Recent False Claims Act Settlements

The Department of Justice recently announced the settlements, listed below, in False Claims Act cases. The False Claims Act permits private parties to sue on behalf of the government those who falsely claim federal funds or avoid paying funds owed to the government. The United States may intervene in and take over the lawsuit. The False Claims Act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. The False Claims Act is one of the most powerful tools to combat government contract fraud. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

Gilbane Building Company to Pay $1.1 Million to Resolve False Claims Allegations

Gilbane Building Company will pay the United States $1.1 million to resolve allegations that W.G. Mills Incorporated – a company with which Gilbane merged in November 2010 – violated the False Claims Act by creating a front company, Veterans Constructors Incorporated (VCI), in order to be awarded a Coast Guard contract that was designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs), the Justice Department announced today. The Justice Department also announced that VCI has agreed to pay the United States $50,000 plus five annual contingency payments equal to one percent of VCI’s total annual revenues to resolve these same allegations.

Thursday, March 12, 2015

Miami-Based Lender Pays $3.8 Million to Resolve Liability Relating to U.S. Export-Import Bank Loans

The Justice Department announced today that Hencorp Becstone Capital L.C. (Hencorp) has agreed to pay $3.8 million to resolve allegations under the False Claims Act that it made false statements and claims to the Export-Import Bank of the United States (Ex-Im Bank) in order to obtain loan guarantees. Hencorp is a Miami-based lender and financial services company that provides financing and other financial services to Latin American businesses.

Monday, March 9, 2015

Florida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act Allegations

Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.

Related links:

FCA Resources

If you have knowledge of False Claims Act violations and would like to know how the National Whistleblower Legal Defense & Education Fund can help you file a claim, please contact us.

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