In The News

Big Brothers & Big Sisters of America Pay $1.6 Million Settlement to Resolve False Claims Allegation

Back in January of this year, the Big Brothers and Big Sisters of America Corporation agreed to pay the government $1.6 million to resolve false claims allegations for funds that were awarded to it by grants from the Department of Justice. Those grants were intended to help at risk children. “Organizations such as Big Brothers do great work, but in carrying out their mission they also have an obligation to the populations they serve and to the taxpayer to ensure that government grant funds are used responsibly according to the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer at the time. Mizer head’s the Justice Department’s Civil Division.

Since 2004, Big Brothers have received millions of dollars in grants from the Justice Department to help initiatives designed at aiding “at-risk” children. A condition of those grants was that Big Brothers maintain sound accounting and financial management systems that would assure those funds be used for their intended purpose. The government alleged that Big Brothers violated these guidelines with respect to three grants awarded to the organization by the Justice Department from 2009 to 2011. The United States alleged that grant funds were improperly commingled with general operating funds. It was further alleged that by failing to separate these expenditures Big Brothers failed to ensure that the funds were used for these intended purpose. The allegations were the focal point of a 2013 audit of the grants performed by the Department of Justice Office of the Inspector General. Since then, Big Brothers have replaced its management team and begun implementing polices that are in line with government regulations.

“We appreciate the support of the U.S. Attorney for the Eastern District of Pennsylvania and the Civil Division in working with us on these kinds of cases,” said Department of Justice Inspector General Michael E. Horowitz at the time. “The OIG’s auditors and investigators will continue to work with each other closely to uncover misuses of grant funds, and with our law enforcement partners to ensure that justice is served.” As part of the $1.6 million settlement, Big Brothers agreed to institute a compliance program that requires the organization to engage in regular audits, establish a compliance team, an employee code of conduct, whistleblower polices and a disciplinary policy for employees who fail to disclose abuses of federal grant funds. The compliance program also provides for regular employee training on theses polices and risk assessment tools to detect abuses in the system.

If you have knowledge of fraud that has been committed against the government or one of its agencies you are encouraged to report it and to contact a Whistleblower law firm. A qui tam attorney can advise you of your rights and gauge the strength of your case.

2016-11-10_1104


Educational Company Agrees to Pay the Government More than 95 Million to Settle Claims of Consumer Fraud

As 2016 comes to a close its time to look back on one of 2015’s more interesting cases involving False Claims Act violations in the field of education. Nearly a year ago, the government announced a settlement that it had reached with Education Management Corporation (EDMC). The $95.5 million settlement resolved allegations that EDMC had violated federal and state False Claims Act provisions by falsely certifying that it had been in compliance with Title IV of the Higher Education Act (HEA). Moreover, EDMC had also been accused of violating parallel state statutes. “This historic resolution exemplifies the Justice Department’s deep commitment to protecting precious public resources; to defending American consumers; and to standing up for those who are vulnerable to mistreatment, abuse, and exploitation,” said Attorney General Loretta E. Lynch at the time.

The main allegation in the case is that EDMC had unlawfully recruited students by running a high pressure operation where admissions personnel were paid purely on the number of students they enrolled. This was in violation of HEA’s Incentive Compensation Ban (ICB). The global settlement reached back then also encompassed an investigation by a group of state Attorneys General of consumer fraud allegations involving deceptive recruiting practices. “Now more than ever, a college degree is the best path to the middle class, but that path has to be safe for students,” said U.S. Education Secretary Arne Duncan back then. Student enrollment across EDMC’s schools exceeds 100,000 students.

