Whistleblower News From The Inside -- November 8, 2017
By the C|C Whistleblower Lawyer Team
Major Investors Sue Outcome Health, Alleging Firm Committed Fraud to Secure $487.5M Investment — Investors in Outcome Health, including units of Goldman Sachs and Google, filed suit against the Chicago-based pharmaceutical advertising startup, alleging it committed fraud to secure nearly $500 million in funding. Chicago Tribune
Michigan Doctor Sentenced to 15 Years in $26M Health Care Fraud Scheme —The Detroit-area doctor was sentenced yesterday for his role in a scheme to defraud the government by billing Medicare for nerve block injections that were never provided. A medical billing company owner was previously sentenced to 10 years in prison in connection with the scam. DOJ
SEC Warns Investors About Paid-to-Click Scams — The SEC issued a press release warning investors that online “paid-to-click” advertising programs may be nothing more than a Ponzi scheme. The agency has a pending action against Fort Marketing Group, alleging it solicited investors through online posts and videos claiming they could share in the companies’ profits by purchasing an ad pack for as little as a dollar and clicking on four banner ads per day. According to the complaint, the business was in fact a Ponzi scheme with no independent source of revenue, dependent on funds from new investors to pay promised returns to earlier investors. SEC