Find Corporate Waste

Tag: DOJ

  • Contractors to Pay $3.6M Over False Veteran-Owned Small Business Certification

    Contractors to Pay $3.6M Over False Veteran-Owned Small Business Certification

    Two government contractors agreed to pay more than $3.6 million to resolve allegations involving False Claims Act and Contract Disputes Act liability tied to federal set-aside contracts, according to the DOJ.

    The settlement involves Officium Global LLC and Loyal Source Government Services LLC. Prosecutors said Officium Global allegedly submitted false or fraudulent claims for payment on seven service-disabled veteran-owned small business set-aside contracts awarded between May 2017 and June 2018.

    According to the settlement agreement, Officium Global was allegedly not entitled to those contracts because its management and daily business operations were not controlled by a service-disabled veteran. The DOJ said the company submitted, or caused to be submitted, false certifications and statements representing that it met all requirements to be a service-disabled veteran-owned small business when it did not.

    Officium Global will pay more than $1.8 million to resolve the False Claims Act allegations. Loyal Source Government Services will separately pay more than $1.8 million to resolve Contract Disputes Act allegations tied to alleged breaches of the same seven contracts.

    The case began as a qui tam lawsuit filed by relator Jeremy Lavin in the Middle District of Florida. Under the False Claims Act, private citizens may sue on behalf of the United States and share in the recovery.

    The DOJ said Lavin will receive more than $680,000 from the settlement proceeds.

    The case is United States ex rel. Lavin v. Loyal Source Government Services, LLC et al., No. 6:19-cv-958, in the U.S. District Court for the Middle District of Florida. 

    Find Corporate Waste tracks False Claims Act recoveries involving government contracting fraud, small-business set-asides, and eligibility certifications. Anyone with inside knowledge of set-aside control failures, pass-through contracting arrangements, or false small-business certifications may have information relevant to public-fraud enforcement.

  • Louisiana Woman Pleads Guilty in PPP Kickback Scheme

    Louisiana Woman Pleads Guilty in PPP Kickback Scheme

    A Louisiana woman pleaded guilty for her role in a multi-state Paycheck Protection Program fraud scheme that allegedly used ineligible borrowers, fake tax forms, and kickbacks to obtain pandemic-relief funds.

    According to the DOJ, Lisa Lemoine, 38, of Bossier City, Louisiana, pleaded guilty to one count of conspiracy to commit wire fraud.

    Federal prosecutors said Lemoine worked with alleged co-conspirators Sniders Jean-Jacques, Lorne Johnson, Tanya Pierre, Ashley Spike, and others to submit fraudulent PPP applications for borrowers and collect up to 30% of the loan proceeds as a fee.

    Beginning in March 2021, Lemoine allegedly recruited borrowers who were not eligible for PPP loans, claimed they operated qualifying businesses, and created fake tax forms to support the applications.

    Prosecutors said she received kickbacks from borrowers who obtained PPP funds and shared those payments with co-conspirators.

    Jean-Jacques, Johnson, Pierre, and Spike were charged separately in connection with the same alleged scheme.

    The charge carries a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss from the scheme.

    This case underscores why Find Corporate Waste tracks PPP cases. Anyone with inside knowledge of PPP application brokers, fake tax forms, borrower-recruitment networks, or lender-side approval failures may have information relevant to public-fraud enforcement.

    Contact Find Corporate Waste if you know how taxpayer funds were obtained, approved, or forgiven despite false statements.

  • Colombian Woman Sentenced After Stolen Identity Scheme Tied to Voter Fraud and $404K in Benefits

    Colombian Woman Sentenced After Stolen Identity Scheme Tied to Voter Fraud and $404K in Benefits

    A Colombian woman who lived in Boston under a stolen identity for more than two decades was sentenced to 33 months in federal prison, according to the DOJ.

    Prosecutors said Lina Maria Orovio-Hernandez, 60, used the name, date of birth, and Social Security number of a U.S. citizen born in Puerto Rico to obtain Massachusetts IDs, a REAL ID, federal benefits, and to vote in the 2024 presidential election.

    The DOJ said the scheme included approximately $43,348 in SNAP benefits, $101,257 in SSI disability benefits, and $259,589 in Section 8 rental assistance. She was ordered to pay $404,194 in restitution and is subject to deportation after her sentence.

    This is not just a voter-fraud case. It is a cross-system identity-fraud case involving public benefits, housing assistance, state identification, passport screening, and election records.

    For Find Corporate Waste, the key oversight question is simple: how did one stolen identity survive repeated checks across taxpayer-funded systems for more than 20 years?

    Anyone with inside knowledge of identity-verification failures, benefit-screening gaps, or recurring document-fraud patterns in federally funded programs may hold information relevant to public-fraud enforcement.

    If you know how a similar scheme was missed, approved, repeated, or concealed, contact Find Corporate Waste. We protect confidential sources while preserving the right of eligible whistleblowers to seek compensation for reporting fraud against taxpayer-funded programs.

