The SEC has released its annual report on the activities of the Office of the Whistleblower, created under Section 922 of 2010’s Dodd-Frank Act. The report is full of noteworthy information including tables analyzing the 3,001 tips received by the office and a description of the first award paid out under the new program. Read…
After Long Wait, Whistleblower Protection Enhancement Act Becomes Law
President Obama has signed into law the Whistleblower Protection Enhancement Act (WPEA), a bipartisan bill designed to protect the rights of federal employees to report government wrongdoing. The bill passed both chambers of Congress by unanimous consent earlier this fall after narrowly failing in the closing days of each of the last four sessions. Its…
EDMC Faces New Whistleblower Woes
The nation’s second-largest operator of for-profit colleges, Education Management Corp. (EDMC), is the subject of a recent qui tam suit brought by former admissions officer Jason Sobek. The suit alleges that EDMC misled prospective students—and, by extension, the government—by inflating job placement statistics in recruiting materials. Sobek claims that the company included in those numbers…
Orthofix Subsidiary to pay $30 Million to Settle FCA Allegations
The Justice Department reports today that Blackstone Medical Inc., a subsidiary of the medical equipment company Orthofix International NV, has agreed to pay $30 million to resolve allegations that it promoted its products by paying illegal kickbacks to physicians. The alleged kickbacks included “sham consulting agreements, sham royalty agreements, sham research grants, travel and entertainment.”…
Novartis to Pay $19.9 Million for Off-Label Marketing of Elidel in Texas
Novartis has agreed to pay $19.9 million to the state of Texas to settle allegations that it marketed a prescription eczema cream, Elidel, for off-label uses. According to the whistleblower, a former marketing representative for Novartis, the company marketed Elidel for use in children under 2 years of age. Such off-label use was not proven…
Office Depot Named in State FCA Suit
A newly unsealed qui tam lawsuit alleges that Office Depot overcharged California state agencies by millions of dollars for pens, furniture, and other supplies. The plaintiff whistleblower claims that the company misapplied discounts, changed prices, and failed to fulfill lowest-price guarantees that were included in its government contracts. A number of municipalities and school districts…
IRS Pays $38 Million to Whistleblower
The IRS paid $38 million to an individual who provided information that led to the recovery of $127 to $254 million in corporate taxes. The claim, which involved actions “more akin to aggressive corporate tax planning than outright fraud,” was filed in early 2008. According to the whistleblower’s attorney, both the existence and identity of…
Lucent Settles Iraq-Related Fraud Suit for $4.2 Million
Lucent Technologies World Services Inc. has agreed to pay $4.2 million to resolve allegations that it misled the U.S. government in the course of contracting for the creation of a 911-like emergency response system in Iraq. The suit, brought by a whistleblower under the qui tam provisions of the False Claims Act, alleged that Lucent…
HCA Will Pay $16.5 Million to Settle FCA Allegations
The hospital chain HCA Inc. will pay $16.5 million to settle allegations that it violated the federal False Claims Act and other statutes, the Justice Department announced today. The allegations concerned relationships between HCA’s subsidiary companies and a Tennessee physician group, Diagnostic Associates of Chattanooga. Federal authorities accused the subsidiaries of paying Diagnostic illegal kickbacks…
Record-Setting $104 Million Award for IRS Whistleblower
In what is believed to be the largest individual whistleblower payout in U.S. history, the IRS has awarded former UBS banker Bradley Birkenfeld $104 million for his role in uncovering the bank’s illegal use of offshore accounts. Information provided by Birkenfeld through the IRS’s whistleblower program led ultimately to a deferred prosecution agreement with UBS…