This blog has addressed the important role that a whistleblower serves in protecting the public from financial fraud involving federal funds and illegal acts that could harm consumers. Disclosure of this type of illegal and unethical conduct constitutes a heroic act because of the risk of retribution by companies that employ those who reveal improper activities. Fortunately, most whistleblowers are protected to some extent by laws that make it a criminal offense to punish an employee for disclosing fraud against a public entity.
A recent case involving a pediatrician who was fired as the CEO of Architrave Health after disclosing $10 million in improper Medicare payments to doctors provides a telling example. The CEO was terminated allegedly due to his decision to report kickbacks and improper billing by a subsidiary of Architrave to the Centers for Medicare & Medicaid Services. The lawsuit filed by the former CEO indicates his termination was retaliation for uncovering the fraudulent billings and refusing to cooperate in preventing the information from being made public. The complaint filed by the plaintiff alleged that the company’s board of directors “reluctantly authorized” the CEO to self-disclose the Stark Law violations. However, the plaintiff was terminated shortly after reporting the illegal payments. He claims that he was informed the reason for his firing was a failure to “cooperate and coordinate.”
The federal Stark Law prohibits certain referrals by physicians where a conflict of interest exist. The law bars referral of designated health services for patients on Medicaid and Medicare when the doctor has a financial affiliation or interest in the entity receiving the referral. Penalties for violations under the Stark law include:
- Restitution of funds received by the provider
- Civil penalties of $15,000 per violation for each service the physician knows or should know was a violation of the law
- Three times the amount the entity received from the public health program
- Payment of civil penalties for attempting to evade the law of up to $100,000 for each scheme to avoid detection
The lawsuit for the wrongful termination filed by the former CEO requests reinstatement, back pay, attorney fees, and punitive damages. He also alleges his unjustified termination of employment resulted in losing business opportunities, future earning capacity, damage to his professional standing and reputations, as well as lost income and benefits. The whistleblower also indicates in his complaint that he was blacklisted by Architrave.
Our Mississippi Qui Tam Lawyers understand how to use the protections provided by whistleblower laws to shield employees who disclose this type of misconduct. At Barrett Law, our Mississippi Qui Tam Lawyers work to protect individuals who expose corrupt and unlawful practices while seeking the fullest compensation for whistleblowers. Contact our firm today at 800.707.9577 to schedule your free consultation, so we can answer any questions.