By the 91pornWhistleblower Team

There is a yearning these days for the raw honesty and integrity that exemplifies the artistry of singer-songwriter Jesse Welles. That is why so many of his folk protest songs have gone viral, resonating with so many of us seeking some clarity and comfort from the troubled times we live in. Like so many of the music greats he follows, several of whom we have previously featured, he uses his music as a vessel to call truth to power, expose injustice, and face off against the bad behavior that surrounds us. In other words, Welles channels his inner whistleblower, providing sharp social commentary and shining a spotlight on many of the critical issues of the day.

Some of his more timely examples can be found in songs like “Signal Leak,” “Little Men,” “Whistle Boeing,” and “SpaceXplosion.” And so many more, including covering songs by the likes of Bob Dylan, Tom Petty, and similar-minded artists known for sharing their honest observations with the world. Last year, Dave Matthews invited Welles to play at the Farm Aid festival.

And it is our honor and privilege to invite Jesse Welles to our growing list of legendary artists who we’ve featured that exemplify the whistleblower spirit in their music and messaging – such as  John Lennon,��Bob Dylan,��Green Day,��Yusuf/Cat Stevens, Patti Smith, and Jerry Garcia.

Here, we’ve rounded up our top 10 picks of Welles’s lyrics that in our view best illustrate his inner whistleblower spirit and how he is quickly becoming the voice of a new generation.

10. “”

“…Profiteering carpet bagging elixir peddling
Mafia masquerading as the help
The food is poison that’s the source
If the hay is bad you don’t whip the horse
Tell all these parasitic companies to crawl back down to hell”

“Ozempic” criticizes the pharmaceutical industry, consumerism, and profit-driven forces at play. Welles reflects on how people are being pressured and manipulated by society to take weight loss drugs to conform to absurd social constructs like what it means to be beautiful. And he blames pharmaceutical companies for feeding this frenzy instead of addressing the root causes of obesity and poor nutrition and the underlying health complications that follow.

9. “”

“Payola for playlists with checkmarks and follows and streams
Payola for thee
Brought to you by nepotism
And veiled in authority”

“Payola” is the practice of paying for radio airplay or promotion, which is metaphorically extended to describe the industry’s manipulation through playlists, follows, streams, and social media validation. This song criticizes the illusion of success in the music business, exposing how it’s often built on exploitation and manipulation, rather than genuine achievement. Welles’s lyrics reject the notion of conforming to industry standards or selling out for fame or money. He presents disillusionment with the system that he says is very superficial and controlled by nepotism.

8. “

“Fear is the mind killer / leaves you with nowhere to run to”

These two lines underscore the crippling effect of fear. It can cloud one’s judgment, preventing clear thinking and rational decision making. Like whistleblowers deciding to face down their fears and stand up to injustice and wrongdoing, moving past or through fear can be a path towards self-discovery, closure, and freedom.

7. “”

“what year is it this year tonight?
if I die I’ll die of fright
that can’t be right”

These lyrics seem to convey feelings of coming to terms with reality, coupled with a deep fear of the future and facing existential consequences. They also speak to the strength of taking action and not succumbing to that fear.

6. “”

“at the will of the wind…
not doin’ what we’re told…
… there’s gonna have to be some change”

By suggesting a sense of rebellion and unpredictability, these lyrics highlight the power of resistance and rejecting the status quo when change is what’s needed. People often decide it’s time to blow the whistle when they too decide to take action or challenge the current state of affairs.

5. “”

“And still have a little heart to lend

I’m innit to win I’m gonna make it count”

The lyrics express a sense of determination and resilience, despite any challenges or setbacks along the way. These are important traits for whistleblowers, in addition to emotional strength, a sense of purpose, and the will to persevere even in the face of adversity.

4. “”

“Joshua Dean had a memory keen…Swampy Barnett… took a lotta pride in his work… Found 300 reasons why a plane couldn’t fly”

This song focuses on corporate greed, manipulation, and obfuscation. It explores the long and winding road whistleblowers must travel and the tragic deaths of two Boeing-related whistleblowers Joshua Dean and John Barnett. The song is layered with irony in debunking the notion that staying silent is the safer course, when in fact it just prolongs the status quo of corruption and suffering.

3. “”

“Maybe someday if we’re lucky we’ll find
A little bit a truth underneath the lies”

On this track, Welles suggests a commentary on American culture. He may be speaking to the challenges present in American life, and the need for truths. Or it could be a more personal reflection on love, loss, and societal pressures across the nation.

