Whistleblower Insider

Whistleblower Insider is written by the Constantine Cannon law firm team of experienced qui tam and whistleblower lawyers. It is updated daily to provide the latest whistleblower and fraud news and developments.
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October 1, 2014

Whistleblower News from the Inside

By the C|C Whistleblower Lawyer Team

Lawmakers back whistleblowers in the Supreme Court — A bipartisan group of lawmakers filed a brief in the Supreme Court supporting a former air marshal’s whistleblower case.  Wall Street Journal

Medicaid fraud case against Caremark settles for $6 million– The qui tam whistleblower suit alleged that the company overcharged Medicaid for prescriptions for more than a decade.  Texas Public Radio

Whistleblower says armed contractor slipped through President’s security — The contractor, with three prior convictions for assault and battery, managed to slip by the Secret Service with a gun and ride an elevator with the President.  WGNO

Michigan proposes to ban physicians who defraud their patients – Under current law, physicians like “death doctor” Farid Fata (charged with prescribing unnecessary chemo) can resume practice just a few years after getting caught.  Washington Post

Six defendants charged with home health care fraud – The charges come in connection to a $6 million scheme to defraud Medicare that has already brought stiff prison sentences and penalties for two others.  DOJ

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If you would like more information or would like to speak to a member of Constantine Cannon’s whistleblower lawyer team, please click here.

October 1, 2014

Whistleblower Spotlight — Marine Whistleblower Franz Gayl

By the C|C Whistleblower Lawyer Team

This week’s “Whistleblower Spotlight” falls on US Marine Corps civilian scientist and retired Marine Officer Franz Gayl.  He is the Marine Corps insider who in 2006 sounded the alarm on the military’s failure to protect US troops in Iraq and Afghanistan with appropriate armored vehicles.  While stationed in Iraq, he saw first-hand the casualties being suffered from roadside bombs by Marines in poorly protected Humvees.  He pushed for their replacement with blast-resistant trucks known as Mine Resistant Ambush Protected (MRAP) vehicles.

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September 30, 2014

Whistleblower News from the Inside

By the C|C Whistleblower Lawyer Team

Redemption for VA whistleblowers with settlement of retaliation claims — The Office of Special Counsel helped three whistleblowers at the Department of Veterans Affairs settle whistleblower retaliation claims relating to their disclosures of mismanagement at the Phoenix VA Medical Center, with at least two of the whistleblower receiving promotions.  Washington Post

Three reasons why women are more likely than men to be whistleblowers — Fortune

Gov to reveal drug company payments to doctors — Striving to shine a light on potential ethical conflicts in medicine, the Obama administration, through its so-called Open Payments Program, will begin releasing data on drug company payments to tens of thousands of individual doctors.  AP

BofA pays $7.65M to settle with SEC over $4B accounting error  Though a trifle compared to its recent $16.65 mortgage fraud hit, the penalty highlights what has been one of the more embarrassing financial flubs at the mighty bank.  NYT

Administrator of Miami home health care company sentenced for health care fraud  Annilet Dominguez, Administrator of Professional Medical Home Health LLC, is sentenced to serve 68 months in prison and ordered to pay almost $6.3M in restitution for her participation in a $6M health care fraud scheme involving kickbacks for patient referrals for home health services not medically necessary or actually provided.  DOJ

Money laundering moving to smaller banks — “It’s one of those things where you tighten the screws in one area and then it pushes them somewhere else and then they find some loopholes there.”  WSJ

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If you would like more information or would like to speak to a member of Constantine Cannon’s whistleblower lawyer team, please click here.

