Find Corporate Waste

Tag: Qui Tam

  • 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.

  • 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.

  • 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.

  • Canadian Steel Companies to Pay $19M Over False Claims Act Trade Fraud Allegations

    Canadian Steel Companies to Pay $19M Over False Claims Act Trade Fraud Allegations

    Two Canada-based steel companies and their owner have agreed to pay $19 million to resolve False Claims Act allegations involving evaded customs duties on imported steel.

    According to the DOJ, Farjess Inc., Royal Canadian Steel Inc., and part-owner and president Feroz Jessani allegedly failed to pay duties owed on flat-rolled steel manufactured in Europe and Asia.

    Federal officials said the companies represented that certain steel originated in Canada or the United States, when they allegedly knew the steel actually came from China, Indonesia, Italy, Turkey, or Vietnam.

    The alleged conduct occurred from May 2019 through January 2025.

    This case matters because trade fraud is not just a customs issue. It is a taxpayer issue, a market fairness issue, and a direct threat to American businesses that follow the rules.

    Importers are required to accurately declare the country of origin, value, duty status, and amount of duties owed when goods enter the United States. When those declarations are false, the government can lose revenue while competitors gain an unfair advantage.

    That is exactly why the False Claims Act remains one of the government’s strongest tools against corporate fraud.

    The statute allows the government to recover funds when false statements or fraudulent conduct cause financial harm to the United States.

    It also allows whistleblowers to bring cases on behalf of the government and share in any recovery.

    The whistleblower in this case was Shamsh Dhala, a broker who worked with Farjess Inc.

    Dhala filed the case under the qui tam provisions of the False Claims Act in the Eastern District of Michigan.

    The case is captioned United States ex rel. Dhala v. Royal Canadian Steel Inc. et al., No. 2:23-cv-12097.

    As part of the settlement, Dhala will receive approximately $3.61 million.

    For Find Corporate Waste, the message is clear: corporate fraud often hides in ordinary paperwork. A customs form, shipment record, invoice, certification, billing file, or loan application can become the starting point for a major federal recovery.

    This settlement also fits into a broader enforcement pattern. The DOJ said the case was coordinated through its Trade Fraud Task Force, a cross-agency effort focused on tariff evasion, customs fraud, prohibited imports, threats to domestic industry, and conduct that weakens national security.

    The same logic applies across the areas covered by Find Corporate Waste: False Claims Act cases, government contracting abuse, pandemic relief fraud, healthcare fraud, customs fraud, and other schemes involving public money.

    When companies cheat the system, the cost does not disappear. It is shifted onto taxpayers, lawful competitors, American workers, and the public.

    If you have information about customs fraud, government contract abuse, healthcare billing fraud, pandemic relief misuse, or other misuse of taxpayer funds, Find Corporate Waste wants to hear from you.

    The strongest cases often begin with a person willing to connect the dots.

  • Three Members of International Criminal Organization Sentenced in $2 Billion Telemedicine Fraud Scheme

    Three Members of International Criminal Organization Sentenced in $2 Billion Telemedicine Fraud Scheme

    Three members of a Moscow-based international criminal organization have been sentenced for their roles in a massive telemedicine health care fraud scheme that generated nearly $2 billion in fraudulent prescription claims.

    According to the DOJ, Anthony Santamaria was sentenced in Brooklyn federal court to 10 years in prison. Co-defendants Hershel Tsikman and Hafizullah Ebady were sentenced earlier this month to 120 months and 97 months in prison, respectively. Santamaria was also ordered to forfeit $3.2 million, while Ebady was ordered to forfeit more than $1.8 million. Restitution will be determined later.  

    The scheme allegedly operated from 2017 through 2022 and targeted private health care benefit programs. Prosecutors said the organization used call centers in Utah, Russia, and elsewhere to contact beneficiaries and offer medications without proper medical exams.

    In many cases, beneficiaries allegedly never had real telemedicine visits, yet fraudulent prescriptions were generated under physicians’ names and National Provider Identifier numbers.  

    The DOJ said the defendants acquired pharmacies across the United States, including in Brooklyn, Staten Island, Manhattan, Long Island, New Jersey, Pennsylvania, Texas, Michigan, and Alabama. Moscow-based billers then remotely submitted reimbursement requests through those pharmacies. Third-party billing records showed more than $1.97 billion in fraudulent prescriptions, with private insurers paying over $758 million.  

    This case shows the same structural fraud signals that matter across health care enforcement: shell companies, straw owners, remote billing, identity misuse, NPI abuse, and weak gatekeeping around payment systems. For Find Corporate Waste, the lesson is simple: complex fraud often leaves a public-data trail before prosecutors ever announce charges.

