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DOJ Enforcement Actions

					
The  is the principal federal agency authorized to enforce the laws and defend the interests of the United States. As such, it oversees the enforcement of the False Claims Act, the foundation of the American whistleblower system, as well as numerous other laws.


The agency traces its origins to the Judiciary Act of 1789 which created the Office of the Attorney General, and the 1870 Act to Establish the Department of Justice, which established the agency as “an executive department of the government of the United States” with the Attorney General as its head.


The agency is comprised of numerous divisions with the Civil Division and in some instances, the Criminal Division, overseeing investigations and prosecutions under the False Claims Act. The  of the federal district where the False Claims Act case is filed also plays a key role in False Claims Act enforcement.


Below are summaries of recent DOJ settlements or successful resolutions under the False Claims Act as well as other successful prosecutions for fraud and misconduct. If you believe you have information about fraud which could give  rise to a claim for a whistleblower reward, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
August 8, 2018

				 Dr. Donald Chamberlain and Karen Chamberlain, the owners of a Chattanooga gynecology practice, will pay $428,000 to settle False Claims Act allegations. According to the government, the Chamberlains used foreign-sourced, non-FDA approved, anticancer drugs, and billed Medicare and Tennessee’s Medicaid programs for similar, approved drugs. The drugs the Chamberlains used were cheaper than similar drugs that were approved by the FDA. 				 					 

						
Tagged in:
													  Drug Switching, 
													  FCA Federal, 
													  Healthcare Fraud, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 7, 2018

				 International Marine and Industrial Applicators, LLC (IMIA) and Marine Equipment Supply, LLC (MES), two marine maintenance companies, have paid $2.8M to settle allegations that they improperly billed the Navy for rental equipment. Under the contract that the companies had with the Navy, they were not allowed to charge for rental equipment. The companies violated this provision when they charged over $1.4M for the rental of hull repair machinery. 				 					 

						
Tagged in:
													  Contract Non-Compliance, 
													  Defense Contract Fraud, 
													  FCA Federal, 
													  Government Procurement Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 6, 2018

				 Pentad Corporation, a defense contractor with employees at Guantanamo Bay, has settled allegations that it failed to reimburse the Navy for meals its employees consumed at that base. Pentad is a contractor that provides dining-related services at various basis; under its contract with the Navy, the company’s employees are permitted to eat at Naval facilities, but the company must reimburse the Navy for those meals. 				 					 

						
Tagged in:
													  Defense Contract Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 6, 2018

				 Richard Olsen, the CFO of Mission Support Alliance LLC, a Department of Energy contractor, will pay $124,000 to resolve allegations that he received a $40,000 kickback from Lockheed Martin. According to the allegations, Mr. Olsen received the kickback in exchange for a Lockheed Martin subsidiary receiving a lucrative subcontract. Mission Support Alliance is a Lockheed Martin subsidiary as well. 				 					 

						
Tagged in:
													  Bribery and Bid-Rigging, 
													  Defense Contract Fraud, 
													  FCA Federal, 
													  Government Procurement Fraud, 
												
						

					
	
							
	
		
		
	


 			


 			




	
		
		

			

				
				
August 3, 2018

				 Prime Healthcare Services and related entities, as well as its CEO Dr. Prem Reddy, will pay $65 million to settle two Medicare fraud allegations. First, Prime and Dr. Reddy allegedly engaged in a centralized scheme to boost inpatient admissions of patients who had no medical need to be admitted. Second, they allegedly falsely upcoded patients’ diagnoses in order to increase reimbursements. Whistleblower Karin Berntsen, who initiated the lawsuit, will receive over $17 million of the settlement. ; 				 					 

						
Tagged in:
													  FCA Federal, 
													  Healthcare Fraud, 
													  Hospital Fraud, 
													  Lack of Medical Necessity, 
													  Upcoding, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 3, 2018

				 Northwest ENT Associates, P.C. agreed to pay $1,195,361 to settle allegations under the federal False Claims Act that they re-used balloon catheters in medical procedures, even though they were intended only for a single use. By choosing to cut a corner for their own financial benefit, Northwest ENT put their patients’ health in jeopardy as well as impacting federal funds needed for other medical procedures. Northwest ENT has entered into a three-year Integrity Agreement with the Office of the Inspector General of the Department of Health and Human Services. 				 					 

						
Tagged in:
													  FCA Federal, 
													  Healthcare Fraud, 
													  Medical Billing Fraud, 
													  Provider Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 3, 2018

				 A former subcontractor, Andrew Nolan, has pleaded guilty to falsifying quality testing results for the concrete used on the Dulles Metrorail Project. The actual results would have caused the concrete to be rejected in the project, which is partially funded by the Department of Transportation. Nolan is being prosecuted under both the federal False Claims Act and the Virginia Fraud Against Taxpayers Act and faces a maximum of five years in prison. 				 					 

						
Tagged in:
													  Contract Non-Compliance, 
													  Defendants, 
													  FCA Federal, 
													  FCA State, 
													  Government Procurement Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 2, 2018

				 William Beaumont Hospital will pay $82.74 million to the federal government and $1.76 million to the state of Michigan to settle allegations made by four separate whistleblowers that between 2004 and 2012 it paid doctors above fair market value and provided them with perks such as free or discounted office space in return for patient referrals. Beaumont also allegedly falsely claimed that a CT radiology center qualified as an outpatient department. Beaumont has now entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General. It is not yet determined how much money the four whistleblowers will receive. 				 					 

						
Tagged in:
													  Anti-Kickback and Stark, 
													  FCA Federal, 
													  FCA State, 
													  Healthcare Fraud, 
													  Hospital Fraud, 
													  Whistleblower Case, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
August 2, 2018

				 Aurora Loan Services, LLC, a subsidiary of Lehman Brothers Holdings, Inc., has agreed to pay a civil penalty of $41 million to settle allegations of FIRREA violations in the loans it sold between 2004 and 2008. The mortgage originator gave preferential treatment to five "Platinum" lenders by allowing them to underwrite their own loans and freeing them from quality control standards that were imposed on other lenders. The resulting decline in loan quality was linked to a higher rate of default, hurting investors who bought residential-based mortgage securities from Lehman Brothers. 				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Financial Institution Fraud, 
													  FIRREA, 
													  Housing and Mortgage Fraud, 
													  Misrepresentations, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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