  • Hawaii Housing Official Sentenced In $11M Affordable Housing Bribery Scheme

    Hawaii Housing Official Sentenced In $11M Affordable Housing Bribery Scheme

    Find Corporate Waste will continue to investigate similar fraud theories.

    A former Hawaii County housing official was sentenced to 46 months in prison for his role in a public corruption scheme involving affordable housing agreements worth more than $11 million, according to the DOJ.

    Alan Scott Rudo, a former Housing Specialist at the Hawaii County Office of Housing and Community Development, admitted that he accepted bribes in exchange for using his official position to help secure county approval of three affordable housing agreements.

    The agreements benefited development companies tied to Paul Sulla, Gary Zamber, and Rajesh Budhabhatti: Luna Loa Developments LLC, West View Developments LLC, and Plumeria at Waikoloa LLC.

    The DOJ said the companies promised to build affordable housing for Hawaii County residents but never built a single unit. Instead, the defendants obtained more than $11 million worth of land and excess affordable housing credits.

    From that amount, Sulla, Zamber, and Budhabhatti paid or attempted to pay Rudo approximately $1.93 million in bribes and kickbacks.

    Rudo pleaded guilty and testified at trial. His co-conspirators were convicted by a federal jury in June 2025. Zamber was sentenced to 70 months, Budhabhatti to 90 months, and Sulla to 60 months in prison.

    This case shows how affordable housing programs can be converted into private enrichment when public officials, developers, and professionals coordinate around government-controlled benefits.

    Anyone with inside knowledge of similar housing-credit, land-transfer, or public-benefit abuse should report the conduct to Find Corporate Waste to see if your case qualifies as a False Claims Act referral pathway.

  • Delco Woman Pleads Guilty in $7.17M EIDL Fraud-Proceeds Laundering Scheme

    Delco Woman Pleads Guilty in $7.17M EIDL Fraud-Proceeds Laundering Scheme

    A Pennsylvania woman pleaded guilty in a money laundering conspiracy tied to more than $7.17 million in fraud proceeds, according to the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

    Christina Williams, 31, of Drexel Hill, admitted to conspiring to launder fraud proceeds with her mother, Rosemarie Dixon, and others. The case was also highlighted by the SBA Office of Inspector General.

    Prosecutors said Williams Royal Real Estate LLC and Dixon Delish Kitchen LLC were sham businesses with no real operations or employees. Bank accounts opened in those names allegedly received proceeds from fraudulent Economic Injury Disaster Loan applications and business email compromise schemes.

    The government says the funds were quickly moved between business accounts, personal accounts, and other sham-business accounts controlled by participants in the conspiracy. Prosecutors placed the total amount laundered, attempted to be laundered, or agreed to be laundered at $7,171,730.

    Williams and Dixon are scheduled to be sentenced on September 9. Each faces up to 20 years in prison.

    For Find Corporate Waste, the case underscores a recurring pandemic-fraud lesson: the paper trail does not stop at the false application. It often runs through shell entities, bank accounts, insider permissions, and rapid money movement.

  • Oglethorpe Pays $32M Over Medicare Overpayment Allegations

    Oglethorpe Pays $32M Over Medicare Overpayment Allegations

    Oglethorpe Inc. and three top executives agreed to pay $32 million to resolve False Claims Act allegations tied to Medicare overpayments at behavioral health facilities.

    According to the DOJ, Oglethorpe, its founder Robert Cohen, CEO John Picciano, and COO James O’Shea allegedly failed to return overpayments that the company’s own consultants had identified.

    The alleged overpayments involved Medicare beneficiaries admitted to Ridgeview Behavioral Hospital, Georgetown Behavioral Hospital, and The Woods at Parkside, despite allegedly not qualifying for inpatient psychiatric care.

    The case stands out because Oglethorpe had already entered a 2021 Corporate Integrity Agreement after an earlier FCA settlement. Following alleged violations, the defendants agreed to a 10-year exclusion from Medicare, Medicaid, and all federal health care programs beginning in July 2026.

    The lawsuit was filed by four former Oglethorpe employees under the FCA’s whistleblower provisions. Their relator share has not yet been determined.

  • Georgia Man Gets 37 Months in $441K COVID Relief Fraud Case

    Georgia Man Gets 37 Months in $441K COVID Relief Fraud Case

    Brian Graham, 49, of Lithia Springs, Georgia, was sentenced to 37 months in federal prison after pleading guilty to wire fraud in a COVID-relief scheme involving the PPP and EIDL programs.

    According to the U.S. Attorney’s Office for the District of Colorado, Graham prepared and submitted fraudulent loan applications between April 2020 and August 2021 for several business entities he controlled. Prosecutors said the applications misstated employee counts, gross revenues, cost of goods sold, and payroll.

    The court ordered Graham to pay $441,546 in restitution, serve three years of supervised release, and forfeit proceeds tied to the offense. The SBA also highlighted the sentence.

