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Qui Tam

Whistleblower Lawyer Blog

A legal blog that covers whistleblowing law, including news and events dealing with whistleblowing law.
By Finch McCranie, Esq.

Post Frequency: 4.5/day

Last Entry: November 17, 2009 at 19:09:14

IRS "Voluntary Disclosure" Program Inundated by More Than 14,000 Taxpayers

Posted on November 17, 2009
We have followed with great interest the IRS Voluntary Disclosure Program, especially after the UBS settlement created fear of discovery in many U.S. taxpayers with offshore accounts. IRS Commissioner Doug Shulman announced that the IRS Voluntary Disclosure Program was flooded with submissions by more than 14,000 taxpayers, according to the Wall Street Journal...

New SEC Whistleblower Rewards and Whistleblower Protections Approved by House Committee--But Improvements Are Needed

Posted on November 09, 2009
Since the Madoff and Stanford schemes proved ruinous to so many investors, many have asked why the SEC has no meaningful "whistleblower" program to expose wrongdoing, a topic we have written about previously. Perhaps Harry Markopolis' voice is finally being heard, albeit faintly...

New ??Health Care Fraud Enforcement Act of 2009?? Includes Health Care Whistleblower Provisions Aimed at Kickbacks

Posted on October 30, 2009
The battle against those who steal taxpayer dollars through Medicare fraud and other health care fraud took a step forward this week. The Senate is now considering the "Health Care Fraud Enforcement Act," which will enhance the government's tools used to investigate and remedy Medicare and Medicaid fraud...

Health Care Fraud Strike Force Targets Medicare and Medicaid Fraud

Posted on October 25, 2009
With the nation's health care costs growing, a DOJ and HHS initiative to combat health care fraud continues to show progress. Building on past enforcement efforts, in May 2009 the government announced its Health Care Fraud Prevention and Enforcement Action Team (HEAT), as part of what is now a Cabinet-level battle against Medicare fraud...

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New False Claims Act Amendments Strengthen Enforcement of Health Care Fraud and Procurement Fraud Laws

Posted on October 25, 2009
Defrauding the government of taxpayer dollars has gotten tougher over the past five months. Important changes to the nation's primary anti-fraud statute, the False Claims Act, took effect on May 20, 2009, when the Fraud Enforcement and Recovery Act of 2009 became law...

Part 2: IRS Whistleblower Program Report by Treasury Inspector General for Tax Administration (TIGTA)

Posted on October 08, 2009
We wrote yesterday about the just-released report on the new IRS Whistleblower Program by the Treasury Inspector General for Tax Administration (TIGTA). The "rest of the story" should be told. Some history is essential to evaluate how far the handling of whistleblower (or "informant") claims has progressed since the newly created IRS Whistleblower Office was formed in early 2007, and what is still needed...

IRS Whistleblower Program: Inspector General Urges Whistleblower Protection from Retaliation and Administrative Changes

Posted on October 08, 2009
Today the Treasury Inspector General for Tax Administration ("TIGTA") released a Report on the IRS Whistleblower Program that urges Congress to protect IRS whistleblowers from retaliation by employers, and recommends various administrative changes to the Program...

IRS Whistleblower Office Issues Latest Annual Report to Congress

Posted on September 28, 2009
The IRS Whistleblower Office has released its Annual Report to Congress, for the fiscal year ended September 30, 2008. Some highlights are below: First, the IRS Whistleblower Program has experienced explosive growth since Congress authorized these new IRS Whistleblower rewards in December 2006...

Health Care Fraud Lawyers to Analyze Recent Amendments to False Claims Act

Posted on September 26, 2009
At the "Advanced Health Law" seminar on October 9, attorneys prosecuting and defending cases of alleged health care fraud will discuss the important new amendments to the False Claims Act. I am honored to be the panelist who will discuss these important new provisions from the perspective of representing whistleblowers (known as "relators") who bring qui tam whistleblower cases under the False Claims Act...

Federal Contractor Fraud Laws To Get Tougher? ACORN Controversy Casts Spotlight on Larger Contractors That Violate False Claims Act

Posted on September 25, 2009
Outrage over misuse of public funds is a healthy reaction to those who cheat taxpayers. It can also create interesting bedfellows, as newly-introduced legislation in the House demonstrates. HR 3571, aimed at "de-funding ACORN," would ban federal contracts and most federal funds to any organization that "has filed a fraudulent form with any Federal or State regulatory agency," among other things...

Calls Continue for a "False Claims Act" for Wall Street Whistleblowers

Posted on September 20, 2009
Since the Madoff and Stanford scandals, we have written about the calls for the Securities and Exchange Commission (SEC) to establish a meaningful whistleblower rewards program. Currently, no adequate incentives exist for whistleblowers to speak up when they might have a chance to stop large scale fraud and prevent the next Madoff or Stanford debacle...

New IRS Group to Address Offshore Accounts and Other International Tax Abuses by Wealthy Taxpayers

Posted on September 04, 2009
Offshore tax abuses and tax evasion have kept the IRS quite busy of late. The fast-approaching September 23 deadline for its "voluntary disclosure program," and its agreement with UBS that will allow it to identify thousands of American taxpayers with offshore accounts, have added momentum to its efforts to combat offshore tax abuses by high net worth taxpayers...

Protecting Whistleblowers from Criminal Prosecution: The Mystery of the UBS Whistleblower's Prison Sentence

Posted on September 03, 2009
In one of two prominent whistleblower cases in the news this week, whistleblower John Kopchinski will be awarded more than $50 million for his role in exposing improper "off-label marketing" of the drug Bextra by Pfizer. Other whistleblowers also will be rewarded because of this settlement...

