Monday, March 28, 2005

New York's Mayor Bloomberg Vetos Whistle-Blower Bill

New York City Mayor Michael Bloomberg has vetoed a bill that would let private citizens profit from blowing the whistle on fraudulent claims against the city.  The New York City False Claims Act, which was modeled on a federal law credited with saving $12 billion since 1986, was determined by Bloomberg to be beyond the power of the City Council to impose without a public referendum.  In his veto message, the mayor also said the measure could “impede ongoing investigations and prosecutions.” The City Council is expected to override the mayor’s veto and make the False Claims Act law. Read the complete account from the New York Daily News here.

Watchdogs Claim Fraud is Rampant in Iraq, But the US Government Won't Crack Down

An article in the April 4 issue of Newsweek, the attorneys for two whistle-blowers from defense contractor Custer Battles wonder why the US government will not join in the suit under the law designed to punish war profiteering and fraud.  Click here to read the entire article.

Wednesday, March 23, 2005

Space Shuttle Suppliers Settle Suit for $3 Million

Three U.S. firms accused of falsifying safety tests for compressed gas cylinders used to fuel nuclear missiles and the space shuttle have reached a $3 million settlement in a whistle-blower lawsuit.  Under settlement terms, Western Sales and Testing of Texas, BKC Industries of North Carolina, and Portersville Sales and Testing, a Pennsylvania company, agreed to pay the United States $2.9 million and $105,000 to whistle-blower Timothy Smith, a former Western Sales employee, to settle claims arising out of a 2002 lawsuit.

Smith, a former quality control supervisor, claimed he was fired by Western Sales for refusing to alter or falsify test results for compressed gas containers the company serviced under government contracts with the Defense Department, NASA, the National Nuclear Security Administration and other government agencies.  To read the full account in amarillo.com, click here.

Tuesday, March 22, 2005

UMDNJ Settles Fraudlent Billing Case; Agrees to Pay $1.4 Million

Officials of the University of Medicine and Dentistry of New Jersey agreed last week to pay $1.4 million to settle claims that faculty doctors overbilled for patient services.  According to a story published on Friday in the Newark Star Ledger and nj.com, the settlement is part of a nationwide crackdown on fraudlent billing, based on the federal False Claims Act, that began in 1995 and has netted more than $134 million in 22 settlements.  For the full story, click here.

Monday, March 21, 2005

Researcher Admits Fraud in Obtaining Federal Grants

A top obesity researcher who worked at the University of Vermont has admitted that he fabricated data in 17 applications for federal grants to make his work seem more promising, helping him win nearly $3 million in government funding.  A report in Friday’s Boston Globe called the case the worst scientific fakery to come to light in more than two decades.  The researcher, Eric T. Poehlman, was turned in by an assistant.  Read the entire story here.

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