Qui tam claims filed under the False Claims Act allow certain employees and other interested parties to file suit against an entity that is defrauding the federal government. When qui tam claims are filed, they are filed on behalf of the federal government, even though the individual who has obtained evidence of fraud is acting practically as plaintiff. These kinds of lawsuits empower both individuals with knowledge of fraud and the government itself to hold fraudulent parties accountable and to recover compensation as a result of a successful suit.
Pharmaceutical company Pfizer Inc. agreed to pay $14.5 million to settle allegations that it marketed a drug for conditions for which it wasn't approved. The Drug in question is Detrol, which is approved for the treatment of overactive bladder.
A lawsuit brought by two mortgage brokers accuses a number of large banks of defrauding veterans and other taxpayers out of millions of dollars.
In our previous post, we began discussing the recent Department of Justice filing against Education Management Corp. (EDMC) for allegedly violating the False Claims Act by illegally paying recruiters based on the number of students they enrolled in college programs.
A while back on this blog, we wrote about a whistleblower suit brought against the Education Management Corporation (EDMC) in which the for profit college company was accused of engaging in fraudulent recruiter compensation practices. In early May, we noted that the Department of Justice and several states planned to join the suit.
Earlier this week, the National Whistleblowers Center held a seminar in Washington, D.C. to discuss the new developments under the Dodd-Frank Wall Street Reform and Consumer Act.
The Dodd-Frank act, passed last summer, gave employees with inside information concerning securities fraud incentives and protection to report that information to the SEC. Under Dodd-Frank, whistleblowers may receive up to 30 percent of the monetary sanctions imposed against a company that has acted fraudulently, provided those sanctions exceed $1 million.
The IRS Whistleblower Office was established by a 2006 law which strengthened tax informants' rights and specified a minimum 15 percent bounty for providing tips concerning tax fraud. Since the law's passage, the IRS has had a flood of cases involving unpaid taxes.
The San Francisco Chronicle reports that the Corporate Whistle Blower Center-a national firm specializing in whistleblower advocacy and protection-recently urged Wall Street executives and managers who have substantial proof of securities fraud in their corporation to come forward with claims
Last week, a former U.S. intelligence official who had been charged with mishandling sensitive information obtained through his position at the National Security Agency pleaded guilty to a misdemeanor count of "exceeding the authorized use of a computer." The charge was a lesser offense than the original charges leveled under the Espionage Act and for false statements.