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Experienced Mississippi Whistleblower Lawyer Discusses Trends in Pharmaceutical Fraud

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.

 

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Experienced Mississippi Whistleblower Lawyer Explains Anti-Kickback Statute’s Statutory Safe Harbors

The Anti-Kickback Statute is a federal law that penalizes those who intentionally pays or asks for goods, benefits, or money in exchange for referrals or payments for products or services reimbursable under a federal health care program. In a nutshell, it punishes people who offer or accept bribes for some advantage in health care contracting.  Congress enacted the Anti-Kickback Statute in 1972 “to protect patients and the federal health care programs from fraud and abuse by curtailing the corrupting influence of money on health care decisions.”

 

If you are considering becoming an Anti-Kickback Statute whistleblower here in Mississippi, you need to understand that not every exchange of money or good in the health care field is a kickback; there are “safe harbors” that allow companies to engage in financial relationships legally.  To understand this law, you will need the help of an experienced whistleblower attorney.  Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.

Anti-Kickback Safe Harbors – The Basics

You may be asking, “what is a safe harbor”?  In law, a safe harbor is specifically proscribed conduct that is safe from prosecution.  For example, it is generally illegal to possess a rhino tusk. However, if the tusk is needed for medical research and is registered with the Department of Justice, a safe harbor may allow scientists to possess it legally. But if the scientist took the tusk home after the testing was done, he would “leave” the safe harbor and would be subject to possible prosecution.

Statutory Safe Harbors:

Some of the prominent statutory safe harbors in the Anti-Kickback Statute include:

Discounts

“[A] discount or other reduction in price obtained by a provider of services or other entity under a Federal health care program if the reduction in price is properly disclosed and appropriately reflected in the costs claimed or charges made by the provider or entity under a Federal health care program.”

Written Contracts

“Payments based on valid written contracts from vendors of goods or services to authorized federal health care program purchasing agents, where the relevant providers of services disclose the amount received from each vendor, also qualify for safe harbor protection.”

Employment Contracts

“[A]ny amount paid by an employer to an employee (who has a bona fide employment relationship with such employer) for employment in the provision of covered items or services.”

When you take these provisions together, it means that money can change hands without it being unethical under the Anti-Kickback Statute. But the exchange of money must represent a legitimate payment, or reduction in payment, that is clear, in the open, and available to other market participants.  It is when the payment or exchange is secret and between limited parties that ethical issues arise.

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

Are aware of fraud occurring in the healthcare industry? Are you considering filing a whistleblower case under the Anti-Kickback Statute?  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 government receives 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 Anti-Kickback Statute 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.

 

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Experienced Mississippi Whistleblower Lawyer Explains False Claims Act Pleading Requirements

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.

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Experienced Mississippi Whistleblower Lawyer Explains: Recent Court Case Clarifies what Qualifies as Whistleblowing

Many clients here in Mississippi come to me with questions about fraud, asking if they can be whistleblowers. The answer is usually “maybe.”  It is not enough to allege fraud against a company simply because you believe they are “up to no good.” Being a whistleblower means that you are inside the company, are aware insider information about fraud, and are willing to expose that information to prevent further fraud against the United States government. But what if you work within a company and become aware of fraud due to the company’s public release of information, such as financial disclosures. This a much closer call and is the subject of a recent case in the 3rd Circuit Court of Appeals, a federal appeals court in Philadelphia. Because this case’s holding provides a detailed look at what does and does not qualify as whistleblowing, I have provided a summary in the blog post below and a link to the full case.

If you are considering becoming a whistleblower here in Mississippi, you will need the help of an experienced whistleblower attorney to help make sure your claims are construed as true whistleblowing by the U.S. Department of Justice.  Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.

The Omnicare Case—The Whistleblower’s Allegations

As I have explained before, the False Claims Act prohibits defrauding the government. Fraudulent activity can manifest in many different ways, including providing sub-par products, paying kickbacks to receive government contracts, and inflating billing. In his whistleblower case, Mr Marc Silver alleged that PharMerica Corp. defrauded the federal government by undercutting pricing for some Medicare patients to attain more lucrative government contracts for services to other Medicare patients.

