Customs fraud continues to be a focus of False Claims Act enforcement. Customs fraud comes in a variety of forms, a few of which we’ve looked at in the past on this blog, including the undervaluing of merchandise, the incorrect classification of merchandise to invoke a lower duty rate, or the failure to mark goods with their country of origin. Companies sometimes…
Maryland recently took an important step in the fight against tax dodgers, as it enacted a bill that creates a tax whistleblower program similar to the successful programs administered by the Internal Revenue Service and the District of Columbia. The policy created by Maryland House Bill 804, which was enacted on June 1, 2021, and scheduled to take effect later…
On January 1, 2021, Congress overrode then-President Trump’s veto to pass the Anti-Money Laundering Act of 2020 (“AMLA”), an important new law that is designed to combat money laundering.[1] Among the provisions of the AMLA, the ban on shell companies—which, when finalized, will require most U.S. companies to report their so-called “true beneficial owner”—has received widespread media attention.[2] A part of the…
If you’re considering becoming a whistleblower, there are five important facts that you should know about qui tam cases before pursuing litigation. 1. The first one to file is the relator. For example, your department is aware of the company’s actions in defrauding the government. Over and over again, you’ve heard your colleagues complaining about your company’s actions and how someone should…
On December 1, 2020, the Council of the District of Columbia passed the False Claims Amendment Act of 2020, B23-0035 (the “Amendment”).[1] The Amendment extends the reach of DC’s existing False Claims Act to also cover tax fraud—a type of fraud that was previously excluded. This change means that whistleblowers will become able bring a qui tam suit against tax fraudsters, which they…
A recent False Claims Act settlement against a charter school demonstrates that schools and tech companies may violate the law if they engage in bid-rigging and kickbacks during the procurement process. Concept Schools, NFP, a charter school company based in Illinois, agreed to pay $4.5 million to settle claims by the Government that Concept Schools rigged the bidding for its technology vendor…
A qui tam case can be brought against a government contractor, such as a defense contractor, for violating its contract with the government. Defense contractor fraud is considered one of the most active areas of whistleblower litigation since the government spends billions of dollars on defense contracts with companies around the world. Some of the more common ways a defense contractor can…
Kickbacks are hidden financial arrangements between a person and an organization. Usually, these types of cases involve fraud in the healthcare system and can come in several forms. However, one basic principle is in every kickback case – the healthcare provider will provide some sort of benefit in return for other providers to prescribing or using that provider’s services or…
The Securities and Exchange Commission (“SEC”) recently voted to accept long-anticipated revisions to the rules governing its whistleblower program. While not all of the changes present a boon to whistleblowers, one modification clearly does—because under revised Rule 21-F6, there is now a presumption that, for many awards, the SEC will pay a whistleblower the statutory maximum award of 30 percent…
As with any lawsuit, you should have all the essential ingredients needed to make a successful whistleblower case. But sometimes, especially if you’ve never had to deal with the legal system before, there are always missing pieces or you do something that will jeopardize your case. Avoid these mistakes when you’re about to file your qui tam claim: Make sure you have the right lawyer. This…