[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.

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.

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.

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.

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.

Pequignot was claiming $500 per violation, and considering the vast number of Solo lids in existence--21,757,893,672 (you may even be slobbering all over one right now)--the fines would have produced an award for the United States of $5.4 trillion—enough to pay 42% of the national debt. Where Solo would have gotten its hands on this kind of cash is anyone's guess. What Pequignot would have done with his trillions is also unknown. He could have purchased several muncipalities, or even a few states, and started his own patent-ocracy.

The court found that Pequignot failed to prove that Solo intended to deceive the public with its expired patent mark. Intent can be very difficult to prove in lawsuits generally, and it doesn't help that a lot of products are stamped with expired patents simply because the manufacturer is too lazy or cheap to change the molds or machining.

In Solo's case, it appears that the company did not change its molds based on cost-saving. A Solo cup mold produces a lid every four to six seconds, and goes on doing this for 20 years or more. Based on advice from an attorney, Solo instituted a policy whereby replacement molds would not include the expired patent number. However, the molds were only to be replaced when the old mold became damaged or wore out. This helps to explain why there were/are so many Solo lids floating around out there with the expired patent marking.

The general consensus is that the U.S. Court of Appeals for the Federal Circuit's ruling will put a damper on future suits aimed at getting big money for false marking. But with the number of old molds constantly stamping away out there, we'll see.

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.

Criticism continues to be heaped on the federal agency responsible for ''regulating'' off-shore drilling, the Minerals Management Service (MMS), and rightly so. A new report, also in the New York Times, finds yet another maddening instance of MMS' appalling failure to fulfill its mandate. A device known as a blind shear ram was in place at the Deepwater Horizon well, and was supposed to be the last line of defense in preventing a blow-out. Of course, it failed. What is particularly infuriating is that MMS ignored its own experts as to how the risk of blind shear ram failure could be minimized.

There have been some major changes at MMS, so hopefully it won't be business as usual once the country forgets about off-shore drilling again. The new director of MMS is Michael R. Bromwich, who used to be an inspector general over at DOJ (the same guys will intervene in your qui tam case, if you're lucky!). The new agency will have a quick-response, SWAT team-like unit that will supposedly be able to respond with alacrity to allegations of crooked officials or misbehaving companies. The new investigative unit will have its work cut out for it. The old MMS could not be described by any stretch of the imagination as ''ethical.'' Doing crystal meth and then going out to do inspections? Why not? Going huntin' and fishin with on the oil company's dime? Yup. Inspecting drilling platforms of the oil company with which you're simultaneously negotiating for a job? Why the heck not? (Don't forget the crystal meth!).

This is all to say that the level of corruption in this agency is absurdly hilarious, and it will likely be very difficult both to root it out and prevent it from re-occurring, fungus-like, in the future.

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.

Campbell filed a complaint with the Labor Department alleging that he was fired for his role in the federal investigation as well as for safety complaints he made to mine management.  Federal administrative law Judge L. Zane Gill agreed with Campbell, stating that there was "substantial evidence to support a reasonable cause to believe" that Campbell's complaints led to his firing.  The administrative law judge ordered Massey to temporarily reinstate Campbell, and the ball is now in the Labor Department's court to file a complaint seeking permanent reinstatement.

The harsh world of mining seems to lend itself to a wide array of egregious violations. If you're still fired up about mines, here's a shameless plug for the film North Country, which is the semi-fictionalized story of a group of women who had the guts to stand up to a mining corporation and bring a sex discrimination lawsuit despite outrageous threats and harassment. The lawsuit at the center of the film is based on Jenson v. Eveleth Taconite Co. The case was filed in 1988 on behalf of Lois Jensen and other female workers at EVTAC mine in Eveleth, Minnesota. Jensen began working at the mine in 1975 and endured outrageous sexual harassment. She quit working at the mine in 1992, and was diagnosed with post-traumatic stress disorder shortly thereafter. It wasn't until 1998, when another trial was set to begin following years of protracted litigation, that the company settled with 15 female plaintiffs for $3.5 million.

Both the Massey mine situation as well as the Eveleth sexual harassment suit illustrate that even in harsh, remote environments such as mines, concerned individuals can make a difference by letting their voices be heard. No matter how far underground you may be, there is always a path to the courtroom.

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.

