Whistleblower Payments Top $300 Million Under False Claims Act in Fiscal Year 2014

Philadelphia, PA (PRWEB) May 20, 2014

A review of press releases issued by the Department of Justice since October 1, 2013 conducted by Young Law Group reveals that whistleblowers have been awarded more than $ 300 million from settlements in qui tam lawsuits in the current fiscal year. The federal government’s fiscal year begins on October 1st, leaving more than four months left to add to the impressive amount so far.

The two largest settlements, Johnson & Johnson in November 2013 and JPMorgan Chase in February 2014, have also led to the largest payouts. More than $ 167 million was split among the whistleblowers in Johnson & Johnson. The sole relator in JPMorgan Chase was entitled to $ 63.9 million.

A breakdown of the amount of awards in each settlement can be found on the Young Law Group website.

During FY 2013, whistleblowers received more than $ 345 million. * The record for the largest amount was set in 2011, when relators were awarded more than $ 500 million. In total, since the False Claims Act was amended in 1986, whistleblowers have been paid more than $ 4 billion for information they have brought to the government under the law. **

Payments for tips to whistleblowers in Endo Pharmaceuticals, Genzyme and Ensign Group were not included in the total for the current year because they were not disclosed by the Department of Justice. The addition of awards in these cases should add more than $ 25 million to the current total, based on the statutory percentages specified in the legislation.

“If our calculations are correct, Fiscal Year 2014 already ranks sixth on the list for highest payments to relators under the False Claims Act,” said Eric L. Young, Esq., managing partner of Young Law Group.

“Payments for information about health care fraud continue to account for the majority of rewards as the government fights fraud against Medicare, Medicaid and other government programs,” added Young.

About the Federal False Claims Act

The False Claims Act permits individuals to file lawsuits on behalf of the federal government to recover money paid out due to false statements. The individual filing the lawsuit is known as the relator. The government is permitted to intervene in the lawsuit and prosecute it to its conclusion if they wish. In this case, an eligible relator may receive between 15 and 25 percent of the amount recovered by the government. If the government declines to intervene and the individual continues the lawsuit against the company, they may be entitled to between 25 and 30 percent of the recovery.

The False Claims Act, also known as Lincoln’s Law, was passed in 1863 to fight fraud during the Civil War. In 1986, it was amended to increase incentives for relators and provide for treble damages against defendants.

About Young Law Group, P.C.

Young Law Group represents clients filing qui tam lawsuits under the False Claims Act and providing tips to the SEC, U.S. Commodity Futures Trading Commission, and Internal Revenue Service.

Eric L. Young, Esq., managing partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries. Young is licensed to practice law in the Commonwealth of Pennsylvania.

For a free, confidential case evaluation and discussion about whistleblower laws and rights, please call Eric Young, Esq., at 1-800-590-4116.

Learn more about Eric Young, Esq., and Young Law Group at http://young-lawgroup.com    

ATTORNEY ADVERTISING. Young Law Group, P.C. is a private law office located at 123 S. Broad St. Set 1920, Philadelphia, PA 19109. The firm will associate with local counsel in other jurisdictions when necessary. Young Law Group may not be able to represent residents of all states. Past results do not guarantee or predict a similar outcome in any present or future matter.

The lawsuits specifically identified here are captioned as United States ex rel. Victoria Starr v. Janssen Pharmaceutica Prods. L.P., Civil Action No. 04-1529 (E.D. Pa.); United States ex rel. Lynn Powell v. Janssen Pharmaceutica Prods. L.P. and Johnson & Johnson, Civil Action No. 04-5184 (E.D. Pa.); United States ex rel. Camille McGowan and Judy Doetterl v. Janssen Pharmaceutica, Inc., Janssen Pharmaceutica Prods. L.P., and Johnson & Johnson, Civil Action No. 05-5436 (E.D. Pa.); United States ex rel. Kurtis J. Barry v. Ortho-McNeil-Jannsen Pharms., Inc. and Johnson & Johnson, Inc., Civil Action No. 10-0098 (E.D. Pa.); United States ex rel. Lisitza and Kammerer, et al. v. Johnson & Johnson, et al. Civ. No.: 07-10288, 05-11518 (D. Mass); United States ex rel. Keith Edwards v. JPMorgan Chase Bank NA et al, Case No. 13-00220 (S.D.N.Y.); United States ex rel. Ryan v. Endo Pharmaceuticals Inc., Civil Action No. 05-cv-3450 (E.D. Pa.); United States ex rel. Weathersby, et al. v. Endo Pharmaceuticals Inc., et al, Civil Action No. 10-cv-2039 (E.D. Pa.); United States ex rel. Dhillon v. Endo Pharmaceuticals, Civil Action No. 11-cv-7767 (E.D. Pa.); United States ex rel. Fuentes, Russo v. Genzyme Corp., No. 09-cv-1245 (M.D. Fla.); United States ex rel. Kelley v. Genzyme Corp., No. 10-cv-549 (M.D. Fla.); United States of America ex rel. Gloria Patterson v. Ensign Group Inc., Case No. SACV 06-6956 CJC (ANx) (C.D. Calif.); and United States of America ex rel. Carol Sanchez v. Ensign Group Inc., Case No. SACV 06-0643 CJC (ANx) (C.D. Calif.).

