Whistleblower News from the Inside - May 2, 2014

By the C|C Whistleblower Lawyer Team

Lunch room fraud in our capital’s public schools? – The former head of food services for Washington DC’s public schools has filed a whistleblower lawsuit under the False Claims Act alleging fraud in the performance of the $30M annual contract between the city and Chartwells-Thompson Hospitality.  Washington Post

55 universities under investigation for handling of sexual assault complaints – Among the schools named are some of the country’s most esteemed institutions including such Ivy League notables as Dartmouth, Harvard and Princeton.  NYT

McHugh Construction settles whistleblower lawsuit for $12M – The deal ends a joint federal and state probe over allegations the firm committed fraud in several major public works projects in Chicago; whistleblower to receive a $2M reward.  Chicago Tribune

Avon to pay $135M to settle bribery charges – The payment settles a long-standing US government probe into whether the cosmetics company paid bribes in China and other countries to gain favors in violation of the Foreign Corrupt Practices Act.  AP

A second whistleblower in Phoenix VA case – A doctor blew the whistle on widespread destruction of documents showing extreme wait times and poor patient care at Phoenix VA hospital allegedly to cover up the death of up to 40 veterans.   Arizona Republic

Illinois reclaims $26.3M in fraudulent unemployment payouts – Over the past three years, Illinois has focused on uncovering fraudulent unemployment benefit schemes, collecting more than $120 million through tax garnishments , repayment plans and confiscated lottery winnings.  Chicago Tribune