1300.jpg
An experienced whistleblower attorney, successful trial attorney, former criminal prosecutor, and former reporter Representing whistleblowers reporting fraud on the Federal State Governments

kickbacksIn 2009, the company Eli Lilly & Co. plead guilty to illegally marketing an antipsychotic drug, Zyprexa, for unapproved uses on patients, leading to a fine of $1.42 billion. This settlement ended a series of civil lawsuits, as well as a criminal investigation. At the time this large of a settlement was unheard of, but how did the company orchestrate such a massive kickback scheme?

The Kickback Scheme

Originally, Zyprexa was approved for a very narrow use of schizophrenia and bipolar disorder, however Eli Lilly & Co. soon began to market the drug for a variety of other purposes. In fact, it was alleged that Zyprexa was eventually marketed to treat dementia, and was even prescribed for illnesses related to pediatrics in high doses. The company was also accused of overcharging for the drug. This allowed the company to target a significantly wider audience, increasing their potential profits on the drug exponentially.

Medicare-fraud-300x200Rossana Ramirez, a once certified nursing assistant, was discovered to be helping run a business in West Miami-Dade that is responsible for $7 million in health care fraud. After pleading guilty Ramirez was stripped of her license permanently through an Emergency Suspension Order and is now serving time at a federal detention center with a release date of June 2022.

Rossana Ramirez was registered in the state corporation registration as the vice president of a company titled F&E Home Health Care. While Rossana Ramirez is currently taking the heat from the Florida Department of Health, her husband Evelio Ramirez Jr. is also involved as the president of F&E. He will soon be starting his sentence of three years and ten months in federal prison himself. Both husband and wife are 59 and will both serve their time. Their pleas of guiltily were fairly straightforward and show that this act of fraud is not very uncommon from what has already been seen from healthcare fraud schemes in South Florida.

F&E is accused of paying kickbacks, a form of negotiated bribery in which a commission of sorts is given in return for services rendered, to those who receive Medicare and Medicaid to become F&E patients. Additionally, some of these patients did not even require home healthcare and the services promised were not often necessary or even provided at times. F&E is also accused of paying recruiters of Medicare and Medicaid recipients to promote their health services for them.

Franklin Resources will pay $13,850,000 and make other provisions to settle a lawsuit alleging that defendants breached their Employee Retirement Income Security Act (ERISA) fiduciary duties by causing Franklin Templeton’s 401(k) plan to invest in funds offered and managed by Franklin Templeton when better-performing and lower-cost funds were available. The case was settled shortly before trial of the lawsuit.

The company will also select a non-proprietary target-date fund (TDF) for its 401(k) investment lineup and increase the company match contribution rate for three years. According to the settlement agreement in addition to the settlement payment, the fiduciaries to the plan with responsibility for selecting plan investment options will add a nonproprietary target-date fund option (TDF) to the investment lineup, which will be maintained as a plan investment option for the duration of the compliance period in addition to the plan’s qualified default investment alternative (QDIA)—the LifeSmart Target Date Funds. “The choice of TDF will be made by the fiduciaries responsible for selecting Plan investment options in a manner consistent with their fiduciary oversight responsibilities, following a search of nonproprietary TDF options conducted by the Plan’s independent investment consultant, Callan Associates, Inc.,” the settlement agreement says. Franklin is listed on the New York Stock Exchange under In 1973 the company’s headquarters moved from New York to California . As of March 2017, Franklin Templeton Investments had US$740 billion in assets under management (AUM) on behalf of private, professional and institutional investors.

A month before the trial in the case was set to begin, the parties in the lawsuit announced they had reached a settlement but needed 60 days to file a motion for preliminary approval.

Contractors Areva and Chicago Bridge and Iron gave kickbacks in the form of football tickets, hunting rifles, cellphones and NASCAR race tickets to get work on a factory at the Savannah River nuclear storage facility says a lawsuit filed by the U.S. Government.
The cost of those kickbacks was later charged to taxpayers, according the False Claims Act complaint filed by the U.S. Department of Justice.

The contractors were hired to build the plant which  would turn weapons-grade plutonium into fuel for nuclear power plants. The contractors  scheme defrauded hat bilked taxpayers out of $6.4 million according to the Complaint. The suit also concerns over a federal construction effort that was marred by schedule delays, cost overruns and questionable spending.

The former President and the former Chief Legal Officer of Cognizant Technology have been indicted for paying approximately $2 million through company employees and agents, to government officials in India to secure obtain required permits on an office park. There were also other payments in connections with other projects. The the Cognizant President Gordon Coburn and Chief Legal Officer Steven Schwartz allegedly authorized a contractor to pay the bribes and directed subordinates to conceal it. Congnizant agrees to disgorge $19 million and pay a penalty of $6 million.

To conceal the scheme, Coburn, Schwartz and others allegedly agreed that a third-party construction company would obtain the permit by making the illegal bribe payment and that Cognizant would reimburse the construction company through phony construction invoices at the end of the project.  The indictment  alleges that in or about late June 2014, after the co-conspirators had agreed that the construction company would make the bribe payment on behalf of Cognizant, the construction company secured the necessary government order for Cognizant to obtain the permit, allowing Cognizant to complete the development of the office campus and avoid millions of dollars in costs.  Months later, the co-conspirators are alleged to have knowingly caused Cognizant to funnel over $2 million to the construction company disguised as payment for cost overruns on the office campus when they knew that the actual purpose of the payment was to reimburse the construction company for the bribe payment.  According to the indictment, as Coburn, Schwartz and others had previously agreed, they hid the bribe reimbursement payment within a series of line items in a construction change order request to be paid to the construction company, thereby concealing the true nature and purpose of the reimbursement, falsifying Cognizant’s books and records, and circumventing and failing to implement its internal controls.

