Whistleblower News From The Inside — March 8, 2016

By the C|C Whistleblower Lawyer Team

Raytheon must face $1 billion whistleblower lawsuit — The 9th Circuit overturned a district court’s dismissal of a False Claims Act suit “accusing the defense contractor of fraudulently overbilling the U.S. government under a contract to develop a weather sensor for a costly environmental satellite system.”  Reuters

Maybe too big to jail, but never too small — Gordon Schnell writes on the current state of the government’s so-called “Too Big to Jail” policy of regulating corporate fraud.  HuffPost

 Defense contractor to pay $3M to settle whistleblower charges of selling defective combat helmets — The whistleblowers and government alleged ArmorSource violated the False Claims Act by selling the US Army combat helmets “manufactured and tested using methods that did not conform to contract requirements and that failed to meet contract performance standards.”  DOJ

SEC goes after Wells Fargo for underwriting fraud — The agency charged the bank with defrauding investors in connection with its role in underwriting a $75 million municipal bond deal for 38 Studios, a video game company in Rhode Island that eventually went bankrupt, leaving taxpayers on the hook for the debt.  NYT

Colorado telecom company to pay more than $8M to settle Massachusetts False Claims Act charges — The State alleges Level 3 Communications concealed the amount it owed and avoided its annual rent obligations to the Massachusetts Department of Transportation under an agreement that allows it to run fiber optic cables alongside state highways.  MA

Florida businessman sentenced to more than 14 years for health care fraud and money laundering scheme — David Brock Lovelace was found to have participated in a scheme to falsely bill Medicare by paying illegal kickbacks, using forged and falsified documents and billing for radiology, audiology, cardiology and neurology services not provided by physicians.  DOJ