Find Corporate Waste

Tag: False Claims Act

  • Misuse of NIH Grants: Dana-Farber’s $15M Legal Consequences

    Misuse of NIH Grants: Dana-Farber’s $15M Legal Consequences

    Overview of the Dana-Farber False Claims Act Settlement

    Find Corporate Waste reports that on December 16, 2025, the Dana-Farber Cancer Institute Inc. agreed to pay $15 million to resolve allegations that it violated the False Claims Act by making materially false statements and certifications related to National Institutes of Health research grants.

    Federal authorities alleged Dana-Farber misused NIH funding and caused false claims to be submitted to the agency between 2014 and 2024.

    Statement of Resolution Agreement: Department of Justice+1

    Allegations of Falsified Data in NIH-Funded Research

    The DOJ alleged that research supported by six NIH grants had led to numerous scientific publications containing misrepresented or duplicated images and data.

    These included reused figures presented as different experimental outcomes and manipulated imagery across multiple testing conditions.

    Department of Justice

    Misuse of Federal Research Grants and Unallowable Expenses

    Dana-Farber admitted it spent federal research funds on activities and expenses that were unallowable under NIH grant terms. Prosecutors maintained that these actions constituted misuse of taxpayer-funded research grants and breached federal stewardship obligations. Department of Justice

    Whistleblower Lawsuit and Qui Tam Recovery

    This matter originated from a qui tam complaint filed by whistleblower Sholto David under the False Claims Act. Under the settlement terms, the relator will receive approximately $2.625 million, reflecting the FCA’s whistleblower recovery provisions. Department of Justice+1

    Federal Enforcement and Interagency Effort

    The resolution resulted from coordinated enforcement by the Department of Justice and the Department of Health and Human Services Office of Inspector General.

    For more information about this effort: DOJ-HHS Launch New Initiative to Combat Healthcare Fraud

    Why This Case Matters for Federally Funded Medical Research

    The Dana-Farber Settlement demonstrates how integral the False Claims Act is to stopping massive fraud and abuse of government money.

    If you have credible information about misuse of federal funds, fraud, or false claims like those described above, you may be able to report it as a whistleblower under the False Claims Act and potentially receive a share of any government recovery.

    Find Corporate Waste can help you understand your options and connect you with experienced counsel to evaluate and report your information securely.

    Contact us to learn how your insight can hold fraud accountable and protect taxpayer dollars.

  • Setterstix Inc. Settles $1.76M Over PPP Loan Fraud

    Setterstix Inc. Settles $1.76M Over PPP Loan Fraud

    Setterstix Inc. is a manufacturer best known for producing paper sticks used in food and medical products. The company has agreed to pay $1,757,603.65 to resolve federal allegations that it improperly obtained a $571,862 Paycheck Protection Program (PPP) loan.

    The settlement was announced by the U.S. Attorney’s Office for the Western District of New York.

    DOJ Targeted Setterstix Over PPP Eligibility

    The Paycheck Protection Plan (PPP) program required applicants to certify that they met strict criteria, including:

    • U.S.-based operations
    • Domestic control or qualifying ownership structures
    • Adherence to SBA size standards and affiliation rules

    Federal prosecutors allege Setterstix did not meet those requirements. PPP loans were disbursed based on self-certifications. Any inaccurate or misleading statement, whether intentional or not, can constitute a “false claim” under 31 U.S.C. § 3729.

    The DOJ‘s intervention shows the Trump Administration’s continued strategy. They use the False Claims Act to recover pandemic-era financial relief.

    Treble Damages: How a PPP Loan Tripled in Cost

    Under the False Claims Act, companies may be liable for:

    • Treble damages (three times the government’s loss)
    • Civil penalties assessed per false claim
    • Mandatory repayments of improperly obtained funds

    In this case, the government sought more than just the original loan amount.

    ProPublica Data Confirms Loan Fraud

    The ProPublica PPP database shows:

    • Loan Amount: $571,862
    • Date Approved: April 8, 2020
    • Industry: Manufacturing
    • Program: First-draw PPP loan

    How Find Corporate Waste (FCW) Uncovers Cases Like Setterstix

    At Find Corporate Waste (FCW), we specialize in identifying the discrepancies that led to the $1.76 million settlement with Setterstix Inc.

    Our investigation model is built on cross-referencing databases the government maintains but fails to connect. We aim to detect patterns that suggest fraud, waste, and abuse.

    These cases are not rare, they are actually just a symptom of the broader pattern of pandemic relief fraud. For more information about these cases, or to report potential waste of federal funds, reach out to info@findcorporatewaste.com and be sure to subscribe.

