According to SEC officials, the newly created whistleblower program has already resulted in tips of “surprisingly high” quality and “huge cases.” Sean McKessey, chief of the SEC’s whistleblower office said, “We’ve been very pleased with the percentage of whistleblower tips that have [signs] of reliability either because they’re from somebody working at the company they’re…
$25 Billion Mortgage Settlement Included 6 False Claims Act Suits
Recently released settlement documents reveal that the historic $25 billion agreement between Bank of America, JP Morgan Chase, Wells Fargo, Citigroup, and Ally Financial included the resolution of six separate whistleblower suits brought under the False Claims Act. The six cases collectively accounted for $227.9 million of the recovery and at least two of them…
Ohio Sues BNY Mellon for Foreign Currency Exchange Rate Fraud
Ohio Attorney General Mike DeWine filed suit against BNY Mellon on Monday for alleging that the company defrauded two state pension funds enrolled in its standing instruction foreign currency exchange trading program. Although the bank promised its customers the best rate to the day, it allegedly provided these customers the worst rate of the day…
Devon Energy to Pay Over $3 Million
Devon Energy Corp. has agreed to pay $3,492,463 to resolve allegations that a company it acquired in 1999–PennzEnergy, also known as Penzzoil Company–underpaid royalties on natural gas extracted on federal land. According to the complaint, the company improperly deducted certain costs and excluded gas it used to power its fuel boosting compressors in calculating the…
JP Morgan Chase to Pay $45M for Defrauding Veterans
JP Morgan Chase has agreed to pay $45 million to resolve allegations that the bank defrauded veterans by charging them impermissible fees on home mortgage refinancing transactions. This case was initiated in 2006 by two mortgage brokers against several of the nation’s largest mortgage lenders. Suits are still pending against Wells Fargo Bank, Bank of…
DOJ Reportedly Asks J&J to Raise Risperdal Settlement Offer to $1.8 Billion
According to people close to the discussions, the DOJ has rejected an initial settlement offer made by Johnson & Johnson to resolve allegations that it violated federal regulation in marketing its antipsychotic drug Risperdal. DOJ reportedly expects Johnson & Johnson to pay $1.8 billion to resolve the matter, $800 million more than Johnson & Johnson…
FCA Suit Against B of A Unsealed
A second whistleblower suit reportedly related to the $1 billion Bank of America settlement with the U.S. Attorney’s Office in Brooklyn was unsealed in federal court on Wednesday. According to the complaint, Countrywide Financial, a Bank of America subsidiary, engaged in fraudulent activities in order to prevent customers from becoming eligible for Home Affordable Modification…
Takeda Pharmaceutical Sued Under FCA for Underreporting Incidents
A False Claims Act case filed against Takeda Pharmaceutical Co. was recently unsealed in federal court in Boston. The suit alleges that the company failed to classify non-hospitalized or non-fatal congestive heart failure cases as serious, thereby underreporting the risks associated with its diabetes drug. The company allegedly wanted to make its drug, Actos, appear…
Attorney General Holder Says DOJ to Hold Individuals Responsible for Fraud
At a meeting of state attorneys general, Attorney General Eric Holder vowed that his office would be bringing more cases against the individuals responsible for corporate fraud. Holder stated that simply imposing fines against the companies will not sufficiently deter fraudulent activities, pointing to the high rate of repeat offenders, especially in the securities field….
DOJ Files FCA Suit Against Grant Recipient
The Department of Justice filed a False Claims Act suit against Technological Research and Development Authority (TRDA) alleging that the company made false statements in order to obtain federal grants from NASA, the Department of Commerce, and the Economic Development Administration and improperly spent grant funds. Read the entire article, “USDOJ: U.S. Files False Claims…