Whistleblower Protection Blog : Whistleblower Lawyer & Attorney : National Whistleblower Legal Defense and Education Fund : Whistleblower Protection, Fraud Claims : Washington DC

C.R. Bard Inc., a medical device company based in New Jersey, has agreed to pay the United States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare. The claim alleged that the company paid off doctors and hospitals to induce them to prescribe brachytherapy seeds. Giving such kickbacks is a violation of the False Claims Act.

The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal remuneration to customers and physicians to induce them to purchase Bard’s seeds, in violation of the Anti-Kickback Statute.   The illegal remuneration allegedly took the form of certain grants, guaranteed minimum rebates, conference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer.   Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims. 

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Yesterday, District of Columbia Councilmember Mary Cheh introduced the "False Claims Act of 2013," which will amend the D.C. False Claims Act to permit whistleblowers to bring tax-related fraud claims. If enacted into law, the bill would permit whistleblowers to seek a qui tam or relator’s share when the amount of uncollected tax is worth $350,000 or more, and brought against taxpayers who have an income above $1 million. 

Councilmember Cheh stated in her press release:

Under current District law, the False Claims Act does not apply to violations of the tax code. Therefore, the District cannot obtain information from whistleblowers that may be relevant to the investigation and prosecution of tax evaders. This bill would allow the District to use the tools of the False Claims Act against the District’s biggest tax evaders in a manner already authorized for other applications of the Act.

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The Justice Department confirmed in a release issued on December 4 that it has been a record year for recoveries from the False Claims Act.  In fact 2012 garnered the DOJ the “largest annual recovery in Department history.” Most of the recoveries were from actions filed under the whistleblower/qui tam provisions of the FCA.  The DOJ release notes, “Of the $4.9 billion in fiscal year 2012 recoveries, a record $3.3 billion was recovered in whistleblower suits.”

“The whistleblowers who bring wrongdoing to the government’s attention are instrumental in preserving the integrity of government programs and protecting taxpayers from the costs of fraud,” said Principal Deputy Assistant Attorney General Stuart F. Delery.   “We are extremely grateful for the sacrifices they make to do the right thing.”

“The Justice Department’s official recognition of the importance of whistleblowers in fraud detection is an important step forward,” stated Stephen Kohn, Executive Director of the National Whistleblowers Center, in response to the DOJ release. Kohn continued, “Whistleblower reward laws are the single most effective mechanism to induce employees with knowledge of fraud to risk their careers in serving the public interest.

The DOJ’s release is linked here.

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SPECIAL NOTE: Due to the effects of Hurricane Sandy, we will not have a live episode of Honesty Without Fear today. Instead, Progressive Radio Network will play a best of show. We plan on rescheduling this show for a later date.

 

Tune in Monday at 5:00pm EDT to Honesty Without Fear on Progressive Radio Network.

Jane Turner interviews Kenneth Smith and John Melson along with their lawyer, Dave Scher. Kenny & John were hired by government contractor Jorge Scientific to perform security services in Afghanistan, but ended up having to take care of and pick up the slack for their fellow employees, who drank alcohol and took illegal drugs during working hours. Kenny & John describe the shocking frat house antics they witnessed, which compromised the secrecy of their compound and damaged the image of the United States in Afghanistan. In addition, Dave Scher will explain how the contractors' conduct defrauded the American government.

Submit Your Question to be asked on air during the show or call in to 1-888-874-4888.

Missed last week's episode?? You can listen to the podcast.

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Tune in today at 1:00pm EDT to Honesty Without Fear on Progressive Radio Network.

In the first half, Richard Renner interviews author Kathleen Sharp about Mary Scott, a hospital finance administrator who blew the whistle on Metropolitan Health Corp bilking the federal government through billing fraud and kickbacks. After the federal government reached a $6.25 million settlement agreement with Metro Health based on her whistleblowing, the company fought back hard. They convinced a judge, without a hearing, to levy a $1.6 million sanction against Ms. Scott for her lawyers' misconduct. Metro Health is now frustrating Ms. Scott's attempts to pick up the pieces by opposing her bankruptcy case. Kathleen Sharp will explain this harrowing tale of how hard fraudsters can fight back against whistleblowers.

In the second half hour, Guest Host Rosemary Dew, a 13-year veteran FBI agent, interviews fellow FBI whistleblower Coleen Rowley. They discuss the Obama Administration's use of the Espionage Act to prosecute national security whistleblowers, such as NSA whistleblower Thomas Drake.

Submit Your Question to be asked on air during the show or call in to 1-888-874-4888.

Missed last week's episode?? You can listen to the podcast.