2. “”

“There ain’t no “You” in UnitedHealth
There ain’t no “Me” in the company
There ain’t no “Us” in the private trust
There’s hardly humans in humanity”
…
“commoditized health … monopolized fraud”

The absence of “You,” “Me,” and “Us” reflects Welles’s view that large corporations are not designed to serve individuals or communities. They are structured around maximizing profits, leaving personal and collective well-being behind. The “humanity” line seems to signify the lack of compassion in private healthcare, which at times seems more focused on the financials than on actual health and people’s needs. A later verse directly calls out the industry and the prevalence of fraud, as seen in numerous lawsuits.

1. “”

“If they cared about you
And if they cared about me
They’d make a big ol’ rocket
Everybody could eat”

Welles calls out the perverse priorities on display these days, particularly when it comes to the ever-widening gulf between the rich and those struggling to get by. The lyrics question the morality of the wealthy spending their cash on space missions when there is so much poverty, hunger, and other life-critical issues facing so many.

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Read “Whistle Boeing,” “SpaceXplosion,” and More Song Lyrics That Channel Jesse Welles’s Inner Whistleblower at constantinecannon.com

On January 24, reported that a whistleblower filed a complaint with the U.S. Treasury Department’s Financial Crimes Enforcement Unit, or , alleging Visa and Mastercard had failed to stop payment networks from laundering money from child sexual abuse material and sex trafficking on the porn-centric creator platform, OnlyFans.

According to Reuters and , the whistleblower filed the complaint in January 2023 with FinCEN and Homeland Security departments.

The complaint alleges the whistleblower and other anti-trafficking experts (including U.S. federal agents) notified Visa and Mastercard about the unlawful content on OnlyFans via calls in 2021 and 2022. The complaint also explained that the federal agents confirmed child sexual abuse material was present on OnlyFans.

Reuters stated that the whistleblower, a senior compliance expert in the credit card and banking industries, claimed the two card companies knowingly “turn[ed] a blind eye to flows of illicit revenue.” The whistleblower said that since approximately 2021, the companies knew their networks were used to pay for illegal content on OnlyFans

The whistleblower alleged that as Visa and Mastercard continued to process payments on OnlyFans, the card companies “willfully failed” to uphold anti-money laundering (AML) programs required by the Bank Secrecy Act. The whistleblower called upon FinCEN and the two federal agencies to act against the card companies.

Reuters and CBS News reached out to FinCEN for comment but received similar responses. FinCEN said it does not comment on whistleblower submissions to its program, “including whether FinCEN has received submissions regarding a specific financial institution.”

Such compliance issues and allegations regarding Mastercard and Visa are not brand-new developments. In 2022, investigated how the card companies “continue to accommodate thousands of businesses that have been flagged for issues including lying to customers, lying to banks, and breaking the law.”

Marlene Koury, partner at Constantine Cannon, said: “It is critical to report any unlawful money laundering activity to FinCEN and other government regulators. Continual failures in financial institutions account for many of the whistleblower cases we handle. Government agencies are clamping down to act against companies who fail to comply with AML requirements under the BSA.”

If you decide to blow the whistle, you could be eligible for rewards associated with reporting violations of AML laws and regulations. If you believe you have information on AML violations or want to learn more about what it means to be a whistleblower, please contact us. We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consult.

Read Alleged AML failures at Visa and Mastercard: Card Companies Accused of Processing Payments for Child Sexual Abuse Content at constantinecannon.com

In December 2024, the National Highway Traffic Safety Administration  the final rule in its whistleblower program. The rule reaffirms the importance of whistleblowers in vehicle safety and satisfies a mandate in the Motor Vehicle Safety Whistleblower Act (“the Act”) that NHTSA establish regulations detailing the Act’s requirements. The rule adds to NHTSA’s preexisting whistleblower program.

In April 2023, NHTSA released a . According to this publication, it “proposed definitions of whistleblower program terms, outlined procedures for submitting original information to NHTSA and applying for awards, discussed NHTSA’s procedures for making decisions on award applications, and outlined the scope of the program.” After considering public feedback, NHTSA finalized and implemented the proposed rule with minimal changes.

In announcing the final rule, NHTSA Deputy Administrator Sophie Shulman emphasized the agency’s commitment to whistleblowers, stating: “Safety is NHTSA’s top priority, and the agency is committed to doing everything in its power to protect whistleblowers. Whistleblowers shine a light on critical safety issues and play a vital role in safeguarding our nation’s vehicles.”

91pornrepresented the whistleblower in NHTSA’s first-ever award, securing $24.3 million in 2021 for former Hyundai safety engineer Kim Gwang-ho. Mr. Kim reported to NHTSA in 2016 that Hyundai was failing to address a design flaw linked to its Theta II engines, which were prone to seizing up and even catching fire. NHTSA found that Hyundai and its Kia subsidiary had delayed recalling the vehicles, and that the Korean automaker had provided inaccurate information about the problems.

