Whistleblower News & Legal Updates: March 2016

Assorted pills and capsules in various colors and shapes, highlighting concerns about increased spending in compounded drugs and potential fraud.

Pharma Payments Increase Doctor Brand Prescriptions

For years, many pharmaceutical and medical device companies have paid doctors for speaking engagements as well as offered free meals, gifts and entertainment. A new

March 21, 2016

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Key Stats and Figures on Whistleblowing

It turns out that one of the top ranked websites for statistics concerning whistleblowers is a random business site pushing marketing services. It mentions the

March 18, 2016

Senate Finance Committee chamber interior with rows of wooden desks and ornate chandeliers, relevant to discussions on whistleblower legal frameworks and financial regulations.

Merrick Garland’s Key Whistleblower Decisions Explained

President Obama announced the nomination of D.C. Circuit Court of Appeals Chief Judge Merrick Garland to the Supreme Court at a press conference at 11

March 16, 2016

Stack of legal documents and reports related to whistleblower cases and corporate misconduct.

Internal Whistleblower Tips Confirmed at Record Rate in 2015

Employees continued to report misconduct internally at higher levels and those reports were confirmed at an all-time high in 2015, according to the Navex Global

March 16, 2016

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Three SEC Whistleblowers Split Nearly $2 Million

Multiple whistleblowers appear the norm these days in securities lawsuits, if the two most recent award determinations are any indication of the success of the

March 9, 2016

Stacks of hundred-dollar bills, highlighting financial settlements related to whistleblower cases and legal developments in the financial sector.

Corruption Reports Highlight Worldwide Bribery Problem in 2016

The global problem of bribery isn’t going away anytime soon. Forty percent of all compliance officers reported the risk of bribery and corruption at their

March 9, 2016

United States Treasury check with visible cash, symbolizing financial settlements and accounting fraud in SEC cases.

Ninth Circuit Greenlights $1 Billion Whistleblower Case

A 2005 GAO report concerning problems in the Raytheon contract to develop an environmental satellite system did not bar a later False Claims Act lawsuit

March 8, 2016

Person in wheelchair navigating hallway, related to whistleblower legal cases and fraud reports.

The Explosion of Hospice Fraud and the False Claims Act

One area of health care where there have been a handful of whistleblowers recently is hospice fraud. Hospice spending has exploded from nearly $3 billion

March 7, 2016

Monopoly game board illustrating bribery and corruption risks in compliance.

Big Award for Compliance Whistleblower in Record Kickback Case

Earlier this week, medical device manufacturer Olympus agreed to pay the largest ever civil False Claims Act settlement by a medical device manufacturer to resolve

March 3, 2016

Judge signing legal documents with gavel on table, representing whistleblower case proceedings and legal updates.

SEC Whistleblower Gets Reward for Flash Crash Discovery

Bloomberg has reported the enforcement action and recipient of the first case of a reward for independent analysis by a SEC whistleblower (announced January 2016).

March 1, 2016

Charts and graphs on financial data with a magnifying glass, pens, and glasses on a desk, illustrating analysis relevant to whistleblower legal developments.

Qualcomm Agrees to $7.5M Settlement with SEC Over FCPA Case

Another princeling investigation has wrapped up at the Securities and Exchange Commission, although this one didn’t involve suspicions of violations of the Foreign Corrupt Practices

March 1, 2016

U.S. Capitol dome surrounded by green trees, symbolizing government oversight and whistleblower advocacy.

New Bill for Bank Whistleblowers in Congress

Last week, Representative Elijah E. Cummings and Senator Tammy Baldwin proposed a bill to modify several financial industry laws including the Dodd-Frank Act and Sarbanes

February 29, 2016

Modern conference room with a long white table and black chairs, designed for discussions related to whistleblower law and corporate misconduct.

Highlights of SEC Speaks 2016 for Whistleblowers

At the end of last week, the Practicing Law Institute held its annual SEC Speaks conference with employees of the Securities And Exchange Commission. The

February 23, 2016

Close-up of stacked U.S. hundred-dollar banknotes featuring Benjamin Franklin, symbolizing financial rewards and whistleblower compensation in legal cases.