Latest State "False Claims Act" Is Enacted in North Carolina

Posted on September 02, 2009
We have followed closely the trend of states enacting their own versions of the nation's chief whistleblower law the False Claims Act. North Carolina has become the newest state to enact its own False Claims Act, which is reprinted below. We congratulate the State of North Carolina on a momentous accomplishment.

UBS and IRS Voluntary Discloure Program: Interesting Convergence for IRS Whistleblower Program

Posted on August 30, 2009
Offshore tax abuses have been an IRS priority for some time, but the impending September 23, 2009 deadline for the IRS "Voluntary Disclosure" program--combined with the recent announcement that UBS has agreed with the IRS to release 4,450 names of U.S...

Court Agrees with IRS That Hospital CEO Is Personally Liable for Unpaid Payroll Taxes

Posted on August 09, 2009
Health care cases that our lawyers see most often involve whistleblowers who know of violations of the False Claims Act. While we also pursue many IRS violations under the IRS Whistleblower Program, the health care industry is not the source of most of those claims...

The "Program Fraud Civil Remedies Act"--A "Mini-False Claims Act"

Posted on August 09, 2009
For a "webinar" on August 11, 2009, I have been asked to discuss not only potential liability under the False Claims Act for false or fraudulent claims to the federal government, but also what has been called the "Mini-False Claims Act": the "Program Fraud Civil Remedies Act," 31 U...

Can IRS Whistleblower Program Recover Enough to Pay for Much of Health Care Overhaul?

Posted on July 24, 2009
How to pay for health care in the United States, as costs inexorably grow? The IRS Whistleblower Program may help by narrowing the "tax gap"--the difference between taxes owed and taxes paid each year. Treasury's latest estimate is that $345 billion owed remains uncollected from those who engage in tax fraud, tax evasion, and other tax noncompliance...

Whistleblower Attorneys Discuss False Claims Act Amendments & "The Most Pressing Issues in Representing Whistleblowers"

Posted on July 12, 2009
At the 20th Annual Convention of NELA, the National Employment Lawyers Association, I recently had the pleasure of moderating a panel discussion of some of the country's top "whistleblower" lawyers. The topic was "The Most Pressing Issues in Representing Whistleblowers...

New SEC Whistleblower Program & Hedge Fund Investor Protections On Way, to Supplement IRS Whistleblower Program? Congress & SEC Consider Changes After Madoff, Stanford Schemes

Posted on July 03, 2009
Could a meaningful SEC "whistleblower" program prevent the next Madoff or Stanford debacle? The SEC and legislators are now seriously considering that question. That Madoff managed to defraud investors for so long proves that the current system is inadequate...

SEC "Bounties" for Whistleblowers--The Statute

Posted on July 03, 2009
The statute authorizing the SEC in insider trading cases to pay whistleblowers "bounties" of up to 10% of civil penalties is below. (See our separate post discussing why the SEC needs a new, meaningful whistleblower program to help stop the next Madoff scheme...

False Claims Act Amendments Become Law Today, and Justice Department Expands Health Care Fraud Task Force

Posted on May 20, 2009
Today was a beautiful day if you believe in integrity in how taxpayer funds are treated. President Obama signed into law today the Fraud Enforcement and Recovery Act of 2009, which makes important amendments to the country's most important tool for fighting fraud, the False Claims Act...

Interview with IRS Whistleblower Office Director Steve Whitlock on "Best Practices in Pursuing IRS Whistleblower Claims" Is Released

Posted on May 15, 2009
Last Fall, and again in March 2009, whistleblower lawyer blog co-author Michael A. Sullivan had the pleasure of sitting down with IRS Whistleblower Office Director Steve Whitlock, for an in-depth interview on the "best practices" for lawyers in pursuing IRS Whistleblower claims for their whistleblower clients...

Major Whistleblower Law Development--False Claims Act Amendments Pass House of Representatives, As Part of the "Fraud Enforcement and Recovery Act of 2009"

Posted on May 06, 2009
Today is an historic day--the House of Representatives has passed the Fraud Enforcement and Recovery Act of 2009 by a vote of 367-59. The Act includes long-needed amendments to the nation's primary anti-fraud law, the False Claims Act, about which we have written often...

Fraud Against TARP Funds A Real Threat, Warns Special Inspector General for TARP

Posted on April 23, 2009
We have written previously how the "bailout" measures such as TARP--the Troubled Assets Relief Program--and other "stimulus" measures must have effective oversight,disclosure, and anti-fraud provisions to protect those funds from those who look to commit fraud...

False Claims Act Amendments Gain Momentum In Bill to Combat Financial Fraud

Posted on April 21, 2009
New legislation to combat financial institution fraud, securities fraud, mortgage fraud, and other fraud and abuse is gaining momentum, and brings closer long-needed amendments to restore to its intended strength the nation's major "whistleblower" law, the False Claims Act...

Tax Evasion Using Offshore Accounts Establishes Fraud, As IRS Prevails Against Statute of Limitations Argument

Posted on April 17, 2009
A frequent question in our IRS Whistleblower cases is how the IRS Whistleblower claim is affected by the statute of limitations. In long-running violations of the tax laws, that question can determine how much of past tax liability the IRS may be able to recover...

IRS Announces New List of "Dirty Dozen" Tax Scams

Posted on April 13, 2009
In our March 7, 2009 "IRS Whistleblower Boot Camp," IRS Whistleblower Office Director Steve Whitlock mentioned that the IRS's priorities include the "Dirty Dozen"--a list of tax scams that is updated yearly. The IRS has just issued its 2009 "Dirty Dozen" list, which should be of interest to potential IRS whistleblowers...

Major False Claims Act Victory for Whistleblowers in Iraq Fraud Case: Fourth Circuit Reverses Custer Battles Decision

Posted on April 10, 2009
In a major victory today for whistleblowers reporting fraud in the Iraq reconstruction effort, the Fourth Circuit Court of Appeals reversed a trial court's decision that took away a jury verdict from the whistleblower or relator in this qui tam case under the False Claims Act...

