The Marinello Schools of Beauty, with 4,300 students in California, Nevada, Utah, Kansas, and Connecticut, was a predator company leveraging millions of tax dollars into private pockets.
The Calgary Chamber of Commerce in Canada gets it: the False Claims Act is good for business.
December was a big month for the False Claims Act.
13 cases settled under the federal False Claims Act totaling some $143 million in recoveries.
Whistleblower-initiated cases brought in $2.8 billion of the total recovery. Health care, banking, and mortgage fraud accounted for the majority of the recoveries, with additional recoveries stemming from cases against the for-profit education and defense contracting industry.
Citizens for Tax Justice (CTJ) and U.S. PIRG Education Fund’s recent study, “Offshore Shell Games 2015” finds that many of America’s largest companies maintain subsidiaries in offshore tax havens allowing these companies to avoid an estimated $90 billion in federal income taxes each year.
The process of globalization compresses and shapes every facet of the modern world: economic, political, technological, and social.
The law is not exempt.
More than 10 settlements were announced in May netting approximately $658 million! This pushes recoveries over $1 billion for the just the last two months alone. We also witnessed a bit of history, as the DaVita Healthcare Partners settlement became the largest non-intervened settlement to date.
Former PharMerica Pharmacy Operations Manager, Jenny Denk Buth, filed the qui tam suit after unsuccessfully raising her concerns to the Drug Enforcement Administration. This case is significant because it alleges both violations of the Controlled Substances Act and claims damages sustained under Medicare Part D.
Stir two other ingredients into the mix: seniors with spare time on their hands, a number of whom are sure to be do-gooders, and a “Senior Medicare Patrol” program sounded like a sure-fire winner to stop fraud.
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