Category

Consumer Fraud 1437 articles

Whistleblower Case Recovers $14.5 Million From Finance of America Mortgage

A whistleblower was instrumental in helping the U.S. recover $14.5 million in Federal Housing Administration (FHA) insurance funds from Gateway Funding Diversified Mortgage Services, which Finance of America Mortgage LLC acquired in 2015. Debra McGeehan, a former quality control underwriter for Gateway, filed a lawsuit on behalf of the U.S. government under the whistleblower provisions of the False Claims Act. She alleges that Gateway knowingly originated and underwrote mortgage loans that did not qualify for FHA insurance. When borrowers defaulted on their mortgages, FHA (i.e. U.S. taxpayers) got stuck with the bill. Gateway participated as a direct endorsement lender (DEL) ... Read More

Tennessee Doctor Arrested for Opioid Fraud, False Claims

A Tennessee doctor faces 45 criminal charges related to opioid distribution, health care fraud, and money laundering, according to federal prosecutors. Dr. Samson Orusa, 56, of Clarksville, could be sentenced to up to 30 years if convicted of the federal charges. He was arrested Dec. 13 and indicted on 22 counts of unlawful distribution of a controlled substance outside the bounds of professional medical practice, 13 counts of health care fraud, and nine counts of money laundering, the U.S. Attorney’s Office for the Middle District of Tennessee announced. The government alleges that Dr. Orusa opened his pain clinic in 2014 ... Read More

Whistleblower Retaliation Case Against Oregon Lottery Goes to Trial

A former Oregon Lottery official who filed a whistleblower retaliation lawsuit against the lottery agency and the state is having his allegations heard. The trial began on Monday, Dec. 10. According to Willamette Week, Trinh C. Tran filed his whistleblower lawsuit against the lottery last year claiming that lottery director Barry Pack retaliated against him in 2016 after he talked to the Lottery Commission and the governor’s staff about former lottery director Jack Roberts’ management style. Shortly after talking with Lottery Commission member Elizabeth Carle and Gov. Kate Brown’s staff, Gov. Brown fired Mr. Roberts. Mr. Pack, who worked as ... Read More

New York Law Firm Pays U.S. $6.1 Million to Settle False Claims Case

A New York law firm specializing in mortgage foreclosures has agreed to pay the U.S. more than $6 million to settle allegations that it caused the submission of false claims to Fannie Mae with inflated service expenses. The U.S. Attorney for the Southern District of New York announced the agreement, saying that Rosicki Rosicki & Associates and its wholly owned affiliates, Enterprise Process Service and Paramount Land, “systematically generated false and inflated bills for foreclosure-related and eviction-related expenses,” and then caused the submission of those expenses to Fannie Mae. Fannie Mae approved Rosicki to perform legal work in connection with ... Read More

Actelion Pays $360 Million To Resolve Fraudulent Medicare Kickback Case

Actelion Pharmaceuticals has agreed to pay $360 million to resolve claims that it used a charity to pay illegal kickbacks to Medicare patients to boost sales of its pulmonary arterial hypertension drugs. In a Dec. 7 announcement, the U.S. Department of Justice said that Actelion, which became a unit of Johnson & Johnson last year, arranged to pay the Medicare co-pay obligations for thousands of patients taking its pulmonary arterial hypertension drugs Tracleer, Ventavis, Veletri, and Opsumit. Medicare requires beneficiaries to partially pay for some prescription drugs as a way to keep prescription drug costs in check, including the prices ... Read More

Nevada Cardiologist Pleads Guilty to Opioid Prescription Fraud

A Nevada cardiologist charged with widespread opioid and health care fraud pleaded guilty on Nov. 26 to one charge of illegal distribution of a controlled substance, federal authorities announced. Dr. Devendra Patel, 59, was the first physician in the state to face criminal drug distribution charges under a federal push to clamp down on opioid “pill mill” clinics and the doctors who run them. The government has stepped up efforts to beat back the rising tide of opioid addiction and death, which former U.S. Attorney General Jeff Sessions called the “worst drug crisis in American history.” Dr. Patel, who ran ... Read More

Whistleblower Sues Oregon DMV, Alleging Retaliation Over Sexual Harassment Complaints

A Salem, Oregon woman has filed a whistleblower complaint against the Oregon Department of Motor Vehicles, accusing the agency of retaliating against her for reporting sexual harassment in the workplace. The whistleblower complaint was filed in Marion County Circuit Court Nov. 8 by a woman who worked for the Oregon DMV as a document specialist. The plaintiff’s position was a temporary one, but she was interviewing last year for a permanent position as office specialist within the DMV. It was on Dec. 8, after her second interview, that she says her troubles at the DMV began. According to the Salem ... Read More

Jury Awards LAFD Whistleblower $2.75 Million in Retaliation Case

A Los Angeles Fire Department whistleblower who allegedly faced severe backlash after speaking out against waste and fraud within his station has been awarded $2.75 million by a Los Angeles Superior Court jury. Stephen Meiche, who joined the Los Angeles Fire Department in 1980, said his LAFD colleagues ostracized him and subjected him to differential treatment that diminished not just his peace of mind but threatened his safety, NBC News Los Angeles reported. Mr. Meiche, a certified diver and diver instructor for the LAFD said his troubles started in March 2014 after he complained that members of the dive team ... Read More

Duke University Close To Settling Whistleblower Case

Duke University is nearing a settlement with the U.S. government that would resolve a False Claims Act lawsuit alleging the Durham, North Carolina university received nearly $200 million in federal grants with applications and reports that included fake data. The settlement, which is expected to be disclosed in December, would bring to an end a lawsuit filed in 2015 by whistleblower Joseph Thomas, a former Duke biologist. Mr. Thomas sued Duke on behalf of the U.S. government, alleging that Duke biologist Erin Potts-Kant faked lab data that found its way into multiple other studies and papers, which provided the basis ... Read More

Whistleblower Helps Recover $5.1 Million In Medicaid Funds From Indiana Dental Chain

A whistleblower who sued an Indiana-based dental chain and its Kansas-based management company has helped the U.S. and Indiana recover $5.1 million in Medicaid funds. The whistleblower lawsuit named ImmediaDent of Indianapolis and Samson Dental Partners, LLC, which provided administrative services to the dental chain, as defendants. The complaint alleged that the companies submitted false claims to Medicaid by improperly billing tooth extractions as more costly surgical extractions, the U.S. Attorney’s Office for the Western District of Kentucky said in an announcement of the settlement. The whistleblower’s complaint also accused ImmediaDent and Samson of billing Medicaid for “deep cleanings” that ... Read More