Iraq Whistleblowers Coming Forward, as Special Inspector General for Iraq Reconstruction Estimates Billions in Fraud and Waste

Posted on March 23, 2009
Whistleblowers reporting fraud by contractors in Iraq reconstruction are coming forward, reports Stuart Bowen, the Special Inspector General for Iraq Reconstruction. The relatively calmer conditions in Iraq apparently are a factor in more whistleblowers coming forward, he believes...

The AIG Whistleblowers Begin to Speak About Its Credit Default Swaps?

Posted on March 18, 2009
The facts about how the AIG Financial Products unit took down AIG begin to emerge more clearly, as AIG whistleblowers begin to speak. Former AIG auditor Joseph St. Denis described his concerns about AIG's Financial Products unit--and how AIGFP's Joseph Cassano refused to let him investigate: "Mr...

Appreciating Harry Markopolis, the Madoff "Whistleblower" to the SEC

Posted on March 16, 2009
I had the pleasure of seeing again and speaking last week with Harry Markopolis, the "whistleblower" now renowned for his excellent work in recognizing and reporting to the SEC that Bernie Madoff was running a huge Ponzi scheme. Harry was in Washington attending the "IRS Whistleblower Boot Camp" sponsored by Taxpayers Against Fraud...

IRS Whistleblower Attorneys Join IRS Whistleblower Office Director and Other IRS Officials for "IRS Whistleblower Boot Camp"

Posted on March 09, 2009
I spent a very satisfying day today with IRS Whistleblower Office Director Steve Whitlock, former IRS Commissioner Margaret Richardson, IRS Special Counsel Tom Kane, and other senior IRS officials working with the IRS Whistleblower Office, in helping stage the most comprehensive legal education program yet about the new IRS Whistleblower Program--the "IRS Whistleblower Boot Camp...

False Claims Act Amendments Approved by Senate Judiciary Committee As Part of FERA (Fraud Enforcement and Recovery Act) Today

Posted on March 05, 2009

Whistleblower Attorneys to Discuss Qui Tam Cases Under False Claims Act, IRS Whistleblower Program, and Sarbanes-Oxley Whistleblower Cases at Annual "Whistleblower Law Symposium"

Posted on March 01, 2009

Pharma Manufacturer in Medicaid Fraud Case Ordered to Pay Millions by Wisconsin Jury

Posted on February 18, 2009
Hidden schemes to defraud Medicare and state Medicaid programs of scarce taxpayer dollars are at the heart of many whistleblower cases under the federal and state False Claims Acts. This morning, Wisconsin Attorney General J. B. Van Hollen announced that a Dane County, Wisconsin jury has just declared that a pharmaceutical manufacturer defrauded the Wisconsin Medicaid program by reporting grossly inflated and fraudulent prices...

UBS Agrees to Pay $780 Million & Identify Customers in IRS Tax Fraud Case

Posted on February 18, 2009
Off-shore tax evasion and international tax avoidance schemes are priorities of the IRS and the IRS Whistleblower program, which rewards tax whistleblowers. Our whistleblower lawyer blog has followed the ongoing investigation of UBS for its activities, which took a major turn today...

Wall Street Financial Industry "Bailout" Whistleblowers Sought by--Michael Moore?

Posted on February 11, 2009
Taking a brief break from "substantive" writing on this whistleblower lawyer blog, I could not help but briefly note this story today: Filmmaker Michael Moore is seeking whistleblowers in the financial industry for his next film. He concludes "if you work for a bank, a brokerage firm or an insurance company -- or if you have seen things or heard things that you believe the American people have a right to know -- please contact me" via the email address posted on his blog...

TARP Apparently Overpaid for Bank Assets, According to Congressional Oversight Panel

Posted on February 06, 2009
Those potential whistleblowers watching for TARP waste, fraud and abuse should note today's report of the Congressional Oversight Panel. According to the report, the Treasury Department has received "far less value in stocks and warrants than the money it injected into financial institutions...

Hedge Funds Face Regulation & Oversight by SEC--Will There Be Another Tool in Addition to IRS Whistleblower Program?

Posted on February 01, 2009
When hedge funds are misused, their lack of transparency and dearth of disclosure obligations make violations of the law difficult to uncover. Sometimes, persons in the hedge fund industry report those abuses through the IRS Whistleblower Program, as some of our IRS Whistleblower clients have done...

Whistleblower Protections Added to Economic Stimulus Bill Passed by House

Posted on January 28, 2009
When the Wall Street "bailout" grew with Congress' creation of the Troubled Asset Relief Program (TARP), Sen. Chuck Grassley emphasized the importance of "whistleblowers" and the False Claims Act to protecting these taxpayer funds from fraud and abuse...

With TARP and Wall Street Bailout, Securities Fraud and Accounting Fraud Targeted by New Supplemental Anti-Fraud Enforcement (?SAFE?) Markets Act

Posted on January 27, 2009
Financial fraud is a frequent topic of whistleblower cases and of this whistleblower lawyer blog, especially with TARP and the Wall Street "bailout" dominating headlines. Senators Chuck Shumer and Richard Shelby have proposed a bipartisan bill to bolster federal resources to combat securities fraud and accounting fraud, the Supplemental Anti-Fraud Enforcement (?SAFE?) Markets Act...

Will Wall Street Bailout Help Firms That Are "Tax Dodgers" and Hide Income in Offshore Tax "Havens"? And Will the IRS Whistleblower Program Provide a Remedy?