The settlement resolved four separate False Claims Act lawsuits that were filed in federal court in Pittsburg, Pennsylvania and Nashville, Tennessee under the qui tam, or whistleblower, provisions of the act. This provision allows individuals to sue on behalf of the government and to then share in any monetary recovery. Specifically, the government claimed that from 2003 to 2015, EDMC falsely certified to the U.S. Department of Education and various state offices of higher education that it had complied with the ICB in order to be eligible to receive the federal grant and loan dollars that compose most of EDMC’s revenue. In fact, according to the complaint, EDMC ran an aggressive sales business and paid its recruiters based only on the number of students they enrolled. As a result of these allegedly false certifications, EDMC garnered more than 10 years’ worth of federal and state grant and loan dollars. The global settlement with EDMC also resolved three additional federal FCA lawsuits in which the government did not intervene, all involving various violations of Title IV of the HEA by EDMC. “Improper incentives to admissions recruiters result in harm to students and financial losses to the taxpayers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, then head of the Justice Department’s Civil Division.

Lastly, the settlement also resolved a consumer fraud investigation by an alliance of 40 state Attorneys General, into EDMC’s misleading recruiting practices. This settlement required EDMC to undertake various compliance obligations, including making detailed disclosures of its obligation to students; prohibitions on deceptive or misleading recruiting practices and oversight by an administrator to ensure compliance. The proceeds from the settlement were shared among the United States, the co-plaintiff states and the whistleblowers and their counsel in the four False Claims Act cases. The United States received $52.62 million from the settlement and paid $11.3 million collectively to the relators in the four qui tam cases. If you have knowledge of fraud that has been committed against the government or one of its agencies you are encouraged to report it and to contact a qui tam law firm. An attorney there can advise you of your rights and gauge the strength of your case.

2016-10-26_1152


Omnicare Pharmacy Agrees to Pay $28 Million to Settle Kickback Allegations

The government’s crackdown on health care fraud has uncovered some rather crafty financial arrangement between companies that are alleged to have engaged in illegal activities. This was demonstrated when earlier this week the Justice Department announced that Omnicare, Inc – the nation’s largest nursing home pharmacy – had agreed to pay $28.125 million to resolve kickback allegations from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug, Depakote, for nursing home patients. CVS Health Corporation acquired Omnicare in 2015 after Omnicare ended the conduct that gave rise to the settlement. “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.

Nursing homes rely on pharmacists, such as those working for Omnicare, to review patient charts and prescribe needed medications. The settlement resolves allegations that Omnicare solicited and received kickbacks from Abbott for its anti-epileptic drug Depakote. According to the government, Omnicare disguised its kickbacks from Abbott in several ways. Abbott allegedly paid Omnicare “grants” and “educational funding” which were in fact monetary gifts meant to induce Omnicare to recommend Depakote. Omni disguised this monetary arrangement with a program it called “Re*View” which was claimed by Omnicare to be a “health management” and “educational program”. Moreover, in internal documents Omnicare allegedly referred to this program as its “one extra script per patient” program. The government also alleged that an agreement between Omnicare and Abbott established that Omnicare would be entitled to increases levels of rebates from Abbott based on the number of nursing home residents serviced and the amount of Depakote prescribed per patient. Finally, the complaint alleged that Abbott funded Omnicare management meetings and made other payments to local Omnicare pharmacies.

In 2012 Abbott, along with numerous states, entered into a $1.5 billion resolution of kickbacks to nursing home pharmacies, including Omnicare and PharMerica Corp. In October 2015, PharMerica agreed to pay $9.25 million to the United States and numerous states to resolve civil liability under the False Claims Act for the alleged kickbacks from Abbott.  The settlement announced earlier this week resolved Omnicare’s role in that alleged kickback scheme. “It is disturbing that any health care corporation would pay kickbacks that corrupt the professional medical decision making process in order to pad their profits,” said Special Agent in Charge Nicholas DiGiulio of the Department of Health and Human Services Office of Inspector General (HHS OIG). The Omnicare settlement, along with the prior settlements with Abbott and PharMerica, resolved allegations in two lawsuits filed in federal court in the Western District of Virginia. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Meredith McCoyd, a former Abbott employee and whistleblower who filed the original lawsuit, will receive $3 million from the federal share of the settlement amount.

