Whistleblower Law Blog

OSHA Announces Appointment of New Whistleblower Protection Program Director

November 27, 2012

On November 20, 2012, the Department of Labor’s Occupational Safety and Health Administration’s (OSHA) Assistant Secretary Dr. David Michaels announced that Beth Slavet has been appointed as the new direct or OSHA’s Whistleblower Protection Program.

Slavet has over thirty years of whistleblower enforcement experience. Prior to her appointment as director of OSHA’s whistleblower program, Slavet served as a member, vice chairman and former chairman of the U.S. Merit Systems Protection Board (MSPB) from 1995-2003. Slavet spent the last decade working in the private sector where she focused on representing whistleblowers.

The Employment Law Group® law firm has an extensive nationwide whistleblower practice representing employees who have been victims of retaliation.

Senate Approves Stronger Whistleblower Protection for Federal Employees Who Expose Government Wrongdoing

November 27, 2012

On November 13, 2012, the Senate voted in favor of the Whistleblower Protection Enhancement Act (WPEA), S. 743/H.R. 3289, a piece of legislation that would provide federal whistleblowers with stronger protection from retaliation. Overall, this bill will close many gaps in the existing law, providing additional protection to those who expose fraud, waste, abuse, and illegal activity in the federal government.

Specifically, WPEA will close loopholes which currently allow agencies to protect only the first employee who reports government misconduct and allow agencies to retaliate against reporting employees if the misconduct falls within their job duties. This bill also modifies the standards an employee must meet in order to make a disclosure to only require “reasonable belief” of misconduct.  Additionally, government scientists and Transportation Security Administrative employees will be provided with whistleblower protection, and compensatory damages will be provided to whistleblowers that prevail after an administrative hearing.

The Office of Special Counsel (OSC), which would enforce WPEA, praised the Senate’s vote and has stated that this bill will “provide OSC with all the tools it needs to effectively fulfill its mission to protect employees from unlawful retaliation.”

After over a decade of being pushed through Congress, this bill was presented to President Obama on November 16, 2012 to be signed into law.

The Employment Law Group® law firm has an extensive nationwide whistleblower practice representing employees who have been victims of retaliation.

Nuclear Whistleblower Files ERA Lawsuit against Energy Northwest

November 21, 2012

Dave Sanders, former assistant maintenance manager for the Energy Northwest Columbia Generating Station, filed suit on October 25, 2012 in the U.S. District Court for the Eastern District of Washington under the whistleblower provision of the Energy Reorganization Act of 1978 (ERA).  Sanders alleges that Energy Northwest retaliated against him for questioning the nuclear power plant’s security clearance procedures and handling of security violations.

In early 2011, Sanders asked Security Force Supervisor Bruce Pease to increase security clearance standards for temporary employees being hired for maintenance outages. When Pease refused, Sanders worked through his own chain of command in order to obtain permission.  Pease allegedly retaliated against Sanders by accusing him of wrongfully authorizing a per diem for his daughter’s boyfriend Ricky Hayes, who Sanders had recommended for a temporary position.  Hayes received a per diem because he claimed to be a South Carolina resident, but he then moved to a local residence.   Energy Northwest revoked Sanders’s credentials and terminated his employment two weeks later.

Missouri Hospital Pays $9.3 Million to Settle False Claims Act and Stark Law (Healthcare Fraud) Violations for Compensating Physicians for Referrals

November 15, 2012

The Department of Justice has announced that Freeman Health System, a healthcare provider and hospital system located in Joplin, Missouri, will pay $9,316,139 to settle allegations that it violated the False Claims Act and Stark Law for improperly compensating physicians for referrals.

The lawsuit alleged that Freeman provided seventy physicians employed at clinics operated by Freeman with incentive pay based on revenue generated by their referrals for diagnostic testing and other services provided by the hospital. Disclosures made to the U.S. Attorney for the Western District of Missouri showed that several physicians were made eligible for incentive compensation based on the value and volume of referrals they made to the hospital. The United States conducted an investigation and found that Freeman knowingly violated Stark Law by compensating these physicians. Stark Law prohibits hospitals from billing Medicare for certain services based on referrals from physicians that have a financial relationship with the hospital because this arrangement could potential create an incentive to refer patients for those procedures.

David M. Ketchmark, Acting U.S. Attorney for the Western District of Missouri, stated:

“Our priority is protecting the patients… These laws are intended to ensure that physicians make referrals for health care services based solely on the medical needs of their patients rather than any financial incentives. These laws also protect the integrity of the government-funded health care benefit programs.”