September 26, 2014

Whistleblower News from the Inside

By the C|C Whistleblower Lawyer Team

Marine whistleblower vindicated after seven year fight — the Marine Corps whistleblower who called out his service for not protecting its troops in Iraq with armored vehicles has reached a settlement with the Marines that allows him to keep his job and to help develop guidelines for those who raise concerns about internal wrongdoing.  USA Today

US Attorney General Eric Holder resigns — NPR recounts the highs and lows of Holder’s tenure, noting that, despite some bumps, his years also were marked by big criminal prosecutions and significant shifts in Justice Department priorities.  NPR

Merck MMR vaccine troubles — Merck, the pharmaceutical giant, is facing a slew of controversies over its MMR vaccine following numerous allegations of wrongdoing from different parties in the medical field, including two former Merck scientists-turned-whistleblowers.  Huffington Post Canada

Former owner of medical supply company arrested in Medicare fraud scheme — the former owner of Quick Solutions Medical Supplies Inc. allegedly conspired with individuals who operated other medical supply companies to submit approximately $24 million in fraudulent claims for reimbursement to Medicare for items that were not medically necessary or were not actually provided.  DOJ

New York judge hits Texas entrepreneur with huge sanctions for fraud — A federal judge Thursday ordered Texas entrepreneur Sam Wyly and the estate of his deceased brother, Charles Wyly, to pay an estimated $300 million to $400 million for their role in a fraudulent offshore scheme.  WSJ

Former G.S.A. official indicted for fraud — A grand jury in San Francisco charged the official, Jeffrey Neely, the former public buildings commissioner for the General Services Administration’s Pacific Rim Region, with filing false claims, making false statements and using false documents mainly tied to his lavish spending on retreats and getaways.  NYT

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If you would like more information or would like to speak to a member of Constantine Cannon’s whistleblower lawyer team, please click here.

September 26, 2014

DOJ Catch of the Week — Shire Pharmaceuticals

By the C|C Whistleblower Lawyer Team

This week’s Department of Justice “catch of the week” goes to Shire Pharmaceuticals LLC.  On Wednesday, the Wayne, Pennsylvania based drug maker agreed to pay $56.5 million to settle charges it violated the False Claims Act through improper marketing and promotion of several drugs used to treat attention deficit hyperactivity disorder (ADHD) and ulcerative colitis.  See DOJ Press Release.

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September 25, 2014

Complaint Against FDA for Whistleblower Retaliation Rejected

By Jason Enzler

A complaint alleging the FDA engaged in whistleblower retaliation was dismissed by a federal court this week, but the case may be far from over.  The lawsuit, filed by six current and former FDA scientists and doctors, alleged that the agency retaliated against the whistleblowers after they raised concerns over the safety and approval process of medical devices.  The D.C. District Court tossed the complaint not on the merits, but because the whistleblowers failed to “exhaust the administrative remedies.”  Which means the whistleblowers may seek relief at the agency level and, if left unsatisfied, return to federal court for redress.

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September 25, 2014

Snowden Wins “Alternative Nobel Prize”

By Marlene Koury

The Right Livelihood Award Foundation Honorary Prize goes to Edward Snowden for “revealing the unprecedented extent of state surveillance.”  He was jointly awarded the prize along with Alan Rusbridger, editor-in-chief of The Guardian, with whom Snowden collaborated to publish his findings on NSA surveillance.

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September 23, 2014

Whistleblower News from the Inside

By the C|C Whistleblower Lawyer Team

SEC fines Wells Fargo Advisors – The $5 million dollar fine is in response to a Wells Fargo broker using private customer data to make stock trades.  Washington Post

Joseph Gordon-Leavitt to play Snowden? — The actor is apparently in talks to play Edward Snowden in an upcoming Oliver Stone movie detailing Snowden’s path from blowing the whistle to asylum in Russia.  NME

San Francisco woman exposes massive fraud at investment firm — Former investor gets credit for taking down an investment company that scammed thousands of investors out of millions of dollars and led to the conviction of company executives.  San Francisco

JPMorgan off the hook in VA — Virginia Attorney General Mark R. Herring drops JPMorgan from mortgage securities fraud lawsuit against the country’s biggest banks, after learning that his predecessor Ken Cuccinelli had already struck a confidential settlement with the bank.  Washington Post

Former owner of California medical supply company sentenced – Akinola Afolabi received a 30 month prison term and was ordered to pay almost $1.5 million for his role in a scheme to defraud Medicare by billing for unnecessary power wheelchairs.  DOJ

Legislation proposed to strengthen inspector generals – The Inspector General Empowerment Act would give watchdogs more subpoena power, but would bolster oversight of the inspector generals as well.  Fiscal Times

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If you would like more information or would like to speak to a member of Constantine Cannon’s whistleblower lawyer team, please click here.