We are all starting to gather documents and receipts in preparation for tax season. We have all heard stories of corporations that pay “no taxes” or friends that claim to have found loopholes that allow them to avoid taxes. The first question I ask when I hear this is, “is what they are describing legal?” As a whistleblower attorney, the second question I ask is, “if it is not legal, what sort of reward can my clients receive for exposing that fraud?” Historically, the False Claims Act, which rewards whistleblower for exposing fraud against the United States government and for retaliation based on that exposure, has excluded claims based on individuals’ underpayment or failure to pay taxes. However, Congress created an Internal Revenue Service whistleblower law in 2006 that allows private individuals to become whistleblowers.

If you are considering becoming an IRS whistleblower here in Mississippi, you will need the help of an experienced whistleblower attorney.  Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.

The IRS Whistleblower Program

As of 2006, the IRS Whistleblower law set up a rewards program for private individuals who are aware of tax underpayments and violations of internal revenue laws. Again, this was significant changes, as the False Claims Act prohibited tax whistleblowing regarding violations of the Internal Revenue Code. Like the False Claims Act, whistleblowers who are reporting fraud allegations can receive an award of between 15% to 30% of penalties that the government recovers.

There are significant differences between the False Claims Act and the IRS Whistleblower Law, however. Under the IRS Whistleblower Law, whistleblower reports are handled by the IRS Whistleblower Office, and disputes may be appealed to the Tax Court. This is a significant difference from the False Claims Act, where a whistleblower action must be filed as a legal claim in federal court, where the U.S. Department of Justice then prosecutes it.

Another significant difference between the two laws is that the IRS Whistleblower Law has a minimum violation threshold requirement, while the False Claims Act can be brought against fraud of any amount. The IRS Whistleblower Law only applies in cases of individual taxpayers to only those individuals with a gross income above $200,000 for the relevant taxable year and when the penalties connected to the dispute exceed $2 million. That is a significant threshold, so you will not be able to be a whistleblower just because you are aware your brother-in-law claimed his beer-strewn mancave as a home office tax deduction.

What Should You Do if You are Considering an IRS Whistleblower Claim?

Are you considering filing a whistleblower case regarding underpayment or nonpayment of taxes the IRS?  The reward for submitting a successful claim can be significant, 15% to 30% of any amount recovered by the government, but you will only receive this sort of award with the help of an experienced whistleblower attorney. The IRS Whistleblower Office receives thousands of potential whistleblower claims each year, and only those that meet their requirements and are reported in a way that triggers their interest are acted upon.  Careful pleading and an organized approach to gathering evidence are critical to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.

Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful IRS whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.

The United States has a new Attorney General, William Barr. After eroding former U.S. AG Jeff Session’s authority to the point that he was more the butt of a joke than the nation’s top law enforcement official, President Trump nominated Barr, President George H.W. Bush’s former AG. Barr was confirmed in January, meaning that he now has the job.

You may be wondering why I am focusing so closely on Barr. Remember that whistleblower cases, whether they are filed under the False Claims Act, the IRS Whistleblower Law, or Dodd-Frank are all creatures of federal law. In particular, the False Claims Act, a 150-year-old law written to prevent war profiteering, must be prosecuted by the U.S. Department of Justice. Barr is now the head of that department. In the past, when he was an Assistant U.S. Attorney General, Barr argued that the False Claims Act’s whistleblower provisions were unconstitutional and called them an “abomination.” That is deeply troubling, given the tremendous amount of fraud that the False Claims Act has prevented and caught since the Civil War.

If you live in Mississippi and are aware of fraud occurring against the federal government, you should consider becoming a whistleblower. To attain the advice you will need to meet success, you will need the help of an experienced whistleblower attorney.  Contact Barrett Law now at (800) 707-9577 to attain the required guidance.

Why Barr’s Appointment is Troublesome

Back in 1989, then Assistant AG Barr wrote a substantial memorandum arguing that the False Claims Act’s whistleblower provision unconstitutional. In his memo, Barr argued that the DOJ should push the courts to invalidate it. This was an internal memorandum, but it eventually leaked to the press in 1993.  Perhaps most disturbing is his argument that whistleblowers were “inter¬ested only in money, not in the faithful execution of the laws.” That is an extremely troubling sentiment, as whistleblowers take tremendous risks to expose violations of the law. Accordingly, to characterize them as the villain is to distort reality completely.

The reality is that the U.S. Department of Justice acts as a check on any illegitimate False Claims Act case. These cases are routinely taken over by the DOJ once a whistleblower files them and the agency has the power to dismiss claims outright. In fact, the DOJ just urged the federal courts to dismiss over a dozen allegedly fraudulent whistleblower cases, aptly demonstrating their ability to separate the legitimate from the illegitimate cases. Finally, authority to review and approve whistleblower settlements rests with the DOJ, preventing any unjust enrichment of whistleblowers.

