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 (601) 790-1505 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 (601) 790-1505.

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 (601) 790-1505.

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 (601) 790-1505 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 (601) 790-1505 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 (601) 790-1505 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 (601) 790-1505 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 (601) 790-1505 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 (601) 790-1505 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 (601) 790-1505 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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Experienced Mississippi Whistleblower Lawyer Explains Whistleblower Allowed to Proceed with Her Federal False Claims Act Case Against Home Health Agency

The False Claims Act was created to prevent war profiteering against the government during the Civil War. But I want to underscore the word “profiteering” as it applies to anyone who unjustly enriches themselves through a government contract. One area that I have seen a tremendous growth of False Claims Act cases here in Mississippi is health care, specifically regarding nursing homes. It may not be intuitive that fraud involving nursing homes implicates government contracting laws, but the vast majority of home health care is paid for by two government programs, Medicare and Medicaid. As a result, fraudulent activities in the home health setting often end up defrauding the government and make this industry ripe for whistleblower claims under the False Claims Act.

The False Claims Act provides tremendous rewards—15% to 30% of the amount recovered by the government—to whistleblowers. It also protects those who engage in whistleblowing from retaliation such as termination, discipline, or other negative conduct.  Because home health accounts for many millions of dollars in government contracts through Medicare and Medicaid each year, the reward for whistleblowers can be tremendous. Do you know about fraud in the home health care industry? Are you considering filing a whistleblower case? Call Barrett Law now at (601) 790-1505 if you think you may be a whistleblower.

Recent Positive Ruling for Home Health Care Whistleblower

On June 11, 2018, The Sixth Circuit Court of Appeals in United States ex rel. Marjorie Prather v Brookdale Senior Living Communities, Inc., et al., for Prather, the False Claims Act whistleblower. I have included a link to the entire case below if you would like to read it.

The Prather ruling is interesting for two reasons. First, it highlights how heavily regulated the home health care industry is. Second, it states that a knowing violation of those regulations can form the basis for a successful whistleblower claim under the False Claims Act.

One of the federal regulations governing home health care services, 42 C.F.R. §424.22(a)(2), states:

“[t]he certification of need for home health services must be obtained at the time the plan of care is established or as soon after that as possible and must be signed and dated by the physician who establishes the plan.”

“home-health agency to complete a physician certification of need after the plan of care is established, but…such a delay [is] acceptable only if the length of the delay is justified by the reasons the home-health agency provides for it.”

In a nutshell, a physician must sign and date a home health care client’s care plan before the company submits the bills for the care to the government, Prather reported to the government that her home health care company was not getting the appropriate signatures before submitting bills. She lost her initial case, and the district court found that her allegations were insufficient to substantiate a claim under the False Claims Act.  The good news is that the 6th Circuit Court of Appeals disagreed, finding that her allegations of regulatory dishonesty created a sufficient basis for a claim. In False Claims Act terminology, the Court of Appeals found sufficient “materiality.”

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

Are you aware of fraud in the home health care industry? Are you considering filing a whistleblower case? Call Barrett Law now at (601) 790-1505 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 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 Discusses the Perils of Whistleblowing

People often hear of substantial whistleblower settlements and start to dream of what they would do with all of that money. But for every millionaire whistleblower, there are hundreds of people who did not get rich, were retaliated against, and suffered in silence. In the highly technical area of whistleblower law, getting experienced legal advice often means the difference between success and suffering.

A recent case result highlights the sort of challenges many of my Mississippi clients have to endure when they expose government fraud. The whistleblowers were TSA agents who exposed unsafe and sloppy practices. They received a million dollars, or $333,000 each, which will likely catch potential whistleblowers’ attention. But they also endured severe retribution and retaliation at the hands of their supervisors, which should be a warning regarding the challenges of whistleblowing. I provided a link to the press release regarding this case below and will discuss it in some detail.

