Whistleblower News From The Inside -- May 21, 2018
By the C|C Whistleblower Lawyer Team
Feeling Used? – Nobody likes that feeling when somebody has used you to get something. It’s bad enough when it’s a significant other, a supposed friend, or a colleague, but imagine if it’s your own government who you helped. That is the case facing George Karadsheh, a whistleblower who helped the U.S. reveal one of the most disgusting, egregious cases of health-care fraud imaginable. Karadsheh blew the whistle on Dr. Farid Fata, who subjected healthy people to chemotherapy, got kickbacks, and defrauded Medicare. The national news flocked to cover the story and Fata is now spending 45 years in prison. But Karadsheh believes he’s not getting the credit he deserves for exposing the fraud: a full share of the recovery he’s owed after Crittenton Hospital, where Fata worked, made two self-disclosures to the government, leading to nearly $4 million in payment. Bloomberg BNA
Barclays Bank Fraud Charges Over $3bn Qatar Loan Thrown Out by Court – Charges brought against Barclays bank over a $3bn (£2.6bn) loan made to Qatari investors have been thrown out by a court, in a major setback for the only criminal case pursued by the Serious Fraud Office (SFO) around events from the 2008 financial crisis. The charges related to the £11.8bn emergency fundraising conducted by the bank in 2008 as it struggled to maintain its independence and avoid a government takeover. The Qatari investment that helped prop up the bank has been mired in controversy, and after a five-year investigation the SFO last summer brought charges of conspiracy to commit fraud against Barclays and its top executives. Advertisement But in a statement issued to the stock market on Monday the bank said: “Barclays announces that the crown court has today dismissed all charges brought by the Serious Fraud Office against Barclays plc and Barclays Bank plc regarding matters which arose in the context of Barclays’ capital raisings in 2008.” The Guardian
Tax Fraud Whistleblowers could get Paid – A law touted nationally as the No. 1 tool for fighting tax fraud is now being proposed for Guam. If passed, the law would establish policies for false claims filed with the government, along with providing awards to whistleblowers who report an underpayment of taxes, namely the business privilege and hotel occupancy tax, to GovGuam. Bill 286-34 is sponsored by Sen. Michael San Nicolas and stems from individual pieces of legislation that were introduced last fall and emerged, after public hearings, as applicable to both. The whistleblower portion of the law would be modeled and have some of the same parameters as a federal law in place for more than a decade that has led to the collection of $3.4 billion in tax revenue from corporations and individuals who evade paying taxes. In cases that are prosecuted successfully, whistleblowers would receive compensation between 15 and 30 percent of the recovered amount. San Nicolas said the bill would create a fair and level playing field for everyone because tax evaders short-change the government’s education, public safety and health care program priorities. “Whistleblowers often put their livelihoods on the line when they report illegal tax activity,” he said. “It’s only right they are rewarded when that risk leads to GovGuam collecting money it may not have known it was owed.” To add to the proposed measure in an attempt to cut down on corruption, provisions will also mirror the federal False Claims Act, which helps prevent government contractors from creating false records and fraudulent invoices, among other things. The Guam Daily Post