The settlement is an example of the government’s emphasis on combating health care fraud and makes another victory for the Health Care Fraud Prevention Action Team (HEAT) initiative, which was launched back in May 2009 by the Attorney General and the Secretary of Health and Human Services. If you know of fraud that has been committed against the government or one of its agencies you are encouraged to report it. You are also advised to contact qui tam law firm. A qui tam lawyer can explain your rights under the False Claims Act.

2016-10-19_1309


Vibra Healthcare Agrees to Pay $32.7 Million to Resolve Allegations that it was Responsible for Medically Unnecessary Services

Allegations of fraudulent billing seem to be a recurring theme as the government’s crackdown on Medicare fraud continues. This was illustrated when late last month the Department of Justice announced that Vibra Healthcare LLC had agreed to pay $32.7 million to resolve claims that it violated the False Claims Act when it billed Medicare for services that were deemed to be medically unnecessary. “Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”

The government alleged that between 2003 and 2013 Vibra admitted numerous patients to five of its long standing term care hospitals (LTCHs) and to one of its inpatient rehabilitation facilities (IRFs) who did not display symptoms that would qualify them for admission. Additionally, Vibra is also alleged to have extended the stays of its LTCHs patients when it was medically unnecessary for it to do so. Finally, Vibra was alleged to have ignored the recommendations of its own clinicians regarding when and if patients were ready to be discharged. Vibra has been made to enter into a chain-wide corporate integrity agreement (CIA) with the Inspector General of the U.S. Department of Health and Human Services. (Vibra owns and operates approximately 36 LTCHs and IRFs in 18 states.)

“OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) at the time. The settlement resolves a lawsuit that was filed by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan, under the qui tam or whistleblower provisions of the False Claims Act. Under the False Claims Act private parties are able to file an action on behalf of the United States and to receive a portion of any recovery. Daniel will receive at least $4 million.

The settlement is yet another example of the government’s ongoing efforts to combat healthcare fraud through its Health Care Fraud Prevention and Enforcement Action Team initiative. This unit was announced back in May of 2009 by the Attorney General and the Secretary of Health and Human Services. If you know of fraud that is being committed against the government or one of its agencies you are encouraged to report it and to contact a qui tam lawyer. A qui tam lawyer will be able to determine if you are able to file a lawsuit on behalf of the government.

2016-10-19_1309


US Supreme Court Affirms a Legal Theory Involving False Claims Act

As the Justice Department’s initiative against healthcare fraud continues unabated, the government and healthcare providers have received some clarification from the Supreme Court about a legal theory that affects both. Back in June of this year, the U.S. Supreme Court unanimously ruled in support of a legal theory called “implied certification.” The case – ‘Universal Health Services v. Escobar’ – involved a healthcare provider who had argued that it should not have been held liable for fraud because they failed to comply with regulations never explicitly stated by the government. “Implied certification” basically means that liability can be imposed upon a contractor who has engaged in a lie by omission, such as failing to disclose its noncompliance with the act.

The court supported the theory of “implied certification” but only under two conditions: The first is that healthcare providers must make “specific representations about the goods or services provided,” and second, an organization’s failure to reveal noncompliance with “material” requirements must equate to “misleading half-truths.” “Implied certification” has been the basis for many lawsuits brought by the government against healthcare providers it has accused of False Claims Act violations. The case also affects whistleblowers and Whistleblower lawyers in that many of the suits brought by the government against healthcare providers have come from information submitted by whistleblowers.

The result of the decision is that the though the government did not set forth a simple formula for reaching a clear outcome in every fraud case, it did set standards that are not subject to change from case to case. ‘Universal Health Services vs. Escobar’ involved a teenager who, after receiving psychiatric care from Arbour Counseling Services – a subsidiary of Universal Health Services – eventually died from an adverse drug reaction. Arbour had treated the patient – a Medicaid enrollee – in its facility which contained few doctors who were licensed mental health professionals. Moreover, it was found that the patient had minimal supervision from an unlicensed staff that nevertheless counseled and prescribed drugs to him. This was in violation of state and federal standards. After first remanding the case back to the appeals court, The Supreme Court supported the “implied certification” theory meaning that healthcare providers could still be liable for False Claims Act penalties even if they violated Medicare and/or Medicare rules that aren’t related to conditions of payment. Healthcare providers have complained that the set of regulations involved in False Claims Act cases is confusing, but this ruling helps clarify the issue of materiality in such cases.

