SEC Awards Over $2.5 Million to Joint Whistleblowers for Detailed Analysis That Led to Multiple Successful Actions

SEC

The Securities and Exchange Commission today announced an award of over $2.5 million to joint whistleblowers whose tip based largely on highly probative independent analysis of a public company’s filings led to several successful enforcement actions.  In addition to their tip, the whistleblowers provided helpful assistance early in the investigation, which helped save Commission time and resources. 

The Commission has awarded approximately $510 million to 92 individuals since issuing its first award in 2012.  This includes awards to 25 individuals in this fiscal year, totaling approximately $123 million.  All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the Commission by securities law violators.  No money has been taken or withheld from harmed investors to pay whistleblower awards.  read more »

CDM Smith and CDM Federal Programs Agrees to $5.6 Million Settlement

DOJ

CDM Smith Inc., headquartered in Boston, and CDM Federal Programs Corporation, located in Fairfax, have agreed to pay approximately $5.6 million to settle False Claims Act allegations and other civil claims related to inaccurate certified cost or pricing data submitted to the U.S. Navy.

The settlement resolves a lawsuit filed by a former CDM employee under the whistleblower provision of the False Claims Act. A whistleblower suit or qui tam action under the False Claims Act is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblowers with a share of the government’s recovery. read more »

Head of New York Medical Clinics Sentenced to 156 Months in Prison for Multimillion-Dollar Money Laundering and Health Care Kickbacks Scheme

DOJ

A Brooklyn man was sentenced to 156 months in prison today for his role in a vast multimillion-dollar health care kickback and money laundering conspiracy, the Department of Justice announced today.  

Aleksandr Pikus, 45, of Brooklyn, New York, was sentenced by U.S. District Judge Ann M. Donnelly of the Eastern District of New York.  Judge Donnelly also ordered Pikus to pay $39.4 million in restitution and to forfeit $2,614,233.  On Nov. 15, 2019, after a two-week trial, Pikus was convicted by a jury of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS. read more »