Articles Posted in Qui Tam (False Claims Act) Litigation

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iStock-1224725343-300x168High Life LLC allegedly reported phony “first sale” prices on import declarations filed with CBP.

New York apparel wholesaler High Life LLC has paid the U.S. government $1.3 million to resolve allegations it violated the False Claims Act by underdeclaring the value of its imports.

According to the U.S. Department of Justice, High Life knowingly reported fictitious “first sale” prices on customs entry documents filed with U.S. Customs and Border Protection, thereby fraudulently reducing the company’s import duties.

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iStock-1173091700-300x200The fraud was discovered by a medical office manager who filed a whistleblower lawsuit under the qui tam provisions of the False Claims Act.

A Georgia ophthalmologist has agreed to pay $1.85 million to settle allegations she violated the False Claims Act by fraudulently billing Medicare for medically unnecessary cataract surgeries and diagnostic tests as well as medical procedures she never performed.

The fraud was exposed by a former medical practice office manager who filed a whistleblower complaint under the qui tam provisions of the False Claims Act. She will receive a whistleblower award of 15-30% of the settlement proceeds.

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The fraud was exposed by a former Academy underwriter.  She received a qui tam whistleblower award of $11.5M.iStock-1093974328-1-300x175

Utah-based Academy Mortgage has paid $38.5 million to settle allegations that it violated the False Claims Act by falsely certifying its compliance with underwriting requirements for federally insured mortgages.

The fraud was exposed by a former Academy underwriter who filed a False Claims Act whistleblower lawsuit alleging that Academy issued numerous loans without regard to whether they met FHA-HUD criteria. She received 30% of the settlement proceeds—$11.5 million—as a whistleblower award.

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iStock-914267502-300x163Contractor previously paid $5.6 million to resolve allegations it improperly sourced tungsten cubes from China instead of the United States for high-explosive tank rounds sold to Israel.

A federal appeals court has affirmed an award of almost $500,000 in attorney’s fees and expenses to co-whistleblowers who filed a qui tam lawsuit under the False Claims Act exposing a defense contractor’s illegal use of Chinese-sourced materials under a US-financed military procurement contract with Israel.

The Ninth Circuit Court of Appeals affirmed a trial court order requiring the contractor, California-based Tungsten Heavy Powder & Parts, to pay the fee and expense award.

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The fraud was exposed by two former company executives who filed a qui tam lawsuit under the False Claims Act. They will share a whistleblower award of $8.3 million.
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Pennsylvania-based cardiac monitoring company BioTelemetry, Inc. (Nasdaq: BEAT) and its subsidiary CardioNet LLC have agreed to pay nearly $45 million to resolve allegations they violated the False Claims Act by knowingly billing federal healthcare programs for services performed by cardiovascular technicians located outside the United States in violation of federal law.

According to the U.S. Department of Justice, the companies also violated the False Claims Act by knowingly billing federal healthcare programs for work performed by technicians who lacked required training and certification.

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iStock-117144640-1-300x200A federal jury returned a $24 million judgment against an importer of Chinese steel pipe fittings, finding that it knowingly violated the False Claims Act by evading applicable anti-dumping duties. The importer says its non-payment of duties was “objectively reasonable.”

False Claims Act lawyers are monitoring the appeal in U.S. v. Sigma Corp., which is scheduled for oral argument before a U.S. Court of Appeals for the Ninth Circuit panel on Jan. 10, 2023. A qui tam whistleblower lawsuit involving an importer’s alleged knowing failure to pay anti-dumping duties on pipe fittings imported from China, the case raises hugely controversial questions relating to the False Claims Act’s knowledge requirement.

Applicability of Safeco Under the False Claims Act
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iStock-465505283-300x200The fraud was exposed by a former ModMed executive who filed a qui tam lawsuit under the False Claims Act. He will receive a $9 million whistleblower award.

Florida-based electronic health records firm Modernizing Medicine has paid $45 Million to resolve allegations it violated the False Claims Act by paying and receiving kickbacks in violation of the Anti-Kickback Statute.  According to the U.S. Department of Justice, ModMed partnered with pathology lab firm Miraca Life Sciences to jointly promote ModMed’s cloud-based EHR software and Miraca’s pathology laboratory services through illegal kickbacks.

Miraca previously paid $63.5 million to settle False Claims Act allegations relating to the scheme, which was exposed by a whistleblower who filed a lawsuit under the qui tam provisions of the False Claims Act.  The whistleblower—a former ModMed product manager—will receive a whistleblower award of $9 million in connection with the ModMed settlement.

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iStock-1219693277-300x169OneBigOutlet allegedly evaded millions of dollars in duties on imports from China by filing commercial invoices with CBP understating its purchase prices.

California importer RGE Motor Direct Inc., which does business under the name OneBigOutlet, has paid $3.25 million to resolve allegations it fraudulently underreported the prices it paid for furniture it imported from China.  The settlement ends a lawsuit brought by a qui tam whistleblower which alleged that OneBigOutlet, in coordination with its Hong Kong affiliate, Royal Sourcing Limited, violated the False Claims Act by knowingly filing false commercial invoices with U.S. Customs and Border Protection, thereby skirting millions of dollars in Section 301 tariffs.

The whistleblower, a resident of Hong Kong who previously worked as a sourcing manager at Royal Sourcing, received a whistleblower award of 27.5% of the settlement proceeds, according to legal filings.

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iStock-1311468531-300x200The Rensselaerville Institute allegedly overstated its average monthly payroll to receive a larger PPP loan

The Rensselaerville Institute of Albany, New York, a community nonprofit, has paid $86,676 to settle allegations that it violated the False Claims Act by fraudulently overstating its eligibility for a loan under the Paycheck Protection Program, thereby obtaining more funds than it was entitled to receive.  In the settlement, Rensselaerville admitted it fraudulently overstated the organization’s average monthly payroll on its PPP loan application and, despite being alerted to the issue by auditors, did not return the excess funds but instead applied to the government for forgiveness of the entire loan.

The fraud was exposed by Rensselaerville’s former Chief Financial Officer, who filed a qui tam whistleblower lawsuit under the False Claims Act and received a whistleblower award of $17,000 from the settlement, the U.S. Department of Justice said.

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The settlement caps the DOJ’s nearly 20-year pursuit of False Claims Act lawsuits, prompted by a whistleblower complaint, against companies in the body-armor supply chain involving Zylon vests

Honeywell International, Inc. (Nasdaq: HON) has agreed to pay $3.35 million to resolve allegations it violated the False Claims Act by supplying defective ballistic material for bulletproof vests purchased by the U.S. Department of Defense and other federal agencies.  The settlement ends the DOJ’s decades-long pursuit of False Claims Act lawsuits against companies in the body armor supply chain that allegedly continued to manufacture, market, and sell Zylon bulletproof vests even after becoming aware that Zylon rapidly degraded in hot and humid conditions, compromising its ability to stop bullets.

Dangerous degradation
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