Whistleblowers and Qui Tam Lawsuits

March 28, 2016

California Whistle Blower Employee Protection

A Whistle blower employee is an informant who exposes a crime, or wrongdoing, taking place within the organization in the hope of stopping it. If you are considering becoming a whistle blower, or if you have been retaliated for reporting a misdeed you should be aware of your rights.

Old Rule

Approximately 50 years ago, unless you had an employment contract, or were a member of a labor union, you were considered an at will employee. The “at will employment doctrine” holds that an employee can be terminated for any reason, at any time and without any compensation. Recently, many exceptions to this rigid rule have emerged from the court system, as well as from state and federal legislatures.

March 14, 2016

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

by Gregory J. Brod

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.

March 7, 2016

Massive Settlement in Series of Cases Started by a Whistleblower Concerned About Health Care Fraud

by Gregory J. Brod

As concerned citizens and as a health care fraud law firm, our team continues to be pleased with the terrific successes whistleblowers are having using the False Claims Act, Anti-Kickback Statute and related federal and state statutes to fight fraud in the medical field. A major settlement announced this month involving improper health care kickbacks shows just how successful these cases can be and how several different laws can work in concert to provide justice. Yet, we know that for every victory, there are countless other companies and individuals committing health care fraud and stealing from the American people. We cover these issues extensively to let those who witness these crimes know they are not alone. We are here to help them follow the right path and truly do a service to their country.

DOJ Announces Largest Total Settlement Involving Illegal Kickbacks in Medical Device Field

The Department of Justice (“DOJ”) announced this month that the largest distributor of endoscopes and related equipment has agreed to pay $623.2 million to settle several lawsuits involving allegations it paid inappropriate kickbacks to doctors and hospitals. Defendant Olympus Corporation of the Americas (“Olympus”) has admitted to the allegations in a criminal complaint filed in a New Jersey federal court based on the Anti-Kickback Statute (“AKS”) and the related suits rest on similar allegations. This settlement involves the largest total amount paid to date by a medical device company for violations involving the AKS. Olympus has entered into a deferred prosecution agreement that allows it to avoid criminal conviction if it complies with the reforms contained in the agreement.

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 15, 2016

The Implied Certification Debate: A Major Issue in False Claims Act Litigation Pending Before the U.S. Supreme Court

by Gregory J. Brod

Last year, our health care fraud whistleblowers’ law firm reported on an important issue in the False Claims Act arena: implied certification. The implied certification theory has the potential to be a powerful tool in the fight against fraud and, when we last discussed the topic, the Fourth Circuit Court of Appeals had ruled in favor of the theory. However, there has been disagreement on the issue among the federal appellate courts and the issue is headed to the Supreme Court. We continue to believe in the implied certification theory and we are closely following the issue as it makes its way to the highest court in the land.

The Escobar Case

As Modern Healthcare recently reported, the implied certification theory is heading to the Supreme Court via the case of Universal Health Services v. United States ex rel Escobar. The case involves a claim filed by the parents of a teenager who died while under the care of a mental health clinic. The plaintiffs allege that the clinic’s staff was not properly supervised and that the clinic lacked required board-certified or board-eligible supervisory personnel. As the First Circuit wrote, “The crux of their complaint is that [Defendants’] alleged noncompliance with sundry supervision and licensure requirements rendered its reimbursement claims submitted to the state Medicaid agency actionably false under both the federal and Massachusetts False Claims Acts.”

February 8, 2016

Protecting Whistleblowers Who Join the Fight Against Health Care Fraud

by Gregory J. Brod

By its nature, fraud is a crime of secrets. The depth and breadth of these secrets are part of the reasons why whistleblowers are such an essential part of the fight against health care fraud. The law recognizes this and both rewards and protects health care fraud whistleblowers for their role in helping return wrongfully diverted government health care funds to already-strained program budgets like Medicare and Medicaid. As a whistleblowers’ law firm, The Brod Law Firm is proud to work with the men and women who speak up when others might remain silent.

Whistleblower Files Retaliation Lawsuit Against Former Employer

One whistleblower in Oregon is currently pursuing a lawsuit against his former employer claiming illegal retaliation based on his role in reporting potentially fraudulent Medicare claims. According to The Oregonian, Dr. Robert Dannenhoffer filed a federal whistleblower claim late last week against Architrave Health LLC, a health care organization in southern Oregon. Dr. Dannenhoffer claims that a subsidiary company, Umpqua Medical Group, set up an improper compensation structure that rewarded doctors for prescribing certain medications and procedures for Medicare patients. He says the pay structure led to inflated Medicare payments in violation of both the False Claims Act, a general law dealing with fraudulent claims for government funds, and the Stark Act, a law specifically limiting the ability of medical providers from profiting on referrals.

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 25, 2016

Nursing Home Billing Fraud Update: Rehabilitative Therapy Contractor Settles Case, Whistleblower and Federal Government Alleged Company Put Profit Over Patient Care

by Gregory J. Brod

It is a simple concept — health care should be dictated by the patient’s needs rather than the provider’s fiscal interest. While most providers adhere to this core principle, far too many do not, especially in the long-term and nursing home care arenas. Nursing home billing fraud, including rehabilitative therapy fraud, is a violation of patient trust and medical ethics as well as a serious financial wrong that diverts money away from genuine medical needs. As a Medicare billing fraud law firm, we monitor this area of law closely and we fight back by working with honest whistleblowers who come forward to report these wrongs.

DOJ Press Release Details Alleged Frauds in Recently Settled False Claims Act Case

A Department of Justice (“DOJ”) press release issued on January 12 demonstrates the DOJ’s continuing commitment to supporting whistleblower-led Medicare billing fraud claims in 2016. Kindred Healthcare Inc. and its subsidiaries RehabCare Group Inc. and RehabCare Group East Inc. (collectively “RehabCare”) have agreed to healthmoney pay $125 million to resolve a False Claims Act (“FCA”) lawsuit. RehabCare is the nation’s largest provider of rehabilitative therapy, contracting with over 1,000 nursing homes nationwide to provide patient care. Four nursing homes will also pay a total of $8.225 million in connection with the settlement. While the settlement resolves the claims, it is not an admission of wrongdoing and all claims detailed below remain allegations.

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.