In his confirmation hearing, AG Barr stated under oath that he would take no action as AG to undermine U.S. whistleblower laws. I will take him at his word. Regardless, the years that have followed his arguments against the False Claim Act’s whistleblower provision have only seen the law strengthened. Courts have reviewed several challenges to the constitutionality of the whistleblower provision, and all have found it to be constitutional, including the U.S. Supreme Court. Because law is built on precedent—each court decision must be based on those that came before it—I am confident, regardless of what any AG says, that the False Claims Act’s whistleblower provisions are here to stay.

What Should You Do if You are Considering a Whistleblower Claim?

Are you considering filing a whistleblower case regarding falsification of government contracts or services?  The reward for submitting a successful claim can be massive, 15 to 30% of any amount recovered, but you will only reap this sort of award with the help of an experienced whistleblower attorney. The United States Department of Justice gets thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Careful pleading is key to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.

Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.

The False Claims Act, a 150-year-old law written to prevent war profiteering, prohibits any fraud against the U.S. government. It also bars bilking the federal government by overcharging for services or paying kickbacks to attain contracts you aren’t entitled to. Federal programs like Medicare and Medicaid pay for a significant percentage of all prescription drug purchases, so any sort of fraud occurring in the pharmaceutical industry is ripe for a False Claims Act claim by a whistleblower. Remember, a whistleblower can receive 15% to 30% of any money that the government recovers, which can be significant given that these cases frequently run into the tens of millions of dollars.

But even if you are aware of specific information detailing massive fraud in some corner of the pharmaceutical industry, you must plead your case in a way that satisfies the legal requirement of the False Claims Act. If you fail to do that, your case will go nowhere. If you are considering becoming a whistleblower here in Mississippi, you will need the help of an experienced whistleblower attorney.  Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.

Common Types of Pharmaceutical Fraud

Auto-Refilling Fraud

It is common for patients suffering from long-term or chronic health problems to have their prescriptions set to auto-refill.  This means that they do not have to renew their prescription, it automatically renews and is refilled by the pharmacy. In turn, the pharmacy bills the federal government for the prescription. However, those patients often get well, stop needing their prescription, or die, and while they may no longer need their prescription, it continues to refill automatically. In that situation, some pharmacies continue to bill Medicare and Medicaid indefinitely for the cost of the medication. This is doubly profitable fraud, as the pharmacy can then resell the unused drug; in essence, they sell the pharmaceuticals twice.

Average Manufacturer Price/Best Price Fraud

In the Medicare and Medicaid programs, extensive rebate programs help reduce the cost of pharmaceuticals for patients and the government. The more rebates that the pharmaceutical companies provide, the less money they make. Pharmaceutical manufacturers engage in fraud when they manipulate prices to reduce Medicaid and Medicare rebates.

Drug Switching

Drug switching is precisely what the name implies—a pharmacy provides a patient with a generic or cheaper drug and charges Medicaid or Medicare for the full priced version.  The pharmacy keeps the profit, while the federal government pays full price and consumers sometimes get a less effective product.

Illegal Kickbacks

Illegal kickbacks occur when a pharmaceutical company provides some incentive—cash, vacations, gifts, golf outings—to a pharmacy in exchange for filling prescriptions with the company’s specific products.

Off-Label Drug Marketing

The U.S. has a rigorous drug evaluation program. Part of that program assures that the drugs being marketed for a given use are only sold for that use.  Another name for that official use is its “label.”  When a drug is sold “off-label,” that means that a pharmaceutical company is marketing a drug for uses beyond what the government certified it for. This can be a cost saving measure for drug companies and pharmacies but may end up harming consumers and defrauding the U.S. government, which is often paying for a specific drug to treat certain particular remedies.

What Should You Do if You are Considering a Pharmaceutical Industry Whistleblower Claim?

The reward for submitting a successful pharmaceutical industry whistleblower claim can be massive. But you will only receive this sort of award with the help of an experienced False Claims Act attorney. The United States Department of Justice gets thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Careful pleading is key to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.

Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful False Claims Act case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.

As you likely know from other blog posts I have posted, if you knowingly sell the government a product that does not meet government specifications—whether it is a missile, a mammogram machine, or a mortgage-backed security—you are violating the False Claims Act, a 150-year-old law written to prevent war profiteering. You also cannot bilk the federal government by overcharging for services or pay kickbacks in an effort to attain contracts you aren’t entitled to. But even if you are aware of specific information detailing massive fraud, you must plead your case in a way that satisfies the legal requirement of the False Claims Act. If you fail to do that, your case will go nowhere. Because careful pleading is so essential, I have written the following blog post to help explain it to my clients here in Mississippi and included a link to the Federal Rule that outlines pleading.

If you are considering becoming a whistleblower here in Mississippi, you will need the help of an experienced whistleblower attorney.  Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.