The Employment Law Group® law firm’s whistleblower attorneys have helped many clients file suit against employers that fraudulently bill the U.S. government, and have established favorable precedents under the retaliation provision of the False Claims Act.

Northern Illinois Flight Center Ordered to Reinstate and Pay Whistleblower over $500,000 after He Was Terminated for Complaining About Violations of the Pilot Certification Process

November 15, 2012

Following an investigation conducted by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) the Northern Illinois Flight Center has been ordered to reinstate an Illinois pilot and pay him over $500,000 in back pay, benefits and damages. OSHA found that the flight center violated the whistleblower protection provision of the Wendell H. Ford Aviation Investment and Reform Act for the 21^st Century (AIR21) when it terminated the pilot after he contacted the Federal Aviation Administration (FAA) regarding violations of the pilot certification process.

According to the pilot, on February 16, 2009 he was allegedly asked to falsify a pilot certification form for a training flight he had performed with another pilot. However, he maintained that he could not certify the form because all required elements had not been completed during the training flight. Then on March 23, 2009, his supervisor attempted to coerce him into signing a backdated and incorrect form. The pilot informed his supervisor that he wanted to directly contact the FAA to discuss the pilot certification process and forms, which he did between March 25 and 27. Following his contact with the FAA Flight Standards District, he was terminated on April 7 and provided with no reason for his termination.

Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels stated:

“Firing pilots for reporting inaccurate procedures to the FAA endangers other pilots, their passengers and the public at large… The Labor Department has a responsibility to protect all employees, including those in the aviation industry, from retaliation for raising safety concerns and exercising these basic worker rights.”

The Employment Law Group® law firm has an extensive nationwide whistleblower practice representing employees who have been victims of retaliation.

Department of Justice Files Lawsuit against Virginia-Based Contractor for Submitting False Claims for Iraqi Security Guards Who Did Not Meet Contract Requirements

November 15, 2012

The Department of Justice (DOJ) has announced that the United States has filed a False Claims Act lawsuit in the U.S. District Court for the Eastern District of Virginia against Triple Canopy Inc., a Reston, Virginia-based government contractor. The case was initially filed in 2011 by a former employee of Triple Canopy under the qui tam provision of the False Claims Act. After being filed, the case was investigated by the U.S. Attorney’s Office for the Eastern District of Virginia; the Commercial Litigation Branch of the Justice Department’s Civil Division; and the Army Criminal Investigative Command (CID) and Defense Criminal Investigative Service (DCIS) of the Department of Defense.

The lawsuit alleges that Triple Canopy submitted false claims to the United States as part of a $10 million contract awarded to them in 2009 in order to provide a variety of security services at the Al Asad Airbase in Iraq. According to the DOJ, Triple Canopy fraudulently billed for hundreds of foreign nationals who were hired as security guards but failed to meet Army firearms proficiency tests. Under the contract awarded to Triple Canopy, all security guards hired to protect U.S. and allied personnel were required to pass the proficiency test in order to establish they were capable of safely and accurately firing AK-47 assault rifles and other weapons. To cover up its hiring of the hundreds of unqualified guards, Triple Canopy managers in Iraq falsified test scores so they could bill the U.S. for these unqualified guards. Even after high-level officials alerted the company’s headquarters in Reston of this fraudulent activity, the misconduct continued. The lawsuit also claims that Triple Canopy used these false qualification records in order to persuade the U.S to extend their security work at the Al Asad Airbase for a second year.

Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice, stated:

“For a government contractor to knowingly provide deficient security services, as is alleged in this case, is unthinkable, especially in war time… The department will do everything it can to ensure that contractors comply with critical contract requirements and that contractors who don’t comply aren’t permitted to profit at the expense of our men and women in uniform and the taxpayers at home who support them.”

The Employment Law Group® law firm’s whistleblower attorneys have helped many clients file suit against employers that fraudulently bill the U.S. government, and have established favorable precedents under the retaliation provision of the False Claims Act.

OSC Successfully Completed Mediation for Border Patrol Whistleblower

November 15, 2012

The Office of Special Counsel (OSC) has announced that it successfully completed its fourth mediation in the month of October. OSC mediated between Border Patrol agent Christian Sanchez and the U.S. Border Patrol’s Port Angeles Station in the state of Washington after Sanchez filed a Whistleblower Protection Act complaint.

