Government Contracts Fraud

March 14, 2016

False Claims Act Attorney Examines Federal Student Aid Fraud and Other Forms of Higher Education Fraud

We believe education is a key component of the American dream, allowing people to take charge of their own destiny. When schools commit fraud, they steal this opportunity. The False Claims Act is a powerful tool for fighting federal student aid fraud https://www.brodfirm.com/qui-tam-lawsuits-and-whistleblowers.html and other forms of higher education fraud. Our student aid fraud law firm has the knowledge and experience needed to partner with whistleblowers and confront those who commit education fraud.

$9.28 Million Default Judgment in Case Alleging Federal Student Aid Fraud

Last month, the Department of Justice (“DOJ”) announced the entry of a judgment of more than $9.28 million against Lacy School of Cosmetology (“the School”) and Earnest “Jay” Lacy. According to the government, Jay Lacy served as President and CEO of the School which had four locations in South Carolina before it shut its doors. The School received approval from the United States Department of Education to take part in federal student aid programs. However, according to the government, the school misappropriated government funds by failing to comply with the requirements of the student aid programs, making improper disbursements of aid monies, not refunding student credit balances, and concealing these wrongs by submitting false statements indicating compliance with aid regulations.

February 29, 2016

Government Fraud Attorney on the Importance of Protecting Whistleblowers in False Claims Act Cases

by Gregory J. Brod

You’ve witnessed something amiss in your workplace. Whether it is a medical practice routinely upcoding Medicare claims to charge for more expensive procedures than were actually performed, a government contractor cheating the government by providing goods that are inferior to those promised, or another form of overcharging the government, you suspect your employer is committing fraud on the government. You know the right thing to do is report it, perhaps asking questions internally and then turning to outside help if that doesn’t resolve the issue. Still, you are scared. At The Brod Law Firm, our whistleblower’s law firm understands your concerns and we want to assure you that the law does as well. In addition to providing a substantial reward to those who bring fraud cases under the False Claims Act on the government’s behalf, the law includes anti-retaliation provisions and substantial government fraud whistleblower protections. We are committed to ensuring whistleblowers are protected from retaliation because we believe whistleblowers are providing a critical service to the American people.

The False Claims Act: The Role of Private Whistleblowers and the Rules Protecting Them

As long-time readers of this blog know, the False Claims Act (“FCA”) is one of the most powerful tools for fighting fraud on the U.S. government. Chapter 31 Section 3729 of the United States Code makes it illegal for an entity/individual to knowingly make a false claim for payment from the federal government or its agencies, including using a falsified record to support an inappropriate claim. A key part of the subsequent section, 31 U.S.C. §3730, allows private individuals (“relators”) to bring FCA claims on the government’s behalf. The government then has the option of joining the suit (“intervening”) or having the whistleblower proceed with the prosecution. If the relator’s information and efforts lead to the government recovering money, the relator is entitled to between 15 and 30 percent of the recovered funds.

February 22, 2016

Implied Certification, Take Two: A Look at the California False Claims Act and Fraud on State Governments

by Gregory J. Brod

Last week, we wrote about the upcoming Supreme Court case that will decide if the implied certification theory is a valid interpretation of the Federal False Claims Act (“FCA”). It is a decision that could substantially empower government fraud whistleblowers. However, it is worth remembering that the federal false claims act is only relevant to cases involving alleged fraud on the federal government, including Medicare fraud. State false claims acts, which in many cases are relatively similar to their federal counterpart, are a key tool for fighting fraud on the state government including state-level government contract fraud and Medicaid fraud (a joint state/federal program). Our government fraud law firm supports whistleblowers nationwide, including in our home state of California. The case law specifically supports implied certification under the California False Claims Act (“CFCA”) and we believe other states may accept the theory as well.

Courts Hold Implied Certification Theory Valid Under California False Claims Act

lawbooks In San Francisco Unified School Dist. ex rel. Contreras v. Laidlaw Transit Inc., 182 Cal. App. 4th 438 (Cal. App. 1st Dist. 2010) and again in a 2014 decision, the Court of Appeals for the State of California considered a suit brought by a group of whistleblowers on behalf of the San Francisco Unified School District (“District”) under the CFCA. The Plaintiffs alleged that the Defendant submitted payment claims to the District despite knowing it was in breach of assorted contract terms relating to student transportation services. These violations allegedly rendered the Defendant’s buses unsafe and unhealthy. The Plaintiffs also alleged that the Defendants knowingly falsified records and/or statements.