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Tune in today at 1:00pm EDT to Honesty Without Fear on Progressive Radio Network.

In the first half, Lindsey Williams interviews attorney David White and his whistleblower client, Beverly Landis. Ms. Landis, a former Hospice Care of Kansas nurse, blew the whistle on Hospice Care and its parent company Voyager Hospice Care for defrauding the government by submitting false claims to Medicare for ineligible hospice services.

In the second half hour, Lindsey Williams interviews Richard Renner about the decision last week in favor of FBI whistleblower Bassem Youssef.  The DC Circuit Court of Appeals reinstated Youssef's claims that he faced discrimination after the 9/11 terrorist attacks. Now the FBI will have to answer why it stunted the career of this decorated agent.

Submit Your Question to be asked on air during the show or call in to 1-888-874-4888.

Missed last week's episode?? You can listen to the podcast.

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Today, the New York City Council will vote on three whistleblower laws. I had the opportunity to testify about these three bills on April 16th this year before the Committee on Governmental Affairs. The NWC supports the NYC Council's efforts to improve whistleblower protections.

Proposed Int. No. 479-A requires city contractors and subcontractors to post a notice informing employees about their whistleblower rights. Knowledge of existing whistleblower laws is essential in encouraging employees to report fraud.

The NWC strongly supports Proposed Int. No. 816-A, which extends protections under New York City's Whistleblower Law to employees of city contractors and subcontractors.

Proposed Int. No. 828-A is a good first step in making the New York City False Claims Act more effective in detecting and deterring fraud. We look forward to working with the Council in the future to continue improving the Act to ensure accountability of city contractors.

If you would like to know more about these three bills check out the audio from the NYC Committee hearing or my written testimony.

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Last week the U.S. Department of Justice announced that it has intervened in a whistleblower lawsuit brought against an ink manufacturer for skirting the payment of import duties. The case against Toyo Ink is still in its early stages, but government intervention is a significant victory for the whistleblower, John Dickson.

When employees are harassed or fired for reporting misconduct, fighting and paying for a whistleblower lawsuit can look seem like an insurmountable challenge. When you imagine this battle of David versus Goliath, you can start to grasp how big this news is for Mr. Dickson's case.

Government funds are, of course, limited. The benefits of False Claims Act investigations like this one, however, are well worth the cost. If the Department of Justice can demonstrate that Toyo Ink did, in fact, cheat its way out of paying import duties on its ink, the company will be forced to pay back the costs threefold. That money pays for the investigation, and it serves as a powerful deterrent to other would-be fraudsters.

Cases like these are great examples of how whistleblowing works. Mr. Dickson's courage to step forward has been recognized with this government assistance. Hats off to the Department of Justice for stepping up to bat for this whistleblower–another American hero.

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This Monday, April 16, 2012, NWC Director of Advocacy & Development Lindsey Williams will testify before the New York City Council in support of strengthening whistleblower protections included in proposed legislation, including the local False Claims Act. The hearing will commence at 10:00am in the 16th Floor Committee Room, 250 Broadway, New York, NY.

The City Council will broadcast a live webcast of the hearing.

New York is one of the few cities that has passed its own local False Claims Act in addition to state and federal versions of the law.  The local law is up now up for reauthorization, with proposed amendments that would update the definition of an “original source” and also increase the whistleblower’s share of the recovery.

In addition, Council Member Dan Garodnick has sponsored two bills that expand whistleblower rights. His first bill extends whistleblower protection to employees of city contractors, and his second bill requires city contractors to post information about whistleblower protections included in the local, state, and federal False Claims Acts.

Council Member Gardodnick will discuss the bills and the hearing in more detail during an interview on Honesty Without Fear, live this Tuesday, April 17, 2012, at 1:00pm.

We’ll post a round-up of the hearing here on on the Whistleblower Protection Blog, so stay tuned.

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Tune in tomorrow at 1:00pm EDT to Honesty Without Fear on Progressive Radio Network.

In the first half hour, David Colapinto interviews peace activist Kevin Zeese, Co-Chair of Come Home America, about the ongoing hearing for PFC Bradley Manning and the campaigns by the Bradley Manning Support Network to support his release. Demand an end to the cruel and unusual punishment of PFC Manning by taking action.

In the second half hour, Richard Renner discusses state False Claims Act statutes with attorney Mark Hanna from Murphy Anderson PLLC. Learn about states that are aggressively combating fraud and ones that are allowing your state tax dollars to be wasted.

Submit Your Question to be asked on air during the show or call in live to 1-888-874-4888.

Missed last week's episode?? You can listen to the podcast.

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