Whistleblower Win: $417 Million Secured in False Claims Act Case

Our whistleblower team, led by Leon Hampton, secured a staggering $417 million judgment in a qui tam case presided over by Judge Madeline Haikala in the Northern District of Alabama. The decision highlights how important whistleblowers are in fighting fraud and seeking justice.

Understanding the False Claims Act (FCA)

The FCA is a federal law aimed at preventing fraud against government programs. It has strict penalties for anyone who breaks the law, including fines that can range from about $13,946 to $27,894 for each false claim made. Additionally, the statute requires that violators pay back three times the amount of money the government lost because of the fraud. In a recent case, the total penalty for the false claims reached an enormous $411,560,406, bringing the total judgment to $417,910,021.26.

The Details

Nancy D’Anna and Valerie Paige Zeiger, acting as qui tam relators, filed a motion seeking damages from Capstone Medical Resources, LLC, and Dr. Sharon Waltz. They claimed that the defendants broke the law by submitting 29,511 false claims to the government, which led to a loss of $2,116,538.42. When this amount is tripled, it comes to $6,349,615.26.

Dr. Waltz ran Capstone Medical Resources in various locations around Alabama, with the main office located in Birmingham. She offered different services, including individual and group counseling for at-risk youth. The accusation against her is that many of the services billed to the Alabama Medicaid Agency were never actually provided.

Whistleblower Reward

The court awarded the relators, who were key in exposing the fraud, 25% of the total money awarded, which adds up to $104,477,503.30. This large reward highlights how important whistleblowers are in protecting public funds.

Experience at Work

This victory is a testament to the dedication and experience of Beasley Allen’s legal team. Leon’s leadership, combined with the collective efforts of Larry, Lauren, and Jessi, resulted in a judgment that will serve as a deterrent to future fraud. The case also highlights the crucial role of whistleblowers like Nancy D’Anna and Valerie Paige Zeiger in bringing fraudulent activities to light.

Blowing the whistle on fraud or wrongdoing is a brave decision that can impact your career and reputation. Our team of dedicated whistleblower attorneys is here to support you every step of the way. With decades of experience, we help individuals navigate the complex process of filing whistleblower claims to achieve a fair and rewarding outcome.