Cases : Whistleblower

Representation of a whistleblower in a healthcare action under the federal and New York State False Claims Acts against Gramercy Cardiac Diagnostic Services P.C. and its owner. The complaint alleged that defendants violated the federal and New York State False Claims Acts by engaging in a wide-ranging kickback scheme to pay large numbers of doctors for referring patients to their radiology business. The case resulted in a settlement of $6.5 million.

Representation of a whistleblower against FPR Specialty Pharmacy, a compounding pharmacy, and affiliates in United States ex rel. Doe v. FPR Specialty Pharmacy LLC, alleging they had fraudulently billed government health care plans, including Medicare and Tricare, for millions of dollars for defendants’ tubes of “Focused Pain Relief” pain cream that they sold for up to $2,000 a tube. The matter resulted in a settlement, 21% of which our client received as their whistleblower award.

Representation of a whistleblower under New York’s False Claims Act alleging that J.P. Morgan Chase failed to calculate and pay required interest on past due unclaimed property reporting to New York’s Office of the State Comptroller. 

Representation of a whistleblower who alleges that waste-to-energy plant operator Covanta violated environmental regulations by creating hazardous ash as a by-product of the burning of garbage from multiple Long Island towns. The case has been brought on behalf of New York State, certain local governments on Long Island, and the Long Island Power Authority (LIPA). Over the course of a decade, these local governments paid $890 million to Covanta to take their communities’ garbage in an environmentally safe way. As alleged, Covanta did not, in fact, abide by the necessary protocols to keep the ash that was dumped in the Brookhaven landfill from being hazardous.

KM represents the whistleblower in the healthcare kickbacks case where the government intervened in the case and is pursuing criminal kickback charges against radiology businesses and their owner.

KM represented the whistleblower who received nearly $200 million, the largest CFTC whistleblower award ever and the second largest whistleblower award arising under the Dodd-Frank and IRS whistleblower programs. The information the whistleblower provided catalyzed investigations by the Commodity Futures Trading Commission (CFTC), a U.S. federal regulator, and a foreign regulator into the manipulation of crucial financial benchmarks used by global banks as the basis for the pricing of fixed income securities and derivative products.  The CFTC initially rejected the whistleblower’s award application, but KM's advocacy resulted in a successful appeal for the client.

KM procured the largest-ever settlement of an income tax whistleblower case under the New York False Claims Act – $105 million – through our representation of a whistleblower against hedge fund billionaire Thomas Sandell and Sandell Asset Management Corporation alleging they submitted false New York tax returns that failed to count more than $450 million as New York-taxable income, causing them to underpay New York taxes by more than $50 million.  Our client received award of 21% of the $105 million recovery.

We obtained an $8.5 million award – the largest-ever settlement in a declined New York State False Claims Act case – for a whistleblower in a groundbreaking case against Moody's and others under the New York State False Claims Act. The litigation brought to light a multi-year, multi-million-dollar tax fraud scheme executed by Moody’s and its consultants wherein the company repeatedly underpaid city and state taxes by maintaining a sham insurance corporation as a subsidiary. KM was successful both before the trial court as well as on appeal before the New York City First Department.  Our client received an award of 30% of the $8.5 million recovery.

Representation of a whistleblower in a New York State False Claims Act case alleging that a spa business in Queens underpaid taxes by employing fraudulent schemes to manipulate its revenues and to pay employees in cash and off the books.  The case resulted in a settlement of $2.5 million, with a 23% whistleblower award, as well as criminal tax fraud convictions.  Our client received an award of 23% of the $2.5 million recovery.

Representation of a whistleblower in a case brought under the federal False Claims Act.  Our client alleged that defendants submitted false customs declarations under-reporting the value of imports from China and Madagascar, thereby cheating the government of duties.  The case resulted in the repayment to the government of $1.5 million, of which our client was awarded 20%.

Representation of the whistleblower in a case brought under the federal False Claims Act alleging that defendants, a Hong-Kong based jewelry manufacturer and its affiliates, engaged in a decade-long customs fraud scheme.  Specifically, defendants submitted false customs declarations and invoices that under-reported the value of imported goods, artificially deflating required customs duties. Defendants maintained separate invoices reflecting the goods' correct value in their private records.  The case resulted in the repayment to the government of $3.85 million, of which our client was awarded 19%.