    Whether the target is private insurance fraud, Medicare billing abuse, or pandemic relief eligibility, the work begins by matching names, entities, addresses, program rules, and exclusion records.

    Operation Clawback applies that same logic to pandemic-era health care relief by reviewing PRF/CARES recipients against exclusion and eligibility data, including OIG LEIE records and PRF eligibility conditions.  

  • Children’s Medicaid Program Hit With $15.2M False Claims Judgment

    Children’s Medicaid Program Hit With $15.2M False Claims Judgment

    The operators of a children’s day treatment program have agreed to a $15,248,240.66 civil judgment in favor of the United States to resolve allegations that they defrauded the Kentucky and Ohio Medicaid programs, according to the U.S. Attorney’s Office for the Eastern District of Kentucky. 

    The settlement involves Recovery Center of Kentucky, LLC, Recovery Center of Ohio, LLC, Recovery Center of Maryland, LLC, Recovery Center of USA, and CEO Dr. Warrick Stewart. The government alleged that the entities violated the False Claims Act, which prohibits submitting false claims for payment to government programs such as Medicaid.

    At issue was the Aspire Day Program, which served children with behavioral and mental health needs in Elizabethtown, Lexington, Louisville, and Radcliff, Kentucky, as well as Cincinnati, Ohio. These programs may include therapy and behavioral health services, sometimes alongside school or other activities.  

    The government alleged that, from August 2022 through June 2025, the Recovery Centers billed Medicaid for children’s time spent on education, recreation, and lunch breaks, even though Kentucky and Ohio Medicaid only covered time spent receiving behavioral health services.  

    The government also alleged that Recovery Center of Kentucky misrepresented staff qualifications to obtain higher Medicaid reimbursements. In some cases, services allegedly performed by lower-level staff were billed as if they had been provided by higher-level licensed professionals. In other cases, the government alleged that certain employees were not qualified to provide day treatment services at all.

    This case began as a qui tam lawsuit under the False Claims Act, meaning private whistleblowers helped bring the alleged misconduct to light. The docket information is United States ex rel. Harned, et al. v. Aspire Day School, LLC, et al., Case No. 3:23-cv-41-GFVT.

    As part of the resolution, Recovery Center entered into a five-year Corporate Integrity Agreement with HHS OIG, requiring strengthened compliance obligations going forward. The civil judgment will be satisfied under terms based on the defendants’ ability to pay.

    Find Corporate Waste tracks cases where taxpayer-funded health care dollars may have been misused through false billing, ineligible recipients, weak oversight, or improper certifications.

     If you have credible information about Medicaid, Medicare, PPP, Provider Relief Fund, or other government-funded health care fraud, your information may help expose waste and recover public money.

  • Florida Manufacturer Pays $2.6 Million To Resolve False Claims Act Allegations

    Florida Manufacturer Pays $2.6 Million To Resolve False Claims Act Allegations

    Micro Matic USA, Inc., a beverage dispensing equipment manufacturer based in Brooksville, Florida, has agreed to pay $2,593,219.18 to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan.

    The settlement was announced by the U.S. Attorney’s Office for the Middle District of Florida on May 12, 2026. According to DOJ, Micro Matic allegedly violated the False Claims Act by obtaining a PPP loan despite being ineligible under the program’s rules.  

    Under the second round of PPP, businesses generally needed 300 or fewer employees to qualify. SBA affiliation rules required applicants to count employees and revenue from related companies, including foreign affiliates. The DOJ alleged that Micro Matic was not eligible because it was not a small business once its foreign affiliates were included.  

    The case began with a qui tam complaint filed by GNGH2, Inc., which alleged that Micro Matic improperly obtained a $2 million PPP loan. The settlement concludes the litigation, and GNGH2 will receive $259,321.91 as its share of the recovery.  

    This is exactly the kind of case Find Corporate Waste (FCW) tracks. A company certifies eligibility, federal money goes out, and later a relator identifies the missing connection between the application and the rules.

    The case also fits squarely within DOJ’s renewed fraud-enforcement posture. The announcement states that the matter is part of the Trump Administration’s Task Force to Eliminate Fraud and follows DOJ’s creation of the National Fraud Enforcement Division, whose mission includes investigating and prosecuting fraudulent misuse of taxpayer dollars.  

    At Find Corporate Waste, we specialize in identifying the discrepancies that led to the $2.59 million settlement with Micro Matic USA, Inc.

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

    These cases are not rare. They are 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.