Because nursing homes bear the financial risk for drugs dispensed to their Part A patients, they are always interested in negotiating with pharmacies like PharMerica for the lowest possible drug prices. Once PharMerica secured government contracts for those Medicare Part A patients—resulting in lower prices billed to the nursing homes—it also guaranteed inflated prices for Medicare Part D, which is paid directly to PharMerica. Nursing homes do not care as much about Part D payments because they are collected directly by the pharmacy from Medicaid.

This seems like a classic whistleblower case—a person alleges that a company is bilking the federal government. The exception here was that Mr Silver derived much of his information about PharMerica from the company’s public disclosures.  Accordingly, PharMerica sought to have the False Claims Act case dismissed because it was not based on “inside” information and, therefore, could not be whistleblowing.

The Lower Court’s Decision

The U.S. District Court in Camden, New Jersey, agreed with the argument that Mr Silver’s case could not proceed under the False Claims Act and dismissed Mr Silver’s whistleblower lawsuit against PharMerica. The court agreed with the firm that the fraud Mr Silver alleged had already been disclosed by PharMerica in public documents, barring False Claims Act case.

The Appeals Court’s Decision

The good news for whistleblowers is that a federal appeals court overturned the district court ruling, reinstating the whistleblower suit filed against PharMerica, finding that Mr Silver had not relied solely on the publicly available material. The 3rd Circuit Court of Appeals unanimously ruled that the public documents Mr Silver relied upon, “…merely indicate the possibility that such a fraud could be perpetrated in the nursing home  industry, which is an allegation that would alone be insufficient to state a claim for fraud under the FCA.” The appeals court went on to explain that Silver made a particular claim setting out specific acts committed by PharMerica and that his specific claim was based on “non-public” information.

Regardless of how Mr Silver’s case against PharMerica turns out, the 3rd Circuit’s decision is illuminating for whistleblowers everywhere. As I have said many times, the Department of Justice receives thousands of these allegations every year and only the most compelling are investigated and prosecuted. Based on the 3rd Circuit’s ruling, whistleblowers should also be prepared to show how their information, if based on a foundation of public disclosures, uses the specific information only knowable by a corporate insider.

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

Do you know about fraud occurring against the government, particularly in the medical industry? Are you considering filing a whistleblower case based on conduct you have observed or are aware of due to your employment?  The financial reward for submitting a successful 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 claims each year, and only a small minority of those trigger their interest are investigated.  Whistleblowers can 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.

 

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Experienced Mississippi Whistleblower Lawyer Explains Huge Medical Industry Whistleblower Settlement

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.

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Experienced Mississippi Whistleblower Lawyer Explains: Whistleblowing on the Mortgage Lenders

The financial crisis of 2008 was caused in large part by “too big to fail” banks recklessly offering subprime mortgage loans.  Subprime means that the people who were taking the loans were unlikely to be able to pay them back. Large tranches, or groups, of these loans were bundled and sold to banks across the country as investments; unfortunately, we now know that they were horrible investments with a high likelihood of mass default. The banks made these risky loans without fear because there was actually very little risk for them, as the Federal Housing Administration (FHA) operated a program insuring these mortgage-backed securities in case they failed. As a result, the U.S. government took the brunt of the financial damage for the banks’ recklessness, but as more information came to light, it became increasingly clear that the banks had not followed government standards regarding how mortgage loans were made.

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 or mortgage-backed security—you are violating the False Claims Act, a 150-year-old law written to prevent war profiteering. Attorneys for whistleblowers and the U.S. Department of Justice have used the False Claims Act to pursue cases against banks and mortgage-bundling institutions for misrepresenting the toxic loans that the U.S. government eventually insured.

These fiscal crisis cases result in billion-dollar settlements and whistleblowers can receive 15% to 30% of any recovery the government makes after prosecuting their case. The rich bounty program and robust legal prohibitions against retaliation are aimed at enticing employees with insider financial information regarding fraud to take the risk of reporting it to the government. There have been several massive settlements against mortgage originators in the last few years:

Deloitte & Touche LLP settled a case this year for $149.5 million for failing to adhere to proper auditing standard and failing to detect fraud in its audits of a mortgage bundling bank.

