By the 91pornWhistleblower Team

On May 1, the Department of Justice (DOJ) settled its latest cybersecurity enforcement action, showing the Government’s continued commitment to using the False Claims Act to go after cybersecurity fraud.�� Under the settlement, RTX subsidiary Raytheon Company and Nightwing Group agreed to pay $8.4 million to settle charges of violating key cybersecurity requirements in various Department of Defense (DoD) contracts. ��Even though the contracts were with Raytheon, DOJ swept Nightwing into the action because it acquired RTX’s cybersecurity business in March 2024.

GOVERNMENT CONTRACTORS MUST ENSURE STRICT CYBERSECURITY CONTROLS

Under the Federal Acquisition Regulations that govern defense contracts, Government contractors must provide adequate security for information systems that process or store sensitive defense information.�� According to the Government, Raytheon failed to comply with these cybersecurity requirements on 29 DoD contracts and subcontracts.

In announcing the settlement, a chorus of Government enforcers stressed the critical need to maintain proper cybersecurity controls and the Government’s commitment to go after contractors that fall short:

• • • “Cyber threats have grown in size and reach in recent years, leaving no room for complacency among those in the public sector, private sector, or even among private citizens. Government contractors must comply with the cybersecurity rules that govern their performance and be candid about their compliance. ��This settlement reflects the Government’s commitment to pursue contractors that fail to live up to those expectations.”�� [DC US Attorney Edward Martin, Jr.]

• • • “As cyber threats continue to evolve, it is critical that defense contractors take the required steps to protect sensitive government information from bad actors. We will continue our efforts to hold contractors accountable when they fail to honor their DoD cybersecurity commitments.”�� [Acting Assistant AG Yaakov Roth]

• • • “[We] will continue to protect our service members and military technological edge by ensuring defense contractors strictly adhere to their cyber security contractual obligations.” [DoD Special Agent Kenneth DeChellis]

• • • “Failure to implement cybersecurity requirements can have devastating consequences, leaving sensitive DoD data vulnerable to cyber threats and malicious actors. [We] will continue to combat fraud affecting the Department of the Air Force and hold those accountable that fail to properly safeguard sensitive defense information.”�� [Air Force Special Agent William Richards]

• • • “Strict compliance with contractual cybersecurity requirements is of dire importance to adequately safeguard sensitive information from sophisticated adversaries, assure the safety of our warfighters, and maintain our military’s competitive edge. [We] remain committed to investigating entities that do not responsibly protect critical information entrusted to them.”�� [Navy Special Agent Greg Gross]

CYBERSECURITY FRAUD REMAINS A TOP ENFORCEMENT PRIORITY FOR THE TRUMP ADMINISTRATION

This settlement follows a string of recent cybersecurity settlements the Government has extracted from federal contractors for failing to protect confidential information.�� Most recently in March, Massachusetts-based MORSECORP agreed to pay $4.6 million to settle DOJ charges of failing to comply with cybersecurity requirements in its Army and Air Force contracts.�� And two weeks before that, California-based Health Net Federal Services agreed to pay $11.3 million to settle similar charges relating to certain DoD contracts.

In its 2024 False Claims Act Roundup, cybersecurity failures was one of the primary areas of fraud enforcement to which DOJ pointed.�� It has been that way for years since the agency’s 2021 launch of the����“to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements.”

With these recent settlements, there seems little doubt the Trump Administration is committed to cracking down on contractors who fail in their cybersecurity obligations.�� This is particularly reassuring given what many have viewed as the Administration’s lackadaisical response to the Signal fiasco where high-level Government officials inadvertently shared sensitive military plans with a journalist.

In an article he wrote last year for Washington Technology, 91pornwhistleblower partner Gordon Schnell highlighted what he described as DOJ’s crusade against cybersecurity fraud and that��“those doing business with the government would be wise to get their data protection systems in order or they may find themselves next up on DOJ’s cybersecurity hit list.”

With the Raytheon settlement, Schnell sees no slowing down in the Government’s focus on cybersecurity fraud.

WHISTLEBLOWERS ARE CRITICAL TO UNCOVERING CYBERSECURITY FRAUD

Like most False Claims Act cases, the Raytheon action originated with a whistleblower lawsuit under the qui tam provisions of the statute, which allow private parties to bring lawsuits on behalf of the Government against those that commit fraud against the Government.�� In return, successful whistleblower can receive up to 30% of the Government’s recovery.

The whistleblower here was Branson Kenneth Fowler, Sr., a former Raytheon Director of Engineering.�� He will receive an award of roughly $1.5 million from the proceeds of the Government’s recovery.�� Over the past 30 years, whistleblowers have received almost $10 billion in whistleblower awards under the False Claims Act.�� Whistleblowers are especially important in uncovering cybersecurity fraud given the lack of visibility into the cybersecurity protocols in which most companies engage.