If you are considering exposing government fraud, contact an experienced whistleblower attorney first. In the end, the federal government will only prosecute very few whistleblowers’ claims each year. Only those that are pursued by the government result in any compensation for the whistleblower, so stating your claim convincingly is critical. I have the experience to help you through the process.  Call me today at (601) 790-1505.

The Whistleblower Protection Act

The Whistleblower Protection Act of 1989, 5 U.S.C. ch. 12 sec. 1201, is a federal law that prohibits retaliation, or threats of retaliation, against federal employee whistleblowers who report misconduct within the federal agency that employs them. Federal employee whistleblowers may file complaints if they reasonably believe that they know of “a violation of law, gross mismanagement, gross waste of funds, abuse of authority, or a substantial and specific danger to public health or safety.” Alleged violations of the Whistleblower Protection Act are prosecuted by attorneys from the U.S. Office of Special Counsel.

T.S.A. Whistleblowers Expose Operations Failures and Safety Issues

In the case resolution announced on May 23, 2018, the Office of Special Prosecutions stated that three Transportation Security Administration (T.S.A.) whistleblowers would receive a total of one million dollars because they had reported problems regarding lax adherence to safety protocols and poor management. The whistleblowers, three T.S.A. administrators, were all working in Hawaii at the time they raised their concerns, and two of them were originally from Hawaii.  Instead of acting on the reports, T.S.A. senior leadership retaliated against the administrators by permanently relocating their positions to the mainland United States.

The attorney prosecuting the federal government’s case, Special Counsel Henry J. Kerner stated, “I am pleased that we were able to achieve favorable results for the three TSA employees who had their lives thrown into disarray and hope this outcome will encourage others to speak up when they see something that could put the public at risk.” I think Kerner sums of the plight of the whistleblower well, there is a chance that you will be well compensated for your decision to bring government abuses to light, but it would be inappropriate to discuss that compensation without the “disarray” that choice will cause.

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

Do you know about fraud or other serious misconduct, fraud, waste, or abuse of authority occurring in your federal workplace like the one described above? Are you considering filing a whistleblower case?

Call Barrett Law now at (601) 790-1505 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 Whistleblower Protection Act case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower judgment and losing your career and livelihood. Call us today.

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Experienced Mississippi Whistleblower Lawyer Discusses Troublesome Proposed Changes to the SEC’s Whistleblower Program

The past several years demonstrated that the U.S. Securities and Exchange Commission’s (SEC) whistleblower program is a powerful tool in the government’s effort to curb Wall Street corruption. The key to its effectiveness has been its massive incentive provision—whistleblowers can reap 10% to 30% of the funds that the government recovers, numbers sometimes reaching tens of millions of dollars. Keeping all of this in mind, I am troubled by the SEC’s vote in June to propose changes to its whistleblower program that could significantly reduce whistleblower incentives in significant cases. While the new rules are only proposed for now, not final, they appear to be a troubling attempt to disincentivize Wall Street whistleblowing, an act that will turn the financial markets back into the Wild West, with effects here in Mississippi. I have linked to the notice of the proposed rules below.

If you are considering exposing financial or any other type of fraud, contact an experienced whistleblower attorney first. The SEC and Department of Justice prosecute very few whistleblowers’ fraud claims, and only those that are prosecuted result in any compensation for the whistleblower, so positioning your claim effectively is critical. I have the experience to help you through the process.  Call me today at (601) 790-1505.

The SEC’s Current Rules

Since the SEC made its first payout in 2012, the agency has paid out $160 million to 46 whistleblowers.  This past March 2018, the SEC awarded three whistleblowers $83 million as an award for their tips regarding fraud at Bank of America. Currently, these large awards to whistleblowers are merely a function of math, meaning that if you tip the SEC off to $100 million in fraud, you recover 10% to 30% or $10 to $30 million.