Branch Banking & Trust Company paid $83 million in its settlement with the Department of Justice to settle a claim that continued to market loans to the FHA after it knew that they were of a lower quality than they had advised the government.

JPMorgan Chase paid $614 million for originating and underwriting non-compliant mortgage loans that were submitted to the federal government for insurance coverage.

Wells Fargo paid $1.2 billion for knowingly certifying mortgage loans for FHA insurance that did not meet the insurance specifications required by the federal government.

Cases like these highlight the need for those who work inside the finance, banking, and mortgage loan industry to step forward and report corporate efforts to defraud the U.S. government. These banks victimized the people of the United States, and only the bravery of whistleblowers can make financial remediation possible.

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

Do you know about fraud occurring against the government? 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 reward with the help of an experienced False Claims Act attorney. The United States Department of Justice receives thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Whistleblowers who notice that a company is failing to comply with relevant contract terms while certifying loans with the Government can 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 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.

 

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Experienced Mississippi Whistleblower Lawyer Discusses Chilling Memo Released by the Department of Justice

As I have explained before, the False Claims Act is quite an old law that Abraham Lincoln signed into law to prevent war profiteers from supplying the Army with faulty goods during the Civil War. In the time since, the False Claims Act has served the United States well, preventing fraud by incentivizing whistleblower claims. It is because of this success that I found a recently released memorandum from the U.S. Department of Justice so perplexing. I will go into detail about the memorandum’s contents below, but I was most troubled by its characterization of whistleblower claims as “frivolous” and “parasitic” actions aimed at generating money for whistleblowers. The whistleblowers I have represented are patriots and heroes trying to help their country, so I hope there is significant pushback against the Trump administration’s characterization otherwise.

Uncovering fraud against the government is a patriotic act. Whistleblowers receive 15% to 30% of any recovery the government makes after prosecuting their case, and government contracts often run into the tens of millions of dollars, often making the whistleblowers’ rewards quite significant. The rich bounty program and robust legal prohibitions against retaliation are aimed at enticing employees with insider information regarding fraud to take the risk of reporting it to the government.

Are you aware of fraud against the U.S. government? Are you considering filing a whistleblower case? Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.

The Department of Justice’s January Memorandum

The Department of Justice’s January 10, 2018 memorandum indicates that Justice attorneys should consider dismissing “meritless” and “parasitic” cases filed by whistleblowers under the False Claims Act (FCA). This sentiment enunciates a significant change in course regarding FCA claims, and I worry that it could have a chilling effect on the number of whistleblowers willing to risk their careers and report fraud and abuse under the FCA.

According to the Department of Justice, they recovered $3.7 billion in FCA cases in 2017. Almost all of that money—$3.4 billion— resulted from whistleblower cases. That is a tremendous recovery for the government, and I would think the Department of Justice would want to encourage that sort of reduction in fraud.

Instead, the Department of Justice’s memorandum provides its attorneys with seven reasons for dismissing FCA cases they are working on. These reasons include: the claim is based on “frivolous” allegations or unsound legal theory; duplicative cases; the case interferes with a federal agency’s policies or programs; to protect the Department of Justice’s litigation priorities; to safeguard classified information; or if the claim frustrates the government’s investigation.

Although the Department of Justice’ memorandum describes important considerations, an attorney should make when deciding whether to dismiss an FCA case, the overall message concerns me. When the Department of Justice rejects valid FCA cases, it has a chilling effect on False Claim Act whistleblowers. Ultimately, only corporations defrauding the federal government benefit from that change.

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

Do you know about fraud occurring against the government? Are you considering filing a whistleblower case? While the language in the Department of Justice memorandum I discussed above comes across as chilling, I can assure you that a well-written, legally sound whistleblower claim will still be taken seriously by the federal government. If you have knowledge of fraud against the government, the reward for submitting a successful claim can be massive. But you will only receive this sort of compensation 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.  Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.

Experienced Mississippi 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.