February 1, 2016

Government Grant Fraud: When Good Organizations Mismanage Federal Funds

by Gregory J. Brod

Sometimes good organizations, with good missions and many good people on board, do bad things. A notable example is when a charity or public service group falsifies information with respect to a federal grant or other government support. It can be hard to speak up against any large organization and it can be even harder in the case of a group you know does good work. Still, it is important — knowingly falsifying a federal grant application or violating its terms is wrong no matter how well-intentioned the ultimate mission. As a recent settlement reminds us, making false claims for federal grants, a type of federal grant fraud, is a violation of the False Claims Act and charitable organizations must, like any recipient, obey the terms of government grants and use the money in a responsible manner. As a law firm for federal grant fraud whistleblowers, we take these cases seriously and believe that ensuring accountability is an important form of protecting taxpayer money.

Big Brothers, Big Sisters Pays $1.6 Million to Settle False Claims Charges

On January 21, the Department of Justice (“DOJ”) issued a press release announcing that Big Brothers Big Sisters of America (“BBBS”) agreed to pay $1.6 million to resolve allegations it made false claims relating to DOJ grants. BBBS is a national organization with some 300 affiliate agencies that help provide mentoring support to children across the country. BBBS has received millions of dollars in grant funds since 2004 from the DOJ in order to support programs for at-risk youths. These grants require that BBBS maintains sound accounting processes and uses financial management systems that comply with federal regulations/guidelines, principles aimed at ensuring grant funds are accounted for and directed toward appropriate purposes.

January 18, 2016

Government Fraud Case Study: The Violation of “Buy American” Clauses in Government Contracts

by Gregory J. Brod

“Buy American.” For many of us, buying American is a preference, a way to use our purchasing power to support companies that bring money and jobs to our own communities. For some, however, “Buy American” is a requirement, specifically in the case of companies providing goods and/or services to the federal government. Sadly, some companies try to circumvent these requirements to save on costs and increase profits. Violating “Buy American” clauses in government contracts can amount to government contract fraud. Often, it takes an internal whistleblower to report these acts. As a government contract fraud law firm, we help whistleblowers fight fraud, safeguard the government, guard strained federal budgets, and protect the American people.

Company to Pay $3M to Settle Allegations it Violated “Buy American” Clause in Government Contract

Earlier this month, Novum Structures agreed to pay $3 million to settle civil and criminal claims related to “Buy American” clauses in federal contracts. Crain’s Chicago Business reports that Novum, a Wisconsin-based company, contracted to provide parts for a range of government buildings and related projects. The contracts money2 specifically called for American made materials. It the settlement papers Novum admitted to taking parts made in China and elsewhere and labelling them “U.S. made” despite the foreign origin. At no point did anyone allege the parts were faulty or otherwise defective.

December 28, 2015

Looking at the State Side of Government Fraud Claims: Washington Examines its Medicaid Fraud False Claims Act

by Gregory J. Brod

Last week, we looked at the recoveries made on behalf of the federal government using the False Claims Act (“FCA”) in 2015. While informative, those numbers don’t tell the whole story. Many states have their own versions of the FCA. These statutes are particularly important in the Medicaid fraud arena since Medicaid is a state and federal partnership so fraud typically involves both federal and state funds. Today, our government fraud law firm looks at one such statute, Washington’s Medicaid Fraud False Claims Act (“WFCA”). Each state’s laws are unique, but this review can help readers understand the importance of state claims in this arena.

Washington’s Legislative Auditor Reviews the State False Claims Act, Recommends Reauthorization

In 2015, with the WFCA set to expire on June 30, 2016, the healthcash state’s Legislative Auditor undertook to study the statute, its results, and recommend or counsel against reauthorization. As the resulting report (Proposed Final Report issued 12/16/15) explains, government can investigate possible Medicaid fraud via federal (civil and/or criminal) investigations, state criminal investigations, and state civil investigations. Absent reauthorization, Washington would lose the authority for the final category. Additionally, if the federal government is investigating a case that also involved fraud on Washington state, the state can only participate in the case and any recovery if it has a state FCA that (like the WFCA) meets certain standards set forth in the federal law.