The SEC’s Proposed Rules

Under the SEC’s proposed rules, massive awards—rewards for tremendous personal risk—would be discretionary. While the proposed rules allow for payouts for whistleblowers in cases that are currently too small to qualify for the SEC’s program, this shift is troubling. Remember, whistleblowers often risk their career, friendships, and reputation to expose fraud. While it is a nice gesture to open up the SEC whistleblower program to low dollar value fraud, it often just is not worth the risk to expose minor fraud. On the other hand, the SEC’s very purpose is to police large-scale fraud that affects citizens across the country, so by weakening its award program for the largest-scale fraud, it disincentivizes reporting the most critical financial fraud.

In short, the SEC’s proposed rules incentivizes whistleblowing in low-end cases where the risk is rarely worth it and disincentivizes whistleblowing in cases of massive fraud that affect the most people. This seems backward and should not be adopted as a final rule.

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

Do you know about fraud occurring in a publicly traded company? Are you considering filing a whistleblower case? The proposed rules discussed above are not currently in effect, and huge bounties are available with insider information regarding fraud in the finance industry. To protect your career, reputation, and family and to attain your fair share of compensation, you will require the help of an experienced whistleblower attorney.

Call Barrett Law now at (601) 790-1505 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 SEC whistleblower program case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower judgment and losing your career and livelihood. Call us today.

 

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Experienced Mississippi Whistleblower Lawyer Discusses Massive Settlement

As everyone knows, there is a tremendous amount of money to be made in the medical industry. Wherever there is money, there is greed. And wherever there is greed, there is fraud.  The False Claims Act prohibits fraud against federal health care programs like Medicare, Medicaid, or Tricare. Those who become aware of fraud, including fraud related to medical programs, can attain significant rewards for sharing their information with the federal government, and awards can reach well into the tens of millions of dollars.

Are you considering filing a whistleblower case? To protect your career and family and to attain your compensation, you will require the help of an experienced whistleblower attorney. Call Barrett Law now at (601) 790-1505 if you think you may be a whistleblower.

The Federal False Claims Act

The Federal False Claims Act (31 U.S.C. §§ 3729-3733), is a law that penalizes individuals and companies that are convicted of defrauding the government. The False Claims Act was created during the Civil War and signed by President Lincoln to root out companies that were taking financial advantage of the war effort. Present day False Claims Act prosecutions are motivated by the same spirit and intent to ferret out fraud against the government.

Health Care Fraud and Kick-Backs at the Center of this False Claims Act Case

The federal government is the largest provider of healthcare in the United States through federal health care programs like Medicare, Medicaid, or Tricare. As a result, whenever large-scale fraud is discovered within the healthcare industry, it likely triggers the False Claims Act, as the fraud will implicate some federal medical program. One aspect of the False Claims Act is a prohibition on kickbacks, which is a financial inducement for a medical provider to prescribe certain medications, refer patients to certain providers, or refer patients for unnecessary procedures. Kickbacks are fraud because they encourage doctors to make decisions based on financial gain and not patients’ best interests.

Medical providers offer physicians a wide array of kickbacks, such as sporting events or concert tickets, phony research grants, free samples that the doctor can in turn sell, payment for participation in phony drug trials, golf outings, free lunches to medical office staffs, and paying for physicians and their families to attend conferences.

The fraud in kickbacks comes into play because doctors are incentivized to send patients for more expensive or unnecessary treatment when a cheaper or more effective alternative was available.  This expense is eventually passed on to taxpayers. Accordingly, the federal government and the Department of Justice, who prosecutes these cases, has a strong interest in rooting out kickback schemes. To make this enterprise more efficient, the federal government provides whistleblowers who alert the government to medical care fraud 10% to 30% of all money recovered as part of the prosecution. This recovery can be modest but can also be in the tens of millions of dollars.

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

Do you know about fraud or other serious financial misconduct occurring in a healthcare context? Are you considering filing a whistleblower case? To protect your career and family and to attain your fair share of compensation, you will require the help of an experienced whistleblower attorney.

Call Barrett Law now at (601) 790-1505 if you are considering becoming 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 judgment and losing your career and livelihood. Call us today.

 

 

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