Posted on January 18, 2009
As our government hemorrhages its taxpayers' funds to "bail out" firms that made poor decisions--such as American International Group (AIG), Bank of America, Citigroup, Goldman Sachs, and American Express--a just-issued report from the Government Accountability Office (GAO) raises a disturbing question: have many of the same firms already been avoiding paying their "fair share" of U...

Offshore Tax Evasion Case: Former UBS AG's Raoul Weil Declared a Fugitive

Posted on January 16, 2009
Offshore tax evasion has been a priority of the IRS and its IRS Whistleblower Program, as our whistleblower lawyer blog has followed repeatedly. This week, the U.S. prosecution of the former head of UBS AG's wealth management business, Raoul Weil, took a strange turn as he failed to surrender himself and was declared a fugitive...

More IRS Whistleblower Procedures Announced by IRS Large and Midsize Business Division (LMSB)

Posted on January 13, 2009
The IRS Large and Midsize Business Division (LMSB) has published a new memorandum on how it will handle IRS Whistleblower claims, the process for citizens to report tax fraud, tax evasion, and other tax noncompliance--and share in the government's recovery of money...

Treasury Department Announces $14 Billion in TARP Funds to More Than 40 "Local" Banks

Posted on January 13, 2009
Continuing the "bailout," the Treasury Department has just announced the release of $14.77 billion in TARP funds to what it refers to as 43 "local" banks (listed below). "Local" may be a misnomer, as the list includes $10 billion to Bank of America Corp...

Fraud and Abuse in Underpayment of Royalties from Oil and Gas Leases--The False Claims Act Provides A Solution

Posted on January 11, 2009
As hundreds of billions in taxpayer funds flow to TARP bailout recipients, the government must make doubly sure to stop or minimize fraud and abuse in every federal program. One area that cries out for attention is the underpayment of royalties owed to the government under oil and gas leases...

TARP Fund Restrictions Are Proposed in New Legislation

Posted on January 10, 2009
Much criticism has flowed from how the first $350 billion in TARP "bailout" funds are being used. Thus far, the need for additional restrictions to prevent and penalize fraud and abuse of TARP money remains unmet. In response, yesterday House Financial Services Committee Chairman Barney Frank proposed legislation establishing greater limits on use of TARP funds, among other things...

IRS on Tax Preparer Fraud: Report Illegal Tax Schemes to IRS Whistleblower Office

Posted on January 07, 2009
With tax season approaching, the IRS has alerted the public to "tax preparer fraud" by issuing issued a "fact sheet" (at http://www.irs.gov/newsroom/article/0,,id=202123,00.html). The IRS also has attached information about reporting abusive tax schemes through the IRS Whistleblower Program, which provides rewards to whistleblowers...

With Treasury Reporting TARP Funds to More Than 200 Financial Institutions, Will Whistleblowers Be Essential to Guard Against Fraud and Abuse?

Posted on January 06, 2009
The Treasury Department last week issued its December 2008 report to Congress on what it has done with the "bailout" funds through the Troubled Asset Relief Program (TARP) and Capital Purchase Program (CPP). With more than 200 institutions receiving taxpayer money, an overriding question is how to prevent and redress the inevitable fraud and abuse of TARP and other taxpayer funds, through whistleblowers and other means...

Treasury Department Announces TARP Investment in GMAC

Posted on December 29, 2008
The TARP bailout funding continues, as the Treasury Department announced today that it will buy $5 billion in senior preferred equity with an 8% dividend from GMAC LLC. Senator Charles Grassley has emphasized that TARP and other "bailout" funds must be protected through whistleblower protections and whistleblower laws such as the False Claims Act...

KPMG Tax Shelter Fraud Trial Ends With Three Tax Evasion Convictions for Accountants and Lawyer

Posted on December 18, 2008
Fraudulent tax shelters continue to be a target not only of IRS Whistleblower claims, but also of enforcement actions. We have followed closely the KPMG tax shelter fraud case in this whistleblower lawyer blog. The trial of four defendants ended this week, with two former KPMG partners and one attorney convicted of multiple counts of tax evasion for their roles in the bogus tax shelters...

Qui Tam Whistleblower Recoveries under False Claims Acts (Federal and State) in 2008

Posted on December 16, 2008
Some recent significant recoveries under the False Claims Act--the nation's primary tool for fighting fraud and false claims--are summarized below. This summary is part of a paper I submitted in connection with serving on the faculty (with some excellent attorneys) of the "Southeastern Health Care Fraud Institute" on December 18, 2008...

Whistleblowers, TARP, and Other Wall Street "Bailout" Measures--Why the False Claims Act and IRS Whistleblower Program Are More Essential Than Ever

Posted on December 08, 2008
On the same grey November day when President Bush visited Wall Street's Federal Hall to address the ever-morphing "bailout," I was in lower Manhattan meeting with IRS officials about an IRS Whistleblower matter. The tax evasion scheme we discussed was yet another that has cost taxpayers dearly...

Pharmaceutical Industry Hit by Layoffs

Posted on December 08, 2008
The country's ongoing economic distress has produced layoffs in many industries, and pharma appears to be feeling the pain as well. Recent layoffs reported in the drug industry include Sanofi (650 sales reps);Novartis (550 U.S. salespersons);Merck (8,000); Wyeth (2,440); GSK (1,000); Schering-Plough (5,500);and Boehringer Ingelheim (200)...

Offshore Tax Evasion Investigations by IRS and Justice Department Expand, As IRS Whistleblowers Continue to Come Forward

Posted on December 03, 2008
The Justice Department has announced that its investigation of offshore tax evasion will expand to include Europe's largest bank, HSBC in London, and Credit Suisse in Zurich. The increasing scrutiny of illegal offshore tax schemes comes as the Wall Street bailout and turmoil in the banking and financial services industries generate more interest in IRS Whistleblower Program claims...

