Articles Posted in Whistleblower

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MB900383616.JPGYesterday, the Department of Justice and four states filed a multibillion-dollar fraud suit against EMC, the Education Management Corporation, known as the nation’s second-largest for-profit college company. The states joining in the suit are California, Florida, Illinois and Indiana. The suit filed that EMC was not eligible for the $11 billion in state and federal financial aid it obtained from the United States government from 2003 through 2011.

The CEO of EMC was previously the head of the University of Phoenix, which has settled suits in the past related to very similar behavior.

While the civil lawsuit is one of many charging the ever growing for profit college industry, the case is the first where the U.S. government agreed to intervene on the whistle-blowers’ claims that they consistently violated federal law by paying recruiters based on how many students it enrolled. The lawsuit alleged that each year, the for profit company falsely certified that it complied with the law, making it eligible to receive student financial aid.

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Thumbnail image for doctorinhandcuffs.jpgWhat should you do when you learn secret information that your employer is stealing from, lying to, and cheating the federal or state government? This is a question that many prospective clients encounter on the job. The best answer when faced with this question is that you should immediately seek confidential legal counsel from a whistleblower lawyer because your employer’s illegal behavior may very likely constitute a violation of the False Claims Act.

Examples of the False Claims Act can include:

1. Medicaid or Medicare fraud: This is when doctors, hospitals, or pharmacies seek and receive reimbursement for Medicare and Medicaid funds. Oftentimes they may be billing for services not rendered, or misrepresenting services or goods, or even providing defective goods or services.

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