‘Qui Tam Whistleblower’ Category

Beth Jenkins, 48, who owns several adult day care centers near Detroit, Michigan, has pleaded guilty to five counts of health care fraud and one count of conspiracy to commit health care fraud. The scheme involved $13.2 million in false claims to Medicare over a seven year period.

Jenkins and two alleged co-conspirators owned and operated two adult day care centers — Procare...

Michael Carlow, a resident of Pittsburgh, Pennsylvania, has pleaded guilty to corruption in attempting to obstruct the Internal Revenue Service (IRS). According to the Department of Justice, Carlow pleaded guilty in 1996 to tax fraud and bank fraud and received an eight year prison sentence. When Carlow was released from prison in 2002, he moved to Pittsburgh to live with Elizabeth Jones, his...

January 10, 2013 — The Securities and Exchange Commission (SEC) is aggressively pursuing securities industry professionals who seek to profit with fraudulent schemes that deprive other investors of critical information. The SEC is often tipped off to such schemes by securities insiders who notify authorities that the fraud is ongoing.

Penny Stock Securities Scheme Adds Up to Millions...

October 4, 2012 — Federal prosecutors have alleged that Wells Fargo engaged in reckless and fraudulent mortgage lending practices that cost the Federal Housing Administration hundreds of millions of dollars in insurance claims when many of those mortgage loans failed. The civil suit accuses Wells Fargo of hiding the true risk of at least 6,320 mortgages insured by the Federal Housing...

October 1, 2012 — Dentist Kristi Ayn Liebau-Grassi has pleaded guilty to felony charges that she billed the Pennsylvania Medicaid Program for procedures that were medically unnecessary or that were not actually provided. If the case had gone to trial, Dr. Liebau-Grassi would have faced many of her former patients and their parents in court. The alleged fraud occurred between 2008 and 2011,...

Jean-Luc Veraguas, a patient broker from the Miami area, has been sentenced to 18 months in prison for his role in a $200 million Medicare fraud scheme. Mr. Veraguas has also been ordered to pay restitution amounting to $1.8 million, jointly and severally with his co-conspirators.

Patient Broker Defrauded Medicare By Recruiting Medicare Beneficiaries.

In May 2012, Mr. Veraguas...

Louisiana resident Henry Lamont Jones, who owns multiple durable medical equipment (DME) companies, has been sentenced to serve 15 years in prison for participating in a number of Medicare fraud schemes, according to the Justice Department. Mr. Jones has also been ordered to pay restitution in the amount of $13,397,759, jointly and severally with his convicted...

Michael Lindley, a former employee of the Gallup Organization, filed a whistleblower lawsuit under the qui tam provisions of the False Claims Act alleging that the Gallup Organization overcharged the U.S. government on contracts to provide polling services. The Justice Department has announced that it will join the lawsuit.

Wisconsin neurosurgeon Arvind Ahuja has been convicted in federal court on charges of tax fraud based on Dr. Ahuja’s failure to report $8 million in income in 2009. Mr. Ahuja will not be sentenced until January 2013, and until then he is free on bond.

Dr. Ahuja moved millions of dollars from accounts in the U.S. to...