CONSTANTINE CANNON REPRESENTS CYBERSECURITY WHISTLEBLOWERS

91pornhas substantial experience representing cybersecurity whistleblowers under the False Claims Act.�� Indeed, the firm represented the whistleblower in the first successful cybersecurity case ever brought under the False Claims Act.�� That case resulted in Cisco Systems agreeing to pay $8.6 million to settle charges of selling the Government noncompliant video surveillance software vulnerable to unauthorized access and manipulation.�� Our client received a whistleblower award of 20% of the government’s recovery.

If you would like more information about that case and our other work representing cybersecurity whistleblowers, or would like to learn more about what it means to be a whistleblower under the False Claims Act, please don’t hesitate to contact us.�� We will connect you with an experienced member of the 91pornWhistleblower Team for a free and confidential consult.

91pornSuccesses

Read Trump Administration Signals Strong Commitment to Stopping Cybersecurity Fraud at constantinecannon.com

By the 91pornWhistleblower Team

On April 29, the Department of Justice (DOJ) announced that California-based pharmaceutical giant Gilead Sciences agreed to pay $202 million to settle charges of violating the False Claims Act and Anti-Kickback Statute.�� Specifically, the government alleged Gilead provided financial inducements to physicians to speak at or attend sham medical conferences to induce them to prescribe various Gilead HIV drugs.�� This is the latest in a string of False Claims Act cases the government has brought targeting kickbacks designed to influence medical decision making.

Gilead Paid Physicians to Prescribe Gilead HIV Drugs

The Anti-Kickback Statute prohibits paying or receiving kickbacks in exchange for patient referrals covered by Medicare/Medicaid or other government healthcare programs.�� It is designed to prevent tainted medical decisions, unnecessary medical treatment, overutilization of medical services, increased program costs, and unfair competition.�� It covers virtually any form of consideration in exchange for referrals and broadly applies across the healthcare industry.�� It can even apply to inducements to patients (such a co-pay waivers) to influence their medical choices.�� Anti-Kickback Statute violations are typically treated as automatic False Claims Act violations.

The Gilead settlement involved very expensive HIV drugs with Medicare typically paying more than $1,000 for a one-month supply.�� To promote and maximize the sales of these pricey drugs, Gilead held regular “HIV Speaker Programs” where healthcare providers who treat HIV gathered to discuss Gilead’s HIV drugs and other HIV-related subjects.�� While Gilead held these programs out as educational in nature, they were really designed as a vehicle to provide kickbacks to the participating physicians to induce them to prescribe Gilead’s HIV drugs.

According to the Government, Gilead’s scheme resulted in Medicare and other Government healthcare programs paying out millions of dollars in reimbursement for tainted prescriptions.�� Here are some of the key facts Gilead admitted to as part of the settlement:

• • • Gilead paid many high-volume prescribers hundreds of thousands of dollars in honoraria to prepare and present as HIV speakers.

• • • Gilead paid travel costs for programs regularly held at desirable destinations like Hawaii, Miami, and New Orleans, sometimes selected by the speakers.

• • • Gilead held many of the programs at high-end restaurants across the country.

• • • Gilead repeatedly invited physicians and other healthcare providers to attend the same HIV program, covering the exact same topic, often within a short period of time.�� In fact, more than 250 heavy prescribers of Gilead HIV drugs attended Gilead programs on the same��topic at least three times within a six-month period.

• • • Many of Gilead’s speakers also attended Gilead’s HIV dinner programs on the same topic, often within a short time after speaking and with the same group of doctors.

Stopping Illegal Kickbacks Remains a DOJ Priority

Strictly enforcing the Anti-Kickback statute has consistently been a top DOJ enforcement priority.�� As DOJ stressed in its 2024 False Claims Act Roundup, illegal kickbacks “undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition.”

While there has been a definite change in priorities in the heavily influenced Trump DOJ, it seems apparent that the Government’s commitment to go after healthcare kickbacks remains strong.�� The Government made this clear in announcing the Gilead settlement, holding it out as a warning to other companies to stay away from engaging in similar misconduct:

“For years, Gilead unlawfully sought to increase sales of its HIV drugs, by using its speaker programs to funnel kickbacks to doctors.�� As alleged, Gilead spent tens of millions of dollars on these programs, including over $20 million in speaking fees and millions more in exorbitant meals, alcohol and travel, all in an effort to induce doctors to prescribe Gilead’s HIV drugs and drive up sales.�� With this settlement, Gilead has taken responsibility for its conduct and agreed to pay a significant financial penalty.�� The message is clear, companies that illegally drain taxpayer dollars from federal healthcare programs will be held accountable.”

Notably, only two days after the settlement, DOJ announced (on May 1) another major False Claims Act kickback case.�� This one against three of the nation’s largest health insurance companies – Aetna, Elevance Health, and Humana – for allegedly paying hundreds of millions of dollars in illegal kickbacks in exchange for Medicare Advantage enrollments.�� In announcing the action, Deputy Assistant Attorney General repeated the Government’s anti-kickback mantra: “Health care companies that attempt to profit from kickbacks will be held accountable.”

