The Commodity Futures Trading Commission (CFTC) released preliminary guidance regarding the trading of voluntary carbon credits on designated contract markets. This marks a notable step in enhancing the credibility and integrity of the voluntary carbon market. Before we delve into the details of the CFTC’s proposals, let’s first outline the significance of carbon offsetting, the voluntary carbon market, and the broader responsibilities of the CFTC. Carbon Offsetting and Its Role in Climate Change Carbon offsetting is a government-created market aimed at reducing carbon emissions by utiliz ..read more

Whistleblower Law Collaborative is proud to be a member of the whistleblower’s legal team in a recent municipal bond fraud settlement.  The $70 million qui tam settlement was with eight of the nation’s largest banks.  It is the largest reported settlement ever under the Illinois False Claims Act. Largest Reported Recovery Under the Illinois False Claims Act Our client, Edelweiss Fund LLC, alleged that eight large banks engaged in widespread fraud and collusion in the fees they charged and the interest rates they set for municipal bonds.  Specifically, the allegations related to ..read more

In a landmark ruling, the U.S. Supreme Court delivered a significant victory for whistleblowers.  It affirmed that retaliatory intent is not a prerequisite for whistleblower protection under federal law. The unanimous decision, in favor of former UBS employee and whistleblower Trevor Murray (Murray), reinstated a $900,000 jury verdict.  In addition, the Court clarified an essential aspect of whistleblower protection under the Sarbanes-Oxley Act of 2002 (SOX), a critical law governing corporate financial reporting and recordkeeping. UBS Terminates Murray for Blowing the Whistle Murray ..read more

The Department of Health and Human Services Office of Inspector General (OIG) recently issued Advisory Opinions 23-05 and 23-06 determining that two proposed physician joint ventures could run afoul of the federal Anti-Kickback Statute. The OIG explained in detail why the proposed physician joint ventures may not qualify for safe harbor protection. In addition, they opined that proceeding with the proposed joint ventures could lead to False Claims Act violations. Safe-Harbor Protections and the Anti-Kickback Statute The federal Anti-Kickback Statute makes it a crime to knowingly and willfull ..read more

On February 12, 2024, the Government updated the Civil False Claims Act penalties to account for inflation. Now, for violations assessed after February 12, 2024, the civil False Claims Act penalties will range from $13,946 to $27,894. False Claims Act penalties are mandatory for each separate violation of the law.  Moreover, the law requires that the penalty amounts increase for inflation each year. As a result of these two factors, total penalty assessments can range from the millions to the tens of millions of dollars. Whistleblowers and even other lawyers mistakenly think that the Fals ..read more

The Securities and Exchange Commission (SEC) reported a record-breaking year for the SEC Whistleblower Program in 2023.  In addition,  fiscal year 2023 saw a significant uptick in SEC enforcement actions.  In a year marked by evolving challenges such as crypto asset securities, cybersecurity threats, and emerging investor schemes, the SEC remained vigilant in regulating securities markets and protecting investors. Increase in SEC Enforcement Actions The SEC initiated 784 enforcement actions in 2023, a 3% increase over fiscal year 2022. Of those, 501 were original investigations ..read more

The U.S. Attorney for the Eastern District of Kentucky recently announced that a Kentucky rehab center and lab will pay a combined $7.1 million to settle a lab testing fraud case. The settlement resolves False Claims Act allegations against AccuLab, LLC dba Thoroughbred Diagnostics (“Thoroughbred”) and Edgewater Recovery Center, LLC (“Edgewater”).  According to the press release, Thoroughbred will pay $4.9 million. Edgewater will pay the remaining $2.2 million. Whistleblower Files Lab Testing Fraud Case Under False Claims Act In 2021, a nurse employed by Edgewater as Program Director file ..read more

The Commodity Futures Trading Commission (CFTC) experienced record-breaking numbers in FY 2023, both in the number of whistleblower tips received and in the number of digital asset enforcement cases initiated.  According to its Whistleblower Program & Customer Education Initiatives 2023 Annual Report, the CFTC whistleblower program received 1,530 whistleblower submissions.  This exceeded the number of tips received in any prior fiscal year since the program’s creation in 2010.  In addition, it represents a 50% increase over the number of tips received in fiscal years 2020 an ..read more

Two thousand twenty-three was a benchmark year, marking 20 years since Whistleblower Law Collaborative LLC co-founders Robert M. Thomas, Jr. and Suzanne E. Durrell joined forces to represent whistleblowers in fraud cases.  The year was bookended by Law360 choosing WLC as a Health Care Group of the Year in February 2023, and Fortune and Forbes magazine featuring WLC in an article  “Righting Wrongs” in the December 2023/January 2024 issues. During the year, the firm’s clients achieved several False Claims Act settlements helping the government recover millions of dollars, Best Lawyers® name ..read more

The U.S. Attorney’s Office for the Western District of Washington announced that Binance Holdings Ltd. (Binance) and its principal, Changpeng Zhao (Zhao), pleaded guilty to multiple charges including operating an unlicensed money service business, failing to maintain an effective anti-money laundering program, and violating the International Emergency Economic Powers Act (IEEPA). The guilty pleas follow an extensive investigation by the Department of Justice (DOJ),  the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC ..read more