Whistleblower News From The Inside — September 26, 2016

By the C|C Whistleblower Lawyer Team

Whistle-Blower Suit Accuses Visiting Nurse Service of Fraud – The lawsuit, brought under federal and state False Claims Acts by a senior manager who worked at the agency for 16 years, charges that the Visiting Nurse Service of New York has systematically extracted hundreds of millions of dollars from Medicare and Medicaid through falsified and improper billings, while shortchanging needy patients of the care their doctors ordered.  NYTimes

Government Intervenes in Defective Steel Case Filed by Whistleblower – The United States intervened in a False Claims Act lawsuit against Energy & Process Corporation alleging that E&P knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy nuclear waste treatment facility.  The case was filed by former employee, Deborah Cook.  DOJ

Shell Settles Whistleblower Lawsuit Accusing it of Fraudulently Billing California for Underground Storage Tank Clean-up Costs – The suit alleged that Shell effectively double billed, collecting insurance proceeds and then submitting claims to a cleanup fund run by the State Water Resources Control Board.  As part of the settlement, Shell agreed to abandon $150 million in cleanup fund claims and pay an additional $20 million in penalties.  SacBee; CA Water Boards

Government Joins Whistleblower Lawsuit Alleging Scheme to Avoid Import Duties on Clothing – The government’s complaint alleges that defendants defrauded U.S. Customs and Border Protection by engaging in a double-invoice scheme to present false and fraudulent invoices to CBP for the purpose of avoiding import duties on garments. USAO SDNY

Charges in $5 million Miami-Dade County Aviation Department Kickback Scheme – Five individuals were charged in a scheme whereby procurement officials passed information to a contractor bidding to supply light fixtures.  When the contractor won the bids, kickbacks were paid to procurement officials and excess profit was retained by the contractor.  USAO SD FL

‘’Movie Studio’’ Executives Charged With Microcap Fraud – The SEC charged three individuals with making false and misleading statements to, including claims that construction of the touted “Studioplex” outside Savannah, Georgia, was underway and projected dates by which it would be operational while knowing full well they did not have anywhere near sufficient funding to begin building.  The individuals reportedly used the company funds for personal expenses.  SEC

Whistleblower Receives Award from Fiji Revenue and Customs Authority – The individual provided information to Fiji tax authorities that led to recovery of more than half a million dollars in customs duty and VAT.  Fiji Sun