NHTSA encourages to come forward with any information on subjects such as violations of the Vehicle Safety Act, noncompliance with the Federal Motor Vehicle Safety Standards, and possible vehicle safety defects. This info can result in recalls, investigations, or civil penalty enforcement action. Potential whistleblowers are entitled to awards of between 10 and 30 percent of any amounts over $1,000,000 the government recovers on information a whistleblower provides. Whistleblowers are also afforded protection from retaliation.

If you would like to learn more about the Motor Vehicle Safety Whistleblower Act,��what it means to be a whistleblower, or have a possible case, please contact us. We will connect you with an experienced member of our whistleblower team.

Read NHTSA Announces Final Rule in Motor Vehicle Safety Whistleblower Act at constantinecannon.com

SPOTLIGHT:
Hotel Dive – December 17, 2024

The Federal Trade Commission on Tuesday announced a final Rule on Unfair or Deceptive Fees, or “Junk Fees Rule,” that targets “bait-and-switch pricing” for short-term lodging and live-ticket events.

The rule requires up-front disclosure of total prices including fees, so that consumers booking hotels or vacation rentals are not surprised by “resort,” “service” or “convenience” fees at checkout. The rule targets pricing practices that “harm consumers and undercut honest businesses,” per the FTC’s announcement.

The Junk Fees Rule will mandate that pricing information is presented in a “timely, transparent, and truthful way to consumers” of short-term lodging and live-event tickets, two industries the FTC has studied in particular. . . .

Restaurant Dive – December 19, 2024 

The Federal Trade commission’s final rule requiring full transparency on fees charged to consumers applies to hotels and live-event ticket vendors, but not restaurants, according to an announcement by the FTC.

Previous versions of the rule proposed requiring restaurants to disclose many fees, including service charges and delivery fees, to consumers as a part of the total price of goods.

Earlier this year, California also moved to exempt some kinds of restaurant fees from a rule requiring operators to include things like service fees in the price of individual goods. . . .

PYMNTS – December 18, 2024 

New Zealand’s Commerce Commission has proposed reducing the fees the country’s businesses pay for accepting Mastercard and Visa payments.

The Commission issued its draft decision Wednesday (Dec. 18) and is seeking feedback on it from consumers and businesses by Feb. 18, 2025, it said in a Wednesday press release.

“This work is the next step to further reduce, and simplify, payment costs for New Zealand businesses, and to save merchants and consumers a considerable amount of money,” Commission Chair John Small said in the release. . . .

Law360 – December 18, 2024 (subscription required)

The Consumer Financial Protection Bureau warned Wednesday that credit card companies risk violating federal law when they or their merchant partners devalue rewards points and miles banked by their cardholders, casting it as a potential “bait-and-switch.” Reward devaluation — reducing the redemption power of already earned card rewards, like airline miles or hotel points — was one of several practices that the CFPB flagged as potentially illegal in new guidance on credit card rewards programs.

The guidance comes at the height of the holiday shopping season, a time when card originations and spending surge, and was released in tandem with new CFPB research that found higher costs and other risks associated specifically with retailer-branded cards.

Along with an online tool that the CFPB unveiled Wednesday to provide consumers with “unbiased, comprehensive data” on hundreds of credit cards, the actions also mark CFPB Director Rohit Chopra’s latest effort to turn up the heat on the credit card industry. . . .

Digital Transactions News – December 13, 2024 

The American Bankers Association on Thursday issued a long and detailed letter it has sent to the Federal Reserve Board to argue its case against a Fed proposal that would reduce a longstanding cap on the interchange banks can earn on debit card transactions. The ABA’s action follows an analysis indicating nearly 80% of the more than 400 comments regarding the proposal oppose it.

Comments on the Fed’s proposed action, which would cut by nearly one-third the maximum interchange fee banks can charge on debit card transactions, were due May 12 after the Fed extended its original Feb. 12 deadline. The Fed has not acted on the proposal in the months since its deadline. The proposal emerged in October 2023 as part of an effort by the Fed to update the 13-year-old measure.

Passions regarding the matter, however, have not cooled in the intervening months as merchants contend both debit and credit card interchange is too costly, while banking groups argue against any reduction. . . .

City AM – December 13, 2024

The UK’s payments regulator has confirmed plans to introduce price caps on card fees paid by British merchants when European consumers make online purchases, after Visa and Mastercard hiked prices post-Brexit. After proposing some restrictions a year ago, the Payment Systems Regulator (PSR) is moving ahead with a consultation to decide at what level they should be set.