Justice Department Announces 2008 Fraud & "Qui Tam" False Claims Act Recoveries, with Medicare, Medicaid, and Other Health Care Fraud Alone Topping $1 Billion in Recoveries of Taxpayer Funds

Posted on November 11, 2008
Will Wall Street Bailout Produce the Next Round of Whistleblowers Reporting Fraud? The U.S. Department of Justice this week announced its FY 2008 recoveries in fraud and False Claims Act cases, with more than $1 billion in health care fraud recoveries alone, and a total of more than $1...

IRS Addresses Deductibility of Payments by Defendants to Settle False Claims Act Cases

Posted on October 24, 2008
In our former life as lawyers defending False Claims Act cases, our defendant clients had to consider whether the payments made to settle qui tam cases under the False Claims Act were deductible for tax purposes, and to what extent. The IRS recently issued a paper on the subject: whether a defendant's payment to the Department of Justice to resolve False Claims Act allegations is "deductible in its entirety as a section 162(a) ordinary and necessary business expense, or includes non-deductible penalty amounts under section 162(f)...

Tax Court Prepares for IRS Whistleblower Cases by Adopting New Proposed Amendments to Rules of Practice and Procedure

Posted on October 24, 2008
One of the hallmarks of the new IRS Whistleblower Rewards Program is that whistleblowers have an enforceable right to rewards, and can appeal the IRS Whistleblower Office's rewards decisions to the U.S. Tax Court. The Tax Court has taken a step forward in issuing new proposed amendments to its Rules of Practice and Procedure to prepare for IRS whistleblower cases...

With Wall Street Bailout, Whistleblowers to Reveal Fraud and Abuses Through IRS Whistleblower Claims and Qui Tam False Claims Act Cases?

Posted on October 10, 2008
Will the IRS Whistleblower Program and the False Claims Act be powerful weapons in redressing the fraud and abuse that led to the current financial crisis--and to the future fraud and abuse that is certain to target the "bailout" billions of taxpayer funds? Fraud and abuse have never been in short supply...

1st Annual Report on New IRS Whistleblower Program Issued by Secretary of the Treasury

Posted on September 30, 2008
When Congress authorized the new IRS Whistleblower Program in December 2006, it required annual reporting to Congress about how the new whistleblower provisions have been used, what results were obtained, and what recommendations to improve the program should be considered...

IRS Whistleblower Office Director and Tax Court Judge Gather with Whistleblower Attorneys

Posted on September 11, 2008
For the second time since the new IRS Whistleblower office was created in early 2007, IRS Whistleblower Office Director Stephen A. Whitlock addressed questions from whistleblower attorneys at the Taxpayers Against Fraud annual conference yesterday in Washington...

Dismissal of Fraudulent Tax Shelter Charges Against Former KPMG Partners Is Upheld by Appellate Court

Posted on August 28, 2008
As this whistleblower lawyer blog has discussed before, accounting firms that promote fraudulent tax shelters are prime targets of IRS enforcement efforts (often assisted by IRS tax whistleblowers). In a decision last week, the prosecution of 13 former KPMG partners and other executives for their alleged involvement in fraudulent tax shelters was thwarted--again...

Attorney Assisting Offshore Tax Evasion Is Rewarded With Prison Sentence and Judgment to Pay of $2.7 Million

Posted on August 24, 2008
As this whistleblower lawyer blog has written about often, abuses of offshore transactions have increasingly become a target of IRS enforcement efforts. A Utah attorney learned this lesson last week when he was sentenced to ten years in prison, and was ordered to pay $2...

New Jersey Medicare Contractor Settles Health Care Fraud Case under False Claims Act

Posted on August 16, 2008
The Medicare program depends on the integrity of "trusted contractors" to process and pay Medicare claims. This past week, one of those "trusted contractors" operating in New Jersey, BlueCross BlueShield of Tennessee, agreed to pay the federal government $2...

OIG Approves False Claims Acts of California, Georgia, Indiana, and Rhode Island, But Disapproves False Claims Acts of Florida, Louisiana, Michigan, New Hampshire, New Mexico, and Oklahoma

Posted on August 06, 2008
The wave of new State False Claims Acts has generated a flurry of letters from the Office of Inspector General of HHS this past week. OIG has now "approved" the new State False Claims Acts of California, Georgia, Indiana, and Rhode Island, but has "disapproved" those of six other states: Florida, Louisiana, Michigan, New Hampshire, New Mexico, and Oklahoma...

New Whistleblower Law Promotes Consumer Product Safety

Posted on August 05, 2008
On July 31, Congress enacted a new Whistleblower Law designed to promote consumer product safety. The new federal legislation specifically was enacted to protect public and private sector employees who disclose to their employers, a regulatory agency or a state Attorney General any perceived violation of the Consumer Product Safety Commission...

IRS Announces Process for Review of Whistleblower Claims by IRS Large and Midsize Business Division (LMSB)

Posted on August 01, 2008
As another step toward the further development of the new IRS Whistleblower Program, our friends at the IRS Large and Midsize Business Division (LMSB) in Lower Manhattan have announced a three-step process for IRS Whistleblower claims that are eligible for the new "rewards" authorized by Congress in December 2006...

Judges Address New State False Claims Act in Georgia

Posted on July 30, 2008
At the annual "Continuing Judicial Education" conference in St. Simon's Island, Georgia this week, I was honored to be invited to speak to the assembled judges about the new state False Claims Act in Georgia, the State False Medicaid Claims Act. As this whistleblower lawyer blog has written about extensively, there is a wave of new state False Claims Acts across the country, as Congress has urged states to replicate the dramatic successes of the federal False Claims Act in stopping those who steal taxpayer funds...

