Washington D.C. October 9, 2016.  Och-Ziff Capital Management Group (Och-Ziff), A New York-based alternative investment and hedge fund manager, agreed to pay a combined total amount of U.S. criminal and regulatory penalties of approximately $412 million to settle charges it violated the Foreign Corrupt Practices Act.  In separate announcements yesterday the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) each described the actions of Och-Ziff which led to the charges the company violated the FCPA.
Continue Reading Och-Ziff Hedge Fund Pays Over $400 Million to Settle Foreign Bribery Charges

Washington, D.C. June 22, 2016 – Today, the U.S. Department of Justice filed a Notice of Supplemental Authority in a pending False Claims Act case, U.S. ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (D.D.C.), setting forth the DOJ’s official position on the impact of the Supreme Court’s unanimous decision announced last week in Universal Health Services, Inc. v. United States ex rel. Escobar, 579 U.S. ___, slip op. No. 15-7 (June 16, 2016). In its filing today, the DOJ argues that the Supreme Court’s unanimous decision in Escobar discussion that a contractor’s “misleading half-truths” to the government “unequivocally supports the United States’ argument” in the Westrick case that Toyobo Co. Lt. and Toyobo America, Inc. (collectively Toyobo) “had a legal duty to disclose” its knowledge that the degradation of Zylon bullet-proof vests that it sold to the government “contradicted Toyobo’s misrepresentations about the superiority” of those vests.
Continue Reading Justice Department’s First Public Statement on Supreme Court’s Unanimous Escobar Decision Slams Toyobo’s “Half-Truths” in Pending False Claims Act Whistleblower Suit

The Department of Justice announced settlements in the listed False Claims Act lawsuits, January through May 2016. The Act permits cases to be brought under the qui tam, or whistleblowerprovisions which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Over 42 billion dollars has been recovered from government contract fraud through False Claims Act whistleblower cases since 1986.

Click the headline to read the DOJ press release for each case:

Continue Reading Whistleblowers Receive Rewards in False Claims Act Settlements

The Department of Justice announced settlements in the following False Claims Act lawsuits:

First Tennessee Bank N.A. Agrees to Pay $212.5 Million to Resolve False Claims Act Liability Arising from FHA-Insured Mortgage Lending

First Tennessee Bank N.A. has agreed to pay the United States $212.5 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced.  First Tennessee is headquartered in Memphis, Tennessee. 
Continue Reading June 2015 False Claims Act Settlements, Part 1

The Department of Justice recently announced the settlements, listed below, in False Claims Act cases. The False Claims Act permits private parties to sue on behalf of the government those who falsely claim federal funds or avoid paying funds owed to the government.  The United States may intervene in and take over the lawsuit.  The False Claims Act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. The False Claims Act is one of the most powerful tools to combat government contract fraud.  Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

Fireman’s Fund Insurance Company to Pay $44 Million to Settle False Claims Act Allegations

Fireman’s Fund Insurance Company has agreed to pay $44 million to settle allegations under the False Claims Act that it knowingly issued insurance policies that were ineligible under the U.S. Department of Agriculture’s (USDA) federal crop insurance program and falsified documents.  Fireman’s Fund, an Allianz SE subsidiary headquartered in Novato, California, provides personal and commercial property insurance throughout the United States.
Continue Reading Millions Recovered In DOJ False Claims Act Settlements

The Department of Justice recently announced the settlements, listed below, in False Claims Act cases. The False Claims Act permits private parties to sue on behalf of the government those who falsely claim federal funds or avoid paying funds owed to the government.  The United States may intervene in and take over the lawsuit.  The False Claims Act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. The False Claims Act is one of the most powerful tools to combat government contract fraud.  Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

Gilbane Building Company to Pay $1.1 Million to Resolve False Claims Allegations

Gilbane Building Company will pay the United States $1.1 million to resolve allegations that W.G. Mills Incorporated – a company with which Gilbane merged in November 2010 – violated the False Claims Act by creating a front company, Veterans Constructors Incorporated (VCI), in order to be awarded a Coast Guard contract that was designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs), the Justice Department announced today.  The Justice Department also announced that VCI has agreed to pay the United States $50,000 plus five annual contingency payments equal to one percent of VCI’s total annual revenues to resolve these same allegations.
Continue Reading Recent False Claims Act Settlements

The Department of Justice recently announced the settlements, listed below, in False Claims Act cases. The False Claims Act permits private parties to sue on behalf of the government those who falsely claim federal funds or avoid paying funds owed to the government.  The United States may intervene in and take over the lawsuit.  The False Claims Act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. The False Claims Act is one of the most powerful tools to combat government contract fraud.  Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

United States Settles False Claims Act Allegations Against Patient Safety Consultant and His Companies

Dr. Charles Denham, of Laguna Beach, California, has agreed to pay the United States $1 million to settle allegations that he violated the False Claims Act by soliciting and accepting kickbacks, according to an announcement by the Justice Department.  Denham is a patient safety consultant who operates the consulting company Health Care Concepts Inc. and the research organization Texas Medical Institute of Technology, both of which are also parties to the settlement.  In 2009 and 2010, Denham was co-chair of the Safe Practices Committee of the National Quality Forum. 
Continue Reading DOJ False Claims Act Settlements

Urgent Action Needed!!

The Senate Judiciary Committee is holding a critical hearing Wednesday, March 4, 2015 on FBI whistleblowers.  They will hear testimony from current and former FBI agents and the Executive Director of the National Whistleblower Center describing how FBI whistleblowers are subjected to illegal retaliation, and how the system designed to protect them

The Department of Justice recently announced the following settlements in False Claims Act cases:

United States Settles False Claims Act Suit Against Good Shepherd Hospice Inc. and Related Entities

Good Shepherd Hospice Inc. agreed to pay $4 million to resolve allegations that Good Shepherd submitted false claims for hospice patients who were not terminally ill. Good Shepherd is a for-profit hospice headquartered in Oklahoma City which provides hospice services in Oklahoma, Missouri, Kansas and Texas.Continue Reading Recent False Claims Act Settlements