Articles Tagged with whistleblower reward

Furniture merchant, turned whistleblower Kelly Renee Wells of Alabama, will receive nearly two million dollars for revealing revealed that larger retailers were evading import tariffs on furniture made in China by misclassifying the bedroom furniture as living room or hall furniture in order to evade “dumping” duties. One of the companies she sued, Bassett Mirrors, Inc.  just settled the claims against it for $10.5 Million. Last year, its co-defendant Z Gallerie of California settled its case for $15 million. Federal prosecutors intervened in the cases against Bassett and Z Gallerie but have not intervened in the two co-defendants left, Neiman Marcus and Macy’s. Ms. Wells was the source of information for both companies that settled.

Ms. Wells Attorney, Page Pate, says that he intends on pursuing Macy’s on his own for whistleblower Wells. The duties imposed by the U.S. Commerce Department are designed to protect domestic manufacturers from Chinese manufacturers who were dumping wooden bedroom furniture into the U.S. market. The case is part of a much larger picture involving extensive tariff evasion concerning Chinese goods including the dumping of honey some of this is adulterated by sweeteners and antibiotics not approved by the FDA. Thousands of barrels of fake honey is being transshipped from China through Taiwan and other countries with false documents in order to evade dumping duties.

The Department of Justice stated in its announcement of the settlement against Z Gallerie in April 2016 that it resolved allegations that Z Gallerie evaded antidumping duties on wood bedroom furniture imported from China from 2007-1014 by misclassifying or conspiring with others to misclassify the imported furniture as pieces intended for non-bedroom use on documents presented to Customs and Border Protection.

Whistleblower Beverly Brown has received a  award of more than $78 million for her efforts in obtaining a $280 million False Claims Act settlement against Celgene Corporation. The  reward and settlement amounts are among the largest ever to date.y. The False Claims Act allows whistleblowers  to bring suit in the name of the government against individuals or entities that caused the fraudulent or improper expenditure of government funds. If the case is successful, the relators receive a portion of the government’s recovery, known as a “relator share.”

Beverly Brown is a former Celgene sales representative who filed suit against Celgene saying that the company illegally promoted two of its drugs – Thalomid and Revlimid – for uses that were not approved by the FDA and also that Celgene paid illegal kickbacks to healthcare providers and others  to increase the sales of its drugs. After the suit was filed, the case remained under seal for four years while the government investigated.

The case was then heavily  litigated  including a review of millions of documents, numerous discovery motions, 40 fact and expert depositions, and dozens of pre-trial motions.

The Securities and Exchange Commission (SEC) announced that a whistleblower has earned an award of more than $1 million for providing the SEC with new information and substantial corroborating documentation of a securities law violation by a registered entity that impacted retail customers.

Today’s award reflects the impact that whistleblower information can have in uncovering violations that harm the retail investor,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “We welcome high-quality information about potential securities-law violations from those in and outside a company.

More than $162 million has been awarded to 47 whistleblowers. By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.

An employee for the Department of Education revealed fraud involving federal student financial aid programs and forced payment of $58 million dollars to the government for which he will receive over $16.5 million dollars himself. The whistleblower Dr. Jonathan Oberg fought the case alone, as the Department of Justice declined to intervene. The allegations included claims that the companies, including Nelnet Inc, created billing systems that allowed them to inflate subsisides fromt the Department of Education.

Cheryl Eckard was paid $96 million, the largest amount ever received by a whistleblower. She reported violations in the Glaxo Puerto Rico facility. Pills were being made with incorrect doses and some of the drugs were contaminated. The whistleblower tried to convince the plant executives to fix the problems before she reported it.