The False Claims Act whistleblower received a $600k reward. An importer has paid $3.1 million to settle a whistleblower lawsuit alleging it misclassified hazardous chemicals from China to evade more than $1 million in customs duties. The whistleblower, a former employee of importer Penta International, will receive $600,000—or nearly 20%…
The Whistleblower & Anti-Fraud Blog
Whistleblower Lawsuit over Misdeclared Chinese Imports Nets $1.9M
The whistleblower, a business competitor of the allegedly dishonest importer, received a $286,000 whistleblower reward. Industrial tools firm King Kong Tools has paid $1.9 million to settle a whistleblower lawsuit alleging it transshipped Chinese merchandise through Germany—fraudulently redesignating them as German origin—to circumvent applicable customs duties. Whistleblower China Pacificarbide—which competes with King Kong…
Customs-Fraud Whistleblower Case Settled
The former logistics staffer who reported the import-duty evasion will receive a $152K whistleblower reward. An importer of Chinese-manufactured ready-to-assemble furniture sold through such retailers as Walmart and Wayfair has paid $798,334 to resolve whistleblower claims it fraudulently used undervalued commercial invoices to reduce its import-duty obligations. A former employee…
Importer Pays $2.5M to Settle Customs-Fraud Whistleblower Case
Former employees who blew the whistle on the duty evasion will share a $500k whistleblower reward. ADCO Industries, a Texas-based importer of industrial products, has agreed to shell out $2.5 million to end a whistleblower lawsuit alleging it knowingly undervalued merchandise from China to fraudulently reduce its customs duties. Two…
Whistleblower Lawsuit over Evaded Import Duties Nets $3M Settlement
Former Yakima employee to receive $500k False Claims Act whistleblower reward. Yakima Products, a maker of automobile accessories such as hitches and roof racks, will pay $3 million to resolve a whistleblower lawsuit alleging it knowingly underdeclared its customs duties and misdeclared the country-of-origin of its imports. The qui tam…
Importer Settles False Claims Act Lawsuit alleging it Failed to Pay Marking Duties.
Customs-Fraud Whistleblower receives $115K Award. Drug distributor Danco Laboratories has agreed to pay $765,000 to resolve a federal whistleblower lawsuit alleging it violated the False Claims Act by failing to pay marking duties on products it imported from China without country-of-origin labels. Imports are required to be labeled with their…
Whistleblower Receives $203K Award as Public-Relations Firm Settles False Claims Act Lawsuit over PPP Loan
Coyne Public Relations of New Jersey allegedly applied for and obtained a forgivable PPP loan despite its ineligibility. Coyne Public Relations, a New Jersey public-relations firm, has paid $2.24 million to the federal government to resolve a whistleblower case alleging that it knowingly applied for and received a forgivable loan…
Whistleblower awarded $1M as Drug-Testing Firm Pays $5.9M to Settle Kickback Allegations
A former billing manager brought the misconduct to the attention of the Justice Department by filing a False Claims Act lawsuit. Medical-testing firm Genotox Laboratories of Austin, Texas has agreed to pay $5.9 million to resolve allegations it violated the Anti-Kickback Statute and False Claims Act by paying volume-based commissions…
Adobe Pays $3M to Settle Whistleblower Lawsuits over Alleged Kickbacks involving Government Software Sales
Three Adobe employees filed False Claims Act lawsuits exposing the scheme and will share a $555K whistleblower reward. Adobe Inc. (NASDAQ: ADBE) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by paying illegal kickbacks to software-reseller partners in return for their promotion…
Government Recovers $9.5M in False Claims Act Lawsuits against For-Profit Schools over Post-9/11 GI Bill Funding
In separate lawsuits, the government alleged that two for-profit education companies defrauded a tuition assistance program for military veterans. Two for-profit educational organizations will pay a combined $9.5 million for defrauding the U.S. Department of Veterans Affairs’ Post-9/11 GI Bill program in violation of the False Claims Act. A federal…