Whistleblower Protection

By Rocket55DevAdmin |

SusanC-2Susan Coler, a partner in the Halunen Law False Claims Act/Whistleblower practice group provided private and government contract law attorneys her thoughts on “Navigating the False Claims Act: Protecting Your Client’s Business, Whistleblowers, and Tax Dollars” at a day-long CLE on January 20, 2022. Titled Government Contract Law: Fundamentals and Hot Topics, the CLE was chaired by Tom Radio and sponsored by Minnesota CLE. It included presentations by persons involved in all aspects of state and federal government contracting from both the contractor and the government sides.

Coler’s presentation focused on the value of the False Claims Act as protecting honest businesses, taxpayers, and those people impacted by the government’s contracts (e.g., persons on Medicaid, military personnel, and anyone who uses infrastructure paid for by the government). She further noted that emerging trends in fraud and government contracting warrant attention to cybersecurity, buying American, and ensuring that only authentic small business seek small business set-asides. Finally, Coler encouraged all present to view employee whistleblowers as critical to the detection of fraud because they are in a position to see fraud that might otherwise go undetected. She suggested that employers will benefit significantly if they create a work environment where employees are protected from retaliation and taken seriously when they report suspect conduct.

Conference presenters and attendees uniformly recognized that the Infrastructure Investment and Jobs Act holds great potential for the growth of new and small businesses and the economy in general, and great risk at the same time of significant fraud from those who seek profit through cheating the government. Hence the emphasis of the conference on procurement integrity and avoiding situations that could result in False Claims Act claims against individuals and companies.

By Rocket55DevAdmin |

It was announced yesterday that the CEO of Insys Therapeutics Inc., Micheal Babich, pleaded guilty to participating in a nationwide scheme to bribe doctors to prescribe its opioid medication Subsys. Babich resigned as the Arizona-based drugmaker’s CEO in 2015. His guilty plea comes just weeks before Insys founder, and one-time billionaire, John Kapoor goes to trial facing allegations of racketeering conspiracy. Read More…

By Rocket55DevAdmin |

doj cyber fraud cybersecurity whistleblower fca

In 1865, it was whistleblowers who were critical in reporting fraud by those who provided the U.S. War Department with rusty rifles, boats that leaked, and hats that melted in the rain. Today, whistleblowers are now critical to protecting the United States in the digital space. No longer on the battlefield of the Civil War, fraud has moved into the cybersecurity space in the digital age.

Though a concern of the Government for many years, the Department of Justice (DOJ) is significantly increasing its focus on cybersecurity and has launched a Civil Cyber-Fraud Initiative. Deputy Attorney General Lisa Monaco announced at the recent 6th annual Aspen Institute’s Cyber Summit that the DOJ will use its civil enforcement tools, including the False Claims Act, to pursue government contractors who receive federal funds but fail to follow required cybersecurity standards. Said Deputy Attorney General Monaco: “For too long have companies chosen silence under the mistaken belief that it is less risky to hide a breach than to bring it forward.” [1]

The focus of the task force implementing the Civil Cyber-Fraud Initiative is to pursue cybersecurity-related fraud by government contractors and grant recipients. DOJ has highlighted three types of fraudulent conduct on which it will focus:

    1. Knowingly providing deficient cybersecurity products or services;
    2. Knowingly misrepresenting cybersecurity practices or protocols; and
    3. Knowingly violating obligations to monitor and report cybersecurity incidents and breaches.

Employees and independent contractors who provide information technology and information security services are in a prime position to uncover cybersecurity fraud. But this fraud isn’t limited only to those entities actually providing information technology (IT) services directly to the government – it also includes any company that is contracting with the government to provide goods or services that are possible targets for cyber-attacks. For example, in 2019, DOJ reached an $8.6 million settlement with Cisco Systems, Inc. for selling video surveillance products with known vulnerabilities that could be exploited by hackers.

Another important focus of cybersecurity is government information. For example, compliance with cybersecurity requirements is critical for companies dealing with controlled unclassified information (CUI) and covered defense information (CDI). Protection of such information is critical for a Department of Defense contractor, perhaps selling rockets or missiles to the government, Even though this company isn’t providing IT services per se, its failure to maintain compliant digital security systems could give rise to False Claims Act liability, to say nothing of jeopardizing national security.

