Whistleblower News From The Inside -- October 5, 2017

By the C|C Whistleblower Lawyer Team

13 Chicagoland gas stations settle FCA suit for $4.5M—The gas stations have settled allegations that they have systematically underreported and underpaid sales tax for the past 15 years. According to the lawsuit, the gas stations submitted fraudulent monthly sales tax returns to the Illinois Department of Revenue, cheating the state out of millions of sales tax revenue. All 13 gas stations had the same two owners. The fraud was revealed by a whistleblower who brought a lawsuit under the Illinois FCA. Illinois Attorney General

Pennsylvania pharmacy settles FCA suit for $2.6M—Med-Fast Pharmacy has settled allegations that it billed Medicare for medications it recycled from affiliated long-term care facilities, or that otherwise differed from the medications identified as part of the claims submitted to federal healthcare programs. Related criminal charges against the owner and manager of the pharmacy have also been resolved. USAO Western District of Pennsylvania

Pennsylvania-based garment wholesaler settles FCA suit for $1M—Notations, Inc. has settled allegations that it ignored warning signs that its Chinese business partner engaged in a scheme to underpay customs duty. Notations accepted responsibility for failing to act in response to indications of fraudulent conduct. Notations’ Chinese business partner, Yingshun, allegedly created fake invoices, which discounted the cost of the goods being imported by 75% or more, to show to CBP. Immigration and Custom Enforcement