Just this week, HEYtex USA, a military fabric supplier based in Pulaski, Virginia, agreed to pay $3 million to resolve allegations that it violated the False Claims Act. In Wednesday’s announcement of the settlement, United States Attorney Chris Kavanaugh cited the actions of a HEYtex employee who came forward as…
read moreWe have written extensively about fraud in the Paycheck Protection Program (PPP). See prior stories here and here. Now, the U.S. Attorney’s Office for the Western District of Virginia is launching a special taskforce for COVID-19 fraud. As detailed in a front-page story on the March 31, 2022 edition of…
read moreFraud in federal and state education programs may be reported by whistleblowers. Under the False Claims Act and other statutes, whistleblowers are entitled to significant financial rewards and are protected from retaliation. The U.S. higher education system is excellent. But like many things, it requires significant financial investment. Each year,…
read moreIn response to widespread economic uncertainty due to COVID-19, the federal government enacted the Paycheck Protection Program (PPP). Because that program is especially vulnerable to fraud, whistleblowers are key players in addressing illegal conduct. Just last week, a Roanoke city jury convicted Roanoke City Councilman Robert Jeffrey of fraudulently obtaining…
read morePaying for nursing home care is a complicated and rather grim topic. Nevertheless, it is an important issue for families. Seven out of every ten seniors will need long-term care at some point during their lifetime.[1] Without a standalone long-term care policy, out-of-pocket costs could range from $20,000 to $100,000…
read moreMedically unnecessary procedures are health care items and services that are not “reasonable and necessary for the diagnosis or treatment of illness or injury.”[1] The False Claims Act provides a mechanism for individuals to “blow the whistle” on instances of waste, fraud, or abuse for systemic unnecessary procedures in healthcare…
read moreThere are many reasons why an individual “blows the whistle.” The debate often centers on whether these individuals are frivolous, disgruntled employees seeking financial gain or people with legitimate concerns who suffered personal loss. A wealth of academic research clearly shows it is the latter. The False Claims Act is…
read moreThe typical whistleblower is often an aggrieved employee who brings to light his employer’s fraudulent conduct. These individuals, often called internal whistleblowers, are important in combatting healthcare fraud. There remains, however, a different kind of whistleblower. Some whistleblowers are individuals or entities that are not employed by the company…
read moreA whistleblower may bring a variety of different allegations of healthcare fraud. One such allegation concerns improper referral fees. Whistleblowers can bring a lawsuit for this type of fraud through the Anti-Kickback Statute and the Stark Law. The Anti-Kickback Statute and Stark Law prohibit medical providers from paying or receiving…
read moreThe False Claims Act is the government’s primary tool in addressing the misuse of taxpayer funds. Since 2017, the U.S. Department of Justice recovered approximately $11.4 billion under the False Claims Act.[1] Of the $11.4 billion recovered over the past four years, approximately 90 percent or $9 billion was recovered…
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