Whistleblowers Are Critical to Uncovering Illegal Kickbacks

Both this newly filed action and the Gilead action were originated by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring lawsuits on behalf of the government against those that defraud the government.�� In return, successful whistleblower can receive up to 30% of the Government’s recovery.�� Over the past thirty years, whistleblowers have received close to $10 billion in awards under the statute and have been responsible for originating the majority of False Claims Act cases.

The role of whistleblowers in helping the Government uncover illegal kickback schemes is particularly important given the sophisticated means healthcare providers and physicians use to conceal these schemes.�� 91pornwhistleblower partner Gordon Schnell notes why whistleblowers are so important in this enforcement area.

“With heavy Government enforcement in this area, healthcare companies are taking to ever-more sophisticated schemes to disguise their improper financial inducements.�� Without those on the inside with first-hand knowledge of these schemes, the Government has no easy way to identify and take action against them.”

According to Schnell, that is why virtually all False Claims Act kickback cases these days are originated by whistleblowers.

91pornRepresents Kickback Whistleblowers

91pornhas substantial experience representing kickback whistleblowers under the False Claims Act.�� Most recently, we represented the whistleblower who helped DOJ secure a $34 million settlement against dialysis giant DaVita for allegedly paying physicians for referring patients to DaVita’s dialysis centers.�� Our client received an award of roughly 18.5% of the Government’s recovery.

If you would like to learn more about our work representing kickback whistleblowers or think you have information on potential kickback violations, please don’t hesitate to contact us.�� We will connect you with an experienced member of our whistleblower team.

91pornSuccesses

What It Means to Be a Whistleblower

Read Gilead Pays $202M to Settle False Claims Act Kickback Charges at constantinecannon.com

On April 30, a New Jersey-based drug and alcohol rehabilitation facility, Summit BHC New Jersey, LLC, d/b/a Seabrook, agreed to pay $19.75 million to resolve allegations that it violated the False Claims Act by billing for services it was not authorized to provide. This case was initiated by a former Seabrook employee who filed suit under the whistleblower or qui tam provisions of the False Claims Act.

According to the government, Seabrook submitted claims to the Community Care Program of Veterans Health Administration and New Jersey’s Medicaid program for short-term residential treatment and partial hospitalization care, services it was not licensed or contracted to provide. Seabrook also allegedly misrepresented its ability to provide this care to state inspectors.

The government also alleged that, between 2022 and 2024, Seabrook failed to employ enough properly credentialed clinicians and billed for “specialized” veteran care that was no different from what other patients received. The government further alleged that Seabrook maintained false or incomplete records of patient care.

US Attorney Alina Habba stated that this case “demonstrates…[our] commitment to ensure that America’s veterans receive the care they deserve and for which the government has paid. Veterans and Medicaid recipients must receive care from fully qualified, licensed providers in facilities that meet state law in all respects.��We stand ready to enforce these standards and protect the Americans who need this care.”��

The Role Whistleblowers Play in False Claims Act Cases

As the Department of Justice reported in its��annual roundup��of False Claims Act successes, out of the $2.9 billion the government and whistleblowers recovered in 2024, more than $1.67 billion (58% of the total) came from healthcare fraud cases.

Like many False Claims Act case, this one was initiated under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, private parties (or relators) can file an action on behalf of the government and receive a share of up to 30% of any recovery. The relator in this case will receive an award of more than $3.5 million.

Whistleblower partner Marlene Koury commented: “The government is committed to holding healthcare providers accountable to ensure vulnerable populations get the proper care they need at facilities that comply with the law. Whistleblowers who speak up play a key role in protecting government funded healthcare programs.”

Fraud in Government Healthcare Programs

Government healthcare program fraud can occur in a wide range of government-funded programs, including Medicare, Medicaid, CHAMPVA (a program funded by the Veterans Administration), and TRICARE/CHAMPUS (a health care program for individuals and dependents affiliated with the armed forces). When providers bill for unqualified services or misrepresent the level of care they deliver, they not only break the law, they put patients at risk.

Our Firm Helps Whistleblowers

91pornhas extensive experience representing whistleblowers under the statute, with numerous record-setting��successes.�� If you would like to learn more about healthcare fraud, what it means to be a whistleblower��under the False Claims Act, or believe you have information relating to a potential case, please contact��us. We will connect you with an experienced member of the 91pornwhistleblower��team.

Speak Confidentially With Our Whistleblower Attorneys

Read NJ Rehab Center Will Pay $19.75M to Resolve False Claims Act Allegations at constantinecannon.com

By the 91pornWhistleblower��Team

The government continues to prioritize healthcare fraud enforcement. As we detailed in our round-up of top healthcare-related False Claims Act recoveries from 2024, more than $1.67 billion (58% of all FCA recoveries that year) came from healthcare fraud cases alone. With several settlements already announced this year, 2025 is shaping up to be another active year in healthcare enforcement.

On April 21, the government announced that two operators of New Jersey’s Empire Pain Center Holdings LLC (“Empire”) were sentenced to prison for their roles in a $127 million healthcare fraud and kickback scheme. Eric Karlewicz a/k/a “Anthony Mazza,” 46, of Rockland County, New York, and Nicco Romanowski, 33, of Roswell, Georgia, pled guilty to the charges. They also agreed to settle related False Claims Act allegations.

