whistleblower act

Northrop Grumman Corp. (Northrop ) has paid the United States $11.4 million to settle a government claim for penalties provided under the Federal Acquisition Regulation (FAR) and False Claims Act allegations stemming from its failure to abide by a 2002 settlement agreement, the Justice Department announced earlier this week.

Northrop allegedly charged federal contracts certain costs for deferred compensation awards to key employees, even though it had promised not to do so as part of an earlier settlement. In 2002 Northrop agreed that it would limit the amount of deferred compensation it would include in proposals for subsequent contracts.  The government’s contracting officer found that Northrop had failed to honor this commitment and should be assessed a penalty equal to twice the amount of the unallowable costs claimed.  Northrop challenged the decision and the Department of Justice responded to the suit with counterclaims alleging that in addition to the FAR penalties, Northrop also had violated the False Claims Act by passing along these unallowable costs to the government in indirect rates applicable to hundreds of contracts with the government.  The government alleged that as a consequence of Northrop’s knowing misrepresentations, it was induced to pay more than $1.9 million in unallowable costs in thousands of vouchers and invoices.

Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery.  Had there been a whistleblower in this case, their portion of the settlement may have been anywhere from 15 to 30 percent.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Lynch Ambulance has agreed to pay more than $3 million to settle a lawsuit, under the False Claims Act, alleging it received overpayments from the Medicare program and other federal health care programs for transporting patients who were not eligible for ambulance transports, the U.S. Attorney’s Office announced last month.

Allegedly, Lynch Ambulance knowingly billed Medicare and other federal healthcare programs for transporting patients who were not “bed-confined” or whose transports otherwise were not medically necessary. The federal health care programs that paid claims for medically unnecessary transports were Medicare, TRICARE, and the Federal Employees Health Benefits Program.

 Lynch Ambulance has also entered into a Corporate Integrity Agreement with the Department of Health and Human Services.

The lawsuit was originally filed by Jamie Weatherly and Dawn Lucero, two former Lynch Ambulance employees, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Weatherly’s and Lucero’s share of the settlement has not yet been determined.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations, under the False Claims Act, of inhumane handling of cattle, circumventing appropriate inspection of non-ambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced last week. 

The Humane Society of the United States (HSUS) alleges that Westland Meat Co., Westland, M&M Management and Cattleman’s Choice knowingly engaged in inhumane cattle handling and improper downer cattle inspection practices at slaughterhouses and meat processing facilities. The lawsuit, brought about after an HSUS investigator videotaped these practices, additionally claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron Magidow, was a partner in and otherwise responsibly connected with the facility’s operations.  U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations. 

The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day.  All ground beef products from the defendants were recalled and the defendants no longer supply beef to the National School Lunch Program.

Under the settlements, Westland Meat Co. and its owner, Steve Mendell, will pay $240,000. Westland will enter into a consent judgment for $155.68 million. M&M Management, Cattleman’s Choice and the estate of Cattleman’s deceased owner, Arnie Magidow, and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Donald R. Hallmark and Donald W. Hallmark will also settle allegations for $304,130.

The lawsuit was originally filed by HSUS under the whistleblower provision of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  HSUS will receive $600,000 as their portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Basco Manufacturing Co. (Basco) has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by making false customs declarations to avoid paying duties on products imported from the PRC (People’s Republic of China), the Department of Justice announced last week.

The U.S. government alleged that Basco made false declarations to the U.S. Department of Homeland Security Customs and Border Protection to avoid paying antidumping and countervailing duties on aluminum extrusions imported from the PRC.  These companies allegedly misrepresented that the aluminum extrusions, used in the manufacturing of shower enclosures and other products, were imported from Malaysia.

Antidumping and countervailing duties exist to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. Unlike the PRC, there are no duties due for aluminum extrusions imports made in Malaysia.

Basco allegedly engaged in a scheme to avoid duties by shipping the aluminum extrusions manufactured by in the PRC through Malaysia, a practice called transshipping.   The U.S. government alleges that Basco and the defendants knew that the aluminum extrusions were merely repackaged in Malaysia and did not undergo a substantial transformation that may have justified changing the product’s country of origin from the PRC to Malaysia.

The lawsuit was originally filed by James F. Valenti Jr., a public policy lawyer, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Valenti’s portion of the settlement has yet to be decided.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Baptist Health Systems has agreed to pay $3.7 million to the United States Department of Justice to settle allegations that it violated the federal False Claims Act by filing false claims for reimbursement under the Medicare program, the U.S. Attorney’s Office announced earlier this week. 

Baptist Health Systems allegedly filed improper claims with the Medicare program by failing to disclose on the claim that the patient receiving treatment had another insurance policy that covered the care.  Under the law, a health care provider is required to disclose the fact that a patient has other insurance when it files its claim with Medicare.  The claim is processed under the other insurance policy and, in most cases, Medicare compensates the patient for whatever was paid for out of pocket (such as a deductible or copayment).   If the insurance company is slow to pay and the health care provider receives a double payment, then the health care provider must reimburse Medicare.

The lawsuit was originally filed by Norma Rivera, a former insurance auditor for Baptist, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Rivera will receive $600,500 for her portion of the settlement as well as a full reimbursement from Baptist Health Systems for her legal fees.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.