  • $6 Million Settlement for Fraudulent Lab Testing Kickbacks

    $6 Million Settlement for Fraudulent Lab Testing Kickbacks

    A former laboratory CEO, two Texas physicians, and seven marketers have agreed to pay more than $6 million. This settlement resolves allegations they took part in kickback schemes. These schemes funneled taxpayer dollars into fraudulent lab testing referrals.

    Christopher Grottenthaler, the former CEO of True Health Diagnostics, will pay $4.25 million to settle claims. He allegedly arranged kickbacks disguised as consulting fees. These included MSO (management service organization) distributions, processing fees, and even waived patient copays. These actions were to induce doctors to order unnecessary lab tests.

    Two physicians, Dr. Hong Davis of Plano and Dr. Elizabeth Seymour of Denton, agreed to pay a combined $358,842. Both were accused of accepting MSO payments to draw business to True Health, Little River Healthcare, and Boston Heart Diagnostics.

    Seven marketers will pay nearly $1.46 million for illegally routing MSO payments to doctors to generate referrals. They are Courtney Love, Stephen Kash, Laura Howard, Jeffrey Parnell, Stanley Jones, Jordan Perkins, and Ruben Marioni.

    These settlements are part of a wider federal crackdown. The Department of Justice has recovered over $59 million. This recovery is from more than 50 doctors and other participants in similar MSO-based lab testing kickback schemes.

    “Kickbacks to doctors can undermine medical decision-making, subject patients to wasteful treatments, and squander taxpayer money,” said Assistant Attorney General Brett A. Shumate.

    This case was sparked by a whistleblower lawsuit filed under the False Claims Act by STF LLC, whose members will receive $148,750. The lawsuit continues against other defendants.

    Why It Matters

    Lab testing is essential for patient care. When executives and doctors put profits ahead of patients, the medical system is corrupted.

    At Find Corporate Waste, we track these schemes to hold bad actors accountable. If you have information about healthcare fraud, waste, or abuse, you can report it confidentially. Reach out to us at info@findcorporatewaste.com.

  • Whistleblower Receives $2.1M for Exposing Customs Fraud

    Whistleblower Receives $2.1M for Exposing Customs Fraud

    Allied Stone Inc., a Dallas-based countertop and cabinetry supplier, and its president Jia “Jerry” Lim, have agreed to pay $12.4 million to resolve allegations that they violated the False Claims Act.

    Allied Stone and Lim avoided millions in customs duties owed between 2018 and 2013. The company allegedly misrepresented Chinese quartz products as other materials. They labeled them as marble or crystallized glass. They did not declare or pay proper duties, undermining fair trade protections designed to shield U.S. manufacturers from unfairly subsidized or underpriced Chinese imports.

    The case was brought to light by relator Melinda Hemphill, who filed under the False Claims Act’s qui tam provisions.

    For her role in exposing the scheme, relator will receive over $2.1 million of the settlement.

    Stacks of U.S. currency bundled and stacked, showcasing wealth.

    This payout underscores the significant financial incentives available to insiders who step forward with information about customs fraud.

    When companies cheat the system, taxpayers lose, trade policy is undermined, and honest U.S. businesses pay the price.

    If you are aware of a company misrepresenting imports, evading tariffs, or defrauding federal programs, you may have a False Claims Act case.

    Acting through Find Corporate Waste, you can file confidentially and still receive your share of any government recovery.

    👉 Contact us today at info@findcorporatewaste.com to protect taxpayer funds and hold fraudsters accountable.

  • Illumina’s $9.8M Cybersecurity Settlement Explained

    Illumina’s $9.8M Cybersecurity Settlement Explained

    Cybersecurity protection is a vital area where the federal government spends billions of dollars to ensure safety. A recent False Claims Act settlement in the District of Rhode Island is a clear example. Companies that fail to meet the standards they claim to uphold risk huge financial penalties.

    Illumina Inc., a leading genomic sequencing company, agreed to pay $9.8 million after the Justice Department alleged it sold systems to federal agencies that had serious cybersecurity vulnerabilities between 2016 and 2023.

    A whistleblower inside the company triggered the case. Erica Lenore, a former Director for Platform Management, received $1.9 million for stepping forward under the False Claims Act.  

    If you work in cybersecurity, IT, compliance, or product management for a company that sells to the federal government, you may have noticed similar failures. These include unpatched vulnerabilities or a lack of essential security testing.

    Under the False Claims Act, neglecting these failures can result in multimillion-dollar liabilities for your employer. It can also lead to multimillion-dollar rewards for you if you take action.