According to prosecutors, from June 2017 and May 2019, Karlewicz and Romanowski orchestrated a wide-ranging conspiracy involving durable medical equipment (“DME”) companies, telemedicine providers, and doctors. As part of the scheme, Empire directed its employees to pressure Medicare and TRICARE beneficiaries into accepting unnecessary DME items, such as body braces. Empire paid its employees commissions and bonuses to incentivize them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.

Empire also paid kickbacks to telemedicine companies, which then paid kickbacks to doctors for DME prescriptions. The national DME suppliers likewise had kickback arrangements with Empire in exchange for patient referrals, generating over $63 million for Empire. In total, Karlewicz and Romanowski caused the submission of over $127 million in false claims to federal healthcare programs for DME.

As part of the criminal case, Karlewicz was sentenced to 51 months in prison and ordered to forfeit over $63 million. Romanowski was sentenced to 80 months in prison and ordered to forfeit over $5.5 million.

To settle the civil charges, Karlewicz and Romanowski admitted to violating the False Claims Act and agreed to the entry of a consent judgment against them in the amount of $63.8 million.

This case was brought by a whistleblower Robert Jackson Tyler Jr., who filed suit under the qui tam, or the whistleblower provision of the False Claims Act. ��Under the FCA, private parties (or relators) can file lawsuits on behalf of the United States and share a percentage of the government’s recovery. In successful cases, whistleblowers may receive up to 30% of the government’s recovery. Tyler’s award has not yet been disclosed.

What Role Do Whistleblowers Play in Exposing Healthcare Fraud?

Whistleblower attorney Ginger Buck commented: “Whistleblowers, such as the relator in this case, are often the only ones who can expose healthcare fraud schemes from the inside. Their willingness to come forward is critical to uncovering healthcare fraud, safeguarding public funding, and strengthening trust in our healthcare system.”

Fraud affects healthcare programs funded by the United States and individual states. Individuals can blow the whistle on bad actors attempting to defraud Medicare, Medicaid, TRICARE/CHAMPUS (a health care program for individuals and dependents affiliated with the armed forces), and other types of misconduct such as kickback schemes.

Our Firm Helps Healthcare Fraud Whistleblowers

Whistleblowers are key in uncovering fraud and helping ensure the integrity of government healthcare programs. If you would like more information on��what it means��to be a whistleblower, believe you have information relating to��False Claims Act��violations or��healthcare fraud, please��contact us��so we can connect you with a member of the experienced 91pornwhistleblower lawyer��team��for a free and confidential consultation.

Speak Confidentially With Our Whistleblower Attorneys

Read $127M Health Care Fraud and Kickback Scheme: Business Operators Sentenced, Settle False Claim Act Allegations at constantinecannon.com

By the 91pornWhistleblower Team

As the Trump Administration continues to reshape U.S. trade policy through aggressive new tariffs, the stakes for importers have never been higher. With tariffs impacting trade with China, Canada, Mexico, and others, companies may be tempted to cut corners to avoid rising costs.

When companies cheat on tariffs, they risk potential False Claims Act liability. Whistleblowers can play a key role in uncovering tariff fraud and triggering customs law enforcement. Whistleblowers can be former employees, insiders, customers, and importers – just to name a few categories of individuals who may have knowledge and actionable evidence of customs fraud.

The False Claims Act is a powerful tool used to hold companies accountable when they defraud the government.��Under the qui tam (or the whistleblower provision) of the False Claims Act, private parties (or relators) can file lawsuits on the government’s behalf and may receive between 15 and 30 percent of any monetary recovery.

When goods enter the United States, an importer must declare the country of origin, the value, whether the goods are subject to duties, and number of duties owed. Tariff fraud typically arises when an importer or company misclassifies goods, undervalues imported items, or otherwise evades customs duties.

Recent False Claims Act enforcement actions highlight the risks of cheating on tariffs. On April 18, the government a complaint against Barco Uniforms and its suppliers for allegedly underpaying customs duties owed on imported apparel manufactured abroad. The government alleged Barco knowingly conspired to undervalue imported garments it purchased from foreign suppliers, despite warnings from a third-party auditor advising them of risks and recommended they “double-check” duty calculations.

This case was brought under the False Claims Act’s qui tam provisions by whistleblower Toni Lee, the former director of product commercialization at Barco Uniforms. If the case is successful, Mr. Lee will receive an award of up to 30 percent of the government’s recovery.

Similarly, on March 25, the government announced that Evolutions Flooring Inc. and its owners $8.1 million to settle False Claims Act allegations that they evaded customs duties from 2019-2022 when importing multilayered wood flooring from the People’s Republic of China. The government alleged the company provided false information regarding the identity of the manufacturers and country of origin of the flooring.

This suit was brought by Urban Global LLC under the whistleblower provision of the False Claims Act. The relator will receive an award of approximately $1,215,000.