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Experienced Mississippi Whistleblower Lawyer Explains: Japanese Manufacturer to Pay $66 Million in False Claims Act Case

As I have explained before, the False Claims Act is quite an old law. It was signed into law by Abraham Lincoln to prevent war profiteers from supplying the Army with faulty goods during the Civil War. As the saying goes, “the more things change, the more they stay the same.” In March, a Japanese manufacturer, Toyobo, was fined $66 million for supplying federal, state, and local law enforcement agencies with bulletproof vests that degrade in heat and humidity. The degradation was so significant that the vests were rendered useless after prolonged use.

The U.S. Department of Justice announced the settlement, and particularly called attention to the whistleblower who brought the case to the government’s attention:

The settlement announced today resolves allegations filed in two lawsuits, one brought by the United States and the other filed by Aaron Westrick, Ph.D., a law enforcement officer formerly employed by Second Chance who is now a Criminal Justice professor at Lake Superior University. Dr Westrick’s lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in 2005 in Dr Westrick’s case. Dr Westrick will receive $5,775,000.

Dr Westrick is a true hero. A former law enforcement officer who had himself been shot in the chest, Dr Westrick eventually became Director for Research and Marketing at Second Chance Body Armor, a bulletproof vest manufacturer. When he tested the materials that Toyobo was supplying to Second Chance Body Armor, he found that the materials they provided had degraded to the point that they were ineffective at stopping bullets. Tragically, at least one police officer died while wearing a Second Chance Body Armor vest. Dr Westrick complained about the quality and unsafe nature of Toyobo’s materials but was ignored. He did not give up, however, and litigation ensued, including a False Claims Act case.

Whistleblowers often receive 15% to 30% of any recovery the government makes after prosecuting their case, and government contracts often run into the tens of millions of dollars, often making the whistleblowers’ rewards quite significant. Here, it is unknown why Dr. Westrick settled for “only” $5.7 million, but that amount is still significant. The False Claims Act’s rich bounty program and robust legal prohibitions against retaliation are aimed at enticing employees with insider information regarding fraud to take the risk of reporting it to the government.

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

Are you aware of fraud being committed against the government? Are you considering filing a whistleblower case?  The reward for submitting a successful claim can be massive. In the matter that I described above, the whistleblower will receive $5.7 million.  You can only win this sort of reward with the help of an experienced False Claims Act attorney. The United States Department of Justice receives thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Call Barrett Law now at (800) 707-9577 if you think you may have a successful whistleblower.

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.

 

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Experienced Mississippi Whistleblower Lawyer Explains: 3M Pays $9.1 Million to Settle Qui Tam Lawsuit

As I have explained before, the False Claims Act is quite an old law. It was signed into law by Abraham Lincoln to prevent war profiteers from supplying the Army with faulty goods during the Civil War. As the saying goes, “the more things change, the more they stay the same.” What I mean by that is that the war profiteering problems that existed in the Civil War era persist today. As evidence of this, I have written the following blog post describing a recent case settle by 3M where they agreed to pay $9.1 million to settle a qui tam whistleblower claim that they supplied faulty earplugs to the United States Army. The government only became aware of the faulty earplugs because of a whistleblower’s brave work exposing the defective products.

Whistleblowers receive 15% to 30% of any recovery the government makes after prosecuting their case, and government contracts often run into the tens of millions of dollars, often making the whistleblowers’ rewards quite significant. The rich bounty program and robust legal prohibitions against retaliation are aimed at enticing employees with insider information regarding fraud to take the risk of reporting it to the government.

Do you know about fraud in the finance industry? Are you considering filing a whistleblower case?

Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.

The 3M Case

The Minnesota-based 3M Company will resolve allegations that it knowingly sold the U.S. military defective earplugs. To settle the case, 3M will pay $9.1 million, but will not admit to any wrongdoing. In this case, the whistleblower disclosed that the 3M Company sold dual-ended Combat Arms Earplugs, Version 2 (CAEv2) when it was aware that the earplugs had a defect that prevented their effectiveness. Specifically, 3M knew that the earplugs were too short and could loosen in a way that made them ineffective when used by military personnel.

