Experienced Mississippi Whistleblower Attorney Discusses Whistleblower Claims by Government Contractors

I have frequently discussed on this blog how the False Claims Act aims to prevent companies working for the federal government from providing inferior goods, overcharging, charging for work not performed, and providing kickbacks. If a whistleblower comes forward and reports occurrences of this sort of illegal behavior, the False Claims Act also provides explicit protection to them in the form of significant fines, double back pay, and other penalties for any retaliatory acts. One question that sometimes arises, however, is who can be a whistleblower. I wrote this blog post to cover a common question, specifically, whether a company can be a whistleblower.

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.

Can a Subcontracting Company Be a Whistleblower Under the False Claims Act?

In 2009, the U.S. Congress made updates to the False Claims Act to include “contractors” and “agents” to the list of parties that can make a whistleblower claim under the False Claims Act.  The question arising from these changes was what do “contractor” and “agent” mean? A recent federal court case suggests that a corporation can be a whistleblower as well, not just an individual.

In this case, Munson Hardisty LLC v. Legacy Pointe Apartments, Munson Hardisty—a corporation and subcontractor of Legacy Pointe—exposed that Legacy Pointe was defrauding the U.S. Department of Housing and Urban Development (HUD). Specifically, Legacy Pointe reorganized its corporation and corporate filing so that it could apply for HUD financing for a construction project. Previously, Legacy Pointe had been barred from applying for HUD financing.  Munson Hardisty withdrew as a partner in the enterprise when it learned of Legacy Pointe’s malfeasance. In retaliation, Legacy Pointe refused to pay Munson Hardisty for over $2 million in work performed. Munson Hardisty sued as a whistleblower, claiming that the False Claims Acts retaliation protections should cover it.  The federal court agreed with Munson Hardisty, holding that the corporation fell within the precise meaning of the word “contractor” even though it was not a person doing the contracting.  As a result, the court found that the retaliation provisions of the False Claims Act applied to Munson Hardisty as a corporation.  They received the money due to them plus costs and fees. I am sure this case will be appealed, and it will be interesting to see if the appellate courts uphold this holding.

This case represents a welcome expansion of the False Claims Act and is one that makes a lot of sense. The False Claims Act’s goal is to protect the federal government from fraudulent activities—it shouldn’t matter who or what reports the fraud.

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

Are you considering filing a whistleblower case regarding fraud occurring against the federal government?  The reward for submitting a successful claim can be massive, 15 to 30% of any amount recovered, but don’t fool yourself—you will only reap this sort of award with the help of an experienced whistleblower attorney. The U.S. 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.  Careful pleading is key to this process and will require the help of an experienced whistleblower counsel. 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 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.

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Experienced Mississippi Whistleblower Discusses Federal Railroad Safety Act Whistleblower Law

The Federal Railroad Safety Act (FRSA) protects workers who report violations of federal railroad safety laws or refuse to work in dangerous conditions. I will describe this program in detail below, but in a nutshell, it protects employees from retaliation and provides rewards to those who report unsafe conditions.  A recent case bolstered FRSA whistleblowers’ rights, and I wanted to provide an overview of the court’s holding for my clients here in Mississippi.

If you are considering becoming an FRSA whistleblower, or any other type of 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.

The Federal Railroad Safety Act

Congress created the FRSA to address ongoing concerns about railway safety and to combat systemic retaliation against railroad workers who reported safety violations. Under the FRSA, railroad workers can attain significant awards for reporting unsafe practices, along with front and back pay and reinstatement, and also receive protections for retaliation.

What Sort of Conduct is Protected Under the FRSA?

The FRSA protects employees who: File safety complaints under the FRSA; Cooperates with a safety or security investigation; Refuses to violate federal law or regulation related to railway safety; Accurately reports work hours; Provides information about any railway safety investigation.

To prove retaliation, all the FRSA whistleblower must do is show that his or her lawful, protected behavior was a “contributing factor” in the employer’s decision to take adverse employment action.  That means that there could be many factors that combined resulted in an employee’s discipline—he or she could have been late several times, could have missed a safety meeting, and also could have provided information to NTSB investigators.  So long as the employee’s giving information to NTSB was one factor in the employer’s decision-making regarding discipline, then the decision itself is retaliation. In short, one bad apple ruins the whole bunch.

Recently, the U.S. Ninth Circuit of Appeals upheld the “contributing factor” standard in a case, Frost v. BNSF Railway Co.  Frost filed a legitimate safety report but also had safety allegations leveled against him.  The employer BNSF argued that because it had an “honest belief” that Frost had violated safety rules regarding entering the tracks without appropriate clearance, it had the right to take adverse employment action against him.  The lower court agreed with BNSF.  On appeal, the Ninth Circuit held that the “contributing factor” test still applied and that it did not matter that BNSF also had concerns about his adherence to safety rules. Because his filing a safety report was a “contributing factor” to BNSF’s decision, adverse action against Frost was retaliatory. This is welcome news for FRSA whistleblowers, and I have attached the full Ninth Circuit Case below.

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

Have you been fired from or disciplined at your railroad job because of safety concerns you raised? The reward for submitting a successful claim can be massive, 15 to 30% of any amount recovered as a result of your report, reinstatement, back pay and front pay, and expenses, but don’t fool yourself—you will only reap this sort of award with the help of an experienced whistleblower attorney. Careful pleading is key to this process and will require the assistance of an experienced whistleblower counsel. 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 FRSA 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.

