Thursday, May 31, 2007

New Orleans Whistleblower Suit Accuses Insurers of Overbilling Government after Katrina

The Times-Picayune is reporting that a newly unsealed whistleblower suit is claiming that at least eight insurance companies in Louisiana have overbilled the National Flood Insurance Program for damage incurred during Hurricane Katrina while under-compensating homeowners for wind damage payments under their homeowners insurance policies.

A group of insurance adjusters filed the suit, claiming that they have reinspected 150 properties with flood and wind damage.  In all of the cases, the private insurance companies overcharged the National Flood Insurance Program while underestimating cost to repair wind damage.

The suit has been filed as a qui tam action, but as of now has not been taken over by public officials.

Click here to read the complete article about the Whistleblower Suit Accusing Insurers of Overbilling Federal Government.

Monday, May 28, 2007

Senate Panel Approves Whistleblower Protection Amendment

The Government Accountability Project released a statement announcing the recent approval by the Senate Armed Services Committee of an amendment that will enhance whistleblower protections for employees of Department of Defense contractors. 

The amendment allows contract employees to pursue a jury trial in federal district court if they do not receive a timely administrative ruling from the Secretary of Defense after bringing a reprisal allegation to an Inspector General.  Additionally, it protects DoD contract employees for disclosing a broader scope of misconduct than under current law.

Similar whistleblower reforms were passed in the House in March of 2007.

Click here to read the GAP press release.

Thursday, May 24, 2007

Georgia Governor Signs "State False Medicaid Claims Act"

On May 24, Georgia Governor Sonny Purdue signed the new Georgia “State False Medicaid Claims Act.” In doing so, Georgia has joined 15 other states that have already enacted similar laws, including New York and Oklahoma.

The new whistleblower law protects Georgia’s Medicaid Funds by creating liability for actual losses multiplied by three, and penalties of $5,500 to $11,000 for each false claim.  Whistleblowers are permitted to share in up to 25% of the State’s recovered funds.

Click here for more information about the Georgia “State False Medicaid Claims Act."

Sunday, May 20, 2007

New IRS Whistleblower Law makes Early Impact

A mere 6 months after a new whistleblower law was enacted, the Internal Revenue Service has received about 20 reward claims, some involving hundreds of millions of dollars, according to a story that appeared in the Wall Street Journal last Wednesday.

The whistleblower law provides for informants to collect as much as 30 percent of whatever the IRS evenually collects, including penalties and interest. Congressional advocates hope the new law will help the government collect significantly larger amounts of back taxes.

Click the following link to read the full story in the Wall Street Journal on the impact of the new IRS whistleblower law. (subscription required)

Thursday, May 17, 2007

Kansas City School District Pays $66,000 In False Claims Settlement

The Kansas City, MO School District has agreed to pay the United States $66,000 as a civil settlement relating to false claims and false statements in connection with the Federal Communication Commission’s (FCC) E-rate program from 2002 to 2006.  Additionally, they have agreed to relinquish over $13.6 million in claims for federal funds.

The E-rate program provides funding so that schools and libraries in low-income areas can have access to the internet.  The program is funded by monies collected from telephone users.

The school district allegedly pursued claims for payments for a contract that had been cancelled, and did not comply with the mandatory competitive bidding process.

A relator, American Fiber Systems Inc., filed a qui tam action against the school district in May 2006, prompting a federal investigation.  The 2007 settlement resolves both the relator’s and the government’s claims against the Kansas City Missouri School District.

Click here for more information about the Kansas City School District False Claims Settlement.

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