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When an employee reports the illegal conduct of their employer, they become a whistleblower. Whistleblowers have exposed corporate practices that were not only unethical but actually, put people’s lives at risk. Even when a company is committing acts that are clearly wrongful, employees who discover that their employers are committing crimes are faced with difficult decisions. One issue they likely face is the possibility of suffering from retaliation, such as being terminated, if they decide to expose the illegal conduct.

However, it is often the case that only an employee would be in the position to learn the information necessary to report their employer’s wrongful actions. Whistleblower protection laws help to encourage people to speak up when employers commit illegal acts and to discourage employers from retaliating against employees who choose to do the right thing. One area where whistleblowers are extremely important is in the healthcare industry, where programs such as Medicare are frequently defrauded.

Medicare fraud

Medical facilities such as hospitals and nursing homes sometimes overbill Medicare. As it turns out, Medicare fraud accounts for around 10% of the total payments made by Medicare. In dollars, this means that the Medicare program if fraudulently billed tens of billions of dollars a year.

Medicare fraud often includes scenarios where medical facilities bill for services or equipment that they did not provide, or bill for a more expensive treatment than was actually given to the patient. There are some situations where patients covered by Medicare take part in the fraudulent acts, permitting the provider to use their Medicare number to bill for procedures or services that they did not actually require.

Because Medicare is designed to pay doctors quickly and therefore encourage them to see patients who are on Medicare, the program automatically pays out for claims that are filed, making fraud detection difficult. This has made Medicare particularly vulnerable to fraud.

The staggering costs that result from Medicare fraud are highly disturbing. But fortunately, some employees of medical facilities make the brave decision to speak out thereby exposing their employers’ illegal actions.

What protections exist for an employee who reports Medicare fraud?

In many cases, healthcare providers and other people working for medical facilities are the people best positioned to discover fraudulent billing practices. Of course, these people’s jobs might be threatened by their willingness to come forward and report the fraud.

In order to discourage Medicare fraud, perpetrators are subjected to heavy fines for their actions. Whistleblowers are awarded a portion of the fine paid by the violating facility, as well as a portion of the money recovered. This can lead to high reward payouts to whistleblowers. Additionally, though, retaliation against a whistleblower in a Medicare fraud claim is prohibited by law.

If you believe that your employer is committing Medicare fraud, you should speak with an experienced attorney. In some cases, it is possible to receive an award and have your job protected when you decide to do the right thing and report Medicare fraud.   For further information, contact the seasoned Mississippi Qui Tam Attorney at Barrett Law, PLLC today.

 

There was a whistleblower retaliatory termination action filed against Siemens A.G.by Meng-Lin Liu, who was a Division Compliance Officer for Siemens China, which is a subsidiary of Siemens A.G.  Liu alleged that Siemens China was engaged in a kickback scheme to sell medical imaging equipment to public hospitals in China and North Korea through intermediaries who would send a portion of the proceeds to the officials who granted the contracts to Siemens China.  Liu made a number of attempts to change the company policies and reported the possibility of corruption to a number of different people within the company.  Over a period of time, Siemens China stripped responsibilities from Liu and eventually informed him that he should not report to work for the remainder of his employment contract and that the contract would not be renewed.

Liu brought a whistleblower retaliation action against Siemens A.G. under the provisions of the Dodd-Frank Act and its anti-retaliation provisions as related to reports of wrongdoing pursuant to the Sarbanes-Oxley Act and other regulations under the umbrella of the Securities Exchange Commission (SEC).  Siemens argued that the whistleblower protections did not apply because Liu only reported the problems internally while an employee of Siemens China.  Liu only went to the SEC after he was terminated.  For a variety of reasons, including the fact that the whistleblower protections at issue did not extend to extraterritorial retaliation terminations, the complaint was dismissed with prejudice.  However, the court did not rule on the question of whether the Dodd-Frank protections extended to whistleblowers who reported company improprieties internally, but did not go to the SEC with the reports of wrongdoing.  The case is now back in the courts.

The SEC has been indicating for some time that it was going to begin to take action against companies that retaliated against employees who reported improprieties internally, but did not pursue an external report.  In the Siemens case, the SEC filed an amicus brief, known as a “friend of the court” filing, in which the SEC asserted that its interpretation of the provision in Dodd-Frank that protected against retaliation extended the protection to employees who only followed internal reporting protocols.

