Friday, July 15, 2005

PriceWaterhouseCoopers Pays US $41.9 million on Overbilling Allegations

PricewaterhouseCoopers LLC (PwC), one of the nation’s largest accounting firms, has paid the US government $41.9 million to resolve allegations that it defrauded numerous federal government agencies over a 13-year period, according to a story today in lawfuel.com.

Without admitting wrongdoing, PwC paid the settlement two weeks ago to resolve fraud claims in a “whistleblower” lawsuit that accused the company of overbilling for travel expenses. The lawsuit alleged that PwC management had been made aware of the problem through internal complaints by several partners, but it made no effort to refund the overpayments to the government.

To read the full story, click here.

Wednesday, July 13, 2005

Government's Decision not to Join Whistleblower Suit Against Two Shipyards is Pondered

Dailypress.com of Hampton Roads, Viriginia, offers an interesting, feature-length story on the impact of the US Justice Department’s decision not to join a suit against two shipyards accused of defrauding the government, even as it supports the suit against another defendant in the case, Hunt Valve of Salem, OH. Read the account here.

Tuesday, July 12, 2005

US Judge Rules that Iraq Whistleblower Case Can Proceed

A U.S. judge ruled on Monday that a whistleblower case alleging fraud against a U.S. security contractor employed in Iraq could go ahead, but excluded any work paid for with Iraqi oil money, according to a report from Reuters.

In what is seen as a test case for U.S. companies working in Iraq, the judge left open a key question over the legal status of the U.S.-led occupation authority that paid the contractor and whether it was subject to U.S. law. The case involves Custer Battles, an upstart security firm based in Rhode Island that had a contract with the U.S.-led Coalition Provisional Authority in 2003 to guard Baghdad Airport and a later logistical deal.

Click here for the full story.

Wednesday, July 06, 2005

Putnam Investments Whistleblower Sues State to Collect His Award

A former Putnam Investments employee, who helped Massachusetts collect millions in fines and restitution by blowing the whistle on rapid trading at the mutual-fund firm, is suing the state and its attorney general to collect an award he’s allegedly owed. 

According to a story in today’s MarketWatch, Peter Scannell filed a lawsuit in Suffolk County Superior Court in Boston yesterday against the Commonwealth of Massachusetts and the state attorney general, Thomas Reilly. Information that Scannell provided helped result in the “immediate cessation” of market-timing practices at Putnam, a unit of Marsh & McLennan Cos., and in the firm being ordered to pay $193.5 million in fines and restitution, his attorney Robert Autieri said.

Of that, $50 million in fines went to Massachusetts, according to Autieri. Scannell, who claims he was beaten after blowing the whistle on his firm, recently demanded a statutory award and compensation under the state’s False Claims Act. The act is designed to provide whistle-blowers with protection and financial award for exposing acts that defraud the Commonwealth, the attorney added.

Click here to read the full story at marketwatch.com.

Wednesday, June 29, 2005

Pharmacy Benefits Giant Caremark is Target of Two Whistleblower Suits

Pharmacy benefits giant Caremark Inc. is facing pressure from two whistleblower lawsuits that represent hundreds of millions of dollars in fines and damages, attorneys say. One suit, filed in U.S. District Court in San Antonio several years ago, was recently unsealed as the federal government and several states pushed toward prosecution of Caremark on charges of Medicaid fraud. The other lawsuit, filed a year ago in a California state court, was unsealed this week and alleges several fraudulent practices including restocking and reselling returned prescriptions — even those that needed to be kept refrigerated.

Read the full story in mysanantonio.com here.

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