Gordon Coburn, 55, of Beaver Creek, Colorado, and Steven Schwartz, 51, of Greenwich, Connecticut, were charged in a 12-count indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, seven counts of falsifying books and records, and one count of circumventing and failing to implement internal accounting controls.  The charges stem from an alleged scheme to bribe one or more government officials in India to ensure the issuance of a construction permit necessary to complete the development of an office campus that would support thousands of employees and become one of Cognizant’s largest facilities in India.

Mueller investigationOver 1,000 files of evidence gathered by Robert Mueller, special counsel, have been leaked online by Russian hackers using Twitter and a filesharing site as their platform. According to prosecutors, the leaked evidence was an attempt to discredit Mueller’s investigation into Moscow’s political interferences with the United States.

Promoting The Leak on Twitter

In October, a post appeared on the Twitter account of @HackingRedstone which read, “We’ve got access to the Special Counsel Mueller’s probe database as we hacked Russian server with info from the Russian troll case,” and “You can view all the files Mueller had about the IRA and Russian collusion. Enjoy the reading!” The post took users to a file sharing site where over 1,000 files of evidence had been uploaded. These files were identical to the files used by Mueller’s office, which were previously not made available to the public.

insider tradingAccording to the Securities and Exchange Commission’s 2018 Annual Report, 262 tips were received from whistleblowers regarding insider trading and resulted in a total of 56 charges throughout the year. As one of the SEC’s most successful years in combating insider trading, it is evident that the combination of whistleblower tips and modern technology are the key to securing the integrity of the securities market.

What is Insider Trading?

According to the SEC’s Investor.gov, “Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security. Insider trading violations may also include “tipping” such information, securities trading by the person “tipped,” and securities trading by those who misappropriate such information.”

money-laundering-300x200Two for the most popular apps for millennials and travelers are now being used to launder money for criminal elements. Airbnb and Uber are playing host to a new scheme that turns ill-gotten gains into clean and hard to track cash or cryptocurrency.

Money Laundering Scheme

Add Airbnb and Uber to the growing list of ways criminals are hiding money these days. Experts told CNBC that fake Uber drivers, questionable Airbnb hosts, and cryptocurrency specialists are being recruited via the dark web.

South CarolinaUniversity, will pay $2.5 million to settle federal claims under the False Claims Act of submitting false claims to the U.S. Department of Education in violation of the federal ban on incentive-based compensation, the Justice Department announced today.   The settlement resolves allegations that between 2014 and 2016, NGU hired Joined Inc., a company partially owned by NGU, to recruit students to NGU and compensated Joined based on the number of students who enrolled in NGU’s programs, in violation of the prohibition on incentive compensation. The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblowerprovisions of the False Claims Act by Maurice Shoe, the co-owner of Joined. Mr. Shoe is represented by the firm of  Guttman, Buschner & Brooks (“GBB”), The Act permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  As part of today’s resolution, the whistleblower will receive $375,000.

Title IV of the Higher Education Act (HEA) prohibits any institution of higher education that receives federal student aid from compensating student recruiters with a commission, bonus, or other incentive payment based on the recruiters’ success in securing student enrollment.  The incentive compensation ban protects students against aggressive admissions and recruitment practices that serve the financial interests of the recruiter, rather than the educational needs of the student.

“Offering unlawful financial incentives for recruiting undermines the integrity of our higher education system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Prospective students are entitled to make enrollment decisions without the improper influence of recruiting companies who pursue their own financial gain at the expense of the students’ best interests.”“This settlement will help ensure that schools and recruitment services put the educational interests of students and potential enrollees first,” said U.S. Attorney Sherri A. Lydon for the District of South Carolina.  “It should serve as a warning to institutions that would attempt to maximize enrollments to line their own pockets, disregarding the best interests of students in the process.  Through False Claims Act cases like this one, the U.S. Attorney’s Office will continue to help protect federal taxpayer dollars from waste, fraud, and abuse.”

hackersThe Chinese company Huawei, a telecommunication giant, was put in the spotlight as the United States showed concerns over the possibility of Chinese spying through the use of their technology. Concerns grew larger back in early December of 2018 when Meng Wanzhou, daughter of founder Ren Zhengfei and current CFO of Huawei, was arrested by Canadian authorities at the request of the U.S. government due to suspicion of intellectual property theft and bypassing U.S. sanctions in Iran. Meng’s arrest and extradition to the U.S. were met with negative reactions and fervent denial of any crimes by the Chinese government as well as Huawei.

A press conference held Monday, January 28th, 2019, stated that Huawei did indeed make “concerted effort,” as stated by acting Attorney General Matthew Whitaker, to steal information involving Tappy, a phone-testing robot by T-Mobile. Whitaker and FBI Director Christopher Wray were joined by Department of Homeland (DHS) Secretary Kirstjen Nielsen, Commerce Secretary Wilbur Ross, and several U.S. attorneys for the announcement at DOJ headquarters. It was mentioned that Huawei instructed its employees to take photos of Tappy, and at one point even steal pieces of it for possible replication. These type of actions clearly go against the non-disclosure and confidentiality agreements with T-Mobile. The Justice Department is also accusing the company of offering bonuses to any employee able to deliver such information.

Reporters were told by Wray that “The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace,”