Although the SEC has been giving warnings that it intended to wade into this battle for some time, the filing of the amicus brief outlining its position on the application of the Dodd-Frank whistleblower protections to internal whistleblowers.  This position may provide additional security for employees who are considering reporting company wrongdoing.

The outcome of this court case can have serious repercussions on the development of internal policies.  If the court were to decide that Siemens’ assertions are correct, it could signal a new company policy where the company would be motivated to terminate an employee who reported improprieties as quickly as possible before he had a chance to go to the SEC and report the problems.

When an employee discovers that the company for which he works has done something wrong, he has a difficult decision to make.  If he reports the problem, he incurs the risk of losing his job.  Whistleblower protections are intended to ensure that an employee can do the right thing while being assured that he will not lose his livelihood.  If you are facing a retaliation termination, the knowledgeable and committed whistleblower and qui tam attorneys at Barrett Law PLLC will work with you to develop an effective legal strategy.  We will sit down with you during a free initial evaluation.  To schedule an appointment, please call us at (601) 790-1505.  We only receive a fee if we succeed in getting you a payment on your claim.

On November 13, 2013, the United States Department of Labor, Office of Public Affairs issued a press release announcing that one of its enforcement arms, the Occupational Safety and Health Administration (OSHA), awarded damages to four former employees of Gaines Motor Lines, Inc., of just over $1 million.  Gaines Motor Lines, Inc., is a North Carolina-based freight company offering shipping and supply-chain services to a variety of businesses.  The company has terminal locations in North Carolina, South Carolina, New Jersey, and Rhode Island.  Gaines Motor Lines, Inc., serves the Southeast and the Eastern seaboard.  The company has approximately 100 employees and 60 trucks in its fleet.

OSHA ordered Gaines Motor Lines, Inc., and two of its key employees—Tim Gaines and Rick Tompkins–to pay compensation to four former employees whom OSHA determined were terminated in violation of whistleblower protections of the Surface Transportation Assistance Act.  The compensation includes back wages, interest, and a total of $675,000 in punitive damages.  Three of the four former employees (one is deceased) were also awarded reinstatement.  According to OSHA’s Preliminary Order, the four employees who were terminated by Gaines Motor Lines, Inc., were terminated for participating in an inspection of one of the company’s facilities conducted by the United States Department of Transportation, Federal Motor Carrier Safety Administration.  The inspection indicated that some drivers of Gaines Motor Lines, Inc., had been falsifying logs and had poor driving records.  Assistant Secretary of Labor, Dr. David Michaels, stressed that employees must feel able to raise safety concerns without fear of retaliation and that undermining employees’ cooperation in inspections was unacceptable.

Gaines Motor Lines, Inc., immediately issued a statement indicating that the company intended on appealing the OSHA order.  The company indicated that the former employees were terminated as part of a larger reduction in force and also suggested that the former employees may have been discharged because of poor performance.  The statement also suggested that one of the four former employees requested to be laid off.  The company further cited its long history in the community and its concern with safety in defense of itself.

OSHA’s award in this case reinforces the scope of remedial and other actions that are afforded to it under whistleblower protection enforcement laws.  OSHA is the primary agency charged with enforcing whistleblower provisions of numerous federal statutes.  Any individual who believes he or she has been retaliated against for any activities protected by whistleblower statutes can report the violation to OSHA.  Depending upon the Act under which the violation occurred, the employee has between thirty and one hundred eighty days to report the retaliation action.   Upon receipt of a complaint, OSHA notifies the employer and will attempt conciliation.  If these efforts are unsuccessful, OSHA will investigate the allegations.  If it determines that there has been a violation, it can order reinstatement, payment of back wages, and reimbursement to the employee for attorneys’ fees.  Information about the various whistleblower provisions that OSHA enforces can be found at http://www.dol.gov/compliance/laws/comp-whistleblower.htm.

If you or a loved one has been retaliated against due to the raising of concerns about practices by your or your loved ones’ employee, Barrett Law PLLC can help you understand the rights and the protections to which you may be entitled.  This is true regardless of whether you are an employee of the federal, state, or local government or a private company.  Our firm has extensive experience representing individuals in all types of whistleblower lawsuits.  Contact us today at (601) 790-1505 to schedule an initial consultation.