June 28, 2019 - Posts

Whistleblower Roundup – June 28th, 2019

A look back at the week’s news and developments affecting whistleblowers.

 
Encompass Health Agrees to Pay $48 Million to Resolve False Claims Act Allegations

Encompass Health Corporation – the nation’s largest operator of inpatient rehabilitation facilities (IRFs) – has agreed to pay $48 million to resolve False Claims Act allegations related to providing false information to Medicare. The United States alleges that Encompass provided Medicare with false information to maintain their status as an IRF and to earn a higher rate of reimbursement. The settlement resolves three separate qui tam whistleblower lawsuits. The whistleblowers’ collective share of the settlement will be $12.4 million. To read more from Reuters, click here.

 

CFTC Whistleblower in Cargill Case Received $2.5 Million Award

The U.S. Commodity Futures Trading Commission awarded $2.5 million to a whistleblower that identified misleading pricing at Cargill- one of the world’s largest traders of agriculture commodities – related to swap trades. An investigation found that the company provided inaccurate information to customers on thousands of complex swaps, including hiding as much as 90% of its expected revenue. Under the CFTC Whistleblower Program, whistleblowers are eligible to share 10% to 30% of the recovery from security violations. To read more from the StarTribune, click here.

 

Owner of Tampa-Area Marketing Company Found Guilty in $2 Million Medicare Fraud Scheme

A federal jury found the owner of DBL Management LLC – a medical marketing company – guilty for his role in a $2.2 million Medicare fraud scheme involving payment of kickbacks and bribes. The kickbacks and bribes were made to medical clinics in exchange for the referral of DNA swabs from Medicare beneficiaries. To read the full DOJ press release, click here.

 

 

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