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DRS Technical Services Inc. (DRS) will pay the government $13.7 million to settle fraud allegations, the Justice Department announced today. DRS, a Virginia-based subsidiary of DRS Defense Solutions LLC, provides a variety of wireless network solutions, security systems and telecommunication services for both the government and the private sector.

dept_justiceThe Defense Department awarded time and materials contracts to DRS between 2003 and 2012 to provide services and supplies to the U.S. Army’s Communication and Electronics Command (CECOM) in Iraq and Afghanistan. DRS allegedly submitted bills to CECOM for work that was supposed to be performed by individuals with qualifications described under the terms of the contract. According to the Justice Department, the services were performed by individuals who did not possess the necessary qualifications, causing the government to overpay for the services.

Similarly, between 2009 and 2011, DRS allegedly billed the U.S. Coast Guard’s Aviation Logistics Center for services rendered by individuals that did not have the necessary qualifications to perform the services, per the terms of the contract. This too caused the government to pay an inflated price for the services.

The claims resolved under the terms of today’s settlement announcement are based solely on allegations and carry no determination of guilt. This case demonstrates the need for defense contractor whistleblowers to come forward if they have knowledge of fraud. In this type of case, a whistleblower that helps expose fraud is entitled to up to 25 percent of any money successfully recovered by the government.

gsk-logoPharmaceutical giant GlaxoSmithKline (GSK) announced on Monday that they are looking into allegations of corruption in the United Arab Emirates. The announcement comes roughly a month after the drugmaker was hit with a $489 million fine for corruption charges in China.

Reuters got wind of the corruption allegations through an anonymous email purportedly sent by a Glaxo sales manager in the UAE. The whistleblower claims that GSK made improper payments to hospitals, clinics, pharmacies and healthcare providers in an effort to get more business. The improper payments were made in the form of educational meetings – some of which may or may not have actually occurred – and schemes that paid customers for using GSK products by giving them extra over-the-counter products.

A GSK spokesman told the media that the British drugmaker is conducting its own internal investigation into the matter. GSK is currently under investigation for similar allegations in a number of other countries in the Middle East.

These investigations come at a time when American and British authorities are making a push to stop overseas corruption by international companies. French drugmaker, Sanofi, said the company has informed American officials of corruption allegations of its own in East Africa and the Middle East. Novartis, a Swiss company, is also facing kickback accusations in the U.S.


Caremark to Pay $6 Million to Settle Whistleblower Allegations

September 29, 2014

The pharmacy benefit management company (PBM) operated by CVS Caremark Corporation will pay $6 million to settle whistleblower allegations of fraud. Whistleblower Donald Well, a former manager at Caremark LLC, accused his former employer of knowingly failing to reimburse Medicaid for prescription drug costs paid on behalf of “dual eligible” Medicaid beneficiaries. A person is [...]

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Attorney General Eric Holder Says Bigger Rewards Needed for Financial Whistleblowers

September 23, 2014

U.S. Attorney General Eric Holder would like to see the government boost rewards given to whistleblowers in the financial sector who come forward with inside information on corporate wrongdoing. Holder gave a speech last week at New York University in which he called the current maximum payout for a financial whistleblower under the Financial Institutions [...]

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Securities and Exchange Commission Announces Largest Whistleblower Reward to Date

September 22, 2014

The Securities and Exchange Commission (SEC) announced today that a whistleblower will receive a $30 million reward for providing valuable information that led to a successful enforcement action. The action in question and the whistleblower’s identity have not been made public, though the SEC noted Monday that the reward was the fourth for an international [...]

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Detroit Doctor Admits to Administering Chemotherapy to Patients Who Didn’t Need the Treatment

September 16, 2014

A Detroit doctor is facing a statutory maximum of 175 years in jail for administering unnecessary chemotherapy to patients and submitting false claims to government health care agencies and private health insurance companies. Dr. Farid Fata of Oakland Township, Michigan today pleaded guilty before U.S. District Judge Paul Borman for his role in a health [...]

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Owner of X-Ray Company to Pay $7.5 Million in Forfeiture For Role in Health Care Fraud Scheme

September 15, 2014

The owner of an X-ray company has been accused of bilking over $7.5 million from government health care agencies. Rafael Chikvashvili, the 67-year-old owner of Alpha Diagnostics, allegedly overbilled Medicare and Medicaid by submitting false claims for services that were not performed by licensed doctors, among other illegal activities. According to a federal indictment unsealed [...]

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Owner of Shreveport Outpatient Program Faces Up to 30 Years Behind Bars Over Health Care Fraud and Wire Fraud Charges

September 11, 2014

A 43-year-old woman who owns and operates a Shreveport, Louisiana-based intensive outpatient company is facing 30 years of jail time over charges of health care fraud and wire fraud. Sharon Monroe, the owner of Monroe Medical Management LLC (MMM), pleaded guilty today before U.S. District Judge S. Maurice Hicks Jr. to charges of bilking money [...]

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Owner of Miami Health Care Company Gets 75 Months Jail Time for Role in Medicare Fraud Scheme

September 8, 2014

The owner of a Miami home health care company was sentenced to 75 months behind bars for her role in a Medicare fraud scheme worth over $6.5 million. The Justice Department announced the sentencing of 64-year-old Cruz Sonia Collado in a press release issued Monday. In addition to prison time, Collado will serve three years [...]

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California Nursing Homes Accused of ‘Severely Overmedicating’ Patients

September 3, 2014

Two northern California nursing homes, owned by Arba Group, are the subjects of a False Claims lawsuit that claims they “severely overmedicated” their patients, causing injuries and death. The two homes allegedly received over $20 million in Medicare and Medicaid reimbursements between 2007 and 2012. During this time, the both homes allegedly overmedicated their patients [...]

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