Acting U.S. Attorney Joseph McNally for the Central District of California stated that��“fraud in international commerce deprives the United States of vital revenue and creates an unfair advantage over businesses that operate legitimately. The settlement sends a message that we will not stand aside when companies try to cheat the system.”

91pornwhistleblower partner Alysia Solow commented: “Vigilance in identifying tariff fraud is crucial to the protection of United States revenues. It’s also about upholding fairness in global trade and ensuring players compete by the same rules. Whistleblowers are essential to uncovering these violations and jumpstarting government enforcement actions.”

Our Firm Helps False Claims Act Whistleblowers

91pornhas extensive experience representing False Claims Act whistleblowers. Please contact us if you believe you have a case.��We will connect you with an experienced member of the 91pornwhistleblower��team for a free and confidential consultation.

Speak Confidentially With Our Whistleblower Attorneys

Read What Role Can Whistleblowers Play in Fighting Tariff Fraud? at constantinecannon.com

By the 91pornWhistleblower Team

Yesterday (April 21), the Department of Justice (DOJ) – together with the Drug Enforcement Administration and Health and Human Services Inspector General – announced that Walgreens will pay at least $300 million to settle DOJ charges of violating the False Claims Act and Controlled Substances Act through its filling of improper opioid prescriptions.�� It is just the latest in a string of healthcare-related companies to settle government charges of misconduct contributing to the opioid crisis.

Walgreens Allegedly Filled Millions of Invalid Prescriptions

According to the government, for years Walgreens pharmacies filled millions of unlawful prescriptions for opioids and other controlled substances despite “clear red flags,” the prescriptions lacked a legitimate medical purpose, or were issued outside the usual course of professional practice. ��The government further charged Walgreens with pressuring its pharmacists to fill prescriptions quickly, without confirming their legitimacy and lawfulness.

Walgreens compliance officials were also allegedly complicit in the scheme.�� The government claimed they intentionally ignored substantial evidence of the pervasive dispensing of unlawful prescriptions.�� Even worse, they apparently facilitated the practice by depriving their pharmacies with information that would have helped identify problem pharmacists and prescribers.

The False Claims Act covers fraud against the government, typically by those contracting to provide goods or services to the government or its various agencies and subdivisions.�� Overcharging or improperly billing Medicare is one of the most common areas of False Claims Act liability.�� By billing Medicare and other federal health care programs for invalid opioid prescriptions, Walgreens’s misconduct fell within the scope of the False Claims Act.

Opioid Fraud Remains a DOJ Enforcement Priority

This settlement is just the latest in a long series of False Claims Act settlements DOJ has secured, recovering billions of dollars from pharmacies, pharmaceutical companies, and other healthcare companies and providers for allegedly contributing to and exacerbating the opioid crisis.�� Going after opioid-related fraud and misconduct has been a top priority for the government over the past few years.

In DOJ’s False Claims Act Roundup for 2024, the government highlighted this area as a continued focus of DOJ’s fraud enforcement efforts, pointing to its major settlements last year with Endo Health Solutions and Rite Aid, among others, for their alleged efforts in facilitating invalid opioid prescriptions.

With this most recent settlement, the Trump administration is making a clear statement that going after opioid-related fraud remains a top priority. ��This strong sentiment was echoed by a chorus of DOJ and other agency officials in the government’s announcement of the Walgreens settlement, with Attorney General Pamela Bondi leading the way:

• • • “Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit. This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”�� [Attorney General Bondi]

• • • “This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs. We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”�� [Deputy Attorney General Michael Granston]

• • • “With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled. When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”�� [Maryland US Attorney Kelly Hayes]

• • • “The settlement … underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.” [EDNY US Attorney John Durham]

• • • “Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing. . . . As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”�� [EDVA US Attorney Erik Siebert]

• • • “The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.” [DEA Acting Administrator Derek Maltz]

The $300 million settlement would have been even higher but for Walgreens’s ability to pay a larger amount.�� In addition, the payout will be increased another $50 million if the company is sold or merged prior to 2032.�� On top of the payment, Walgreens also has entered into a Corporate Integrity Agreement and will adopt several compliance measures to strictly control how it fills opioid prescriptions going forward.

Whistleblowers Are Critical to Uncovering Opioid Fraud

Like most False Claims Act cases, the government’s action against Walgreens was initiated by whistleblowers under the qui tam provisions of the statute, which allows private parties to bring lawsuits on behalf of the government against those that commit fraud against the government.�� In exchange, successful whistleblowers are entitled to recover up to 30% of the government’s recovery.

Whistleblowers often provide a window into corporate misconduct that otherwise would remain undetected by government enforcers or the public.�� As 91pornwhistleblower partner Gordon Schnell notes, “Whistleblowers are critical to the government’s fraud enforcement scheme because they have inside access and visibility into behavior that is often impossible for the government to otherwise uncover or understand.”

The whistleblowers here were all former Walgreens employees who, like most whistleblowers, had firsthand exposure to the alleged misconduct. ��They will receive a 17.25% share of the government’s False Claims Act recovery.�� Since 1986, whistleblowers have received close to $10 billion in awards under the False Claims Act.

