Defense contractor settles FCA suit for $16M – Defense contractor ADS Inc. settled allegations it conspired with small businesses to fraudulently induce the government into awarding small business contracts based on misrepresented eligibility requirements. The settlement also resolves bid rigging allegations. The whistleblowing partnership who brought the suit will receive a $2.9M reward. USAO District of Columbia
Whistleblowers accuse Canadian private-equity company of fraud – At least four whistleblower complaints have been filed with Ontario securities regulators accusing Catalyst Capital Group of artificially inflating the value of its assets and deceiving borrowers about the terms of loans it made. Each of the complainants stand to receive up to 5M CAD if their allegations are accurate and lead to fines. Catalyst’s publicly traded subsidiary, Callidus, which issues loans to private parties, experienced a 21% stock price hit after this news broke. Wall Street Journal
Houston nurse convicted of $20M Medicare fraud scheme – Evelyn Mokwuah, the owner of two home health companies, was convicted of a scheme to bill Medicare for home health services that were either not provided or not medically necessary. According to trial evidence, Mokwuah billed for patients who were not homebound, paid recruiters to send her business, and paid doctors to sign falsified plans of care. A sentencing hearing is scheduled for October 6. DOJ
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