    For professionals concerned about exposure, Find Corporate Waste (FCW) protects whistleblowers who want to remain anonymous. We submit filings through the corporation, not you personally. This ensures maximum confidentiality. It also allows you to receive your fair share of any recovery.  

  • Delta Airlines To Pay $8.1 Million Settlement for Pandemic Relief Fraud

    Delta Airlines To Pay $8.1 Million Settlement for Pandemic Relief Fraud

    Delta Airlines has agreed to pay $8.1 million to resolve allegations that it violated the False Claims Act by breaching executive compensation limits imposed by Congress as a condition for receiving federal COVID-19 relief.

    The relief funds came from the Payroll Support Program (PSP), created under the CARES Act. Between 2020 and 2023, Delta received nearly $11.9 billion, including $8.2 billion in grants that did not require repayment. In exchange, the airline agreed to cap compensation for executives who earned over $425,000 in 2019 until April 2023.

    According to the settlement, Delta broke that agreement by awarding pay packages that exceeded legal thresholds, then falsely certified compliance with the terms of the PSP and failed to alert Treasury of its breach.

    “When companies accept federal assistance, especially generous pandemic-relief funds like those at issue here, they owe a duty to the American people to respect the conditions placed on those funds,” said U.S. Attorney Theodore S. Hertzberg. “We will continue to enforce all available laws to punish the misuse of taxpayers’ money.”

    The case began when a whistleblower—a financial researcher—filed a qui tam lawsuit under the False Claims Act, a law that empowers private citizens to report fraud on the government’s behalf. As part of the resolution, the whistleblower (known legally as the relator) will receive $825,000 plus attorney’s fees.

    The qui tam case, United States ex rel. H. Remidez, LLC v. Delta Airlines, Inc., No. 1:23-CV-1116, was filed in the U.S. District Court for the Northern District of Georgia.

    The settlement was the result of an investigation led by the U.S. Attorney’s Office for the Northern District of Georgia, the DOJ Civil Division’s Commercial Litigation Branch, and the Treasury Department’s Office of Inspector General.

  • Michigan Health Care Provider Ordered to Pay $334,807 to Settle False Claims Act Allegations

    Michigan Health Care Provider Ordered to Pay $334,807 to Settle False Claims Act Allegations

    In the Eastern District of Michigan, M&Y Care, LLC, a Michigan-based home health provider, has agreed to pay $334,807.20 to resolve allegations that it defrauded the Medicare and Medicaid programs by billing for services rendered by unqualified staff.

    According to the Department of Justice, M&Y Care caused the United States Government to be billed for services provided by unqualified staff. Using the incorrect CPT code, G0156, which refers to a home health aide, they defrauded the federal government for services at a reimbursement rate higher than the non-skilled rate to which their employees were entitled.

    The misconduct came to light thanks to a False Claims Act lawsuit filed under the law’s qui tam provisions. The investigation was prompted by a whistleblower complaint under the False Claims Act (FCA), showing the critical role private citizens play in holding corporations accountable for wasting our money.

    At Find Corporate Waste, we applaud this outcome and the whistleblower who made it possible. Every time a company siphons money from Medicare or Medicaid, they are not just defrauding a system—they are stealing from the sick, the elderly, and the taxpayer.

    We are committed to ensuring that fraud like this doesn’t go unanswered.

    If you have information about misconduct involving government programs or contracts, visit our page on how whistleblowers protect public funds. You might be the reason the next $300,000 gets returned to the American people.

    • 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 tied to service-disabled veteran-owned small business set-aside contracts, with the whistleblower set to receive more than $680,000.

    • Louisiana Woman Pleads Guilty in PPP Kickback Scheme

      A Louisiana woman admitted to helping recruit ineligible PPP borrowers, create fake tax forms, and collect kickbacks tied to fraudulent pandemic-relief loans.

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

      Colombian national sentenced after prosecutors say a stolen identity was used for voter fraud, federal benefits, Massachusetts IDs, and a passport application.

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

      A former Hawaii County housing official received 46 months in prison after the DOJ said affordable housing agreements worth more than $11 million produced no housing units and nearly $1.93 million in bribes and kickbacks.

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

      Pennsylvania woman pleads guilty in $7.17M laundering conspiracy tied to fraudulent EIDL proceeds, business email compromise funds, and sham company accounts.

    • Oglethorpe Pays $32M Over Medicare Overpayment Allegations

      Oglethorpe and top executives agreed to pay $32 million over Medicare overpayment allegations tied to psychiatric hospital admissions.

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

      Brian Graham was sentenced to 37 months and ordered to pay more than $441,000 after prosecutors said he used false PPP and EIDL applications for personal benefit.