    The critical allegation was not just bad paperwork. Graham certified that the information was accurate and that the funds would be used for payroll and other approved business expenses. Prosecutors said he instead used the bulk of the money for himself.

    The case, United States v. Graham, 1:25-cr-00079-JLK, was investigated by TIGTA and the SBA Office of Inspector General.

    Brian Graham allegedly used his role as a notary to defraud the American taxpayer.

    For Find Corporate Waste, the Graham case is a reminder that pandemic fraud often hides in plain sight: controlled entities, inflated numbers, false certifications, and taxpayer-backed money converted into personal gain.

  • Brooklyn Clinic Owner Convicted in $52M Health Care Fraud and Kickback Scheme

    Brooklyn Clinic Owner Convicted in $52M Health Care Fraud and Kickback Scheme

    A federal jury in the Eastern District of New York convicted Tony Brown-Arkah, 78, owner of American Medical Centers, a Brooklyn clinic that purported to provide substance abuse treatment, for his role in a $52 million health care fraud, narcotics, and kickback scheme.

    According to the Department of Justice, Brown-Arkah’s clinic illegally prescribed Suboxone, a Schedule III narcotic used to treat opioid use disorder, while allowing drug diversion activity to operate around the clinic. Witnesses testified that patients were directed to sell prescriptions outside the facility, including to a van near the clinic.

    The DOJ said many patients received prescriptions signed by a nurse practitioner in Florida who did not see or speak with them. Patients were also subjected to medically unnecessary testing, while Medicare and Medicaid were billed for services that were not provided or not legitimate.

    Brown-Arkah was also convicted of paying patient kickbacks and receiving laboratory kickbacks tied to unnecessary testing referrals. Prosecutors said he used a shell company and sham contract to conceal the payments.

    The case reflects the DOJ’s continued focus on health care fraud involving addiction treatment, laboratory testing, controlled substances, and federal program billing.

    DOJ Press Release — Clinic Owner Convicted for $52M Health Care Fraud, Illegal Narcotics Distribution, and Kickback Scheme

    DOJ Health Care Fraud Unit

    Find Corporate Waste — False Claims Act

  • VSoft to Pay Nearly $2.3M Over PPP Eligibility Allegations

    VSoft to Pay Nearly $2.3M Over PPP Eligibility Allegations

    VSoft Corporation has agreed to pay $2,291,927.07 to resolve False Claims Act allegations that it improperly obtained a second-draw Paycheck Protection Program loan.

    According to the DOJ, VSoft, an Atlanta-based banking and payment solutions provider, allegedly certified that it qualified as a small business with fewer than 300 employees when applying for a $1,259,732 PPP loan. Prosecutors alleged that VSoft was actually part of an international corporate structure with multiple locations worldwide and employee totals well above the second-draw PPP limit.

    This is exactly the kind of case Find Corporate Waste was built to track: follow the money, stop the fraud, and protect taxpayer dollars. Pandemic relief was designed to keep legitimate small businesses alive, not to subsidize companies that allegedly avoided size and affiliation rules.

    The case began as a whistleblower action under the False Claims Act: United States ex rel. GHGH2, Inc. v. Vsoft Technologies Corporation, Case No. 3:24-cv-999 (W.D.N.C.).

    The settlement resolves allegations only, with no determination of liability. But the message is clear: insiders, competitors, lenders, and data reviewers remain essential to exposing improper relief claims and helping recover public funds.

  • Regions Bank to Pay $4.9M Over Ineligible PPP Forgiveness Approval

    Regions Bank to Pay $4.9M Over Ineligible PPP Forgiveness Approval

    Regions Bank has agreed to pay the United States $4.9 million to resolve civil allegations connected to a Paycheck Protection Program loan forgiveness approval that the government says should not have been granted.

    According to the DOJ, the matter involved a PPP loan obtained by Gregory A. DeLine, who owned or operated several businesses, including Midwest Mortgage Associates Corporation d/b/a Total Lending Concepts, Amega Sales Inc., and GKD Management, L.P.

    The government alleged that Regions approved full forgiveness of the loan even though the loan was not eligible for forgiveness.

    The public settlement documents do not identify the exact defect that made the loan ineligible. That distinction matters. The case should not be overstated as a public finding that the borrower committed fraud or that Regions admitted wrongdoing.

    The DOJ framed the civil resolution against Regions under an unjust enrichment theory, meaning the government alleged Regions received money it should not have received after approving forgiveness.

    The Paycheck Protection Plan (PPP) was created under the CARES Act to provide emergency relief during the COVID-19 pandemic. Borrowers could seek forgiveness if funds were used for payroll and other approved expenses. Once forgiveness was approved, the SBA paid the lender the forgiven principal and interest.

    For Find Corporate Waste, this case highlights why public-data review must examine the full structure of relief programs: borrower eligibility, certifications, lender review, forgiveness approval, and federal reimbursement. A single improper forgiveness approval can create millions in taxpayer exposure.

    Public records can identify the pattern, but insider knowledge transform that pattern into an actionable lead potentially worth millions.