 

2016-10-07_1327_001


Florida Man Convicted in Multimillion-Dollar Health Care Fraud Scheme

The government’s crackdown on Medicare and Medicaid fraud has uncovered some very elaborate schemes resulting in millions of dollars in losses for those agencies. This was demonstrated this week when the Justice Department and several other agencies including the FBI and HHS, announced that a jury had convicted the owner of Gold Care Home Health Services – a home health agency based in Florida – for his participation in a health care fraud and money laundering scheme involving Medicare. Specifically, the defendant – Pilar Garcia Lorenzo – was convicted by a jury of conspiracy to commit health care fraud and wire fraud and conspiracy to commit money laundering. Sentencing in the case has been scheduled for Jan. 5, 2017.

According to evidence brought forth by the government, Gold Care submitted millions of dollars worth of false claims to Medicare during the summer of 2014. The claims were for services that had never been provided nor legitimately prescribed by a physician. These fraudulent claims, it is alleged, resulted in Medicare reimbursing Gold Care for approximately $2.5 million. Moreover, the government proved that Garcia used a “straw” owner in order to execute and conceal her fraudulent activity. As for the money laundering charges, the evidence showed that Garcia moved $2 million of Medicare monies through a shell company located in Hialeah, Florida by way of cash transactions.

The case was investigated by the FBI and HHS-OIG as part of the Medicare Fraud Strike Force and other cooperating state and federal agencies. The Medicare Strike Force, which was formed in March of 2007, has charged nearly 3,000 defendants in cases involving Medicare fraud. Collectively those defendants have billed Medicare over $10 billion. Defendants who have been accused of healthcare fraud should contact a False Claims Act lawyer for representation. It is the job of a False Claims Act attorney to give counsel to defendants in such cases. If, on the other hand, you know of fraud that has been committed against the government or one of its agencies, you are encouraged to report it at www.stopmedicarefraud.gov.

brand


Tenet Healthcare Corporation Agrees to Pay More Than $513 Million for Defrauding the United States and for Taking Kickbacks

Hospitals have often been at the center of alleged fraudulent activities committed against the government. Sometimes these trusted institutions have even conspired with each other to defraud patients as was demonstrated when earlier this week when the government announced that the chain Tenet Healthcare Corporation and two of its subsidiaries have agreed to pay more than $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the government and to accept kickbacks for patient referrals. Additionally, two of Tenet’s subsidiaries, Atlanta Medical Center Inc. (AMCI) and North Fulton Medical Center, Inc., (NFMCI) have agreed to plead guilty to conspiracy to defraud the US and to pay health care kickbacks and bribes. These actions are in violation of the Anti-Kickback Statute (42 USC § 1320a-7b (b)). Up until April 2016 both AMCI and NFMCI owned and operated acute care hospitals in Atlanta.

The information in the civil and criminal complaints alleges that AMCI, NFMCI, Spaulding Regional Medical Center Inc., and Hilton Head Hospital all paid bribes and kickbacks to the owners of prenatal care clinics which served mostly undocumented women in return for referrals of those patients for Tenet’s labor and delivery services. These alleged bribes and kickbacks helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on those referrals. The criminal information alleges that some expectant mothers were told that Medicare would cover the cost of their prenatal care only if they delivered at one of Tenet’s hospitals. Additionally, the criminal information alleges that these untrue assertions resulted in expectant mothers traveling greater distances from their homes than necessary which in turn endangered patient health and safety.

Finally, the criminal information charges Atlanta Medical Center Inc., and North Fulton Medical Center Inc., with conspiring to defraud HHS. The criminal information further alleges that executives at Atlanta Medical Center, Inc., North Fulton Medical Center, Inc., et al concealed unlawful payments from HHS-OIG during the pendency of a corporate integrity agreement.