 

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Experienced Mississippi Whistleblower Lawyer Compares the IRS Whistleblower Law to the False Claims Act

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

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.

 

 

 

 

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Experienced Mississippi Whistleblower Attorney Discusses Securities and Exchange Commission Claims

Currently, in the United States, we are witnessing a debate regarding the role banks and financial institutions should play in our individual lives and on a national level. There are many reasons this conversation is occurring, including the financial crisis of 2008, banks that are “too big to fail,” and the subprime mortgage crisis that sent ripples through the world economy. There is a lot of room for debate about what amount of risks bank and financial institutions should be able to take, but I believe we can all agree that there is no place for fraud in the financial world.  If you are aware of fraud occurring in the financial services industry, you may be able to become a Securities and Exchange Commission (SEC) whistleblower.  I will describe this program in detail below.

If you are considering becoming an SEC whistleblower, or any other type of 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.

 Securities and Exchange Whistleblowers

Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 (Dodd-Frank), which overhauled finance and securities law and created an effective whistleblower program for those who are aware of fraud and other criminal conduct. I say “effective” because the Sarbanes-Oxley Act of 2002 already created a whistleblower program for this industry, but it lacked Dodd-Frank’s teeth.

There are many ways that Dodd-Frank improved upon Sarbanes-Oxley and even the False Claims Act.  First, under Dodd-Frank, whistleblowers may remain anonymous up until receiving their award. This is even broader than the False Claims Act, which reveals whistleblowers’ names once a prosecution commences.  But like the False Claims Act, Dodd-Frank whistleblowers may receive 10% to 30% of whatever penalty is collected as a result of a prosecution resulting in penalties of over $1 million.

Second, SEC whistleblowers are under no obligation to file their claims.  This is quite different from the False Claims Act, which usually requires a suit to be filed.  Instead, the whistleblower submits his or her complaint to the SEC. The SEC investigates and decides whether the agency will bring an enforcement action.

Third, if the SEC decides not to bring an enforcement action, that decision may be appealed to the appropriate United States Court of Appeals.

Like the False Claims Act, Dodd-Frank also prohibits any retaliation against the whistleblower, including investigations or other employment actions such as discipline or termination. If an employer engages in retaliation, the whistleblower can bring a separate retaliation claim in federal court. If you have been retaliated against by your employer for being a whistleblower, you can receive double back pay and all litigation costs.

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

Are you considering filing an SEC whistleblower case regarding fraud occurring in the financial services industry?  The reward for submitting a successful claim can be massive, 15 to 30% of any amount recovered, but don’t fool yourself—you will only reap this sort of award with the help of an experienced whistleblower attorney. The SEC 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 (601) 790-1505.

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

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Experienced Mississippi Whistleblower Lawyer Discusses New U.S. Attorney General William Barr’s Effect on Whistleblower Cases

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

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.

 

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Experienced Mississippi Whistleblower Lawyer Explains Illegal Hospice Kickbacks

Hospice care is end-of-life medical care and emotional support for dying individuals and their families. If you have ever gone through hospice with a family member, you know that it an extremely vulnerable time for everyone involved. It is not an area of medicine that I usually associate with fraud, but as I have said before in other blog posts if government money is involved, there are opportunities for fraud. And if there is fraud involving government money, there is an opportunity to become a whistleblower.

If you knowingly sell the government a product that does not meet government specifications—whether it is a missile, a mammogram machine, or 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 to attain contracts you aren’t entitled to. Because patients immersed in the hospice process are so vulnerable, there is a tremendous opportunity to defraud them or to entice them or their families to purchase unnecessary services.  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.

Hospice Care, an Overview

Hospice care commences when a patient is certified as “terminally ill.”  “Terminally ill” means that a person has less than six months to live and will no longer benefit from curative medical care. A patient is typically certified for hospice care for 90 days, which can be renewed for another 90 days afterwards.

Types of Hospice Care Kickbacks

There is a broad diversity of the kinds of hospice fraud, including kickbacks.  Kickbacks occur when a person exchanges money, services, or goods in exchange for another business directing customers towards their business.  Hospice kickbacks traditionally arise when a hospice provides free or heavily discounted nursing services to a nursing home. Hospice offers these services with the understanding that the nursing home will push the patient towards the hospice facility when he or she becomes terminally ill. Another classic type of kickback involves providing nursing homes with free or discounted goods in exchange for patient referrals. Finally, sometimes hospice services refer patients to nursing homes, expecting similar treatment in return.

These types of kickbacks are illegal because they give the hospice provider an additional advantage over competition based on the benefits provided to the nursing home, not on their superior performance. This sort of strategy to gain financial or market advantage is illegal under the False Claims Act. If you have witnessed these sorts of kickbacks, you may be able to attain a substantial reward as a whistleblower.

What Should You Do if You are Considering a Hospice Fraud Whistleblower Claim

Are you considering filing a whistleblower case regarding hospice care kickbacks or any other area of the health care industry?  The reward for submitting a successful claim can be massive, 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 (601) 790-1505.

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.

 

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

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

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

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

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 (601) 790-1505 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 (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.

 

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