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U.S. Justice Department 8 articles

Criminal charges pending for GM’s mishandling of defective ignition switch

According to the Wall Street Journal, General Motors (GM) may soon be facing criminal charges brought by the U.S. Justice Department to punish the company for its alleged lies regarding the decade-long defective ignition switch cover-up. GM was able to avoid class action fraud lawsuits linked to the long-delayed ignition switch recalls because of its 2009 bankruptcy restructuring.  However, the automaker’s luck might soon take a turn for the worse as federal prosecutors attempt to discern which charges will be brought and how GM will proceed, whether by pleading guilty, or making a deferred-prosecution deal. If GM were to agree to ... Read More

Astellas Pharma settles whistleblower lawsuit for $7.3 million

Astellas Pharma US Inc., which manufactures and sells pharmaceutical drugs, agreed to pay $7.3 million to the federal government to resolve claims it violated the False Claims Act. The drugmaker was charged with marketing and promoting the drug Mycamine for pediatric use, for which it did not have U.S. Food and Drug Administration (FDA) approval. The drug was therefore not eligible for reimbursement through federal health care programs. The federal government will receive $4.2 million of the settlement, and state Medicaid programs will receive $3.1 million. Mycamine is used to treat fungal infections of the esophagus in adults. The FDA ... Read More

Whistleblower receives nearly $70 million for exposing JPMorgan mortgage fraud

N.Y., N.Y. — A whistleblower who was instrumental in recovering $614 million for federal mortgage loan programs from JP Morgan Chase & Co. will receive $63.9 million as his share, according to a Reuters report. Louisiana resident Keith Edwards sued JP Morgan on behalf of the U.S. government in January 2013 under the qui tam or “whistleblower” provisions of the U.S. False Claims Act. Mr. Edwards worked for the banking giant from 2003 to 2008 as an assistant vice president. His responsibilities involved supervising a government insuring unit of the company. Mr. Edwards alleged that JP Morgan defrauded the government ... Read More

JPMorgan settles whistleblower’s allegations of mortgage fraud for $614 million

JPMorgan Chase & Co has agreed to pay the U.S. $614 million to resolve more False Claims Act allegations that it defrauded federal agencies by knowingly originating and underwriting substandard mortgage loans that failed to comply with federal insurance requirements, the Justice Department said on Tuesday. The settlement began with a whistleblower, Keith Edwards, who sued JPMorgan in January 2013 under the False Claims Act, an anti-fraud law that allows individuals to sue government contractors, suppliers, and other entities for defrauding taxpayers. In exchange, whistleblowers receive a percentage of the recovery in successfully argued cases. According to court documents, JPMorgan, ... Read More

JPMorgan, U.S. reach record $13-billion settlement over mortgage and securities fraud

The U.S. Justice Department announced Tuesday that it reached a record $13-billion agreement with JPMorgan Chase to resolve allegations that it knowingly sold faulty mortgage investments that contributed to the 2008 financial crisis. The settlement is the largest settlement between the U.S. government and a single entity in history, the Justice Department said, and the largest sum ever paid by an American company. As part of the settlement, JPMorgan admitted it made serious misrepresentations to the public, including the investing public, about its numerous mortgage-backed securities transactions. The resolution also requires JPMorgan to provide$4 billion in relief, included in the ... Read More

Dodd-Frank anti-retaliation provisions don’t apply to overseas whistleblowers, U.S. judge rules

Whistleblower provisions written into the 2010 Dodd-Frank Act do not protect overseas workers from retaliation, a New York federal judge has ruled in a case that has been closely monitored by the financial industry and legal experts in the U.S. The case involved a China-based employee Meng-Lin Liu, who filed a whistleblower complaint against his employer Siemens AG in 2011, claiming the company fired him in retaliation for raising concerns internally about fraud and other wrongdoing. Mr. Meng-Lin, a former regional compliance officer for a Chinese subsidiary of Siemens, raised concerns that employees were violating the company’s anti-graft controls as ... Read More

Justice Dept urges court to try whistleblower’s lawsuit against Lance Armstrong

Seven-time Tour de France winner Lance Armstrong, who for years illegally used performance enhancing drugs to give him an edge over competition, says the U.S. Postal Service, his biggest sponsor, should have known about his doping. The dethroned cycling champion is attempting to have a USPS lawsuit against him thrown out by arguing that USPS officials “did nothing” and continued to back him when his Tour de France received widespread media coverage. Last week, the U.S. Justice Department objected to Mr. Armstrong’s assertions, which he presented to the court in July, saying that “the government and the rest of the world” ... Read More

Honeywell under fire

Honeywell International, Inc. is under fire from the U.S. Justice Department for manufacturing defective material used in bulletproof vests used by the country’s law enforcement and military personnel. The Associated Press reports the material, Zylon Shield, degrades quickly over time, especially in hot and humid conditions, making vests in which it is used less effective or unsafe. The Justice Department has filed a lawsuit against Honeywell, saying the company had scientific data that showed Zylon Shield would not hold up long term, and sold the product to the vest manufacturer, Armor Holdings, Inc., anyway, the AP reports. The suit has ... Read More