Tenet and its subsidiaries (collectively TSHM) entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office of the Northern District of Georgia related to the criminal charges in the case. Under the NPA, THSM and Tenet will avoid prosecution if they cooperate with the government’s ongoing investigation and enhance their compliance and ethics program to avoid such behavior in the future. Moreover, Tenet has agreed to retain an independent compliance monitor in order to address and prevent a recurrence of similar violations going forward. The term of the hospital’s obligations under the NPA is three years; however the NPA can be extended.

As for the civil settlement, Tenet has agreed to pay $368 million to the government and the states of Georgia and South Carolina to resolve the false claims allegations. The lawsuit was filed by Ralph D. Williams a resident of Georgia under the federal and Georgia False Claims Acts. The act gives whistleblowers like Mr. Williams the right to file a lawsuit on behalf of the government in cases of fraud. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million. The federal share is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125.

“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force.  This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”

“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney John Horn of the Northern District of Georgia. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals.  In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”

This settlement illustrates the government’s crackdown on health care fraud and marks a further achievement of its Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative. This initiative began back in 2009 and was announced by the Attorney General and the Secretary of HHS. If you know of fraud that has been committed against the government or one of its agencies you are encouraged to report it and to contact a Whistleblower law firm. The law gives certain rights to a person who becomes a Whistleblower. Medicare fraud has been the subject of a number of HEAT’s investigations.

2016-10-07_1327 2016-10-07_1327_001


The Justice Department Intercedes into a Suit Against Energy & Process Corporation Alleging it Used Defective Materials and Quality Control Measures in Constructing a DOE Facility

Last week the government intervened into a False Claims lawsuit against Energy & Process Corporation (E&P), alleging that E&P knowingly failed to perform required quality assurance procedures and that it supplied defective steel reinforcing bars (rebar) in its construction of a Department of Energy (DOE) nuclear waste treatment facility. “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.

 

Specifically, the government alleges that although DOE paid E&P a premium to supply it with rebar that met strict regulatory standards, E&P failed to perform most of the necessary quality assurance measures. Moreover, the government alleges that E&P falsely certified that they had met the required procedures. Finally, the lawsuit against E&P alleges that a third of the rebar supplied by the company and that it used in constructing the nuclear waste treatment facility was later found to be defective.

 

“To ensure that the nuclear facility would be safe, the government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia. “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government. In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the government are identified and held responsible.” The initial lawsuit was about by Deborah Cook, a former employee of the prime contracting building the DOE’s waste treatment facility under the qui tam, or whistleblower provision of the False Claims Act. Under this act private citizens can sue on behalf of the government in cases of fraud committed against it and share in any recovery. If you know of fraud that has been committed against a governmental agency you are encouraged to report such activity. You are also encouraged to contact a Qui tam law firm so that your interest can be protected. Qui tam law firms specialize in False Claims Act cases and can advise you should you find yourself in need of whistleblower protection.warren-benson-law2

 


North American Health Care Inc. Agrees to Pay a $28.5 Million Settlement for Claims of Medically Unnecessary Rehab Services

The government’s crackdown on health care related fraud often follows a labyrinth of individuals and companies who conspire against its agencies. This was demonstrated when last week, the Department of Justice announced that North American Health Care Inc. (NAHC), its chairman of the board, John Sorenson, and its senior vice president of Reimbursement Analysis, Margaret Gelvezon had all agreed to pay a total of $30 million to resolve False Claims Act violations. It is alleged that the parties caused the submission of false claims to the government for rehabilitation services to government health care programs that were medically unnecessary. The recipients of these services were residents of NACH’s skilled nursing facilities (SNF). Under the terms of the settlement, NAHC agreed to pay $28.5 million, Mr. Sorensen agreed to pay $1 million and Ms. Gelvezon has agreed to pay $500,000.

