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15Jul/100

FCA Warming

This is not a good climate in which to be committing fraud against the government. A new article notes that the FCA is on fire, concluding that

[u]nprecedented government spending, recent amendments to the FCA, increased fraud enforcement budgets and priorities, skyrocketing FCA recoveries, state legislative and enforcement activities, and the sheer volume of ongoing government investigations and pending qui tam actions suggest that the FCA will remain the fastest growing area of federal litigation.

One of the most important factors contributing to FCA mania is lawmakers' obsession with tweaking the Act. The FCA has already been amended twice in the first six months of 2010, and Congress is hankering to amend the FCA once again.

Congress passed the Fraud Enforcement Recovery Act ("FERA'') in May 2009. FERA made some of the most significant amendments to the FCA in 20 years. FERA already expanded protections for agents or contractors who blow the whistle. The latest version of the Financial Reform Bill would expand the scope of protected whistleblower conduct to include not only "efforts to stop 1 or more violations" but also lawful behavior "in furtherance of an action'' under the FCA.

Massive outlays of federal dollars combined with Congress's FCA infatuation guarantee that these types of cases will stay hot. 2010 may well be the year of titanic clashes over the FCA, so grab a front row seat as the dollars fly!

This article is brought to you by the QTT, the epicenter for whistleblowers and people interested in the False Claims Act, Qui Tam Provisions, and Medicare and Medicaid fraud. To discuss a potential case, please call Eric Young at 1 (800) 590-4116.

Tagged as: corporate fraud, False Claims Act, FCA, fraud, government, qui tam, whistleblower No Comments

8Jul/100

A Whistleblower SNAFU gets Worse

Bradley Manning, the U.S. soldier stationed in Iraq who leaked video of a deadly helicopter attack that killed several people, including a Reuters reporter and a cameraman, has been charged with downloading more than 150,00 highly classified diplomatic cables. In a series of chats with a former outlaw hacker, R. Adrian Lamo, Manning claimed that the number of documents he leaked was even higher--260,000.

Manning leaked his information to the WikiLeaks site, and the video from the helicopter incident in particular set off a storm of controversy. In terms of the hundreds of thousands of diplomatic cables that Manning claimed to have leaked, only one appeared on WikiLeaks--a cable which summarized the U.S. Embassy's discussions with Iceland regarding the strange nation's debt problems (one cause of which apparently was Icelanders' superiority complex, which convinced many life-long fisherman that they were professional investors).

The big question now is whether Manning did a public service by leaking these documents and videos or just got carried away in his quest for attention. Manning had drifted from job to job, and at one point found himself homeless. In introducing himself to Lamo, Manning wrote that he was facing discharge for an ''adjustment disorder." Manning also assaulted a fellow soldier, and wrote that he had been ignored by his fellow soldiers to the point that he felt like all had left were his laptop, some books, and ''a hell of a story.''

Manning's leaked video has been compared to The Pentagon Papers, which detailed the U.S. government's activities in Vietnam and revealed that four presidential administrations had misled the public regarding their intentions in the area. The Pentagon Papers were leaked to The New York Times by Daniel Ellsberg in 1971.

Bradley Manning is a different breed of whistleblower from those typically involved in exposing fraud against the government, and his case will continue to generate controversy. On the one hand, he exploited his access to sensitive information, violated the trust the military put in him, and potentially put U.S. soldiers and diplomatic relations at risk. On the other hand, he exposed the ugly side of war, one from which most Americans are shielded.

Tagged as: government, military, whistleblower No Comments

30Jun/100

Crankin’up the HEAT

HEAT is the rather odd acronym for the Health Care Fraud Prevention and Enforcement Action Team. It is the brainchild of Attorney General Holder and Health and Human Services Secretary Sebelius, and despite the great stretches of the imagination it takes to make it work as an acronym (HCFPEAT doesn't exactly roll off the tongue), it seems to be taking a bite out of health care fraud.

HEAT is a coordinated effort between DOJ and HHS, and it has a Medicare Fraud Strike Force that has been going around various cities busting health care fraud perps. It's operating in various locations, including South Florida, but no, you are not likely to see Attorney General Holder wearing a Miami Vice suit and driving a go-fast boat into a medical center.

In recent testimony given before the House Ways and Means Subcommittee on Health and Oversight, Edward Siskel, the Associate Deputy Attorney General, stated that since May 2009, the Strike Force has been putting fear in the hearts of health care fraudsters. Strike Force prosecutors have filed over 120 cases charging more than 290 defendants and have obtained 16 convictions. The Strike Force also appears to have had a deterrent effect. In the twelve months since the Strike Force was announced, the Miami area has seen an almost $2 billion reduction in durable medical equipment submissions compared to the preceding 12 month period.

Deputy AG Siskel also notes in his testimony statistics all too familiar to qui tamers: the bulk of the DOJ's civil case load comprises suits against drug and medical device makers. Qui tam suits have proved to be an important weapon in the DOJ's fraud-fighting arsenal, and have helped the government to recover $24 billion since 1986. This goes to show that the civil justice system is just as important as the swaggering Task Force in the fight against health care fraud.