Recent Whistleblower Case Results

 

Rural Health Care Program Fraud

In United States ex rel. Taylor v. GCI Liberty, et al., GCI Communications Corp. (GCI), based in Anchorage, Alaska, agreed to pay $40,242,546 to resolve allegations of False Claims Act violations.

Relator alleged that from 2013 to 2020, GCI knowingly inflated prices and breached FCC competitive bidding rules.  CGI participated in the FCC’s Rural Health Care Program, which annually dispenses over $570 million to rural healthcare providers for telecommunications services, subsidizing GCI heavily in order to connect rural healthcare to the internet.  Specifically, the FCC subsidizes the entire cost difference between rural and urban areas for the same services. Relator alleged that GCI failed to follow FCC regulations for pricing, leading to excessive subsidy payments.  In addition, GCI was alleged to have enticed the Eastern Aleutian Tribes Inc., a rural Alaskan healthcare provider, to consent to overstated prices outside of the competitive bidding process, resulting in higher payments from 2015 to 2018.

Result – As part of the resolution, GCI will enter into a corporate compliance agreement with the FCC, resolve an FCC administrative investigation, and conclude an FCC proceeding related to their participation in the program. The civil settlement also resolves claims filed under the whistleblower (qui tam) provisions of the False Claims Act by my client, Robert Taylor, GCI’s former Director of Business Administration. Taylor received $6.4 million from the settlement.  We did not allege a wrongful termination claim as a strategic choice.

Read more about the settlement here.

Student Loan Fraud

In US ex Rel Nicol v. Divers Institute of Technology, 1998, a former director of student aid reported fraud to the Department of Education through a False Claims Act (Qui Tam) lawsuit.  As the associate responsible for the claim, Teller filed the action, created the disclosure statement, and pursued the case towards the DOJ’s intervention and settlement.  The school had stolen $805,000 in student loans and grant funds from the Department of Education over a period of years by falsifying student income data, and was forced to pay back triple damages because of the intentional nature of the fraud.

Result – The whistleblower received approximately $400,000 and was in a good position to seek further recovery for a wrongful termination claim after being forced to quit when he refused to pursue the fraud.

https://archive.seattletimes.com/archive/?date=19980422&slug=2746514

Medicare Fraud

In US ex Rel [confidential] v. [name withheld], 2005, a healthcare provider opposed fraudulent billing by his employer for “upcoding” under the “incident to” Medicare billing rules and was wrongfully terminated from employment.  Teller warned the employer through a “demand” letter that the action would be pursued, but the employer was unwilling to enter into early settlement discussions and the Qui Tam lawsuit was filed.

Result – The government forced a settlement of $478,000 in restitution, of which 20% went to the whistleblower.  In addition, the wrongful discharge claim was resolved for another confidential six figure sum which went to the whistleblower directly.

https://quackwatch.org/cases/doj/ctca/complaint/

Government Procurement Fraud

In US ex Rel Willson v. Alcatel-Lucent, 2012, a contracting manager working on a US Army project to build a first responder network in Iraq opposed fraud and was “laid off.”  The relator had opposed waste and fraud, and the failure to perform testing which was required to be done before network was turned over the the Iraqi government.

Result – After his termination, he hired my firm to file a Qui Tam action under the False Claims Act, leading to the recovery of $4.2 million from Alcatel-Lucent with a share of $758,000 to Mr. Willson.  We then negotiated an additional confidential sum as part of the wrongful termination claim.

https://www.justice.gov/archive/usao/waw/press/2012/September/alcatel-lucent.html

Mortgage Quality Certification Fraud

In US ex Rel Nguyen v. Lennar Corporation, 2018, Universal American Mortgage Company, LLC, and Eagle Home Mortgage of California, Inc., paid $13.2 million to settle claims of fraud against the Federal Housing Administration.  Teller and co-counsel represented the relator after she was terminated from her quality assurance position at the mortgage lender because of her refusal to participate in fraud.  The mortgage company was falsely certifying that borrowers met the standards for government backing of their loans under the Direct Endorsement Lender housing insurance program.

