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Fraud in Connection With Contract Preferences or Set-Asides for Small Businesses or Businesses Owned by Veterans, Service-Disabled Veterans, Women or Disadvantaged Minorities, Part II

In Part I of this blog series, we identified various government programs that are often the target of fraud. In this blog post, we will examine the types of fraud that are committed against these programs, as well as recent case examples of fraud. Types of Fraud Cases alleging violations […]

Fraud in Connection With Contract Preferences or Set-Asides for Small Businesses or Businesses Owned by Veterans, Service-Disabled Veterans, Women or Disadvantaged Minorities, Part I

For decades now, the federal government has had various programs in place to provide preferences to businesses owned by groups to which the government wants to provide special opportunities. We wrote about this in a previous post and write now to expand on and update that post. In Part I […]

“Government Knowledge Inference” Under the False Claims Act

Government knowledge no longer serves as an absolute bar to False Claims Act (“FCA”) actions as it did in the past. Now, the focus is on the defendant’s state of mind. Courts consider whether at the time of submitting the false claims to the government, the defendant fully cooperated and […]

Are There “Special” Frauds Involving Specialty Drugs? Part II

In Part I of this blog series, we defined the term “specialty drugs” and addressed whether fraud is common in the specialty drugs arena. In this blog post, we will examine how the federal Anti-Kickback Statute impacts specialty drug fraud, whether there are special frauds involving specialty drugs, and what […]

Are There “Special” Frauds Involving Specialty Drugs? Part I

If you work in an industry involving pharmaceuticals, whether as a drug sales rep, a PBM employee or a direct healthcare provider, you’ve probably heard a lot about specialty drugs.  But what exactly are they?  Is fraud common in this area?  How do you know if your employer is playing […]

Third Circuit Decides Important Medical Necessity False Claims Act Case Brought By Qui Tam Whistleblower

On May 1, 2017, the United States Court of Appeals for the Third Circuit decided U.S. ex rel. Petratos v. Genentech, Inc. et al., C.A. No. 15-3805 (3rd Cir. 2017), a qui tam lawsuit filed pursuant to the federal False Claims Act (“FCA”) and the False Claims Acts of the […]

Misclassification of Employees May Form the Basis of an IRS Whistleblower Complaint, Part II

In Part I of this blog series, we discussed which taxes employers must withhold from employees, as well as the Internal Revenue Code’s definition of “employee.” In this blog post, we will review the factors that determine whether an individual is an employee or independent contractor and discuss the consequences […]

Misclassification of Employees May Form the Basis of an IRS Whistleblower Complaint, Part I

Under the Internal Revenue Code, employers must withhold federal income tax as well as social security tax from the wages they pay to employees. In addition, employers must pay social security and unemployment taxes on behalf of their employees.[1] “These taxes are known collectively as ’employment taxes.'” Greco v. IRS, 380 F. […]

How to Report Tax Fraud

The Internal Revenue Service (“IRS”) has had a reward program for whistleblowers since 2006. 26 U.S.C 7623. Several individuals have received rewards in the seven and eight digit range. The process is simpler than filing a False Claims Act (“FCA”) complaint, and typically, very little is required from the whistleblower […]

Violations of “Buy American” Laws Can Be Grounds for Lawsuits Under the False Claims Act

In a two-part Executive Order (“EO”) issued earlier this month, the president took steps towards his campaign promise to promote “Buy American” and “Hire American” policies. This post focuses only on the “Buy” side of the EO.  Any tightening of Buy American policies at the federal procurement level raises the […]

Advice to a Potential Relator About Taking Documents from an Employer to Support a False Claims Act Lawsuit

Common Sense Advice Your Client Can Understand It is important to advise your Relator client about the parameters of securing documents and information derived from an employer’s or former employer’s computer system. Many clients still work at the company or have left and some have signed confidential agreements. They are […]

Another Appeals Court Limits One of the Barriers to a Whistleblower Lawsuit

In United States ex rel. Hayes v. Allstate Ins. Co., et al., Case No. 16­705, 2017 WL 1228551 (2d Cir. Apr. 4, 2017), the Second Circuit addressed an objection that it lacked jurisdiction over a whistleblower’s qui tam suit pursuant to what is known as the “first-to-file” rule.   31 U.S.C. § 3730(b)(5). That provision of the False Claims Act (“FCA”) states that “[w]hen a person brings an action […]