For attribution purposes:


** http://www.justice.gov/civil/docs_forms/C-FRAUDS_FCA_Statistics.pdf

More Expert Witness Press Releases

New York Using Whistleblower Law as Part of Systemwide Effort To Pursue Tax Evasion Aggressively, According to Young Law Group

Philadelphia, PA (PRWEB) April 30, 2014

New York State is actively pursuing businesses that have engaged in tax evasion and wealthy taxpayers who are hiding income offshore. The New York False Claims Act permits individuals to share in the proceeds from these enforcement efforts if they bring forth evidence of tax fraud that results in successful collection efforts from a taxpayer. Unlike many states which do not provide for rewards in tax cases, the law allows accountants, financial professionals and employees of businesses, as well as others who wish to do the right thing when they discover wrongdoing, an avenue to report their information to the government and seek recovery on behalf of their fellow taxpayers.

“Recent enforcement actions by New York demonstrate that the state is actively pursuing collection efforts against tax evaders and would be interested in evidence about others,” according to Eric Young, Esq., Managing Partner of Young Law Group, P.C. “Individuals who have evidence of deliberate evasion or underpayment of taxes, including sales tax, should consult a whistleblower attorney about the procedure for reporting to the government and the potential for a reward based on their information.”

Prior to 2010, New York State did not pay for tax tips. In 2010, New York removed the exemption for cases of tax fraud in the False Claims Act, permitting whistleblowers with evidence of businesses avoiding payment of income taxes or the state sale tax to file a lawsuit to share in the state’s recovery. New York is beginning to see results from the change of the law.

Attorney General Eric T. Schneiderman and New York settled a qui tam whistleblower lawsuit in March brought against Lantheus Medical Imaging Inc. by a tax service provider for alleged failure to pay New York State and City taxes in Anonymous v. Anonymous, case number 102892/2012, Supreme Court of the State of New York, County of New York. Lantheus agreed to pay $ 6.2 million in the settlement for engaging in business in New York without paying applicable taxes.*

New York is also pursuing a tax fraud lawsuit initially brought by a whistleblower against Sprint-Nextel Corp that claims Sprint-Nextel failed to collect state and local taxes on flat-rate access charges for wireless calling plans. It estimates that Sprint has allegedly failed to pay $ 130 million in taxes, resulting in a case for damages of nearly $ 400 million.** The lawsuit is People of the State of New York et al. v. Sprint Nextel Corp. et al., case number 103917-2011, in the Supreme Court of the State of New York, County of New York.

New York’s use of the False Claims Act appears to be part of a systemwide effort to pursue cases of tax fraud. The Department of Taxation and Finance collected 5 percent more in evaded taxes in the 2013-14 fiscal year than it did the prior year.*** The increase of approximately $ 200 million brought the total achieved through enforcement programs for the year to $ 3.9 billion. Additionally, the Department of Financial Services, led by Superintendent Benjamin M. Lawsky, is also conducting an investigation into whether Credit Suisse aided taxpayers in tax evasion. A dual purpose of the inquiry, according to the New York Times, is to recover tax revenue lost by the State of New York. ****

“The real victims of tax fraud are the taxpayers who diligently and honestly pay their taxes every year,” said James J. McEldrew, III, Esq., Of Counsel at Young Law Group, P.C. “Individuals who come forward and tip the government to fraud are performing a public service. The False Claims Act recognizes the valuable contribution they make to society.”

About Young Law Group, P.C.

Young Law Group represents whistleblowers reporting tax evasion, securities fraud and health care fraud to the U.S. Government and various state governments, including New York. For a free confidential consultation about a potential case, please call Eric L. Young, Esq., at (800) 590-4116.

Eric L. Young, Esq., Managing Partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries including United States ex. rel. Lucia Paccione v. Cephalon Inc., E.D.P.A., 03-CV-6268.

Additional information about Young Law Group, P.C. can be found at http://eganyoung.com

For attribution purposes: * http://www.ag.ny.gov/press-release/ag-schneiderman-announces-62-million-settlementwith-lantheus-medical-imaging-bristol

** http://www.ag.ny.gov/press-release/ag-schneiderman-wins-right-proceed-groundbreaking-tax-fraud-lawsuit-against-sprint

*** http://nypost.com/2014/04/16/ny-claws-back-3-9b-in-evaded-taxes/

**** http://dealbook.nytimes.com/2014/04/06/credit-suisse-is-said-to-be-facing-double-barreled-inquiries/