Whistleblower News: William Barr, Juul, Ghosn

William Barr’s troubling history with whistleblowers

Every whistleblower should be concerned over President Donald Trump’s nomination of William Barr as Attorney General.  While serving as Assistant Attorney General under the first President Bush, Barr authored an infamous memorandum arguing that the whistleblower provisions of the False Claims Act were unconstitutional.

Barr stood alone among top Justice Department officials in vehemently opposing the whistleblower law. His arguments were rejected by President Bush’s solicitor general, attorney general, and all subsequent key leaders within the DOJ.  But years after leaving office, and after the U.S. Supreme Court ruled unanimously that the False Claims Act was constitutional, Barr continued his constitutional criticisms of the False Claims Act, attacking the whistleblower provisions as an “abomination.”

Although his arguments against the False Claims Act have long been discredited, his underlying reasoning reveal a deep-seated animus against whistleblowers. The statute for which Barr labeled an “abomination” was originally signed into law by President Abraham Lincoln on March 2, 1863.  Its goal was simple: empower citizens to expose fraud in defense contracting during the Civil War and reward them if their cases could be proven. The provision that empowered citizens to directly file whistleblower claims in federal court was known as “qui tam.” read more »

PG&E stock crashes nearly 50% as utility says it will file for bankruptcy because of wildfires liability

PG&E stock plummets nearly 50 percent after the company said it will file for bankruptcy protection as a results of its financial troubles.

The company faces at least $30 billion in potential liability costs stemming from wildfires in 2017 and 2018.

The company announced Sunday that Chief Executive Geisha Williams is stepping down. read more »

Juul’s Convenient Smoke Screen

Juul Labs, the company behind the insanely popular vaping device, has a message for the nation’s estimated 37.8 million adult smokers:

It really, really, really cares about them. And it wants them (and only them — got that, teens?) to try vaping instead.

But motives matter. And Juul’s shifty self-presentation suggests that the company may not be acting entirely on the level.

Juul wants you to believe that it became a teenage sensation entirely by accident, that its products were only ever meant for adult smokers and that taking billions of dollars from Big Tobacco is consistent with the values of a company that has always put a priority on health over profits.

The truth is much hazier than that. read more »

Ghosn Is Indicted for a Second Time as Japan Prosecutors Build Case

Car titan accused of transferring personal losses to Nissan

Former Nissan chairman has remained in custody since Nov. 19

Carlos Ghosn’s chances of getting out of jail anytime soon took a serious blow on Friday after he was indicted for a second time by Japanese prosecutors building their case against the fallen car executive, who was detained almost two months ago.

The ousted Nissan Motor Co. chairman was indicted Friday for acts including temporarily transferring personal trading losses to Nissan in 2008, as well as for understating his compensation for three years through March 2018. Last month, he was indicted for under-reporting his income for an earlier period. His lawyers applied for bail, while acknowledging the slim chance of success. read more »

$3.4 Million Medicaid Fraud Inquiry Hovers Over Nursing Home Where Comatose Woman Was Raped and Had Baby

State investigators in Arizona are examining $3.4 million in possible Medicaid fraud at the parent company of a Phoenix nursing center where a woman in a vegetative state was raped and gave birth to a boy in December, according to court records.

The inquiry into the company, Hacienda HealthCare, began in 2016, when investigators at the health agency that manages the state’s Medicaid program started asking questions about Hacienda’s organizational and accounting structure. Investigators wanted to know whether Hacienda executives improperly shifted overhead expenses in the company to a subsidiary at the same location that then overcharged the state’s Medicaid program. read more »