Author Archives: Staff

According to the Sixth PwC global economic survey, whistleblowers are less likely to report wrongdoings taking place in the workplace because of the fear of retaliation. The survey notes that companies could improve whistle-blowing mechanisms by making employees more confident in the systems, assuring them that all channels are available to report crime. PwC forensic services director Trevor White states, “Often it is a junior employee who has to report a senior employee, the whistle-blower is victimized and nothing happens to the person who has committed the crime.”

Read at: http://www.iol.co.za/mercury/whistle-blowers-wary-of-reporting-workplace-crimes-pwc-survey-finds-1.1189268

The U.S. has filed a civil mortgage fraud lawsuit against Allied Home Mortgage Capital Corporation, its affiliate, Allied Home Mortgage Corporation, Allied President and CEO Jim Hodge, and Executive Vice President Jeanne Stell. Under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the U.S. Government seeks damages and civil penalties for hidden misconduct in terms of residential mortgage lending practices. Until now, the Federal Housing Administration (FHA) has paid $834 million in insurance claims for fraudulent mortgages originated and certified by Allied—which are now in default.

Read more at: http://www.empirestatenews.net/News/20111102-3.html

Seventeen arrests were made on November 2nd in clinics based in Brooklyn and Queens. These health clinics allegedly defrauded the Government of $95 million in Medicare dollars. The fraud scheme namely involved trading free spa treatments, dance lessons, and other freebies for personal information provided by Medicare beneficiaries. In addition, the clinics never performed procedures that were billed to Medicare and gave cash kickbacks to patients to undergo unnecessary treatments and tests.

Read more at: http://www.nbcnewyork.com/news/local/Medicare-Arrest-US-Brooklyn-Attorney-Indictment-Federal-Charge-Fraud-133065208.html

A federal judge has imposed a 50-year prison sentence on a Florida executive, Lawrence Duran, for targeting patients with dementia in a $205 million Medicare fraud scheme. According to the Department of Justice, Duran’s sentence is the longest Medicare Fraud Strike Force sentence ever given. Assistant Attorney General Lanny A. Breuer of the Criminal Division states, “[f]or years, Mr. Duran stole millions of taxpayer dollars by defrauding Medicare and preying upon vulnerable citizens suffering from Alzheimer’s disease, dementia and substance abuse.”

Read more at: http://www.mcknights.com/life-in-prison-for-fraudulent-company-exec/article/215461/

New York City has agreed on a $70 million settlement with the Department of Justice for overbilling Medicaid’s Personal-Care Services Program. The program provides basic essentials for selected Medicaid patients, such as cleaning, shopping, and medical aid. The settlement acknowledges that for almost a decade, the city’s personal-care services allowed people to receive the 24-hour personal care program without proper assessments from medical personnel. Although individuals like U.S. Attorney Preet Bharara believe that the settlement is fair, especially after how much was defrauded, others like NY City Corporation Counsel Michael Cardozo state, “[t]he City remains deeply concerned about the use of the False Claims Act to resolve funding disputes among governmental entities.”
Read more at: http://newyork.ibtimes.com/articles/241406/20111101/new-york-pays-70-million-false-medicaid.htm