December 21, 2015

Fiscal Year 2015 and the False Claims Act: Reviewing Another Successful Year

by Gregory J. Brod

Why do we spend so much time talking about the False Claims Act (“FCA” or “the Act”)? The short answer: It works. Through the FCA, our government fraud attorney is able to partner with private citizens to fight back against those who knowingly take money from government programs. A frightening amount of fraud occurs every year, much of it quite intentionally, including fraud targeting health care programs for the elderly, programs to aid the poor, military contract spending, and other important causes. However, we continue to have hope. The FCA is an excellent tool for fighting back, as illustrated by the recent government press release detailing the successes of the False Claims Act in 2015, and the honesty of ordinary citizens fuels its success.

FCA Results for FY2015

Earlier this month, the Department of Justice (“DOJ”) issued a press release with a title that speaks for itself: “Justice Department Recovers Over $3.5 Billion From False Claims Act Cases in Fiscal Year 2015.” This makes four consecutive years with FCA recoveries exceeding the $3.5 billion mark and brings the total recovered under the FCA from January 2009 through the end of Fiscal Year 2015 (“FY2015;” unless otherwise indicated “2015” also refers to Fiscal Year 2015) to $16.4 billion.

December 14, 2015

A Federal and State False Claims Act Spurs Possible Changes in Mental Health Services in Minnesota

by Gregory J. Brod

We spend a lot of time talking about the federal False Claims Act and for good reason; it is an important tool for fighting frauds that steal taxpayer money and leave some of our nation’s most vulnerable and worthy individuals unable to get the services they need or even directly endangered by the fraud. It is important to remember, however, that there are also powerful state laws that cover similar cases of fraud on state government. As a recent case shows, these laws not only allow for the potential return of money to already-underfunded state programs, but they can also prove powerful incentives for change.

Minnesota Group Accused of Fraud in Mental Health Arena

Earlier this month, The Star Tribune wrote about allegations of fraud in the provision of mental health services filed at both the state and federal level. According to the report, Complementary Support Services (“CSS”), a nonprofit organization based in Richfield, Minnesota, stands accused of improperly billing government assistance programs for mental health services. Specifically, the pending lawsuit alleges CSS billed for services provided to hundreds of patients without the supervision by a licensed mental health professional that the programs require. Additionally, the suit accuses the organization of padding bills by including time spent on paperwork, a lonelysenior practice prohibited under state law. Prosecutors further allege that CSS’s president, herself a licensed social worker, “batch signed” large numbers of documents and directed the practice be continued while she was out on leave, rather than giving the files the personal review required by law. The suit also accuses the company of encouraging fraudulent practices tying employees commissions to regional billings.

December 7, 2015

False Claim FAQ, Part Two: The Importance of Whistleblowers and Our Whistleblowers’ Law Firm

by Gregory J. Brod

In the previously published Part One of this FAQ (link provided below), we looked at the False Claims Act (“FCA” or “the Act”) and discussed its coverage and enforcement. This concluding section of the two-part series focuses on the role of whistleblowers in False Claims Act cases and how our False Claims Act whistleblowers’ attorney can help these honest people step forward to join the fight against fraud.

What happens after I file a whistleblower’s lawsuit?

Qui tam lawsuits (the legal term for suits filed by private citizens on the government’s behalf) under the FCA are filed under seal which essentially means they are kept secret. The claim and a written disclosure of the information on which it is based must be served on the appropriate U.S. Attorney and the Attorney General. From the time of filing, the government has 60 days to investigate the claim, although it can (and often does) ask for an extension if necessary. Notably, the defendant is not informed until this investigation is complete.

November 30, 2015

False Claims FAQ, Part One: Coverage and the Qui Tam Provision

by Gregory J. Brod

On a regular basis, we use this blog to discuss health care fraud, government contracts fraud, and a range of related issues that fall under the False Claims Act and similar pieces of legislation. In a two-part post, our government fraud whistleblower’s law firm is taking a step back to provide a broader look at this important law. Part One provides a general overview of the law and what it covers while Part Two (to be published in coming weeks) will look at how a suit unfolds and the importance of engaging a knowledgeable False Claims Act lawyer.

What does the False Claims Act (“FCA” or “the Act”) deal with?

In brief, the FCA is a federal law that provides remedies when an individual or entity files a fraudulent bill (the “claim”) with the federal government or one of its agencies. The FCA is not a “gotcha” statute and it does not apply in cases of genuine mistake. To be covered by the Act, the claim must be made knowingly and with deliberate ignorance or willful disregard for its false nature. While the FCA only applies to fraud on the federal government, many states have similar laws applicable to fraud on the state government.