Why Careful Pleading in False Claims Act Cases is So Important

When you hear someone use the term “pleading,” they are referring to a case’s “complaint.” A complaint is a legal document setting out the facts and legal reasons that the plaintiff, here the whistleblower, believes support a legal claim against the defendant, the party against whom the suit is brought. A complaint is the first formal action taken to begin a lawsuit officially. The False Claims Act is a federal statute, so claims brought under it must comply with the Federal Rules of Civil Procedure.  The Federal Rule of Civil Procedure 9 dictates that the complaint must contain: the allegations against the defendant, the specific laws violated, the facts that underlie claim, and any demands made by the plaintiff.

The first thing that a defendant in a whistleblower case, usually the corporation that you alleging defrauded the U.S. government, will try to do is to have your case dismissed under Rule 9(b).  In a nutshell, a case will be dismissed under 9(b) if your complaint fails to contain sufficient facts to support a claim that an individual or corporation violated the False Claims Act. This is called failing to plead your case with particularity.

This is one of the challenges of a whistleblower case, as there are competing pressures. First, only the “first to file” will receive any reward. So there is always pressure to file your claim before someone else in your company or with similar information does so first. But second, the case must have sufficient details alleging a violation of law; that means that you have to quickly gather a lot of information, which can be a challenge for a single person within a company.

If you fail to meet the burden of Rule 9(b)’s pleading requirement, you can try again or can file for leave to amend, or add to, your complaint. Leave is usually liberally granted if you can show good cause that if given leave, you can sufficiently augment the complaint to overcome any deficiencies. You cannot get endless leave to amend your complaint, however. If you ultimately fail to gather enough information, your case will be dismissed

What Should You Do if You are Considering a Whistleblower Claim?

Adequately pleading your case is vital to receiving any whistleblower reward. Are you considering filing a whistleblower case?  The reward for submitting a successful claim can be massive. But you will only receive this sort of award with the help of an experienced False Claims Act attorney. The United States Department of Justice gets thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Careful pleading is key to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.

Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful False Claims Act case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.

I have said it before—if you want to know where the next big whistleblower case will come from, “follow the money.” In the United States, if you follow the money, it will lead you to health care. Healthcare comes into play in False Claims Act cases because the federally-funded Medicare and Medicaid programs pay the vast majority of medical bills. As a result, if you commit fraud in the medical industry, you are likely defrauding the U.S. government.  As you probably know from other blog posts I have posted, if you cheat the U.S. government through over-billing or selling sub-par services—whether it is a missile, a mammogram, or mortgage-backed security—you are violating the False Claims Act, a 150-year-old law written to prevent war profiteering. I found the following False Claim Act case to be an excellent example of the sort of case, and whistleblower bounty, that entices employees in the medical industry to come forward about fraud. I have provided a link to the Department of Justice’s press release if you want to read more about the DaVita settlement.

If you are considering becoming a whistleblower here in Mississippi, you will need the help of an experienced whistleblower attorney.  Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.

DaVita Medical will Pay $270 Million—Whistleblower to Receive $10.2 Million

DaVita Medical Holdings has agreed to pay $270 million to settle False Claims Act violation allegations related to fraudulent billing information submitted by DaVita contractors in an attempt to attain inflated Medicare payments.  The facts of this case illustrate how one does not even have to work for the government contractor in question, but instead can be a sub-contractor or sub-sub-contractor and still be a whistleblower.

Physicians contracting for DaVita submitted incorrect diagnosis codes. DaVita collected and submitted diagnoses and received a share of the payments. In one example, physicians used an improper code for a spinal condition treatment that increased reimbursement. The case against DaVita alleged that it provided guidance to the doctors that resulted in fraudulent diagnosis aimed at increasing DaVita’s profits.

Due to DaVita’s self-disclosure of this fraud and decision to cooperate with the Department of Justice’s investigation, the U.S. agreed to a settlement that was less than what DaVita might have paid had the matter been fully prosecuted. DaVita agreed to pay $270 million which settles whistleblower allegations.

A whistleblower brought these allegations of fraudulent billing and diagnosis under the qui tam, or whistleblower, provisions of the Federal False Claims Act. The whistleblower in this action is James Swoben, who was a former employee of a medical provider that subcontracted with DaVita. Swoben will receive $10,199,100 for the settlement of these allegations.

What Should You Do if You are Considering a Whistleblower Claim?

Do you know about fraud occurring within the medical industry? Are you considering filing a whistleblower case?  The reward for submitting a successful claim can be massive, as this DaVita case illustrates. But you will only receive this sort of award with the help of an experienced False Claims Act attorney. The United States Department of Justice gets thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Contact Barrett Law now at (800) 707-9577.

Experienced Mississippi whistleblower lawyer Barrett can provide you with the advice you will need to file a successful qui tam case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.