Whistleblower News From The Inside — May 19, 2016
By the C|C Whistleblower Lawyer Team
Theranos admits patient’s blood testing was faulty – Theranos, once valued at $9B, told federal health regulators the company voided and revised two years of results from its Edison blood-testing devices and issued tens of thousands of corrected reports to doctors and patients; the disclosure comes in the wake of criminal and civil investigations and a CMS threat to shutter both of Theranos’ labs. Breitbart
Lawsuit alleges Bank of America misled trading partners, violated whistleblower protections – Bank of America Corp. executive Megan Messina accused her employer of misleading trading clients, discriminating against her for being a woman, and engaging in whistleblower retaliation in violation of Dodd-Frank protections. Wall Street Journal
DOJ issues scathing review of California border town’s police – the DOJ Wednesday issued a scathing 133-page report on a small California border town’s police practices, finding a lack of basic controls and oversight of criminal investigations, unstable leadership, and other red flags; the report was released less than a week after the town’s police chief filed a federal whistleblower suit. ABC News
Connecticut man sentenced to 13 months in prison for $9M fraud – Walter Bradway pled guilty to fraudulently obtaining more than $9M from a federal economic stimulus program intended for alternate energy projects, by submitting 300 fraudulent applications for work that was never performed or was exaggerated to increase costs. New Haven Register
Malaysian PM office determines former Parliament member not protected by whistleblower law – Malaysian Parliament member Rafizi Ramli was arrested under the state secrets act for revealing what he claimed to be an excerpt from an Auditor-General report; he was denied protection under a 2010 Whistleblowers Protection Act because he revealed official secrets to the media. Malay Mail
Two Dallas professional counselors sentenced for roles in $9.5M worker’s comp fraud – Larry Washington and Henrietta Price pled guilty to their roles in a $9.5M health care fraud scheme that involved bribes, unnecessary treatment, fraudulent billing, and the falsification of medical documents, through the Department of Labor’s Worker Compensation Program. USAO Northern District of Texas