Whistleblower News from the Inside - August 26, 2014

By the C|C Whistleblower Lawyer Team

NP Precision Inc. pleads guilty to $1.2M fraud – The majority owner of defense contractor NP Precision, which produces and sells hardware components used in military aircraft, plead guilty to misusing progress payments on government contracts by failing to pay subcontractors and requesting progress payments under the contracts for costs that it had not actually incurred.  Philadelphia Business Journal

LA Psychiatrist sentenced to seven years for Medicare fraud – The doctor orchestrated a $258 million Medicare fraud scheme in which he admitted mentally ill patients to an inpatient health facility without medical need and falsified patient records to reflect services on dates when no services were actually provided.  FBI

Hanover Corporation executives sentenced for Ponzi scheme – Following on the heels of a 14 year sentence of the former CEO of Hanover, the former CFO and a salesman were sentenced to serve several years in prison and were ordered to pay $14 million in restitution for their roles in an $18 million Ponzi scheme.   DOJ

Obama plans to improve veterans’ mental health care – In addition to signing legislation to fix delays in veterans’ healthcare brought to light by the recent VA scandal, Obama will also unveil a series of executive actions today that are aimed at improving access to mental health treatment for former service members.  Reuters

SEC “Rocket Docket” challenge? –Two defendants challenge the SEC’s use of Dodd-Frank authorized administrative proceedings to resolve complex securities law cases.  Dealbook

Overselling mortgage settlements – Analysis of how much of big mortgage settlements – and the $16 billion BofA settlement in particular – ends up in the hands of low-income homeowners (answer: not enough).   New Yorker