Whistleblowers play a critical role in protecting the United States from malicious cyber-attacks. They are often the only individuals in a position to identify a company’s failure to meet cybersecurity requirements including vulnerabilities in cybersystems or actual breaches that threaten the American People’s security and privacy. It is a distressing but true fact that some companies who do business with the Government lie about their cybersecurity compliance. That is the type of fraudulent conduct the DOJ is intent on bringing to light, using the False Claims Act as a powerful civil tool to deter the fraud and provide redress to the Government for compliance failures.

If you have knowledge of cybersecurity fraud involving Government expenditures, a False Claims Act attorney can help you come forward and provide information and assistance to the Government. Besides providing a means to assist the Government in its Civil Cyber-Fraud Initiative, the FCA includes provisions protecting whistleblowers from retaliation and rewarding them with a percentage of any damages proceeds the Government recovers. It may be a new kind of war, but the stakes are high and the Government continues to rely on private persons to blow the whistle and shine a light on cybersecurity fraud it has no other way of finding.

Nathaniel-headshotAs an attorney with Halunen Law’s FCA Practice Group, Nathaniel Smith is determined to bring fraudulent conduct to light, and to justice. Having recovered millions on behalf of whistleblowers in both employment retaliation cases and qui tam whistleblower lawsuits under the False Claims Act (FCA), he is relentless in his pursuit. Learn more about Nathaniel F. Smith.

 

[1] https://www.justice.gov/opa/pr/deputy-attorney-general-lisa-o-monaco-announces-new-civil-cyber-fraud-initiative

Featured Image: Shutterstock/ By Skorzewiak

By Rocket55DevAdmin |

HalunenLaw-10Susan Coler, whistleblower attorney at Halunen Law, provides comments to Bloomberg Law regarding recent statutory amendments to the False Claims Act introduced by Republican Senator Chuck Grassley (R-Iowa).

“Shifting the materiality burden from plaintiffs to defendants will allow whistleblowers to more easily establish that a bad actor’s conduct could influence a decision maker in deciding to do business with them, said Susan M. Coler, who represents whistleblowers with Halunen Law in Minneapolis.”

Susan Coler’s comments were accompanied by commentary from False Claims Act attorneys Eric Havian of Constantine Cannon LLP, Joel Androphy of Berg & Androphy, and Vincent McKnight Jr. of Sandford Heisler Sharp LLP.

Read the full article.

By Rocket55DevAdmin |

PracticeArea_whistleblower-fca_756x375Why do we honor whistleblowers today?

We honor whistleblowers because we rely on them to expose corporate wrongdoing.

  • Whether insider employees, consumers or patients – whistleblowers see illegal conduct and do something about it.

We honor whistleblowers because they model integrity and courage.

  • Whistleblowers take a stand knowing that blowing the whistle is risky business and can come with great costs.

We honor whistleblowers because thinking about them may give us the audacity to call out wrongdoing where we see it.

  • Whistleblowers remind us that taking a stand can have a tremendous positive impact on the interdependent communities in which we live and work.

And so—we honor whistleblowers today to thank them, and pledge our support of their efforts. But most important, we honor whistleblowers in hopes their example will inspire us to speak out against corporate wrongdoing and injustice.

“Truth never damages a cause that is just.” Gandhi

Susan Coler
Halunen Law
July 30, 2021

A studio portrait of attorney, Susan Coler. She has short white hair, glasses, and wears a black suit. A Partner at Halunen Law, Susan Coler is a member of the Halunen Law False Claims Act (FCA)/Whistleblower Practice Group. She represents whistleblowers who challenge illegal corporate conduct, particularly fraud against the government. As an MSBA Labor and Employment Law Specialist, Susan has also brought successful retaliation claims in connection with FCA/qui tam cases and as stand-alone actions.

By Rocket55DevAdmin |

HL Scales of JusticeIn recent The Globe article, courageous employee reflects on actions that led to employer’s 14-count conviction.

Whistleblower Jen Erikson knew something was amiss at her place of employment. Witnessing the business practices at Caring and Compassionate Healthcare Agency (CCHCA), she realized things didn’t add up. She started digging deeper and discovered systemic fraud taking place in the company’s Medicaid billing. Erickson contacted Halunen Law, and attorneys Susan Coler and Nathaniel Smith felt a case could be made under the False Claims Act. Read a full recounting of this story by The Globe , as Erickson reflects on the steps she took to put a stop to the theft of taxpayer dollars, the victimization of the already vulnerable people CCHCA served, and the eventual conviction of her employer.