Result – The whistleblower received $1,980,000 as the reward, and another smaller sum for the wrongful termination claim.

https://www.justice.gov/opa/pr/universal-american-mortgage-company-llc-uamc-agrees-pay-132-million-resolve-false-claims-act

Off-Label Medical Device and Off Label Pharmaceutical Sales and Promotion Fraud

In [name withheld] v. DUSA Pharmaceuticals, 2020, Teller helped a former sales representative file a Qui Tam lawsuit under the False Claims Act after his termination from employment.  The company had been using a variety of schemes to convince doctors to use a less effective method for treating pre-cancerous skin conditions and thereby sell more product.

Result – The government proved that Medicare paid substantially more to the company for its products than it should have paid, and DUSA repaid the government over $20 million in settlement.  The relator received approximately $3.4 million as his share of the recovery.

https://www.justice.gov/usao-wdwa/pr/dusa-pharmaceuticals-pay-us-2075-million-settle-false-claims-act-allegations-relating

Teller Law Firm in the News


Protecting Medical Records from Court

With the #MeToo movement as a catalyst, the state Legislature passed a law that bans privileged medical and mental-health records and communications in most discrimination cases from reaching the courtroom during a court process known as discovery.” – Seattle Times

Gender Discrimination in Tech

Fighting for Transgender Medical

I am proud to co-counsel with the ACLU National office and ACLU of Washington on Enstad v. PeaceHealth. This important case will ensure that transgender youth have access to health care without discrimination.

Read more: Huffington PostKUOWACLUSeattle Times

Facing Discrimination: an Effort to End Disparate Treatment at Work

Denise Diskin and Sara Amies are proud to represent Matt Woods in his effort to end employment discrimination at Union Gospel Mission, so that all people, regardless of sexual orientation, have an equal opportunity to contribute their skills and efforts to serving Seattle’s unhoused community.

Read more: The StrangerSeattle PI

Jury Awards $1.25 Million in Whistleblower Retaliation Case

Elliott, a BNSF locomotive engineer and Union safety officer, reported BNSF’s failure to maintain its track in accordance with Federal safety standards. BNSF failed to fix the defects, so Elliott elevated his report to the Federal government.  A jury found that BNSF targeted Elliott for retaliation because of his safety advocacy, that BNSF management staged an altercation to provide cause to fire Elliott, and faked evidence to support terminating the employment of this 18-year career employee.  Sara Amies co-counseled with James K. Vucinovich, a railroad personal injury lawyer, and proved that BNSF illegally retaliated against Elliott under the Federal Rail Safety Act. After a six-day trial in July 2015, a federal jury in Tacoma reached a unanimous verdict and awarded Elliott $1.25 million, including the statutory maximum of $250,000 in punitive damages.

Religion is not a License to Discriminate

I am proud of our own Denise Diskin, whose advocacy for a transwoman was recognized by the Greater Seattle Business Association. Read about achievement in partnership with Legal Voice here.

“cases can settle at any point, even, as she has done, “on the courthouse steps.”

What You Can Learn About Sexual Harassment & Legal Settlements

Read the Forbes‘ article to learn more about Sexual Harassment & Legal Settlements, which includes insight from our own Sara Amies.

Car Salesman Alleging That He Was Fired Because He Complained About Racism

Watch the news report from KOMO News of attorney Steve Teller and his client.

Click Here to watch the report.

Class Action Lawsuit (“Class Action”) against Traylor Bros., Inc. and Traylor/Frontier-Kemper Joint Venture (“Traylor Bros.”)

WKPT – ABC, Seattle, WA September 24, 2014

 

My firm has initiated a class action lawsuit (“Class Action”) against Traylor Bros., Inc. and Traylor/Frontier-Kemper Joint Venture (“Traylor Bros.”) based on Traylor Bros.’s alleged race discrimination on the Sound Transit “University Link” light-rail project (the “UW Project”).