91pornhas substantial experience representing whistleblowers under the statute, with numerous record-setting successes.�� If you would like to learn more about our work in this area, what it means to be a whistleblower under the False Claims Act, or think you have information relating to potential fraud, please don’t hesitate to contact us.�� We will connect you with an experienced member of the 91pornwhistleblower team.

Contact Us

91pornSuccesses

Read Walgreens is Latest to Pay Big to Settle DOJ Opioid Fraud Charges at constantinecannon.com

Texas-based companies Varidesk, LLC and Vari Sales Corporation (both doing business as VARI) will pay $1,100,000 to resolve allegations that they violated the False Claims Act by overcharging the General Services Administration (GSA) on their contracts from Dec. 8, 2016, through June 30, 2019. ��The settlement resolves allegations that VARI knowingly failed to give the government matching price discounts that were offered to other customers, as required by their contract with the government.

Specifically, VARI had entered a Multiple Award Schedule contract with GSA, enabling federal government purchasers to buy office furniture at discounted prices. This required VARI’s compliance with “basis of award” discounts. VARI’s failure to offer price-matching discounts and refunds caused false or fraudulent claims to be submitted for payment to GSA.

This case was brought by a whistleblower under the qui tam, or whistleblower provision, of the False Claims Act. Whistleblowers can receive up to 30% of the government’s recovery. The whistleblower, or relator, former VARI sales executive Elliot Balis, will receive $187,000.

91pornpartner Alysia Solow commented: “The False Claims Act is a crucial tool in the fight against government contracting fraud. This case is an example of how the False Claims Act is used to protect taxpayer dollars by holding companies who do not comply with government contract provisions accountable.”

Acting United States Attorney Patrick D. Robbins said: “Companies must deal honestly with federal agencies and comply fully with the requirements of their federal contracts.”

Our Firm Helps False Claims Act Whistleblowers

91pornhas substantial experience representing False Claims Act whistleblowers. Please��contact��us if you believe you have a case.��We will connect you with an experienced member of the 91pornwhistleblower��team��for a free and confidential consultation.

Speak Confidentially With Our Whistleblower Attorneys

By the 91pornWhistleblower��Team

Read Furniture Supplier VARI Will Pay $1.1M to Settle False Claims Allegations For Overcharging Federal Agencies at constantinecannon.com

By the 91pornWhistleblower Lawyer Team

Last Wednesday (April 9), the Department of Justice (DOJ) announced that Virginia-based government contractor DynCorp International agreed to pay $21 million to settle charges it violated the False Claims Act by overbilling the State Department under its longtime contract to train Iraqi “CIVPOL” police forces.�� This is just the latest example of DOJ using the False Claims Act to go after government procurement fraud.�� It also provides another indication the Trump Administration will continue to vigorously pursue this area of fraud enforcement.

DOJ Claimed DynCorp Passed on Inflated Charges to the State Department

The State Department awarded DynCorp the CIVPOL contract in April 2004 to train civilian police forces in Iraq and provide associated support such as lodging for contractor personnel along with various labor services. According to the government, one of DynCorp’s primary subcontractors charged excessive and unsupported rates for hotel lodging and guard, translator, driver, and supervisor services.

The government claimed DynCorp was aware of these inflated charges (or should have been aware of them) and by passing them through to the State Department, DynCorp violated its obligations as the prime government contractor.�� The government’s action against DynCorp is notable given it was not DynCorp, but the company’s subcontractor that engaged in and presumably benefitted from the alleged fraud.

But a party can be liable under the False Claims Act for facilitating or otherwise allowing fraud against the government when that party (i) was aware of the fraud or should have been aware with reasonable due diligence, (ii) could have take steps to prevent the fraud, or at least notify the government of it, and (iii) was obligated to take those steps.�� That is apparently what DOJ found here with DynCorp passing on inflated subcontractor charges to the government.

Government Procurement Fraud Remains a Top Enforcement Priority

Government procurement fraud has always been a top priority under the False Claims Act.�� In fact, the statute was enacted during the Civil War to go after war profiteers trying to defraud the Union Army.�� It has remained the government’s primary fraud enforcement tool ever since, especially when it comes to government contractors engaging in fraud or misconduct.

In its 2024 False Claims Act roundup, DOJ highlighted its focus on using the False Claims Act to go after procurement fraud, particularly by defense contractors, stressing this misbehavior “not only squanders government funds, but also can deprive servicemembers of critical resources and potentially put them at risk.”�� It is a sentiment DOJ reinforced earlier this month with its successful action against a defense contractor for selling the Defense Department military parts that did not meet military specifications.

It is an attitude likewise reflected in the numerous other False Claims Act cases DOJ has brought in the past year against various government contactors for overcharging the government or otherwise failing to comply with their contractual or regulatory obligations.�� Check out our Top-10 listing for 2024, showing the breadth and scope of the government’s enforcement reach in this area.