The PSR is concerned about charges set by Visa and Mastercard on behalf of banks which apply to online transactions between the UK and European Economic Area.

It is considering an initial cap of 0.3 per cent on credit card fees and 0.2 per cent for debit card spending, which would restore the limit which had been in place before Brexit. . . .

Industry Developments

SPOTLIGHT:
Payments Dive – December 17, 2024

Nearly two years after Visa began cracking down on surcharges, payments processors and independent sales organizations say they have a better understanding and sense of clarity on the network’s rules.

At that time, Visa imposed a credit card surcharge cap of 3%, down from the previous cap of 4%. Many in the industry found communication and details to be lacking, and Visa’s cryptic business notices left payments professionals searching for answers.

Merchants are innovating in the market to cover rising interchange fees Visa charges them whenever consumers swipe to pay with that network’s cards. Regardless of retailers’ and restaurants’ approaches, they must follow the network’s rules to accept such payments. . . .

PYMNTS – December 16, 2024

Earlier this year, PYMNTS Intelligence found that more than half of consumers were not aware of pay-by-bank options, or were hesitant to use them.

In an age where relationships with banks are nearly ubiquitous — the Federal Reserve noted last month that just about 96% of households have at least some form of checking or savings account with a bank or credit union — the move toward direct account-to-account (A2A) flows should be an intuitive one. But it hasn’t been, at least not yet, though the rise of open banking promises to change that.

Part of the issue can be traced to the speed of the transactions, where, as detailed here, a recent PYMNTS Intelligence report found 50% of consumers experience up to a week-long wait for payouts, starkly contrasting with 43% of consumers who prioritize real-time payments. . . .

Read Payments News Update – December 20, 2024 at constantinecannon.com

On November 20, 2024, New York Attorney General Letitia James that former pharmacy owner Aftab Hussain was sentenced to two to six years in prison for swindling over $11.5 million in a Medicaid fraud scheme that targeted low-income HIV patients who required life-saving medications.

Hussain and his co-conspirators paid illegal kickbacks to patients to entice them as repeat customers at over 20 Hussain-controlled pharmacies in New York City and Westchester County.

Patients’ prescriptions were then filled with unsafe medications illegally purchased from the black market or other pharmacy patients. Hussain and his associates billed Medicaid over $11.5 million for these illegally obtained drugs. From 2015 to 2019, Hussain and his co-conspirators paid, or directed others to pay, illegal kickbacks to Medicaid recipients diagnosed with HIV to return to their pharmacies to feed the scheme. Each kickback ranged from $25-$100.

At the time each medication was filled and delivered, Hussain and his associates would offer to buy back the HIV medication from the Medicaid recipients in exchange for cash, offering $100 to $200 per bottle. The wholesale prices for these medications generally cost between $2,000 and $3,000 per bottle. As a result of this scheme, many HIV patients went without their medication and were at risk of developing life-threatening complications.

“This predatory scheme stole millions of dollars while denying lifesaving treatment to New Yorkers in need,” said Attorney General James. “Aftab Hussain exploited and endangered vulnerable New Yorkers with HIV, using them to steal taxpayer funds that provide health care to low-income patients, and now he will pay for his fraud. This case should serve as a warning to any crooked pharmacy operator. My office will continue to bring these cases to shut down illegal businesses that put New Yorkers at risk with fraud and dangerous medications.”

Hussain and his associates also bought large amounts of HIV medications from the black market, drugs often obtained through other illegal kickbacks, and then the pharmacies distributed these prescriptions to unsuspecting recipients. They submitted claims for reimbursement to the Medicaid program as if they were disbursing medications that were obtained legally and safely.

State law prohibits all medical providers, including pharmacies, from paying, or offering to pay, kickbacks in return for referring Medicaid-covered medical services. State law mandates that pharmacies source their prescription medications from licensed wholesale distributors to ensure the integrity and safety of the drug supply.

Hussain is the last defendant sentenced in a long investigation that arrested and convicted five defendants. Hussain’s co-conspirators, including Josmary Cardenas (aka Yasmine Aftab Hussain), Victor Streety, Blanca Vanessa Alvarado, and Felix Lopez, all previously pleaded guilty to related crimes and have been sentenced.

Four corporations operating as pharmacies owned or controlled by Hussain or his co-conspirators were also charged: Harlem Super Pharmacy Inc., Health Smart Pharmacy Inc., Broadway RX Enterprises Inc., and E-Green Pharmacy Inc. d/b/a WinHealth Pharmacy. RX Enterprises Inc. and E-Green Pharmacy Inc. both pleaded guilty and were sentenced on October 16, 2024. The corporations must dissolve as part of the sentences.