On June 24, 2021, Ms. Brown was sentenced to nearly 8 years in prison and ordered to pay restitution of more than $1.8 million.

You can also read more in the Star Tribune article: “Former SW Minnesota care agency operator sentenced to nearly 8 years for cheating Medicaid out of $1.8M“

By Rocket55DevAdmin |

Halunen Law – Avoiding Orange Jumpsuit Worldwide Corporate FraudMINNEAPOLIS (May 13, 2021) – On the evening of May 11, 2021, a jury in southwestern Minnesota rendered a guilty verdict against Remona Lysa Brown on 14 felony counts of aiding and abetting healthcare fraud during her tenure leading the Caring and Compassionate Healthcare Agency LLC (CCHCA) in Worthington Minnesota.

The jury found that Brown submitted fraudulent claims to Minnesota’s Medicaid program for home care health services in amounts exceeding $1.8 million, for which restitution is sought.

The case began when a civil False Claims Act (FCA) lawsuit was filed by Halunen Law on behalf of a former employee and former client of CCHCA. These whistleblowers, called Relators in the FCA civil case, identified suspicious billing activity related to the private duty nursing services being provided by the agency.

They compared hours the employee actually worked to the Explanation of Medical Benefits (EOMB) received by the client from the Minnesota Department of Human Services for what was being billed and discovered that CCHCA and Brown were falsely billing for many more hours than were worked.

After the civil FCA lawsuit was filed, which is still pending in Minnesota federal court, and lengthy investigation, the Minnesota Attorney General’s Office chose to move forward with criminal charges against Brown.

The investigation found not only evidence supporting the allegations brought in the civil FCA suit, but also identified additional persons for whom Brown and CCHCA were fraudulently billing Medicaid.

Besides overbilling and billing for services never provided, the investigation found that CCHCA billed services provided by Licensed Practical Nurses and Personal Care Assistants as though they were being provided by Registered Nurses, resulting in higher payments than warranted.

“When it became clear to me that an injustice was happening, I knew I had to do something. In the medical field, we pledge to do no harm and it was horrifying to know that these people were being taken advantage of in their most vulnerable state.

I am so grateful to Halunen Law for listening to our story and taking the right measures so true justice could be served. I never thought I would be a whistleblower, but unless people bring attention to the wrongs in the world, they will persist. I encourage anyone who is witnessing fraud to come forward.” said Jen Erikson, the whistleblower in the case.

Both FCA Relators testified as witnesses in Brown’s criminal trial.  Their testimony and the additional evidence put forth by the State ultimately resulted in the conviction of Brown on all charges. On June 24, 2021, Brown was sentenced to almost 8 years in prison and order to repay over $1.8 million in restitution.

“The jury’s verdict gives us great satisfaction. Our clients started their civil FCA case with the goal of stopping healthcare companies who prey on their most vulnerable clients by using them to commit fraud against the government,” said Nathaniel Smith, an attorney with Halunen Law. “Thanks to their willingness to shine a light on CCHCA’s conduct and the work of the Minnesota Attorney General’s Office in successfully prosecuting this case through a jury verdict, their goal was achieved. The actions of these two courageous whistleblowers made a difference.”

Further details of the case can be found under court file number 53-cr-17-852.

Read more in the Star Tribune article: “Former SW Minnesota care agency operator sentenced to nearly 8 years for cheating Medicaid out of $1.8M”

About Halunen Law

With offices in Minneapolis, Chicago, and Phoenix, Halunen Law offers experienced legal representation to employees, whistleblowers, and those who have been wrongfully injured. Halunen Law has achieved a reputation as a fearless, tenacious, and successful plaintiffs’ law firm, with a laser focus on achieving justice for its clients. For more information visit halunenlaw.com.

If you feel you’ve experienced illegal action in your workplace, we encourage you to submit a Case Review Form to our firm. One of our attorneys will review your information, and you’ll receive a response from our firm in a timely manner. There is no charge for this confidential process. And, if we take your case, as a contingency-based law firm, there is no cost unless we win.

We’re here to help you navigate your lawful rights and ensure you get the treatment you deserve. Together, we can hold employers accountable and create a fairer workplace for everyone.

By Rocket55DevAdmin |

red-whistle-headA recent decision out the 6th Circuit reinforces that former employees are protected from retaliation under the False Claims Act – even when the retaliatory conduct happens after they are fired or leave the company.