DOJ Sends a Message to Government Contractors

The government made a point of using this latest settlement as a warning to all federal contractors to “be fair and honest when doing business with the government,” and that DOJ “will not tolerate those who use times of conflict and strife to enrich themselves at the expense of the American people.”

In announcing the settlement, the government even invoked President Trump and his Administration’s efforts to “zero in on fraud, waste, and abuse,” and take action against “outside entities that are taking advantage of their U.S. government contract by either not providing what they promised or misusing the funds in other ways.”�� According to Interim U.S. Attorney Edward Martin Jr. for the District of Columbia, “When you are given a government contract, you are taking money from the American people and this office will make certain you deliver on your promises.”

While the Trump Administration has relaxed fraud enforcement in multiple areas – like crypto, climate change disclosures, and foreign bribery, to name a few – with this settlement DOJ seems intent on sending a message that the government will not tolerate military and civilian contract fraud.�� It remains a staple of the government’s fraud enforcement regime.

91pornwhistleblower partner Gordon Schnell noted, “The DynCorp settlement is another strong indication that regardless of what other changes the Trump Administration is bringing to regulatory enforcement, it is still committed to prosecuting classic contractor fraud.”�� In fact, in his recent OpEd piece in The Hill, Schnell writes that President Trump has��“presaged a prominent place for whistleblowers in his current political playbook” using the powerful tool the False Claims Act provides.

91pornHas Significant Experience Representing Procurement Fraud Whistleblowers

It does not appear a whistleblower was involved in the DynCorp action.�� However, whistleblowers typically originate False Claims Act cases.�� The qui tam provisions of the statute allow private parties to bring these cases on behalf of the government and in return share in any government recovery (up to 30%).�� Whistleblowers have recovered billions of dollars in awards over the past thirty years by originating these kinds of cases.

91pornhas substantial experience representing procurement fraud whistleblowers under the statute.�� In one of our most recent successes in this area, we represented the whistleblower who secured a record settlement against several Wall Street banks for allegedly engaging in widespread fraud and collusion in their government contracts to market and price certain municipal bonds.

In another recent record procurement fraud settlement, the firm represented��two whistleblowers against KBR Services, alleging the defense contractor overcharged the government in connection with its multi-billion contract to support the US military in Iraq.

In both cases, our whistleblower clients received awards of close to 30% of the government’s recovery, the maximum award permitted under the statute.

If you have information relating to potential procurement fraud, would like more information on what it means to be a whistleblower, or would like to learn more about Constantine Cannon’s whistleblower successes, please don’t hesitate to contact us.�� We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.

Read DOJ Shows Continued Commitment to Use False Claims Act to Target Procurement Fraud at constantinecannon.com

By the 91pornWhistleblower��Team

The emergency phase of COVID-19 might be over, but the government is still uncovering pandemic-related loan fraud as it continues to announce many enforcement actions. This week, the government announced two Paycheck Protection Program (PPP) loan fraud enforcement actions. One case was brought by a whistleblower and involved a Virginia-based non-profit. A separate case involved Massachusetts businessman Herbert G. Chambers, his entities, and one of the companies’ officers. In total, these entities agreed to settle charges and pay over $12 million.

In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and offered forgivable PPP loans to small businesses to help with applicable expenses during unprecedented times.

As we have been reporting, many businesses used this as an opportunity to defraud the government and not comply with all loan requirements. This took many forms such as falsely certifying eligibility in terms of employee numbers, providing their income, and additional documents, among other requirements.

Virginia-based non-profit, Lake Ridge Parks and Recreation Association, Inc. allegedly falsely certified its loan eligibility by failing to disclose its non-profit status. 501(c)(4) tax exempt organizations were ineligible for PPP loans. On April 7, 2025, the company agreed to settle allegations they violated the False Claims Act and will pay $695,000.

This case was filed under the qui tam provision (or the whistleblower provision) of the False Claims Act, allowing private parties to bring lawsuits on behalf of the government and receive a percentage of the government’s recovery. The whistleblower here will receive 10% of the settlement.

Another loan requirement was introduced in April 2020, intended to safeguard the PPP’s limited resources. According to the Interim Final Rule (IFR), businesses that were part of one corporate group could not receive over $20 million in PPP loans.

The government alleged that the Massachusetts-based individual Herbert G. Chambers, his companies, and one of the companies’ officers falsely certified their PPP loan eligibility by failing to disclose its corporate structure. On April 9, 2025, the government announced that they will pay roughly $11.8 million to settle the False Claims Act allegations.

Eight companies owned by Mr. Chambers were not eligible for the PPP loans because his other businesses already received over $20 million. Chambers admitted that his eight companies applied for but did not receive funding as of April 30, 2020, the day IFR was introduced. After a bank cancelled the unfunded loans because of the $20 million limit, a different bank funded the loans months later.

On this case, Jodi Cohen, Special Agent in Charge of the FBI Boston Division commented:�� “When fraudulent applications wrongly drain a program set up to offset economic upheaval, it’s a blow to the folks who truly need help. The FBI will continue to work with our partners to identify and investigate anyone who tries to defraud federal government programs in this way.”