Hussain was sentenced by Judge Brendan Lantry in New York County Supreme Court on his previously entered guilty plea to the charges of Grand Larceny in the First Degree, Grand Larceny in the Third Degree, Health Care Fraud in the First Degree, Health Care Fraud in the Second Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fourth Degree. He was also required to satisfy a settlement agreement in which he paid $7 million in restitution to the state.

If you have information relating to healthcare fraud, we want to hear from you. You could be the next whistleblower to bring justice to the healthcare system. If you would like to learn more about what it means to be a whistleblower or any of the other whistleblower rewards programs, please do not hesitate to contact us. We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consult.

Read Predatory Pharmacies Targeted Low-Income HIV Patients: Former Owner of New York Pharmacies Sentenced for Ongoing $11 Million Medicaid Fraud Scheme at constantinecannon.com

In her essay, Chana details her journey from a passion for writing to a growing concern for the harmful effects of social media, inspired by Facebook whistleblower Frances Haugen. According to Chana, “Frances Haugen allowed me to see that change within the technology industry was possible, that turning a blind eye to these digital harms is not an option.” She hopes to use a law degree to follow Haugen’s courageous example, “advancing the goals of the whistleblower” and “restoring justice to industries that evade necessary regulation, and ensure that people are prioritized over profit.”

We applaud Chana for this noble pursuit. And we congratulate Chana for her Fifth-Place finish in this year’s contest, which had scores of entries from dozens of law schools across the country. Please read Chana’s essay below.

We will be posting the remaining winning essays over the next two weeks. And please check back with us soon as we launch our next Scholarship Essay Contest in the coming weeks. In the meantime, if you’re not already a subscriber to our weekly newsletter, please sign up today so you stay up to date on the latest whistleblower and fraud news and developments.

Chana Deitsch

Fifth-Place Essay on Importance of Whistleblowers 

By Chana Deitsch

I sat in the corner of the schoolyard, a little girl with a notebook and a pen. Oblivious to the chaos of a third-grade class during recess, I am occupied by my thoughts, entrenched in an imagined world that is asking to be brought into existence. I have always loved to write. I was often found scribbling down character names for the book I envisioned publishing one day, attempting to get the swirling multitude of ideas onto paper. It was writing that taught me that creation often demands introspection, that there is immense value in allowing your mind to wander.

A few years older, I held a gift box in my hands: my first smartphone. The glowing screen offered a new world to explore, and the chance to connect with people and their stories felt like an exhilarating journey beyond the confines of my notebook. As I navigated the colorful and unfamiliar features of the new digital landscape, I gravitated to the social networking platforms. The ever-curious storyteller in me was enamored by an interface through which I could share of myself and take part in others’ narratives.

My introduction to digital platforms, however, soon became a demanding full-time relationship. I noticed that reaching for my phone had become a compulsive habit. The beloved empty space that used to encourage my mind to wander was squashed, now filled with endless feeds of content. My accomplishments, popularity, and appearance no longer felt adequate when held against others’ filtered lives. I was drowning, so overwhelmed by other people’s narratives that they were infiltrating my own.

I was not alone in my newfound dependency on my screen. I watched others fall prey to their smartphone’s allure as well, noting the unfamiliar quiet that settled over my house with my siblings tucked away with their devices in their rooms. This change hit me the hardest, the loss of liveliness in my home prompting me to rewind and search for a cause. I began to ask questions, wondering whether users’ welfare was duly considered during a digital product’s conception. Exploring the societal implications of social media soon grew into a passion, and I became determined to build a career around it. In my first year of college, I secured my first research internship. I read hungrily, dissecting articles and scrutinizing hundreds of studies. My work as a research intern felt like taking back the reins, and it was empowering to gain an intimate understanding of the process through which I lost control to the hypnotic device.

I challenged myself to conduct my own research, delving into the intricacies of social media’s harms. I learned that social media companies were prioritizing engagement driven profit over users’ welfare, a practice that was having large-scale ripple effects on mental health, relationships, productivity, and politics. As my passion piqued, I came across the name Frances Haugen. Frances was a Meta employee who sacrificed her job and privacy to expose the company’s disregard for safety in their platform’s design. She spoke of algorithms and features being programmed to harm rather than help, describing the insatiable monetary goals pervading the industry. As I worked, Frances’s voice seemed to echo in my mind, her image asking me to do more for this cause. Scanning the pages of my dissertation, I could not help but wonder, “Was research enough?”