Offshore Tax Evasion and Cayman Islands Hearing Prompts Grassley's Call to Follow IRS Whistleblower Program with Additional IRS Tools

Posted on July 29, 2008
At the Senate Finance Committee's hearing on the Cayman Islands and offshore tax evasion last week, Senator Charles Grassley reiterated the importance of the new IRS Whistleblower program to combat tax evasion, but also stressed the need for Congress to provide the IRS greater tools to address offshore tax evasion...

IRS Predicts Whistleblowers Will Be Important to Efforts to Combat Offshore Tax Evasion After UBS

Posted on July 28, 2008
This past week the IRS Commissioner of the Large and Midsized Business Division summarized the IRS's efforts to combat offshore tax evasion. He predicted that whistleblowers will become increasingly important to the IRS' efforts, given the existence of the new IRS Whistleblower rewards...

Nursing Home Operators Plead Guilty to Medicaid Fraud and Abuse of Patients

Posted on July 27, 2008
Having lunch this week with a public servant who investigates heath care fraud, I was struck once again by his descriptions of abuses that nursing home residents too often suffer, many of which our whistleblower attorneys had also encountered in past cases...

Hospital System Settles Medicare Fraud False Claims Act Allegations for $60 Million

Posted on July 26, 2008
The government's announcement this week of a $60 million Medicare fraud settlement with a Missouri hospital system is yet another example of the need for ongoing deterrence of health care fraud. According to the government, Lester E. Cox Medical Systems violated the False Claims Act, the nation's primary tool for combating fraud against taxpayer funds...

Whistleblower Awards Work To Protect The Government From Fraud

Posted on July 24, 2008
The False Claims Act provides awards of 15 to 30 percent of judgments and settlements against those individuals and companies that perpetrate schemes to defraud the federal government. In the event a whistleblower files a lawsuit in the name of the United States, ?blows the whistle? on the fraud scheme and a financial recovery results, the whistleblower is entitled to a percentage of the recovery...

Acknowledging the Integrity That Whistleblowers Stand For in Bringing Qui Tam Whistleblower Cases Under the False Claims Act

Posted on July 18, 2008
"What motivates whistleblowers" is a question that our whistleblower attorneys are asked frequently. Basic honesty and integrity--trying to do the right thing--is what we see most. It is deeply satisfying when a whistleblower's courage in insisting on honesty and integrity is recognized and applauded...

Major "Qui Tam" Whistleblower Law Amendments Clear House Judiciary Committee, Which Approves "False Claims Act Correction Act of 2007"

Posted on July 16, 2008
Very important amendments to the nation's major whistleblower law, the False Claims Act, cleared the House Judiciary Committee today. The False Claims Act Corrections Act of 2007 is intended to restore the False Claims Act to its originally intended usefulness...

Whistleblower Attorneys at NELA Conference Address "Strategic Thinking in Whistleblower Cases"

Posted on July 01, 2008
This past week, more than 450 of the country's best employment lawyers who represent individuals gathered in Atlanta for the National Employment Lawyers Association's Annual Conference. I had the pleasure of appearing with a group of excellent attorneys on a panel of that discussed "Strategic Thinking in Whistleblower Cases," moderated by Robin Potter of Chicago (who won a major victory last week)...

New IRS Whistleblower Rules Are Issued by U.S. Tax Court

Posted on June 05, 2008
One of the most meaningful improvements of the new IRS Whistleblower Program authorized by Congress in December 2006 is that IRS Whistleblowers have an enforceable right to a reward when they report significant tax violations. To enforce that right, tax whistleblowers can seek review by the U...

Whistleblower Lawyer Blog Update: New State False Claims Acts Reward Employees and Other Persons Who Report Fraud

Posted on May 23, 2008
A wave of new ?whistleblower? laws continues, inspired by the successes of the federal False Claims Act. These new laws include (1) state versions of the federal False Claims Act, and (2) the new IRS Whistleblower Rewards Program. At the same time, in 2008 Congress is considering legislation to strengthen the False Claims Act...

IRS Whistleblower Program: Updated Summary for Lawyers with Potential Tax Whistleblower Claims

Posted on April 29, 2008
For the National Employment Lawyers Association's Annual Conference this year, I have been asked to participate in a panel discussion of "Strategic Thinking in Whistleblower Cases" and to explain the new IRS Whistleblower Program. Because our whistleblower lawyer blog has followed closely the development of the new IRS Whistleblower Program since Congress authorized it in December 2006, I will summarize here some of the key points about the IRS Whistleblower Program, which is still taking shape...

Bogus Tax Shelters, Tax Fraud, and Tax Evasion Are Targeted by IRS and Justice Department

Posted on April 08, 2008
Bogus tax shelters and other tax fraud and evasion are among the common reports by tax whistleblowers to whistleblower attorneys. Today, the government launched a new, coordinated federal effort by the IRS, the Justice Department's Tax Division, and U...

Major Whistleblower Law Development: False Claims Act Correction Act Is Approved by Senate Judiciary Committee

Posted on April 03, 2008
Today saw a major development that could affect every whistleblower, whistleblower attorney, and whistleblower case involving the False Claims Act, the nation's primary whistleblower law. The U.S. Senate Judiciary Committee today approved new legislation to restore the False Claims Act to its originally intended strength, by eliminating a series of "loopholes" that dishonest government contractors had used to avoid liability...

IRS Tax Whistleblower Program Update: IRS Authorizes Contingent Fee Arrangements for Retaining Lawyers in Tax Whistleblower Cases

Posted on March 28, 2008
The new IRS Whistleblower Program authorized by Congress in December 2006 continued its progress this week, with the IRS's announcement yesterday approving the use of contingent fee arrangements in retaining tax whistleblower attorneys. Our whistleblower lawyer blog has followed the development of the new IRS Whistleblower Program since its infancy...