In the lawsuit, an employee alleged he was “marginalized” for insisting on compliance with the law during his employment and then “blacklisted” in his industry after being fired. He filed an FCA case that the hospital where he had been working was providing illegal kickbacks to physicians in exchange for referrals – conduct that would clearly violate the False Claims Act. The employee applied to nearly 40 different companies and alleged the hospital’s retaliatory conduct kept him from successfully securing new employment.

The anti-retaliation provision of the FCA provides that any employee, contractor, or agent shall be entitled to all the relief necessary to make them whole if they are a) discharged, b) demoted, c) suspended, 4) threatened, 5) harassed, or 6) in any other manner discriminated against regarding the terms and conditions of their employment for acts done to stop violations of the FCA.

According to the 6th Circuit, these protections are broad and far-reaching – even so far as to reach former employees: “the anti-retaliation provision of the FCA may be invoked by a former employee for post-termination retaliation by a former employer.”

In making the decision, the Court noted that the purpose of the FCA’s anti-retaliation provision is to encourage the reporting of fraud and facilitate the federal government’s ability to stop fraudulent conduct by protecting those who assist in its discovery and prosecution. The Court further said: “If employers can simply threaten, harass, and discriminate against employees without repercussion as long as they fire them first, potential whistleblowers could be dissuaded from reporting fraud against the government.”

Employees are entitled to significant damages when their employees retaliate against them in violation of the FCA. In fact, they are “entitled to all relief necessary to make that employee whole.” Most notably, and unlike many other employee protections, current and former employees may receive double back-pay damages under the FCA. This amount can be large, especially when an underlying FCA case may go on for years while the government litigates the matter. Employees may also be entitled to reinstatement, front pay, emotional distress, other special damages, and their attorneys’ fees and costs.

The 6th Circuit decision is controlling authority in the states of Michigan, Ohio, Kentucky, and Tennessee. The 10th Circuit has ruled that the FCA does not cover former employees. This ruling applies in Oklahoma, Kansas, New Mexico, Colorado, Wyoming, and Utah. Other circuits have not yet taken a position on this issue, but this new ruling will make the argument more compelling in circuits that haven’t yet decided.

For many current or former employees facing retaliation after reporting fraudulent conduct or insisting that their employer follow the law, their rights are now more strongly protected. If this situation applies to you, you should contact an experienced attorney with deep knowledge of the False Claims Act and employment law. At Halunen Law we have both.

Download a PDF of the 6th Circuit Decision

NathanielS-headshot-300×300Having recovered millions of dollars on behalf of whistleblowers in both employment retaliation cases and qui tam whistleblower lawsuits under the False Claims Act (FCA), attorney Nathaniel F. Smith is relentless in his pursuit of justice.

By Rocket55DevAdmin |

Halunen Law employment attorneys Amy Boyle and Colin Pasterski recently filed suit on behalf of Din Dol, alleging the Minneapolis Fire Department engaged in racial discrimination and retaliation against the firefighting recruit. Cadet Dol was on a path to become the city’s first Somali-American firefighter.

The suit alleges Dol was subjected to “outward aggression” by classmates and supervisors, including a physical assault.  and was ultimately fired as retaliation for conveying his concerns.  After experiencing “increased hostile treatment” and reporting his concerns to department leadership, he received negative training feedback.

He was fired on February 21, 2020, less than one month before his anticipated graduation date, even though he had passed two certification exams. The complaint cites a history of racial discrimination against people of color. As of 2016, more than 70% of the department’s firefighters were white—a percentage that has only increased in recent years.

“It is an honor to represent Din Dol,” said Halunen Law employment attorney Colin Pasterski. “This case shines an important spotlight on the underrepresentation of Somali Americans and other people of color in the Minneapolis Fire Department.

Halunen Law has a long-standing history of bringing not only justice but societal change through successful litigation. We hope this case will have a profound impact on the Minneapolis Fire Department’s practices in the future and look forward to helping our client achieve resolution of this matter.”

Din Dol is represented by Halunen Law employment attorneys Colin Pasterski and Amy Boyle.

Read the Complaint filed in Hennepin County

Read recent coverage of this story in the Star Tribune and Associated Press

About Halunen Law

With offices in Minneapolis, Chicago, and Phoenix, Halunen Law offers experienced legal representation to employees, whistleblowers, and those who have been wronged. Halunen Law has achieved a reputation as a fearless, tenacious, and successful plaintiffs’ law firm, with a laser focus on achieving justice for its clients. For more information visit halunenlaw.com. 