Sanchez alleges that the U.S. Border Patrol in Port Angeles Station harassed and retaliated against him when he refused to receive overtime pay for work he never performed. According to his lawsuit, the Port Angeles Station employed over forty individuals. However, Sanchez states that there was an insufficient amount of work to perform so agents would pass time by taking daylong coastal drives and allegedly harassing local minorities. When Sanchez took a stand and refused to accept taxpayers’ money for work he did not perform, the Port Angeles Station denied him meaningful work and stripped him of his duties as an agency chaplain.

Upon filing his complaint in January 2012, Sanchez chose to seek mediation as a first option. OSC’s San Francisco office handled his case. As a result of mediation, the U.S. Board Patrol must reassign Sanchez a new post of his choosing, clear his personnel record, and restore his eligibility for chaplain duties.

Special Counsel Carolyn Lerner stated:

“Mr. Sanchez showed courage by speaking out… I commend both him and the U.S. Customs and Border Protection for resolving their differences through mediation.”

The Employment Law Group® law firm has an extensive nationwide whistleblower practice representing employees who have been victims of retaliation.

New York Hospital to Pay $7M to Settle Qui Tam Suit Alleging Medicaid Billing Fraud

November 06, 2012

New York’s Westchester Medical Center has agreed to pay $7 million to settle a lawsuit brought by Richard Anderson, the administrative head of Westchester’s behavioral health center.  Anderson filed his qui tam suit alleging Medicaid fraud in July 2011.

From August 2001 to June 2010, the mental health center at Westchester Medical Center allegedly billed Medicaid for millions of dollars for outpatient services without the proper documentation such as the required progress reports and treatment plans. Although the hospital was aware that it did not provide the required documentation with submitted claims, it did not take action to address the problem until after an audit by the New York State Department of Health inspector general in 2010. Even after the audit uncovered fraud, the hospital did not return the funds to Medicaid.

When discussing this Medicaid lawsuit on Wednesday, Preet Bharara, U.S. Attorney for the Southern District of New York, said, “We have absolutely no tolerance for those who fail to comply with the program, particularly in these lean times when budgets are stretched thin and belts are being tightened.”

The Employment Law Group® law firm has an extensive nationwide whistleblower practice representing employees who have been victims of retaliation.

RxAmerica Settles False Claims Act Lawsuit for Misrepresenting Costs of Prescription Drugs to Senior Citizens

November 05, 2012

RxAmerica, a subsidiary of CVS Caremark, entered a civil settlement agreement with the federal government and agreed to pay $5.25 million to resolve allegations that the company misrepresented prescription drug costs to seniors and submitted false claims to the Centers for Medicare & Medicaid Services (CMS).

According to the lawsuit filed in 2009 by Max and Jan Hauser, between January 1, 2007 and December 31, 2008, RxAmerica misrepresented the cost of some generic prescription drugs on Medicare’s online “Plan Finder,” an online system used by senior citizens to compare the cost and benefits of different Medicare Part D plans. On the Plan Finder, RxAmerica listed one price for prescription medication but in some cases billed CMS a significantly higher price than the pricing data listed on Plan Finder. As a result of this billing practice, the Hausers and other senior citizens inadvertently used up their Part D benefits faster than expected and were forced into a “doughnut hole” where they had to start paying out-of-pocket for medication.

Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division, said:

“The Department of Justice is committed to protecting the Medicare drug prescription program against all types of misconduct… As today’s settlement demonstrates, we will ensure that Medicare Part D sponsors submit accurate drug pricing information, to ensure the integrity of the Medicare Part D program and to protect the beneficiaries who participate in the program.”

The Employment Law Group® law firm’s whistleblower attorneys have helped many clients file suit against employers that fraudulently bill the U.S. government, and have established favorable precedents under the retaliation provision of the False Claims Act.

President Obama Issues Landmark Presidential Policy Directive to Protect National Security and Intelligence Community Employees

November 05, 2012

Last month President Obama issued a landmark Presidential Policy Directive (PPD-19), which will finally provide members of the national security and intelligence community with protection against retaliation when they blow the whistle on waste, fraud and abuse.

The Directive will protect employees of the intelligence community by prohibiting retaliatory actions affecting employees’ security clearances and access to classified information. It will also require intelligence agencies to create within 270 days a review process for retaliation claims consistent with the policies and procedures in the Whistleblower Protection Act (WPA), and to establish an appealable review process for classified information conducted by Inspector General.  Additionally, this PPD establishes remedies such as reinstatement, attorney’s fees, back pay and related benefits, travel expenses, and compensatory damages.

The Employment Law Group® law firm has an extensive nationwide whistleblower practice representing employees who have been victims of retaliation.