Award Determination Appeals Offer Whistleblowers Hope

A Forbes article written by another whistleblower attorney is reporting the first settlements following appeals of award determinations by the Internal Revenue Service whistleblower program.

February 23, 2016

Documents and tax forms on a table with a coffee cup, representing tax preparation and compliance related to whistleblower cases and Medicare fraud.

IRS and CFTC Funding Fights Hamper Enforcement

Whistleblowers should continue to expect the government’s pursuit of some enforcement actions to be tempered by limited resources as both the IRS and CFTC have

February 22, 2016

Financial district skyline featuring HSBC and Barclays bank buildings, relevant to discussions on bank whistleblowers and corporate accountability.

FCPA Enforcement in 2016 Continues with VimpelCom Settlement

2015 might have been a slow year for the FCPA in terms of enforcement resolutions, but 2016 is already off to the races. Sciclone, SAP

February 22, 2016

Colorful assortment of pills and capsules on a purple background, representing the pharmaceutical industry amidst discussions of drug fraud and healthcare ethics.

CMS Issues Final Rule on Retention of Medicare Overpayments

CMS has issued the final rule to implement section 6402(a) of the Affordable Care Act, which relates to the obligation of providers to repay an

February 18, 2016

FCPA News: PTC Settles for $28 Million; GCC Ups Reserve

There continues to be the release of significant FCPA news this year despite a report from law firm Miller & Chevalier noting that the number of resolved

February 17, 2016

Understanding the False Claims Act and Whistleblower Protections

The False Claims Act (FCA) is a cornerstone of federal law that empowers individuals, known as whistleblowers or relators, to report fraud against the government. When a whistleblower successfully brings a case under the FCA, they can be entitled to a significant portion of the recovered funds, often between 15% and 30%. This act is particularly crucial in combating healthcare fraud, defense contractor fraud, and other forms of financial misconduct that drain public resources.

Key aspects of the False Claims Act include provisions for treble damages, meaning the government can recover up to three times the amount of fraudulent claims, and penalties for each false claim submitted. Whistleblowers are also protected from retaliation by their employers under the FCA, ensuring they can come forward without fear of reprisal for reporting genuine instances of fraud.

SEC Whistleblower Program: Incentives and Impact

The Securities and Exchange Commission (SEC) Whistleblower Program, established by the Dodd-Frank Act, offers substantial financial incentives to individuals who provide original information leading to successful enforcement actions. These awards can range from 10% to 30% of the monetary sanctions collected by the SEC in cases where the information is original, voluntary, and credible.

This program has significantly boosted the SEC's ability to detect and prosecute securities law violations, including insider trading, accounting fraud, and market manipulation. The anonymity offered to whistleblowers, coupled with the financial rewards, encourages more individuals to come forward with critical information that might otherwise go unnoticed, thereby enhancing market integrity and investor protection.

Qui Tam Lawsuits: Empowering Citizens to Fight Fraud

Qui Tam lawsuits are a specific type of action brought under the False Claims Act where a private citizen (the relator) sues on behalf of the government to recover damages for fraud. The term "qui tam" comes from a Latin phrase meaning "who brings this action in the king's name as well as for his own." This mechanism allows ordinary citizens to act as agents for the government in prosecuting fraud.

The success of Qui Tam provisions lies in their ability to incentivize whistleblowers with a share of the recovered funds, which can be substantial. This not only provides a financial reward for the relator but also serves as a powerful deterrent against fraudulent activities that target government programs and taxpayer money.

The Role of Whistleblowers in Combating Healthcare Fraud

Healthcare fraud represents a significant drain on public funds, and whistleblowers play a critical role in uncovering and prosecuting these illicit activities. Cases often involve fraudulent billing practices, kickback schemes, and the provision of unnecessary or substandard medical services, all of which violate the False Claims Act.

Whistleblowers in the healthcare sector, such as doctors, nurses, and billing staff, are often privy to the inner workings of fraudulent schemes. Their courage in reporting these issues, often through Qui Tam lawsuits, has led to billions of dollars in recoveries for Medicare, Medicaid, and other government healthcare programs, ensuring that taxpayer money is used appropriately.

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