Whistleblower News From The Inside - April 22, 2015
By the C|C Whistleblower Lawyer Team
Real Housewives of NJ star Jim Marchese scores millions in whistleblower payouts — The small mortgage firm he owns recently collected $8.5 million for helping spur the DOJ’s record $16.65B mortgage fraud settlement with Bank of America, and in 2007 he received $1.6M million after reporting his former employer, a Seattle pharmaceuticals firm now called CTI BioPharma Corp., allegedly defrauding Medicare. WSJ
SEC makes whistleblower award to compliance officer — It will be between $1.4M and $1.6M and will be the second award the SEC has made to an employee with internal audit or compliance responsibilities. SEC
Citizens Medical Center settles whistleblower suit for $21.75M — The Texas-based hospital will make the payment to settle charges it violated the False Claims Act by engaging in improper financial relationships with referring physicians. USAO-SDTX
Family Dermatology settles whistleblower suit for $3.25M — The dermatology practice group which operates a dermatopathology lab in Georgia and dermatology practices throughout the Eastern United States will make the payment to settle charges it violated the False Claims Act by engaging in improper financial relationships with several of its employed physicians. DOJ
Government joins whistleblower cases against HCR ManorCare — The healthcare company, which operates approximately 281 skilled nursing facilities in 30 states, is charged with violating the False Claims Act by submitting false claims to Medicare and Tricare for rehabilitation therapy services that were not medically reasonable and necessary. Corporate Crime Reporter
UK fines BofA Merrill Lynch $20M for reporting failures — The UK Financial Conduct Authority made the record fine (13.2 million pounds) for incorrectly reporting 35 million transactions and failing to report another 121,387 transactions between November 2007 and November 2014. Reuters
UK trader arrested for contributing to the 2010 Wall Street “flash crash” — The DOJ wants to extradite Navinder Singh Sarao on charges of wire fraud, commodities fraud and market manipulation in connection with the crash that wiped billions of dollars off the value of US shares in minutes. BBC