Consumer Fraud 944 articles

Investment and securities fraud is one area of consumer fraud litigation pursued by the attorneys at Beasley Allen. Litigation includes individual cases as well as class actions that have been filed throughout the country. Cases in this area also involve matters including wrongful conduct of insurance and finance companies including fraud and bad faith, mortgage loan fraud, general consumer fraud and employment issues. Pending cases include securities and investment fraud litigation against companies including Stanford Securities and Regions Morgan Keegan, among others.

Our firm also is representing people who have been taken advantage of in the workplace, through violations of the Fair Labor Standards Act (FLSA). In these cases, employers intentionally misclassify employees as independent contractors or managers in order to reduce costs such as overtime compensation, employee benefits, payroll taxes, unemployment compensation and workers compensation.

Federal Jury Awards U.S. $92 Million In Allied Mortgage Fraud Case


A Texas federal court jury awarded the U.S. government about $92 million in a False Claims Act case brought against Allied Capital and bank principal Jim Hodge by a whistleblower who accused the company and some affiliates of knowingly originating and underwriting more than a thousand home loans that did not meet the Federal Housing Administration’s (FHA) insurance requirements. The U.S. Department of Justice intervened in the case in 2011, the same year a whistleblower filed it in a New York federal court, naming both Allied Home Mortgage Capital and Allied Home Mortgage Corp. as defendants. The government moved the ... Read More

Long Island Radiology Chain Pays $10 Million to Settle Whistleblower Lawsuit and Criminal Penalties


A pair of billing specialists formerly employed by a Long Island radiology company helped the U.S. government and the State of New York recover more than $10 million through a False Claims Act lawsuit alleging systemic Medicare and Medicaid fraud. Whistleblowers Linda Gibb and Donna Geraci sued Zwanger-Pesiri Radiology on behalf of the U.S. government, accusing the company of overbilling the Medicare and Medicaid programs for a multitude of radiological services, including CT Scans, MRIs, and x-rays. Soon after joining Zwanger-Pesiri in 2010, Ms. Geraci discovered the company regularly falsified Medicare and Medicaid claims for service they provided that were ... Read More

Whistleblower Helps U.S. Recover $5.31 Million From N.Y. Blood Cancer Group

Pills - Stethoscope on Money

Hudson Valley Hematology Oncology Associates of Poughkeepsie, N.Y., will pay $5.31 million to settle a False Claims Act lawsuit brought by a whistleblower who accused the group of widespread Medicare and Medicaid fraud. According to the whistleblower complaint, Hudson Valley Hematology Oncology Associates illegally waived co-payments from Medicare beneficiaries, and then billed the Medicare program for those losses by adding them to other charge submitted for reimbursement. Federal and state prosecutors also alleged that the medical group overbilled Medicare and Medicaid for evaluation and management services and related routine procedures, such as chemotherapy, injections, or venipunctures, on the same date. In ... Read More

Nuclear Contractors Settle Whistleblower Suit Alleging They Failed To Meet Standards, Misspent Government Funds


Global engineering, construction, and project management firm, Bechtel National and affiliated companies have reached a $125-million agreement with the U.S. government resolving allegations brought by a trio of whistleblowers that they made false statements and false claims to the Department of Energy while performing contract work at the Hanford Nuclear Site in Richland, Wash. The U.S. Department of Justice supported a False Claims Act lawsuit filed by Gary Brunson, Donna Busche, and Walter Tamosaitis, who worked on the Waste Treatment Plant at the Energy Department’s Hanford Site project. The whistleblowers accused Bechtel National Inc., Bechtel Corp., URS Corp., and URS ... Read More

Mylan Says It Will Not Attend Senate Hearing On EpiPen Settlement

Epi Pen

EpiPen maker Mylan notified the Senate Judiciary Committee that it would not testify at a scheduled hearing Wednesday on a controversial $465-million settlement it reached with U.S. officials in October, resolving allegations that it cheated the Medicaid rebate program for years. Committee Chairman Senator Chuck Grassley called for the Nov. 30 hearing to review the settlement, “Oversight of the EpiPen Crisis Settlement: Where is the Federal Government Looking out for Taxpayers and Patients.” Like many other officials, Sen. Grassley has criticized the agreement as a sweetheart deal that lets Mylan off the hook too easily for years of alleged Medicaid ... Read More

Overtime pay update blocked by federal judge prior to taking effect


Despite efforts by the Obama administration, the new overtime rule that would have expanded eligibility to nearly four million Americans has been blocked a federal judge. The law, which would have required employers to pay time-and-a-half to their employees who worked more than 40 hours in a week and earned less than $47,476 annually, was set to take effect on Dec. 1. According to NPR, U.S. District Judge Amos Mazzant III was responsible for issuing the preliminary injunction in the case after siding with plaintiffs who believed the new rule would’ve caused government costs in their respective states to increase ... Read More

Wells Fargo Execs Address Whistleblower Complaints, Ethics Problems

Wells Fargo fraud

The Chief Executive Officer of Wells Fargo & Co. told a gathering of employees earlier this month that the bank plans to change how it handles whistleblower complaints after several employees complained of facing retribution for reporting sales abuses to an ethics hotline. Speaking to about 2,000 Wells Fargo employees in Des Moines, Iowa, CEO Tim Sloan did not offer any details about the San Francisco-based bank will address whistleblower complaints in the future, but his talk was part of a nationwide “conversations tour” he and other executives have embarked on to boost employee morale and restore public trust. In ... Read More

CFO Whistleblower Awarded Nearly $2 Million In Wrongful Termination Case


A federal administrative law judge has awarded the former chief financial officer of a chain of medical clinics in the Northwest nearly $2 million, finding credibility with his claim that he was fired in retribution for refusing to wrongfully alter financial reports. Greg Becker, the former CFO of Rockwood Clinic, which operates a dozen primary care clinics in the Spokane, Wash., and Couer d’Alene, Idaho, areas, sued his employer and its parent company, Tennessee-based Community Health Systems, in 2012. Mr. Becker alleged that the company repeatedly tried to bully him into lowering the company’s projected losses for 2012 from $12.8 ... Read More

Senate Committee Pushes DOJ To Testify At EpiPen Settlement Hearing

Epi Pen

Some U.S. legislators are pushing Justice Department officials to testify in an upcoming hearing examining a settlement reached between the U.S. and drugmaker Mylan NV over alleged misconduct involving Mylan’s EpiPen Medicaid rebates. U.S. Senator Chuck Grassley, chairman of the U.S. Senate Judiciary Committee, last week urged the Justice Department and the Centers for Medicare and Medicaid Services to send their leaders to the hearing, which the panel has framed as an effort to hold Mylan fully accountable for underpaid Medicaid rebates. The U.S. government accused Mylan of misclassifying its EpiPen as a generic drug instead of a branded drug under ... Read More

Two Florida Pharmacies Pay $750K To Settle Whistleblower Allegations of Medicare, Medicaid Fraud

Pills - Stethoscope on Money

Two Florida pharmacies have agreed to pay the U.S. government $750,000 to settle allegations brought by a whistleblower under the False Claims Act that they overcharged Medicare and Medicaid for generic prescriptions and billed the health care programs for drugs they never dispensed. Lee Bentley III, U.S. Attorney for the Middle District of Florida, said that Lemon Bay Drugs North Inc. and Brooksville Drugs Inc. provided Medicare and Medicaid patients generic versions of certain medications, but charged the health care programs for the brand-name versions of those drugs. The settlement also resolves allegations that the pharmacies knowingly submitted false claims by ... Read More