Citibank Will Return Swept Funds To Customers, With Interest

Citibank has agreed to a settlement with the state of California for violating that state’s False Claims Act and illegally “sweeping” more than $14 million from its customers’ accounts into its general fund.  The unlawful behavior was uncovered and brought to light by a whistleblower within the company, who was later fired after discussing the wrongful practice with an internal audit team. According to the Central Valley Business Times, which reported the settlement on August 26, 2008, Citibank will pay back all the funds it stole from its customers with 10 percent interest. In addition, the company will pay $3.5 million to the state of California for damages and civil penalties. More than 53,000 customer accounts were affected by the practice. If you are seeing fraud on the government, contact us by calling 800,377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

SAIC Found Liable For Violating False Claims Act and Breaching Contract With NRC

On August 5, 2008, Science Applications International Corporation (SAIC) was found liable for violating the False Claims Act and breaching a contract with the U.S. Nuclear Regulatory Commission (NRC). The NRC News reports that the United States was awarded $1.97 million in damages, which, under the False Claims Act, are tripled to $5.91 million. In addition, SAIC will pay penalties ranging from $5,000 to $10,000 for each of the 77 false claims and statements they made. 

The jury found that SAIC failed to avoid and disclose conflicts of interests it had while assisting the NRC create a rule governing whether radioactive materials from nuclear facilities be released or recycled.  The conflicting relationships between the SAIC and businesses that stood to profit from the false claims were brought to light by a private citizen at a public meeting held in November of 1999, and the NRC terminated the SAIC’s contract soon thereafter.  If you are seeing fraud on the government, contact us by calling 800,377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Pratt & Whitney Settle Will Pay $52 Million For Violating False Claims Act

The U.S. Department of Justice reported the settlement of a False Claims Act case against Pratt & Whitney and a subcontractor, PCC Airfoils on August 2, 2008.  Pratt will pay $52.325 million for supplying faulty F-15 and F-14 turbine blades to the United States Air Force. According to the U.S. Department of Justice, the blades, which Pratt drilled, finished, coated and supplied, “failed to meet a critical design dimension.”  PCC Airfoils LLC of Ohio, who cast the blades, will pay $2 million.  If you are seeing fraud on the government, contact us by calling 800,377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

FDA Seizes $24.2 Million In Unapproved Drugs From KV Pharmaceutical

On July 29, 2008, the St. Louis Business Journal reported the seizure of $24.2 million worth of unapproved drugs from a KV Pharmaceutical Company warehouse in St. Louis.  Food & Drug Administration inspectors found that KV was not complying with an enforcement notice requiring drugs in time-release format containing guaifenesin to be approved in order to ensure safe and effective release of the active ingredients. The majority of the products seized were manufactured after the FDA required an end to their production. In addition, the inspectors found the company was manufacturing and distributing other unapproved drugs, such as products for cough, cold, topical wound healing, skin bleaching and gastrointestinal conditions. If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

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