The main reason for Senator Grassley's concerns is that the Swiss Parliament this week rejected a deal made with the U.S. last August to hand over banking information on more than 4,000 wealthy American UBS clients suspected of tax evasion. In his letter to the IRS, Senator Grassley argues that the agency should not be sitting around waiting for treaties to be ratified. The agency has the information in its hands now, and Senator Grassley is concerned that it is wasting time while the Swiss government unravels its agreements with the DOJ. (Banking secrecy has until recently been ironclad in Switzerland, so the parliament may be rattling its legislative sabers a bit in an effort to shore up the nation's reputation).

If the entire Swiss parliament does not approve the deal with DOJ by June 18th, things could get really ugly for UBS. DOJ could revive a lawsuit to turn over 52,00 names (way, way beyond the 4,450 stipulated in the original agreement). If UBS failed to turn over the 52,000 names, it could end up facing fines amounting to millions of dollars per day of refusal. Furthermore, if UBS fails to turn over any of these names, it could face indictment.

Either way, the skies look rather stormy for UBS right now. This still doesn't explain why the IRS is not taking advantage of the leads Birkenfeld provided.  Perhaps Senator Grassley's letter will be enough to get a few accountants' motors running!

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.

The case is

United States ex rel. Kaplan v. Metropolitan Ambulance & First-Aid Corp. et al., Civil Action No. 00-3010 (E.D.N.Y.).

According to allegations in a qui tam suit by the former CFO of one of the companies, Metropolitan Ambulance & First Aid Corp. (now known as SEZ Metro Corp.), Metro North Ambulance Corp. (now known as SEZ North Corp.) and Big Apple Ambulance Service Inc. (formerly known as United Ambulance), and the president of the companies, Steve Zakheim, used falsified records to appeal a Medicare refund demand. The situation is a bit convoluted, but what the companies were doing essentially consisted of the old health-care fraud standby: taking patients on unnecessary and expensive ambulance trips, and billing Medicare for the services. The government determined that these trips were in fact unnecessary and demanded a refund of the tens of millions of (tax payer) dollars that had been paid out. As is customary, an extensive appeals process was available.

However, Zakheim and his ambulance armada apparently didn't have the required proof to back-up their case on appeal, so they allegedly doubled their fun/fraud by submitting hundreds of forged letters verifying that the ambulance trips were medically necessary! The ROI was not so good here: Zakheim and the companies must pay $2.5 million in settlement money, not to mention the millions of dollars to be refunded. Vigilant whistleblower Larry Kaplan will pocket $618,450.

One has to ask: was it really worth it to engage in the fraud in the first place? This is yet another case in which the business logic behind some of the decisions seems to have been seriously lacking. The next time you see an ambulance speeding along (possibly with a bunch of cash flying out the windows) keep in mind that it might be following the  road to fraud!

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.

According to the Florida AG's office, here is the activity in which Office Depot engaged, prompting the investigation:

Bait and switch overcharging of state and local agencies by setting low fixed price for core items and then publishing catalog and website information that leads purchasing agents from low cost items to much higher priced alternative items.

Just as we rely on our defense contractors to provide the F-22s our tax dollars pay for, so de we rely on office supply companies to provide the staplers we contract for at the agreed price. It takes the efforts of both law enforcement as well as citizens to hold fraudsters accountable. For example, a former Lockheed  employee filed a lawsuit against his former employer alleging that it knowingly used defective materials in constructing the F-22's skin.

The point of all this is that fraud can occur whether you're talking the mundane (staplers) or the extraordinary (radar-evading jets). Fraud is fraud!

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.

Investigators with Senate Finance Committee under  Senator Chuck Grassley have been investigating Medtronic's relationship with several orthopaedic surgeons for years. In 2006, Medtronic agreed to pay the government $40 million to settle allegations that the company paid kickbacks to surgeons to get them to buy Medtronic products. The DOJ described Medtronic's relationships with doctors as “sham consulting agreements, sham royalty agreements and lavish trips to desirable locations” which the company offered to doctors between 1998 to 2003.

Medtronic makes big money off of the products it allegedly pays doctors to endorse. For example, Medtronic made $815 million in 2007 alone off of Infuse, a spinal product, which was the subject of a whistleblower lawsuit. With such enormous profits at stake, it is not surprising that device manufacturers like Medtronic pay fees to doctors and sponsor junkets.

Once again, all of this goes back to the ever-increasing role drug and medical device companies play in our lives. Health care is such a big business (emphasis on business) that the major players like Medtronic will keep shelling out what seems like big bucks for serious ROI. As more Americans become insured under the new health care bill and a whole new market opens for drugs and devices, the pecuniary carrot will be all the more enticing to these companies.

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.