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

      Brooklyn clinic owner Tony Brown-Arkah was convicted in a $52 million Medicare and Medicaid fraud scheme involving Suboxone diversion, kickbacks, and false billing.

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

      VSoft will pay nearly $2.3 million to resolve DOJ allegations that it improperly obtained a second-draw PPP loan by misrepresenting its employee count.

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

      Regions Bank will pay $4.9 million after the DOJ alleged it approved forgiveness for a PPP loan that was not eligible.

  • California Couple Guilty in $16M Hospice Fraud Scheme

    California Couple Guilty in $16M Hospice Fraud Scheme

    Two California residents have pleaded guilty in a scheme to defraud Medicare of nearly $16 million by operating fake hospice companies and laundering the proceeds.

    Karpis Srapyan of Winnetka, California, admitted to helping orchestrate the false claims, which were routed through four fake hospice companies he and others controlled. The scam used falsified documents, fraudulent leases, and stolen identities to gain access to federal funds.

    Generated image

    Susanna Harutyunyan, also of Winnetka, pleaded guilty to laundering money on behalf of her husband and co-conspirators. She helped move millions through fraudulent bank accounts and spent taxpayer money on personal luxuries—including a BMW.

    Other defendants have already been sentenced or are awaiting sentencing, with penalties ranging up to 20 years in prison. One participant has already received a 12-year sentence.

    Find Corporate Waste is committed to uncovering schemes that drain public funds.

    Hospice fraud exploits the suffering of vulnerable American families, while wasting taxpayer money. The False Claims Act exists as the main remedy for recovering wasteful, abusive, and fraudulent spending.

    If you have knowledge of healthcare providers submitting false claims to Medicare or Medicaid, you can act.

    Whistleblowers are entitled to a portion of any recovered funds and play a critical role in protecting public trust.

    Becoming a relator is a serious decision.

    Find Corporate Waste is here to help guide you through the process. If you have firsthand knowledge about fraudulent Medicare billing or sham healthcare operations, we urge you to reach out and help restore integrity to our healthcare system.

  • DOJ-HHS Launch New Initiative to Combat Healthcare Fraud

    DOJ-HHS Launch New Initiative to Combat Healthcare Fraud

    July 2, 2025

    Washington, D.C.


    In a decisive move to enhance the fight against healthcare fraud, the U.S. Department of Justice (DOJ) and the Department of Health and Human Services (HHS) have taken significant action. They have launched the DOJ-HHS False Claims Act Working Group.

    This strategic alliance formalizes long-standing cooperation between the two agencies.

    It also shows how the False Claims Act (FCA) is used. This law protects federal healthcare programs from fraud, waste, and abuse.

    The Working Group will concentrate enforcement in seven key areas:

    • Medicare Advantage fraud, such as upcoding and inflated risk scores
    • Drug and device pricing manipulation, such as undisclosed rebates and improper discount arrangements
    • Access to care violations, including non-compliant provider networks
    • Kickback schemes, involving drugs, medical devices, and durable medical equipment
    • Defective medical devices that compromise patient safety
    • Electronic Health Records abuse, such as system manipulation to boost Medicare billing
    • Data-driven investigations, powered by cross-agency analytics and audit findings

    The new Working Group encourages whistleblowers to report false claims involving federal healthcare dollars related to specific enforcement priorities.

    At Find Corporate Waste, we spotlight whistleblower-driven accountability.

    If you become a relator under the False Claims Act, your role would expose fraud and recover taxpayer dollars.

    Becoming a relator is a serious decision.

    If you have inside information on healthcare contracts or schemes, we’re here to assist you.

    Report Fraud
  • Whistleblower Rewarded $1.4 Million in YAPP USA Case

    Whistleblower Rewarded $1.4 Million in YAPP USA Case

    YAPP USA Automotive Systems, Inc., a subsidiary ultimately owned by the Chinese government, has agreed to pay $14,208,496 to the United States. This agreement settles allegations that it improperly obtained and retained a Paycheck Protection Program (PPP) loan. These actions were in violation of the False Claims Act.

    The case was brought to light through a qui tam lawsuit filed under the False Claims Act by GNGH2 Inc., a private entity acting in the public interest.

    The whistleblower will receive $1,420,849 as a reward for its role in exposing the misconduct.

    Stacks of U.S. currency bundles, each secured with rubber bands, arranged neatly in a large pile.

    Find Corporate Waste is dedicated to recovering taxpayer money. These funds were given to foreign owned businesses. This occurred while Americans struggled to make ends meet during the pandemic.

    If you have information relating to potential False Claims Act violations, we are here to help you file your complaint. We aim to restore trust and accountability to the American procurement system.

    Report Fraud