Blog - False Claims & Whistle Blower
Two Former Civilian Military Employees and One Military Contractor Convicted in Bribery Scheme at Georgia Military Base Mar 11, 2015
Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury of bribery and fraud charges related to military trucking contracts. The employees and contractor at fault were convicted of honest services wire fraud, bribery, obstructing justice,…
Goodyear Settles SEC’s Foreign Corrupt Practices Act Bribery Charges For $16M Mar 11, 2015
Goodyear Tire & Rubber Co., one of the world’s largest tire companies headquartered in Akron, Ohio, has settled SEC charges that they violated the Foreign Corrupt Practices Act by paying bribes to make tire sales in Kenya and Angola and have agreed to pay $16 million. From 2007 to 2011,…
Former Company Officer Receives $500,000 Dollar Whistleblower Award for Reporting Fraud Case to SEC Mar 11, 2015
The Securities and Exchange Commission announced its first whistleblower award payout to a former company officer who reported original, high-quality information about a securities fraud that resulted in an SEC enforcement action with sanctions exceeding $1 million. The SEC has now awarded 15 whistleblowers since its whistleblower program began more…
Supreme Food Service Settles Criminal and Civil Qui Tam Case with DOJ Dec 16, 2014
Supreme Foodservice GmbH, a privately held Swiss company, and Supreme Foodservice FZE, a privately-held United Arab Emirates (UAE) company, pled guilty to a major fraud against the United States and agreed to resolve civil violations of the False Claims Act, in connection with a contract to provide food and water to…
DOJ Recovers Nearly $6 Billion from False Claims Act Cases in Record 2014 Year Nov 21, 2014
The Justice Department obtained a record $5.69 billion in settlements and judgments from civil cases under the False Claims Act in the fiscal year ending September 30. This is the first annual recovery to exceed $5 billion in cases under the FCA, and brings total recoveries since 2009 to $22.75…
Big Banks Are Fined $4.25 Billion in Foreign Exchange Scandal Nov 20, 2014
On Wednesday, regulators in Britain, the United States and Switzerland fined a group of the world’s largest banks a combined $4.25 billion to settle civil inquiries accusing them of conspiring to manipulate the currency markets. The banks that settled with the Financial Conduct Authority of Britain and the Commodity Futures…
DOJ Collects Almost $25 Billion in Fiscal 2014—Three Times The Total from 2013 Nov 19, 2014
The DOJ reported a total $24.7 billion in fiscal 2014 from fines and penalties in its major criminal and civil work, which the DOJ said on Wednesday was more than three times the previous fiscal year's total. Much of the money collected was a result of enforcement actions by the…
SEC Publishes 2014 Annual Report to Congress on the Dodd-Frank Whistleblower Program- Number of Cases Steadily Rising Nov 18, 2014
In an effort to provide more transparency around its Dodd-Frank Act whistleblower program, on Tuesday the SEC disclosed the most detailed study of its whistleblowers to date, including the nature of the frauds they reported and their relation to the companies they blew the whistle on. In its 2014 report…
Rolling Stone: JP Morgan Chase Whistleblower Speaks Out About Biggest Case of White-Collar Crime in History Nov 10, 2014
In a recent Rolling Stone article The $9 Billion Witness: Meet JP Morgan Chase’s Worst Nightmare, whistleblower Alayne Fleischmann details what she calls “massive criminal securities fraud” in the bank’s 2006 mortgage operations, leading up to the financial crisis. Fleischmann provides personal knowledge that the firm made material misrepresentations about subprime…
Companies Hit With Bigger Penalties When Whistleblowers Involved Oct 28, 2014
According to a new study, firms pay 63% more for penalties when a whistleblower is involved in an enforcement action. The authors of the study looked at penalties for financial misrepresentation from the DOJ and SEC from 1978 to 2012 and controlled a number of characteristics that indicated the size…