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Fannie Mae 2 articles

Amid newer whistleblower laws, False Claims Act remains top fraud fighter

Earlier this month, health care conglomerate Johnson & Johnson agreed to pay the U.S. government more than $2.2 billion in criminal and civil fines to resolve whistleblower accusations that it illegally promoted its antipsychotic drug Risperdal to children, the elderly, and people with developmental disorders. The settlement, one of the largest in U.S. history involving health care fraud, demonstrates that the federal False Claims Act remains the government’s most powerful tool in recovering taxpayer funds taken from government-subsidized programs through fraudulent practices. On November 4, the U.S. Justice Department announced it had reached an agreement with Johnson & Johnson to ... Read More

Whistleblower may receive $1.6 million reward for exposing Countrywide mortgage fraud

A former Countrywide executive who exposed questionable lending practices at the company may collect a $1.6-million dollar reward under a 1989 law that was passed amid the savings and loan (S&L) crisis. Edward O’Donnell filed a whistleblower complaint in February 2012 under the federal False Claims Act, which allows individuals to sue on behalf of the U.S. government when they have witnessed fraud against taxpayer-funded programs. In return, whistleblowers share 15 to 30 percent of the recovery. The U.S. intervened in the lawsuit in October of the same year. Mr. O’Donnell alleges Countrywide, a division of Bank of America, fraudulently ... Read More