I needed to push myself beyond research, to change more than just the reader’s mind. I began working at the Social Media Victims Law Center, a firm that specializes exclusively in cases involving harm caused by social media platforms. I realized that while research allowed me to compel people to �������the problem, the law could compel the solution Frances implied was needed. Interacting with clients coping with the worst of technology’s effects only strengthened my desire to create a safer digital world, solidifying my conviction that a legal education was the ideal next step towards that change.

By blowing the whistle, Frances Haugen allowed me to see that change within the technology industry was possible, that turning a blind eye to these digital harms is not an option. Bolstered by example, I plan to harness the power of impact litigation to hold social media companies accountable, shifting the legal landscape to one that can protect consumers in the digital age. I hope to spend my career advancing the goals of the whistleblower, advocating for the unheard user, restoring justice to industries that evade necessary regulation, and ensure that people are prioritized over profit.

Read Fifth Place Winner of Constantine Cannon’s Whistleblower Essay Contest: Chana Deitsch at constantinecannon.com

The legal world continues to navigate the lingering effects posed by the COVID-19 pandemic. Fraud related to relief efforts and financial aid programs remains a significant concern. The DOJ has been cracking down on investigations, and we’re seeing more and more settlements this year.

Yesterday, August 13, DOJ its commitment to combating COVID-19 fraud, emphasizing the need for vigilance and public cooperation in detecting and reporting fraudulent activities.

Businesses, both large and small may have taken advantage of government relief provided during the pandemic. Some are exploiting these benefits for financial gain. In this context, whistleblowers have been reporting fraudulent activities, ensuring that relief funds reach those who genuinely need them.

Understanding COVID-19 Fraud

Fraud related to COVID-19 can take many forms, from falsifying loan applications to misusing relief funds. As the government allocates billions to support healthcare, businesses, and individuals, the risk of fraud increases. This fraudulent activity undermines efforts to combat the pandemic, delays effective responses, and wastes taxpayer money.

Key Areas of COVID-19 Fraud

Government Spending and Programs

The government’s financial response to COVID-19, through acts like the CARES Act was huge. These funds were to support businesses, healthcare, vaccine research, the PPP program, and more. However, the sheer scale of this response and rush to get the funds out quickly led to some oversight challenges.

Common Fraud Schemes Include:

• Providing false information in loan applications.
• Using relief funds for unauthorized purposes.
• Misrepresenting company affiliations to access funds.
• Banks making loans to ineligible businesses.

Medicare and Healthcare Fraud

Regulatory changes in response to COVID-19 have also led to potential Medicare and Medicaid fraud. Temporary policies aimed at easing financial pressure on healthcare providers may be exploited by dishonest entities.

Schemes Include:

• False billing for unnecessary COVID-19 treatments.
• Theft of beneficiary IDs for fraudulent billing.
• Marketing drugs or devices for unapproved COVID-19 uses.

Financial and Investment Fraud

The pandemic’s financial disruptions have made markets volatile, creating opportunities for fraud. Regulatory bodies like the SEC and CFTC have issued warnings about potentially fraudulent activities.

Potential Fraudulent Activities:

• Insider trading based on non-public information.
• Fraudulent investment schemes exploiting pandemic fears.
• Misrepresentation of financial conditions in disclosures.

How You Can Help

Given the complexity and variety of COVID-19 fraud schemes, whistleblowers are vital to government enforcement efforts. By reporting fraud, you contribute to the integrity of relief efforts and may be eligible for whistleblower reward programs. Those who report such misconduct may be eligible for rewards under the False Claims Act and other whistleblower reward programs. Successful whistleblowers may even receive up to 30% of the recovered funds as a reward.

If you would like more information, or would like to speak to a member of the Constantine Cannon’s whistleblower lawyer team, please Contact us for a free Confidential Consultation.

Read The Ongoing Effects of COVID-19 Fraud at constantinecannon.com

SPOTLIGHT:
American Banker – June 10, 2024 (subscription required)

A first-of-its-kind swipe fee measure recently passed in Illinois could have dramatic implications for banks both within and beyond the state’s borders, experts say.

Illinois Gov. J.B. Pritzker, a Democrat, late on Friday signed a budget bill including a provision barring the collection of interchange fees on sales taxes, excise taxes and tips for transactions that would be subject to the state’s sales taxes.

It’s a tradeoff between lawmakers and Illinois retailers — who are getting a separate tax exemption eliminated — that is designed to pass the cost of that elimination to banks and payment processors rather than consumers. But trade groups say the measure creates an unworkable situation for banks and card companies and will impact not just Illinois financial firms, but any bank that has customers that pass through the state. . . .

