As discussed in a recent post, a whistleblower is typically entitled to a percentage of the of total recovery the government receives from a party that has defrauded the government. When the government intervenes in a case, this percentage is set by statute to be at least 15% of the proceeds of the action or settlement, but not more than 25%. As a general rule, the whistleblower (also referred to as the relator) is aligned with the government in a whistleblower case. For instance, the whistleblower files suit on behalf of the government and provides the government with all the...Read More
AntiFraud Law Group Blog
Handling Whistleblower Cases Nationwide from Newport News, Virginia
The False Claims Act, which is the law that provides for whistleblower lawsuits for those reporting fraud against the federal government, includes provisions that state whistleblowers generally get to share in the government recovery. The government obviously does this to motive persons that aware of fraud against the government to come forward and report it. A whistleblower suit needs to be successful as a result of trial or settlement for a person to recover. That being said, the recoveries, and as a result, the compensation to whistleblowers can be considerable. Some of the largest recoveries by the government have actually run...Read More
On August 21, 2012, the Securities and Exchange Commission (SEC) announced its first whistleblower reward of nearly $50,000 under the provisions of the Dodd-Frank Act.
The recipient, choosing to remain anonymous, provided the SEC with documents and other sources of information that helped to expedite the investigation of a multi-million dollar fraud scheme. The court ordered just over $1 million in sanctions, of which roughly $150,000 has been collected thus far. The whistleblower’s share of 30 percent is the maximum payout allowed by law. As the court considers whether to issue a final judgment against other defendants, payments...Read More
On August 2, 2012, the U.S. Court of Appeals for the Ninth Circuit issued its decision in United States ex rel. Hooper v. Lockheed Martin Corp., holding that underbidding on a $900 million government contract creates liability under the False Claims Act.
The ruling marks the first time a federal court of appeals has considered whether underbidding constitutes a violation under the qui tam provisions of the False Claims Act. In the opinion of the court, “false estimates, defined to include fraudulent underbidding in which the bid is not what the defendant actually intends to charge, can be a source of liability under...Read More
In its recently published report entitled “Inside the Mind of a Whistleblower,” the Ethics Resource Center (ERC) synthesizes data collected over the past decade, providing statistics and information on the behavior of whistleblowers in the U.S. The study examines a wide range of factors that influence employees who face the decision of whether or not to report wrongdoing in the workplace. The research negates the common perception of whistleblowers as frustrated, selfish employees in search of monetary reward, and instead proves that employees are typically more inclined to report and remedy a problem internally for the good of the...Read More
When major corporations are fined for defrauding the government, CEO’s aren’t the ones writing the checks.
Take, for example, three companies in the healthcare industry who have recently agreed to settlements in fraud cases:
- Amgen, Inc. has set aside $780 million to settle a lawsuit involving illegal marketing practices, while Chairman and CEO Kevin Sharer is expected to receive $49 million upon his retirement at year end.
- GlaxoSmithKline CEO Andrew Witty reached a contract agreement this year that will raise his salary to roughly $16.5 million. Meanwhile, the company officially announced in July that it will...
The Federal Government and several major health insurers have recently announced a partnership that will take unprecedented steps to eviscerate fraud from the health care industry. The two sides will share raw data, as well as investigative knowledge and expertise, as they aim to shut off billions of dollars in questionable payments made by the health care system each year.
While insurance companies grudgingly adhere to the requirements of President Barack Obama’s health care overhaul law, industry leaders point out that combating fraud remains atop the list of priorities.
“What’s in it for us is that if you have more data...Read More
It comes as no surprise that the False Claims Act has become increasingly relevant during the recent economic downturn in the U.S.
Corporate structures often designate profit as the top priority, throwing aside goals of ethical business practice. Medicare and Medicaid enrollment have increased significantly in the past decade and are at all-time highs, creating greater opportunity for fraud to occur. False claims related to government procurement and defense, the most traditional type of fraud, continue to surface as international engagements consistently require increased federal funding.
In response, Americans are now more...Read More
Welcome to our new site and our blog. Please take some time to review our site and our credentials. Over the coming months we plan to take some time to discuss the different aspects of whistleblower suits. These cases can be very rewarding for our clients. Not only are are whistleblowers doing the right thing by preventing government fraud, there can also be significant financial benefits for them. In a successful case, the whistleblower is entitled to a part of the government recovery. Free free to contact us with any questions.