  • FCW Welcomes DOJ FOCUS Initiative to Combat Waste, Fraud, and Abuse With Data Science

    FCW Welcomes DOJ FOCUS Initiative to Combat Waste, Fraud, and Abuse With Data Science

    The Department of Justice’s Civil Division has announced the new FOCUS initiative, short for Fraud Oversight through Careful Use of Statistics. The initiative is aimed at data miners who use public government records to identify potential False Claims Act cases. Find Corporate Waste has developed a sophisticated methodology for addressing Medicare Fraud committed during the COVID-19 Pandemic.

    DOJ Is Recognizing What Serious Data Miners Already Know

    For years, traditional whistleblower cases have often depended on insiders: employees, contractors, billing staff, compliance officers, or executives who saw misconduct from the inside.

    Under the leadership of Acting Attorney General Todd Blanche, the federal government now appears to be recognizing that some fraud patterns can also be found by carefully analyzing public records, payment data, provider databases, and regulatory rules.

    DOJ made clear that it welcomes data miners, but not sloppy work. The Department says it will prioritize data miners who can explain their methodology, validate their findings, understand the relevant program rules, and identify legally sufficient False Claims Act matters.  That is exactly the standard serious public-record investigators should want.

    FCW Welcomes the FOCUS Initiative

    At Find Corporate Waste, we welcome the FOCUS initiative because it encourages a disciplined approach to public-data fraud detection.

    The point is not to accuse every recipient of federal funds of wrongdoing, rather the FOCUS is to identify situations where public records raise a serious, documentable question about whether federal money was obtained or retained in violation of program rules.

    That requires matching payment data to eligibility rules, compliance obligations, provider identifiers, corporate records, exclusion data, licensing data, and other government sources.

    Why PRF Data Deserves Careful Review

    One area FCW plans to continue reviewing is the Provider Relief Fund, commonly known as PRF.

    The PRF was created to support healthcare providers during the COVID-19 emergency. Public PRF data identifies providers that received and accepted payments and agreed to the applicable Terms and Conditions. HRSA has stated that public PRF data reflects providers who received one or more payments, attested to receiving at least one payment, and agreed to the related Terms and Conditions.  

    That attestation piece is important.

    When a provider accepts federal relief money and agrees to Terms and Conditions, the question becomes whether the recipient was actually eligible, whether the money was properly retained, and whether any later reporting or compliance obligations were satisfied.

    How the Medicare Opt-Out Database Fits In

    FCW also plans to use the Medicare Opt-Out Affidavits database as part of its review process.

    The CMS opt-out dataset identifies providers who have decided not to participate in Medicare. CMS states that the dataset includes information such as provider NPI, specialty, address, and opt-out effective dates.  

    That database is useful because PRF payments were connected to healthcare providers operating within federal healthcare programs and subject to specific eligibility and compliance rules.

    If public PRF records appear to overlap with Medicare opt-out records, that does not automatically prove fraud. But it does create a legitimate line of inquiry worth reviewing.

    The key is timing, identity, and rule application.

    Data Mining Is Not Guesswork

    The strongest False Claims Act cases are built on public records.

    The goal is to determine whether a public-data anomaly is just an innocent mismatch, a clerical issue, or a real compliance problem involving federal funds.

    That distinction matters. It protects honest providers. It also helps the government focus on cases that are actually worth pursuing.

    Why This Matters for Taxpayers

    COVID-era relief programs moved enormous sums of federal money very quickly. Many recipients used those funds properly. Others may not have.

    The False Claims Act exists because public money comes with rules. When companies or providers accept federal funds, they do not get to ignore the conditions attached to those funds.

    The DOJ’s FOCUS initiative sends a clear message: public data can help uncover fraud, but only when it is used responsibly.

    FCW’s Position

    FCW welcomes DOJ’s FOCUS initiative and supports a high standard for data-driven False Claims Act work.

    Public records are an untapped way to identify waste, fraud, and abuse that would otherwise remain obscure and buried.

    Think You Have Information About Federal Healthcare Fraud?

    If you worked for a provider, billing company, healthcare contractor, clinic, management company, or related entity that received federal funds during the COVID-19 period, your information may matter.

    FCW reviews public records and potential False Claims Act leads involving federal healthcare payments, relief funds, and government program compliance.

    Whistleblowers play a major role in protecting taxpayer money. In many cases, relators who bring successful False Claims Act cases may be eligible to receive a share of the government’s recovery.

    If you have credible information about federal funds being obtained, retained, or reported improperly, FCW can help evaluate whether the facts may warrant attorney review.

    Find Corporate Waste exists to help turn public records into accountability.

  • 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.

  • $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.