The quote regarding the 3M settlement from the Army could have come from a Civil War general, as the interest in protecting troops from faulty equipment is as keen today as when the False Claims Act was first signed, “Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, in a press release issued by the Justice Department. “Properly made safety equipment, for use by our Soldiers, is vital to our military’s readiness. Our agents will respond robustly to protect the safety of our military.”

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

Do you know about fraud occurring against the government? Are you considering filing a whistleblower case?  The reward for submitting a successful claim can be massive. In the 3M matter that I described above, the whistleblower will receive almost two million dollars.  But you will only receive this sort of reward with the help of an experienced False Claims Act attorney. The United States Department of Justice receives thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated.  Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.

Experienced 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.

 

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Experienced Mississippi Whistleblower Lawyer Explains Whistleblower Claims Under the Seaman’s Protection Act

Being a whistleblower attorney in a Gulf state, I receive many questions from fisherman, sailors, and other people who work aboard ships about whistleblower cases involving the maritime industry.  While I have discussed whistleblower cases falling under the False Claims Act extensively, those cases deal exclusively with fraud against the United States government. But what if a mariner becomes aware of a pattern of fraud or violations occurring aboard ship? These incidents are also subject to a whistleblower program, the Seaman’s Protection Act.  I have excerpted the Seaman’s Protection Act below and provided an overview of a recent $1 million whistleblower case brought under it.

Do you know about fraud in a maritime industry? Are you considering filing a whistleblower case? Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.

The Seaman’s Protection Act

The Seaman’s Protection Act, 46 U.S.C sec. 2114, states:

Protection of seamen against discrimination

(a)(1) A person may not discharge or in any manner discriminate against a seaman because-

  • the seaman in good faith has reported or is about to report to the Coast Guard or other appropriate Federal agency or department that the seaman believes that a violation of a maritime safety law or regulation prescribed under that law or regulation has occurred;
  • the seaman has refused to perform duties ordered by the seaman’s employer because the seaman has a reasonable apprehension or expectation that performing such duties would result in serious injury to the seaman, other seamen, or the public;
  • the seaman testified in a proceeding brought to enforce a maritime safety law or regulation prescribed under that law;
  • the seaman notified, or attempted to notify, the vessel owner or the Secretary of a work-related personal injury or work-related illness of a seaman;
  • the seaman cooperated with a safety investigation by the Secretary or the National Transportation Safety Board;
  • the seaman furnished information to the Secretary, the National Transportation Safety Board, or any other public official as to the facts relating to any marine casualty resulting in injury or death to an individual or damage to property occurring in connection with vessel transportation; or

(G) the seaman accurately reported hours of duty under this part.

In summary, the Seaman’s Protection Act prohibits retaliation against any seaman who reports violations or maritime safety laws or regulations or who makes a report to the U.S. Coast Guard.

The 2018 Loftus Case

John Loftus was a captain in Alaska who brought against his employers, Horizon Lines and Matson Alaska.  Loftus reported a host of safety violations to the U.S. Coast Guard in 2013 and his employers promptly fired him in retaliation.  He brought a claim under the Seaman’s Protection Act as a result.

In 2015, an administrative law judge awarded Loftus over $1 million for back pay, punitive damages, emotional distress, attorney fees, and interest.  His former employers appealed to an Administrative Review Board, which acts as a court of appeals in this sort of claim.

On May 24, 2018, the Administrative Review Board again found in Loftus’ favor, specifically affirming $225,000 in punitive damages because “a large punitive damage award was necessary to deter and punish Horizon given its longstanding inaction addressing Loftus’s safety concerns, the chilling effect Horizon’s retaliatory actions likely had on other marine employees, and the harm it visited upon Loftus personally.”

Accordingly, if you are a fisherman, seaman, mariner, or anyone else who works aboard ships, you have a right to report safety or regulatory violations to the U.S. Coast Guard and other regulatory agencies. If you are retaliated against as a result of this report, you may be entitled to significant compensation.

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

Are you a sailor or fisherman aware of violations in the maritime industry? Are you considering filing a whistleblower case? Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.

Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful 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.

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