 

“Medicare patients and those insured by TRICARE are entitled to receive care necessary for their clinical needs and not the financial needs of their health providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. NAHC provides inpatient rehabilitation, physical, occupational and speech services through its 35 SNF which mostly operate in the state of California. The government alleges that NAHC caused false claims to be submitted to Medicare and TRICARE and that it then sought payment for unnecessary rehabilitation therapy services provided at its facilities.

 

Moreover, the government contends that Gelvezon, as an officer at NAHC, created and participated in an improper billing scheme. The government also maintains that Sorensen participated in this scheme at the NAHC facilities. The conduct is alleged to have occurred from January 21, 2005, to October 31, 2009, for all of the NAHC SNFs and continued from November 1, 2009, to December 3, 2011, for three of the SNFs in the Northern District of California area. “Skilled nursing facilities such as NAHC treat some of the most vulnerable patients in the health care system. These facilities, and the individuals who run them, will be held accountable when they provide treatment based on financial motivations instead of the patients’ needs,” said U.S. Attorney Brian J. Stretch for the Northern District of California.

 

NAHC has also agreed to enter into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG as part of its settlement agreement. The CIA applies to all facilities managed by NAHC and requires an independent review organization to evaluate therapy services billed to Medicare by NAHC. The settlement comes about in the wake the government’s emphasis on combating health care fraud through its Health Care Fraud Prevention and Enforcement Acton Team (HEAT). The initiative was announced back in May of 2009 by the Attorney General and the Secretary of Health and Human Services. One tool of this effort has been the False Claims Act. If you know of fraud that has been or is being committed against the government in one form or another, you are advised to report it to the proper agencies. You are also encouraged to contact a false claims act lawyer.  A false claims act attorney will be able to advise you as to your rights and can also help you understand all aspects of the law including the Whistleblower Protection Act. The Whistleblower Protection Act allows private citizens to sue on behalf of the government over fraud they have helped to uncover. It also entitles private citizens to a portion of any recovery.brand


Whistleblower in the Deutsche Bank Case Rejects an $8 million Award

It’s almost unprecedented that a recipient who is in line to receive an award as a result of his whistle blowing ends up rejecting that award.  Yet, this is the case with Eric Ben-Artzi who exposed alleged securities law violations at Deutsche Bank AG. Last month, Ben-Artzi wrote an op-ed piece in the Financial Times stating his intention to do just that. In it he states that the reason for relinquishing the award is his frustration that the government is fining the company and not going after individuals responsible for the alleged illegal conduct. Recently, there has been growing concern that while prosecution of such cases has risen individuals have often escaped prosecution. “…Deutsche did not commit this wrongdoing. Deutsche was the victim. To be precise, the bank’s shareholders and its rank-and-file employees who are now losing their jobs in droves are the primary victims,” said Ben-Artzi recently. The Whistleblower (or qui tam) Act allows private citizens to sue on behalf of the government and to recover a portion of any award.

Specifically, it has been alleged that Deutsche Bank failed to update the market value of certain credit default swap transactions, known as super senior trades. Ben-Artzi has claimed that the bank thus masked mounting losses as the market value sank and that this hid more than $1.5 billion in losses. In May of this year Deutsche Bank agreed to pay a $55 million settlement with the Securities and Exchange Commission (SEC).  Deutsche Bank and its subsidiaries have been involved in several regulatory investigations in the past. In April of 2015, Deutsche Bank’s London subsidiary pled guilty in connection with manipulating the LIBOR (London Interbank Offered Rate). At the time Deutsche Bank and its subsidiary agreed to pay the US government $775 million dollars in civil penalties.

“Deutsche Bank secretly conspired with its competitors to rig the benchmark interest rates at the heart of the global financial system,” said Assistant Attorney General Baer at the time. “Deutsche Bank’s misconduct not only harmed its unsuspecting counterparties, it undermined the integrity and the competitiveness of financial markets everywhere.” Recently, former Secretary of State and current presidential candidate Hillary Clinton has said, “There has been no bank too big to fail and no individual too big to jail.” If you know of fraud that is or has been committed against the government, you are encouraged to contact a qui tam law firm. Qui tam lawyers can help you understand your rights in these cases.brand