If you work for an organization that contracts with the federal government, you may have observed questionable or even fraudulent activity. Did you know you could earn a substantial reward by blowing the whistle on fraud, waste or abuse of a federal contract or program? The reward could be between 15 and 30 percent of any money recovered on behalf of the government.
"By bringing allegations of fraud to light, whistleblowers play an important role in protecting the integrity of our healthcare system," says the U.S. Attorney for the Western District of Pennsylvania.
In the 2018 fiscal year, the U.S. Department of Justice recovered billions of dollars on behalf of the federal government from cases involving the False Claims Act. This law holds both individuals and companies responsible for defrauding and taking money from the federal government. In addition to the government seeking to cover its losses from various types of fraudulent actions, a claimant filing under the False Claims Act, whether from New York or another state, may be able to seek a portion of what is recovered.
The False Claims Act invites private-citizen whistleblowers to file lawsuits against companies that they believe are engaging in fraud, waste or abuse in government contracting. When these lawsuits are successful, the whistleblower can receive a substantial portion of the money recovered as a reward for their service. Sometimes, the federal government intervenes in these lawsuits, which does not affect the whistleblower's rights but sometimes improves the lawsuit's chances for success.
As drug prices rise in the U.S., some have expressed concerns that charitable payment of drug copays could be contributing to price inflation. This is because, although most patient assistance groups of this type are charities, pharmaceutical companies routinely donate to the groups.
Vascular Access Centers L.P., along with 23 subsidiaries and related corporations, has been accused of Medicare fraud, violating the False Claims Act, and violating the Anti-Kickback Statute and have agreed to pay at least $3,825 million to resolve the allegations. If certain contingencies arise, additional payments up to $18,360,794 could be triggered.
The Justice Department has accused defense contracting giant Northrop Grumman Systems Corporation (NGSC) of overbilling for employee hours on two Air Force battlefield communications contracts. It has now agreed to pay $25.8 million to settle those claims without admitting responsibility. When added to previous repayments, the company will have paid $27.45 million to reimburse the government. In addition, it has agreed to forfeit $4.2 million to resolve criminal allegations brought by the U.S. Attorney's Office for the Southern District of California.
The Hunters Point Naval Shipyard in San Francisco is being redeveloped into housing and commercial space. Between 1946 and 1969, however, the former Navy shipyard was involved in activities that created significant amounts of radioactive waste. First, the facility was the location of top-secret nuclear tests. Second, it was where ships were decontaminated after returning from hydrogen bomb tests. Cleaning up the radioactive waste is expected to cost at least $1 billion.
Between Jan. 1, 2006 and Dec. 31, 2011, the Justice Department says, a Miami-based mortgage originator called the Universal American Mortgage Company LLC (UAMC) knowingly originated mortgages under the Federal Housing Administration mortgage insurance program that did not qualify with that program's lending requirements. These defective loans violated the False Claims Act because the FHA mortgage insurance program is left on the hook when its insured mortgages go into foreclosure.
A military contractor that manufactures helicopter landing systems for U.S. Navy destroyers has recently settled a claim that it knowingly substituted cheaper steel than the Navy contract specified but still billed for the contract amount. This violated the federal False Claims Act, according to the Justice Department. Indal Technologies, Inc., a division of the Curtiss-Wright Corporation, has agreed to pay $3.5 million to resolve the allegations.