IRS Whistleblower Program for Tax Whistleblowers: IRS Announces Sharing of Information with Whistleblowers and Their Attorneys Under Written Contracts

Posted on March 27, 2008
The IRS this week announced another interesting development in its new IRS Whistleblower Program, which this whistleblower lawyer blog has followed closely. This announcement addressed new regulations permitting the IRS to share tax return information with whistleblowers and their lawyers under written contracts with the IRS, and also to advise those whistleblowers and their attorneys about the status of their whistleblower claims...

Whistleblower False Claims Act Cases Lead New Jersey Health Care Consultant to Settle Allegations of Medicare Fraud

Posted on March 16, 2008
The Justice Department has announced that Besler & Company, Inc., a New Jersey health care consulting firm, and its principal Philip Besler, have agreed to settle allegations of fraud against the federal Medicare program, which were initiated by two qui tam whistleblower cases...

IRS Tax Whistleblower Progress Continues with IRS Chief Counsel's Advice on Informant Contacts

Posted on March 10, 2008
The new IRS Whistleblower Rewards Program continues to take shape, as the IRS's Chief Counsel has advised IRS employees on the contacts they may have with certain whistleblowers or "informants." The new IRS Whistleblower Program for tax whistleblowers is an exciting development...

"False Claims Act Correction Act" to Restore Qui Tam Whistleblower Law to Its Original Intent Goes Before Senate Judiciary Committee

Posted on February 26, 2008
Tomorrow, the Senate Judiciary Committee will hold a hearing on a much-needed bill that will restore to its intended effectiveness the government's primary law for combating fraud. Our whistleblower lawyer blog has written previously about the "False Claims Act Correction Act...

State False Claims Act Is Considered in Louisiana

Posted on February 20, 2008
The trend of new state False Claims Acts with qui tam whistleblower provisions continues, as Louisiana considers whether to adopt its own version of the federal False Claims Act. The growing number of state False Claims Acts has been a frequent topic of this whistleblower lawyer blog...

Qui Tam Whistleblowers Awarded $140 Million Under False Claims Act in Medicare and Medicaid Fraud Cases in FY 2006

Posted on February 19, 2008
Whistleblowers and their attorneys filing suit under the False Claims Act helped federal authorities recover $2.2 billion in Medicare and Medicaid fraud cases in fiscal year 2006, according to a government report just released. The whistleblowers or "relators" received $140 million of the proceeds for their efforts, under the qui tam provisions of the False Claims Act...

Federal Subsidies and the False Claims Act

Posted on February 09, 2008
If an organization or individual is receiving a federal subsidy of any kind and makes false statements to the Federal Government with respect to such subsidies, such false statements could subject the receiver of the subsidy to liability under the Federal False Claims Act...

New Whistleblower Law Provides Protection for Defense Contractor Employees

Posted on January 30, 2008
Two days ago on 1/28/08 President Bush signed into law the National Defense Authorization Act for the fiscal year 2008. This legislation includes a provision protecting defense contractor employees who blow the whistle on contracting fraud. 10 U.S...

Tax Fraud Prosecution Over Abuse of Offshore Transactions Leads to Convictions of CPAs and Attorney by IRS and Justice Department (from Whistleblower Lawyer Blog)

Posted on January 29, 2008
Our whistleblower lawyer blog has followed closely investigations of hedge funds and other offshore investors for tax fraud and other IRS violations. After investigating a tax fraud conspiracy involving offshore companies and offshore bank accounts, the Justice Department and the IRS have announced that an attorney and two certified public accountants have pleaded guilty to tax fraud and aiding the preparation of a false tax return...

Whistleblower Qui Tam Case Result: "Big Dig" Settlement of $458 Million Announced

Posted on January 25, 2008
The "Big Dig" collapse has led to a $458 million settlement by contractors responsible for the Boston Central Artery/Tunnel highway project. Whistleblowers using the federal and state False Claims Acts helped bring about that result. Of the $458 million settlement, $23 million is being paid to the United States under the federal False Claims Act, and $40 million will go to Massachusetts under its state False Claims Act, as a result of qui tam whistleblower litigation...

Hedge Fund Tax Probes Expand to Congress Following IRS Hedge Fund Inquiries

Posted on January 18, 2008
Both the IRS Financial Services group (part of its LMSB Division) and the IRS Whistleblower Office have emphasized to me--as recently as yesterday--their strong interest in hedge fund abuses that violate the tax laws. The tax whistleblower section of our whistleblower lawyer blog has followed the expanding probes and increased scrutiny of hedge funds, including our segments on "IRS to Scrutinize Derivatives--Do They Allow Offshore Investors to Avoid Withholding Taxes on U...

IRS Whistleblower Progress: Kudos to These Tax Whistleblower Attorneys

Posted on January 17, 2008
The progress of the new IRS Whistleblower Program has been a subject of great interest of this whistleblower lawyer blog. I would like to congratulate two fellow tax whistleblower attorneys, Erika Kelton of Phillips & Cohen, LLP, and Paul D. Scott of the Law Offices of Paul D...

Qui Tam Whistleblower Law Signed by New Jersey Governor

Posted on January 16, 2008
This whistleblower lawyer blog reported earlier that the New Jersey Assembly had passed the New Jersey False Claims Act, which provides incentives to whistleblowers ("relators") to expose fraud affecting state funds--much like the federal False Claims Act does...

Durable Medical Equipment (DME) Fraud Crackdown by CMS Announced--to Combat False Claims Act Violations of Types Often Exposed by Whistleblowers and Their Attorneys

Posted on January 12, 2008
Some of the many types of health care fraud that this whistleblower lawyer blog has followed involves "durable medical equipment" (DME). The sale of wheelchairs, walkers, oxygen supplies and equipment, hospital beds, orthotics, prosthetics, and various medical devices is yet another opportunity for dishonest suppliers to defraud taxpayers...