91pornwhistleblower partner Marlene Koury explained: “The COVID-19 pandemic led to unprecedented government relief efforts, but it also opened avenues for fraudulent activity. These two cases highlight the government’s determination to hold fraudsters accountable and protect taxpayer’s funds.”

The Role of Whistleblowers and COVID-19 Related Fraud

While the second case mentioned in our article did not mention a whistleblower, people like you play a crucial role in calling out fraud and sharing information about matters such as defrauding the government. This fraud can include��COVID-19��era information related to falsely certifying requirements when applying for PPP loans, unauthorized use of funds, payment of��kickbacks��to obtain government contracts related to COVID-19, and more.

Our Firm Helps COVID-19 Fraud Whistleblowers

Our firm handles cases related to COVID-19 fraud. If you have details or questions regarding a possible case, please��contact us��to see how we can help.

Speak Confidentially With Our Whistleblower Attorneys

Read Enforcement Push Targeting COVID-19 PPP Loan Fraud Continues: Entities Agree to Pay $12M+ to Settle False Claims Act Charges at constantinecannon.com

By the 91pornWhistleblower Team

On April 1, TE Connectivity Corporation subsidiary DRI Relays agreed to pay $15.7 million to settle Department of Justice (DOJ) charges of violating the False Claims Act by supplying military parts that did not meet military specifications.�� DRI makes electrical relays and sockets for various military applications, with manufacturing locations in New York and India.

Military Procurement Fraud Is an Enforcement Priority

According to the government, DRI billed the Defense Department for military grade electrical relays and sockets when it knew those parts did not meet the necessary testing requirements to be deemed military grade.�� This is just the latest example of DOJ going after military procurement fraud.�� As DOJ made clear in its 2024 False Claims Act Enforcement Roundup, this is a high priority enforcement area, stressing that “fraud in these programs not only squanders government funds, but also can deprive servicemembers of critical resources and potentially put them at risk.”

It is a sentiment the government echoed with the recent settlement.�� Acting DOJ Civil Chief Yaakov Roth stated “it is essential to the safety and operational readiness of our military that contractors comply with applicable military specifications,” and that DOJ “will continue to hold accountable those who knowingly supply equipment to the US military that fails to meet their contract obligations.”

Special Agent Patrick Hegarty of the Defense Department’s Office of Inspector General called “maintaining the integrity of the US Department of Defense supply chain a top priority,” and highlighted how committed the agency is to going after suppliers that fail “to adhere to contract specifications and perform required testing on products sold to the US military.”�� Special Agent Keith Kelly of the US Army Fraud Field Office wholeheartedly agreed, underscoring that “failures to adhere to established standards when providing military parts can place our Soldiers at significant risk and adversely impact the Army’s warfighting capabilities.”

False Claims Act Targets Military Procurement Fraud

The False Claims Act targets this precise type of fraud against the government.�� Indeed, President Lincoln enacted the statute during the Civil War to go after war profiteers trying to defraud the Union Army with lame mules and sawdust munitions.�� While a majority of actions today target Medicare fraud, military contractor fraud remain a priority area of government fraud enforcement.

Like most False Claims Act cases, the majority of military procurement fraud cases are originated by whistleblowers under the qui tam provisions of the statute.�� These provisions allow private parties to bring actions in the name of the government against those who defraud the government.�� In return, successful whistleblowers can receive up to 30% of the government’s recovery.

A whistleblower was not involved in the current action.�� Instead, shortly after it acquired DRI in October 2020, TEC Connectivity disclosed to the Defense Department that DRI failed to conduct the required military specification tests.�� It then fully cooperated with the government’s investigation, which no doubt softened the government’s ultimate sanction against the company.

We Represent Military Procurement Fraud Whistleblowers

91pornhas substantial experience representing whistleblowers in False Claims Act matters involving military contract fraud.�� In one of our most recent successes in this area, we represented two whistleblowers in a False Claims Act case against KBR Services for the company’s alleged fraud in connection with its multi-billion contract to support the US military in Iraq.

After years of litigation, the company paid $108.75 million to settle the case.�� It remains the largest settlement of a case alleging fraud during the Iraq War. Our clients received a whistleblower award of $31.5 million, representing 29% of the government’s recovery. ��KBR paid an additional $35 million in attorneys’ fees and costs.

According to 91pornwhistleblower partner Dan Vitelli, one of the lead lawyers on the KBR matter: “The False Claims Act was designed to go after this exact type of alleged fraud.�� Whether it involves faulty munitions, overbilling military supply contracts, or as in this most recent settlement, allegations that an entity supplied military parts that did not meet specifications, the government does not tolerate fraud with its suppliers.�� Especially when it involves materials that can put our military in harm’s way.”

Contact Us to Learn More

Please contact us if you have information relating to potential defense contractor fraud or want to learn more about what it means to be a whistleblower.�� We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consult.

Contact Us

Other 91pornFalse Claims Act Successes

Read Military Contractor Pays $15.7M to Settle False Claims Act Charges of Failing to Comply with Required Military Specs at constantinecannon.com