medicare for services that could not have been effective. The fraud was brought to light by a whistleblower, who will receive an award of $594k. USAO Maryland

Kentucky cardiologist convicted of health care fraud for medically unnecessary pacemakers — A jury found that Dr. Anis Chalhoub defrauded Medicare, as well as private insures, when he implanted medically unnecessary pacemakers into his patients and also caused unnecessary follow-up care. Between 2007 and 2011, Dr. Chalhoub implanted 234 pacemakers, dozens of which were medically unnecessary. According to witness testimony, Dr. Chalhoub lied to several patients by telling them that they would likely die without a pacemaker. USAO Eastern District of Kentucky

Former fishing boat captain convicted for violations of the Act to Prevent Pollution from Ships — Randall Fox,  a former captain of the Native Sun, was convicted under the Act to Prevent Pollution from Ships illegally discharging oily bilge into the ocean using unapproved hoses and pumps. One of these instances of dumping was reported by an employee, who filmed the crime and could be eligible for a whistleblower award after Fox is sentenced. Fox faces a fine of up to $250k and a maximum of six years in prison.  DOJ