WHISTLEBLOWER QUOTE OF THE DAY:

“Next week’s hearing will examine the False Claims Act’s success, but also what more can be done to prevent, detect, and eliminate false claims costing taxpayer dollars, while ensuring fair and just results. Meritless cases hurt the cause of whistleblowers everywhere. This hearing will explore ways of improving how we root out fraud.”

House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Constitution and Civil Justice Subcommittee Chairman Trent Franks (R-Ariz.) released the above statement in announcing the hearing

 

DAILY WHISTLEBLOWER HEADLINES:

Federal officials emphasize compliance, outline shifting areas of fraud

Compliance programs will play a key role in the Office of Inspector General's (OIG) new exclusion guidelines, and federal prosecutors may be slightly shifting their geographical fraud targets, government officials told attendees at the Health Care Compliance Association's Compliance Institute last week.

Daniel Levinson, inspector general for the Department of Health and Human Services, emphasized the importance of compliance programs in a RACmonitor podcast, indicating that federal investigators expect to see "sophisticated" programs that can self-report misconduct to authorities. He said compliance programs would be factored into the OIG's updated exclusion guidance released by the agency last week.  

"It's important that people understand that having a good, effective compliance program [that] is considered state-of-the-art is expected," he said, adding that providers don't get bonus points for simply having a plan, but must establish a program robust enough to catch misconduct. read more »

Oversight of the False Claims Act

On Thursday, April 28, 2016, at 4:00 p.m., the Subcommittee on the Constitution and Civil Justice will hold a hearing titled, “Oversight of the False Claims Act.” The hearing will examine the False Claims Act, which is one of the government’s principal anti-fraud laws that has proven to be effective at recovering taxpayer money lost as a result of fraud against the federal government. Many businesses, however, are concerned that while the False Claims Act can be effective, it can also lead to unfair penalties and unjust results, particularly for health care companies, non-profits, and small and large businesses. read more »

TAF Education Fund Chairman Neil Getnick will be testifying in support of the False Claims Act on April 28th before an oversight hearing put on by the House Judiciary Subcommittee on the Constitution and Civil Justice. A similar hearing was held in July of 2014. Download Neil Getnick testimony
 
Senator Grassley will be submitting remarks. The Senator had a scheduling conflict, or he would be testifying in person as well.  I will forward the Senator’s testimony when it arrives.

Dennis Burke, President & CEO of Good Shepherd Health Care System in Oregon will be testifying. This 13-year old case has been cited by the other side in Supreme Court briefs in both Escobar and Rockwell. During that period of time, the False Claims Act returned over $40 billion back to the American people, and protected children, senior citizens, soldiers, and taxpayers alike. Download Dennis Burke testimony

Jonathan Diesenhaus of Hogan Lovells will be testifying. Download Jonathan Diesenhaus testimony

Larry Thompson, Professor in Corporate and Business Law at the University of Georgia School of Law will be testifying. Mr. Thompson was Deputy Attorney General under George W. Bush, and author of the Thompson Memo detailing “Principles of Federal Prosecution of Business Organizations”. Download Larry Thompson testimony

In announcing the hearing, House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Constitution and Civil Justice Subcommittee Chairman Trent Franks (R-Ariz.) released the following statement:

“Next week’s hearing will examine the False Claims Act’s success, but also what more can be done to prevent, detect, and eliminate false claims costing taxpayer dollars, while ensuring fair and just results. Meritless cases hurt the cause of whistleblowers everywhere. This hearing will explore ways of improving how we root out fraud.”

BREAKING: Jury Finds NOVA Bank Leaders Guilty In TARP Fraud Case

By Dan Packel, Law360

Two leaders of now defunct NOVA Bank were convicted by a Pennsylvania federal jury Wednesday of devising a circular lending scheme in a failed effort to deceive regulators into investing in the bank under the Troubled Asset Relief Program.

After a total of four days of deliberation, a jury found former bank President and CEO Brian Hartline and former board Chairman Barry Bekkedam guilty of conspiracy to defraud the U.S., TARP fraud and two counts of making false statements to the government. Bekkedam was found not guilty on bank fraud and wire fraud charges, while Hartline dodged a bank fraud charge.

The two men had been accused of orchestrating loans totaling $8 million to three individuals who promptly invested the money back into the bank, to help meet federal requirements that the bank raise $15 million in private capital to secure the funds from TARP. read more »

Building industry blacklist whistleblower sues for victimisation

By Rob Evans @robevansgdn, theguardian.com

A whistleblower who helped expose how major firms blacklisted thousands of workers has launched legal action against more than 35 companies alleging that they are victimising him and denying him work.

Alan Wainwright, a former construction industry manager, has accused the firms of refusing to fairly consider him for jobs because of his role in uncovering the unlawful blacklisting conspiracy. He has unsuccessfully applied for more than 150 jobs in the last 18 months.

The 52-year-old, who lost his home, job and savings after blowing the whistle a decade ago, was himself placed on the blacklist after he spoke out about the practice.

He said: “These new claims arise because the companies involved continue to victimise me. I should not have to go through all this again.”

His legal action against 38 companies has been started as another lawsuit, initiated by blacklisted workers, is scheduled to open in the high court on 9 May and last three months.

The workers are suing 30 firms and four executives for compensation – which could total tens of millions of pounds – after they were denied jobs on construction sites, often for long periods of time. They had, for example, been categorised as troublemakers or had reported health and safety concerns. read more »

BREAKING: Hitachi Chemical To Plead Guilty In Cartel Probe

By Jeff Zalesin, Law360

Hitachi Chemical Co. will plead guilty to a criminal charge in California federal court and pay a fine for scheming with other companies to fix the prices of electrolytic capacitors, the U.S. Department of Justice said Wednesday.

The DOJ said Hitachi Chemical Co. Ltd. will become the second company to plead guilty in the department’s antitrust investigation of the capacitor business, following NEC Tokin Corp.’s guilty plea. The DOJ did not say how much Hitachi Chemical will pay as a fine. read more »

WHISTLEBLOWER AWARDS & SETTLEMENTS:

Pfizer to Pay $784.6 Million To Resolve Drug Discount Case

By Rebecca Spalding @rcurtisspalding and David Voreacos @davidvoreacos

Pfizer Inc. and its Wyeth unit have agreed to pay $784.6 million to resolve allegations that Wyeth overcharged the government by hiding the discounts it was giving hospitals.

The hidden discounts deprived Medicaid of “hundred of millions of dollars” in rebates from 2001 to 2006, according to a statement Wednesday from the U.S. Attorney’s Office in Boston. The government said the companies did not deny its claims. Pfizer, which acquired Wyeth in 2009, previously announced the agreement in February. The agreement covers two forms of Protonix, which is used as an antacid.

“This settlement demonstrates our unwavering commitment to hold pharmaceutical companies responsible for pursuing pricing schemes that attempt to manipulate and overcharge federal health care programs,” Benjamin C. Mizer, Deputy Assistant Attorney General at the Department of Justice, said in a separate statement. read more »