Financial Times – June 10, 2024 (subscription may be required)

The interim head of the UK payments regulator has rejected a call from some companies in the sector to delay a contentious fraud reimbursement plan, two weeks after his predecessor resigned amid growing criticism of the proposals.

David Geale said the Payment Systems Regulator needed to “act quickly” on authorised push payment fraud, and that new rules forcing banks and payment companies to reimburse victims up to £415,000 per claim would be introduced in October.

“We will continue to engage with and support industry, taking into account all feedback as we move forward and as industry works hard to implement the systems and processes needed for the new reimbursement requirements,” he added in a statement on Monday. . . .

Eater San Francisco – June 6, 2024 

There seems to be no end to the restaurant surcharge and junk fee ban saga. The latest in the legal back and forth, however, is a new piece of legislation introduced Thursday, June 6. The Chronicle reports Senator Bill Dodd, D-Napa, is behind Senate Bill 1524 which would keep restaurant fees legal so long as they present additional fees “clearly and conspicuously.” In other words, how the majority of food purveyors in the state already operate, be it on menus, online, or in reservation notices.

The paper writes this legislation is meant to specifically clarify State Bill 478, a “junk fee ban” outlawing undisclosed fees from rental car dealers and ticket sellers to concerts alike. On July 1, 2024, that law will go into effect, and it was unclear why restaurant owners were roped into this bill as many already explain to diners and consumers which fees — be it the SF Mandate fee or gratuity for groups of eight or more — are accounted for on the bill. . . .

Industry Developments

SPOTLIGHT: Digital Transactions News – June 11, 2024

Providing consumers more ways to pay and engage with merchants play key roles in driving consumer purchasing decisions, according to Fiserv Inc.’s Spring 2024 Carat Insights Report.

One way for merchants to engage on a deeper level with consumers is to offer apps featuring loyalty and rewards programs and that are easy to use. When asked to provide the key reasons why they favor a merchant’s app, 79% of respondents said quantity of rewards motivated them, 75% said relevance of rewards, and 73% said exclusivity of rewards. Overall, 73% of respondents deem loyalty programs important to the brand experience, up from 67% from the same period a year ago.

Ease of use is another factor influencing consumer usage of merchant apps, according to 84% of respondents. . . .

Payments Dive – June 11, 2024

Consumers’ cash use remained steady last year, even while they pulled out credit and debit cards more frequently, as the overall number of payments increased during a three-day period in October when the Federal Reserve conducted its annual cash use survey.

Consumers used credit cards for 32% of their payments, debit cards for 30% and cash for 16% during the period last year, the Fed report published last month said. They used automated clearing house payments 13% of the time, checks 3% of the time and other methods 6%.

Still, for the first time, cash was not the most preferred payment method when it came to transactions of less than $25, details of the Fed study showed. . . .

CNBC – June 11, 2024

The experience of paying for products and services online could feel a lot different in the coming years.

Starting from 2030, Mastercard will no longer require Europeans to insert their card numbers manually when checking out online — no matter what platform or device they’re using. Mastercard will announce Tuesday in a fireside chat with CNBC that, by 2030, all cards it issues on its network in Europe will be tokenized.

In other words, instead of the 16-digit card number we’re all accustomed to using for transactions, this will be replaced with a randomly-generated “token.” The firm says it’s been working with banks, fintechs, merchants, and other partners to phase out manual card entry for e-commerce by 2030 in Europe, in favor of a one-click button across all online platforms. . . .

Digital Transactions News – June 11, 2024

Apple Inc. says iPhone users will be able to send funds to each other by simply holding their iPhones next to each other. It’s a further refinement of Apple’s financial services, which jumped off in 2014 with the launch of Apple Pay.

In a video presentation Monday, Apple executives say the new feature will be part of its iOS18 operating system for its mobile devices. That software is typically released in the autumn. Apple also shared a slide that indicated Apple Pay would become available for third-party browsers later this year. Apple says Apple Pay can be used with any third-party Web browser and computer by scanning a code on their iPhone to complete the payment. . . .

Read Payments News Update – June 14, 2024 at constantinecannon.com

SPOTLIGHT:
Bloomberg Law – April 19, 2024 (subscription may be required)

The Consumer Financial Protection Bureau’s enforcement and supervision teams, including those overseeing financial technology firms and other nonbank lenders, will soon get a direct line to Director Rohit Chopra to correct potential violations.

The organizational restructuring, teased this week, will remove a buffer between the units and the head of the agency, potentially allowing the CFPB to act faster in going after the wide array of companies under its purview.

The change is part of Chopra’s broader plan to speed the agency’s response to developments in the marketplace, said Jenny Lee, a former CFPB enforcement attorney. . . .