IRS Tax Whistleblower Procedures Continue to Take Shape

Posted on January 11, 2008
The new IRS Whistleblower Office's Rewards Program that we have followed closely on this whistleblower lawyer blog made further progress this week. The IRS gave notice on January 9 that it intends to create a proposed new system of records--"Whistleblower Office Records...

False Claims Act Passed in New Jersey Continues Trend of New State Qui Tam Whistleblower Statutes

Posted on January 07, 2008
The wave of new state False Claims Acts with qui tam whistleblower provisions has been a frequent topic of this whistleblower lawyer blog. In 2007, New York, Georgia, and Oklahoma joined the 16 other states that have enacted versions of the federal False Claims Act, the government's primary weapon for fighting fraud against taxpayers...

IRS Tax Whistleblowers & False Claims Act Qui Tam Cases--2007 Year in Review by Whistleblower Lawyer Blog

Posted on December 31, 2007
2007 has been a most significant year for whistleblowers. The whistleblower lawyer blog attorneys look back on some of the milestones: 1. As soon as Congress authorized the first meaningful IRS Whistleblower Rewards Program to pay tax whistleblowers 15-30% of IRS recoveries from those who violate the tax laws by statue effective on December 20, 2006, beginning in January our whistleblower lawyers submitted some of the first IRS Whistleblower claims in the nation under the new law...

IRS Whistleblower Instructions for Filing Tax Whistleblower Claims Issued by IRS--and Are Reprinted Here on Whistleblower Lawyer Blog

Posted on December 20, 2007
The IRS a few hours ago issued the long-discussed "interim" guidance on pursuing Tax Whistleblower claims under the new IRS Whistleblower Program. This IRS Notice 2008-4 on filing claims under the IRS Whistleblower Program is effective January 14, 2008, and appears at http://www...

Tax Whistleblowers: IRS Whistleblower Office Issues Long-Awaited Guidance for Tax Whistleblower Claims

Posted on December 19, 2007
Our whistleblower lawyer blog has followed closely the evolution of the new IRS Whistleblower Program, which celebrates its one-year anniversary on December 20, 2007. Late today, on the eve of that anniversary, the new IRS Whistleblower Office issued long-awaited interim "guidance" for filing Tax Whistleblower claims--which should help tax whistleblowers and their attorneys...

False Claims Act Litigation Attorneys Gather in Atlanta to Explore Whistleblower Issues

Posted on December 04, 2007
At a conference on False Claims Act Litigation on November 30, attorneys representing the government, relators or whistleblowers, and defendants gathered to discuss whistleblower law issues. The conference was organized by the law firm of Balch & Bingham LLP...

Tax Fraud & Tax Evasion Among Medicaid Providers: New IRS Whistleblower Program Fills Gap in False Claims Act for Whistleblowers and Their Attorneys

Posted on December 03, 2007
Two important topics of this whistleblower lawyer blog are addressed in a recent Government Accounting Office (GAO) Report on tax cheating by Medicaid providers. The Report shows the wisdom of the new IRS Whistleblower Program, which fills a "gap" in the coverage of the major whistleblower statute, the False Claims Act...

False Claims Act "Qui Tam" Whistleblower Cases Recover More Than $1 Billion In Latest Year, Justice Department Announces

Posted on November 13, 2007
Once again displaying the effectiveness of the False Claims Act in combating government fraud, the Justice Department has announced that it recovered $2 billion in fraud cases in the latest fiscal year that ended September 30, 2007. Qui tam whistleblower cases under the False Claims Act accounted for at least $1...

IRS Whistleblower Regulations & "Guidance" for Whistleblower Attorneys from the IRS

Posted on November 12, 2007
Anticipating the new IRS Whistleblower Program regulations that are due by the December 20, 2007 first anniversary of the new IRS Whistleblower Program, the IRS Office of Chief Counsel has just issued a Notice on "Coordination of Section 7623 Whistleblower Claims in the Tax Court...

IRS Whistleblower Program: Hedge Funds and Private Equity Firms Under Increasing IRS Scrutiny for Tax Abuses

Posted on November 05, 2007
Continuing this whistleblower lawyer blog's discussions of the IRS's strong interest in hedge funds and private equity firms, there have been several recent public statements and reports about IRS efforts to identify and stop tax fraud and tax noncompliance in these segments of the financial services industry...

TRICARE Medical Fraud Report--Whistleblower Attorneys Take Note that Health Care Fraud Continues to Plague Government

Posted on November 02, 2007
Fraud affecting health care is a frequent topic of our whistleblower lawyer blog. A new report on TRICARE, the U.S. Military's health care system, shows that medical fraud continues, as honest whistleblowers and their lawyers continue the fight against government fraud...

False Claims Act Whistleblower Case to Be Decided By Supreme Court

Posted on October 31, 2007
This week, the United States Supreme Court agreed to hear a False Claims Act whistleblower case filed against the General Motors Corporation and its former division, Allison Engine Company. The alleged fraud concerns subcontracts for building parts for the U...

Qui Tam Whistleblower in False Claims Act Case Receives $7.3 Million in False Claims Case

Posted on October 29, 2007
From time to time on this whistleblower blog we report cases of significance involving successful whistleblower claims filed under the federal False Claims Act. We read about such a case today in the news involving a $28 million settlement with National Air Cargo...

IRS Tax Evasion & Stock Options Fraud Lead to Prison Sentence for Options Administrator

Posted on October 24, 2007
On this whistleblower lawyer blog, we have written previously about abuse of stock options--and how the IRS has declared that tax fraud and evasion from back-dating of stock options is a "Tier I" priority. Now, stock option fraud and income tax evasion will send a former stock options administrator to prison for almost four years...