On January 12, 2021, the Department of Justice (“DOJ”) announced the first civil settlement to resolve allegations of fraud against the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. SlideBelts Inc. (“SlideBelts”) and its president and CEO, Brigham Taylor, have agreed to pay the United States $100,000 in damages…
NY AG Reaches Settlement with Supermarket Chain That Sought to Evade Taxes
The Office of the New York State Attorney General (“NY AG”) announced it has reached a settlement with a chain of supermarkets operating throughout New York City, resolving claims that the chain engaged in a series of fraudulent tax avoidance schemes by underreporting cash sales and paying workers off the books. The chain will pay…
Seven Charged in Connection with COVID-Relief Fraud Scheme
The Department of Justice (“DOJ”) unsealed an indictment charging seven individuals across two states for their alleged participation in a scheme to obtain $16 million in forgivable Paycheck Protection Program (“PPP”) loans guaranteed by the U.S. Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Enacted on March 29, 2020,…
Doctor Settles Civil Fraud Allegations in Adult Homes
The Department of Justice (“DOJ”) announced that a New York doctor has agreed to pay $150,000 to resolve civil allegations that he paid kickbacks and caused false claims to be submitted to Medicare in connection with care that he purportedly provided to residents of Adult Homes. Adult Homes are privately-owned residential facilities licensed by the…
Mortgage Company to Pay $24.9 Million to Resolve Allegations it Knowingly Caused False Claims for Federal Mortgage Insurance
The Department of Justice (“DOJ”) announced that Guild Mortgage Company (“Guild”) has agreed to pay $24.9 million to resolve allegations that it violated the False Claims Act (“FCA”) by knowingly breaching material program requirements when it originated and underwrote mortgages insured by the U.S. Department of Housing and Urban Development’s (“HUD”) Federal Housing Administration (“FHA”)….
NY AG Secures Settlement from Contractor Who Faked Diversity Metrics
The Office of the Attorney General of the State of New York (“NY AG”) announced a settlement with Rochester-based contractor Bell Mechanical Contractor, Inc. (“Bell Mechanical”), after the company falsely claimed to meet state diversity requirements to win and maintain contracts on a $1.2 billion school modernization project in the city of Rochester. The settlement…
Government Contractor to Pay Almost $40 Million to Settle False Claims Act Allegations of Bribery
The Department of Justice (“DOJ”) announced that QuantaDyn Corporation (“QuantaDyn”) has agreed to settle civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company. As part of the agreement, QuantaDyn will pay $37,757,713.91 in restitution and William T. Dunn Jr., QuantaDyn’s majority owner…
Whistleblower Alleges Widespread Medical Neglect at ICE Facility
A whistleblower complaint has been filed alleging widespread medical neglect at the Irwin County Detention Center (“ICDC”), an Immigration and Customs Enforcement (“ICE”) detention facility in Ocilla, Georgia. The complaint was filed by a coalition of human rights groups on behalf of detained immigrants at ICDC and Dawn Wooten, an ICDC nurse and protected whistleblower. …
False Claims Act Violators Receive Millions in COVID Relief
A new investigation reveals that companies who have previously paid out millions for False Claims Act (“FCA”) violations are now reaping the rewards of COVID-19 relief funds. The investigation identified 225 companies that have received money through the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act despite having paid nearly $13 billion in settlements and…
DOL IG Issues Report on Improving Whistleblower Program
The Office of the Inspector General (“OIG”) of the U.S. Department of Labor (“DOL”) issued a report finding that the Occupational Safety and Health Administration (“OSHA”) must improve its handling of whistleblower complaints during the ongoing COVID-19 pandemic. The OIG report details how the combination of staffing shortages within OSHA’s whistleblower program and a rise…