Law360 – April 22, 2024 (subscription required)

A New York state proposal to start licensing and supervising buy-now, pay-later providers didn’t make the final cut in lawmakers’ just-approved $237 billion budget, but a version being advanced through standalone legislation could still make it into law.

The budget legislation passed Saturday by the New York State Legislature omitted provisions floated earlier this year by Gov. Kathy Hochul that sought to ramp up state-level regulation of the buy-now, pay-later market, a fintech-heavy field that has surged in popularity as a credit card alternative.

Those provisions, which would put New York’s financial regulatory agency, the Department of Financial Services, in charge of BNPL oversight in the state, have instead been stripped out into a separate bill, A9588, that Assemblywoman Pamela Hunter, D-Syracuse, said Monday remains very much in play. . . .

Cointelegraph – April 17, 2024

United States Senators Kirsten Gillibrand and Cynthia Lummis have introduced legislation establishing a regulatory framework for payment stablecoins.

In an April 17 announcement, the two U.S. Senators said they had introduced the Lummis-Gillibrand Payment Stablecoin Act, a bill the lawmakers had been drafting for months and expected to make public in 2024.

According to Gillibrand and Lummis, the legislation prohibits “unbacked, algorithmic stablecoins” — likely a nod at TerraUSD (UST) depegging from the U.S. dollar in 2022 — requires one-to-one reserves for issuers, creates state and federal regulatory regimes for firms and prevents illicit uses of stablecoins. . . .

Industry Developments

SPOTLIGHT: Payments Dive – April 22, 2024

The Federal Reserve won’t provide fintechs with direct access to its new instant payments system FedNow, but it’s still courting their participation in the new real-time ecosystem.

Fintechs can help the Fed see what’s on the horizon for the new faster payment system and allow the new real-time payments services to be easier to use, said Mollie Markham, a Federal Reserve Bank of Chicago industry specialist who works with nonbanks. Fintechs can also assist the Fed in providing services that make the most of FedNow’s data-rich capabilities, she said during a conference this month.

She made the comments at an April 12 fintech conference sponsored by the San Francisco Federal Reserve as well as San Francisco State University and the University of California at Santa Cruz. The conference included a panel discussion with Markham and others addressing the subject of “It Takes a Village — FedNow and Fintech.” The panel also included representatives from the fintechs Plaid and Modern Treasury. . . .

American Banker – April 22, 2024 (subscription required)

JPMorgan Chase is preparing a broad rollout of a biometric authentication system at U.S. retailers in 2025, following experiments it has run over the past year.

It worked with Pasadena, California-based biometrics technology provider PopID on two pilots to evaluate consumer and merchant response. The first biometric pilot was at the Miami Grand Prix Formula 1 race in May 2023, while the second, involving many more users, ran for six months in 2023 at a JPMorgan office cafeteria, operated by food concession provider Aramark.

The pilots’ aim was to get merchant and consumer feedback, as well as to understand and enhance the technology before a full market launch in 2025, said Prashant Sharma, JPMorgan’s executive director of biometrics and identity solutions. “We want to streamline the customer and merchant experience by using biometrics to reduce checkout time and increase loyalty,” he said. . . .

PYMNTS – April 18, 2024

Continuing the industry’s migration of business payments and expense management to digital platforms, Mastercard announced today (April 18) that it is bringing its commercial cards to mobile wallets.

The move comes in the form of a mobile virtual card app engineered to provide financial institutions with options for delivering secure, contactless payment services—a demand increasingly voiced by the companies’ banking and corporate customers.

The app will use Mastercard’s robust virtual card and tokenization technology to offer enhanced data security and spend control features, accessible via a consumer-like interface. It extends Mastercard’s commitment to business payments and management across various sectors, including healthcare, insurance, and corporate travel. It also comes at a time when business travel and expense management has changed with the advent of remote working and addresses the shifting payment preferences by younger demographic groups. . . .

Digital Transactions News – April 17, 2024

Visa Inc. on Wednesday unveiled enhancements intended to further remove friction from the customers’ payment experience for merchants of all sizes. The enhancements, which are being launched on Visa’s Acceptance Platform, were developed in response to merchants’ needs for simpler implementation of payments technology, Visa says.

The enhancements include Developer Assist, an artificial intelligence-based tool to help software engineers develop sophisticated payment flows, answer questions on testing and certification, and suggest sample code.

The Visa Acceptance platform is used by more than 450 payment-service providers and connects to more than 100 independent software vendors supporting more than 450,000 active merchants each month in 160 countries, according to Visa. . . .

Read Payments News Update – April 26, 2024 at constantinecannon.com

Read February 1, 2024 at constantinecannon.com