By Rocket55DevAdmin |

Whistle On American FlagThe Department of Justice’s 2020 data is here, and it paints another compelling picture of the value brought by whistleblowers who file cases under the False Claims Act (FCA). In 2020, claims filed by whistleblowers were responsible for about 75% of new cases filed and about 75% of government fraud proceeds. And rewards made to whistleblowers in 2020 averaged about 18% of the proceeds collected by the government.

These conclusions are the results of DOJ’s annual collection and publication of data about the year’s filings under the FCA, as well as the amounts collected by the government. DOJ recently published the data for 2020 in a spreadsheet that provides information dating back to 1986, when the FCA was significantly strengthened. The data presents total filings, filings related to the Department of Health and Human Services, filings related to the Department of Defense, and all other filings.

What does the data show?

The 2020 data shows that whistleblowers played a critical role in prosecuting fraud against the government:

  • Whistleblowers filed 672 new qui tam cases, compared to 250 new cases filed by the government, for a total of 902 new cases.
  • Prior cases filed by whistleblowers resolved in 2020 yielded $1.68 billion compared to $545 million resulting from government-filed cases for a total of $2.31 billion collected under the FCA.
  • Whistleblower rewards amounted to more than $300 million.

The 2020 data shows that fraud related to health care led the pack for both new cases and recoveries:

  • 68% of new qui tam cases related to health care fraud.
  • 5% of new qui tam cases related to Department of Defense fraud.
  • 27% of new qui tam cases related to other kinds of fraud against the government.
  • 5% of recoveries related to health care fraud (note: this data does not include state recoveries for Medicaid fraud, which are also extensive).
  • 6% of recoveries related to Department of Defense fraud.
  • 9% of recoveries related to other kinds of fraud against the government.

The 2020 data shows that fraud has many, many faces.

The Department of Justice press release regarding 2020 data provides an overview of significant cases for the year. It highlights illegal kickbacks for drug and medical device prescribers, illegal payment of co-pays for expensive drugs, opioid-related cases, bid-rigging, bribery, and providing false information related to government purchases. Within health care alone, fraud encompasses a vast gamut of cases ranging from pharmaceuticals and medical devices to managed care providers, hospitals, pharmacies, hospices, laboratories, and physicians, and includes Medicare, Tricare, and VA claims. Other kinds of fraud include claims involving departments or agencies unrelated to HHS or DoD, e.g., energy, agriculture, the Federal Emergency Management Agency, commerce, the National Institutes of Health, and housing.

The Government values Qui tam whistleblowers.

The DOJ press release releasing the 2020 FCA data acknowledged the vital role played by whistleblowers in these recoveries:

Whistleblowers with insider information are critical to identifying and pursuing new and evolving fraud schemes that might otherwise remain undetected. These individuals often make substantial sacrifices to bring these schemes to light, and our efforts to protect taxpayer funds continue to benefit from their actions.

Whistleblowers cannot file FCA cases on their own. Because government interests are at stake, courts require whistleblowers to be represented by an attorney who can navigate these complex cases, including the interpretation of statutes and regulations that can be challenging to understand. Attorneys with FCA experience can also effectively interact with DOJ attorneys, actively assist the government, and effectively multiply the DOJ’s limited resources.

The 2020 data shows the tremendous contribution whistleblowers make when they file qui tam FCA cases. Whistleblowers protect taxpayer dollars and protect others from the harm caused by fraud. The government’s interests in prosecuting FCA cases and the potential rewards available to whistleblowers warrant taking action and consulting with an FCA attorney when an individual has knowledge of fraud against the government in any of its many forms.

Review the fraud statistics provided by the U.S. Department of Justice, Civil Division

Read the Press Release: Justice Department Recovers Over $2.2 Billion from False Claims Act Cases in Fiscal Year 2020

A Partner at Halunen Law, Susan Coler is a member of the Halunen Law False Claims Act (FCA)/Whistleblower Practice Group, a team of attorneys solely dedicated to litigating False CLaims Act and other whistleblower cases across the country. Susan represented a relator in an FCA claim against Abbott Laboratories that resulted in a civil settlement of $800 million (total settlement of $1.5 billion), the fifth-largest civil healthcare recovery ever achieved under the FCA. Learn more.

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