The Class Action challenges Traylor Bros.’s use of subjective, discretionary decision making in the hiring and discharge of laborers on the UW Project that disproportionately, and negatively, affected laborers who identify as black or African American. The Class Action also alleges that Traylor Bros. engaged in a pattern or practice of discrimination based on race where laborers who identify as black or African American were treated differently, and worse than, laborers who do not identify as black or African American in hiring, discharge, and while working on the UW Project.

On January 21, 2016, Judge Coughenour of the United States District Court for the Western District of Washington certified the Class Action, but since then he decertified it due to concerns about manageability. The Court has not ruled on the underlying merits of the Class Action.  African American workers on the UW Light Rail project who were not hired after being dispatched, were hired but later terminated, and/or believe they were otherwise treated unfairly now have a very limited period of time to pursue their claims.  They should contact a lawyer right away.  My office is available at the phone number above.

Racial discrimination case against Traylor Brothers construction company

Steve Teller and clients alleging racial discrimination against Traylor Brothers construction company on the Sound Transit UW Tunnel project.  Listen to Stephen Teller’s interview with KNKX about the class-action lawsuit.

Click to Listen to the Interview

KOMO-AM Interview

 

KCPQ – FOX

OANN

 

Women’s Rights Organization Legal Voice and Law Firm Teller & Associates, PLLC, Obtain Favorable Settlement from Washington State HCA

I am thrilled to announce that Legal Voice and our cooperating law firm Teller & Associates, PLLC have obtained a favorable settlement from the Washington State Health Care Authority on behalf of our client Jessica Sowa-Crowder. The settlement will reimburse Jessica and her family for thousands of dollars of pregnancy medical benefits that were denied due to the so-called “Defense of Marriage Act” (DOMA).

Jessica and her partner Sarah registered as domestic partners in Washington in 2007. Jessica became pregnant with twins in 2010, and applied for pregnancy medical benefits under Washington’s medical assistance program.

Jessica would have qualified for pregnancy medical benefits, which also provide benefits for children in their first year of life, if Sarah had been included in determining the size of the family. However, the state agency that administers the medical assistance program denied Jessica’s application. Because the medical assistance program is partially federally funded, the agency believed that DOMA prevented the agency from treating Jessica and Sarah as a family.

DOMA prohibited the federal government from recognizing relationships of same-sex couples. This ban treated Sarah as a stranger to her own family, and cost her and Jessica thousands of dollars out-of-pocket for pregnancy-related medical expenses.

Legal Voice and cooperating attorney Denise Diskin of Teller & Associates agreed to represent Jessica in appealing this determination. We argued that Sarah must be included in determining the family’s size and that DOMA was an unconstitutional statute.

While the case was pending in Thurston County Superior Court, the U.S. Supreme Court agreed to hear United States v. Windsor, a challenge to DOMA. On June 26, 2013, the Supreme Court held that a key part of DOMA is unconstitutional.

Following the Supreme Court’s ruling, the Health Care Authority agreed to settle the case for $20,000. This settlement will reimburse the Sowa-Crowders for out-of-pocket medical expenses that would have been covered by the medical assistance program. It will also cover a portion of the attorney’s fees and costs incurred by Legal Voice and Teller & Associates in pursuing the appeal.

“I am so happy our firm could support Jessica, Sarah, and their two beautiful children in this hard-won victory,” said Legal Voice cooperating attorney Denise Diskin of Teller & Associates. “This settlement shows that Washington State recognizes the financial hardship disproportionately suffered by LGBT families when they are not treated equally.”

I am so proud of the Sowa-Crowders for standing up and refusing to accept unequal treatment. Jessica and Sarah told us, “we are incredibly thankful for the time and energy that our attorneys put forth in advocating for our family. This has been an extremely emotional journey for us, and we feel that equality has been restored in the State’s agreement to treat us the same as our heterosexual peers.”

Family Law Matters Often Have Long-Lasting Impact

Family law issues tend to have long-lasting and everyday ramifications. Property division can have a significant impact on post-divorce financial matters, and the resolution of custody and parenting time will have a tremendous impact on the lives of both children and parents.

As a result, it’s important to have a dedicated family law attorney who can not only provide considered legal advice, but who will also be there to answer any questions that you may have during the course of your matter.


Whistleblower Lawsuit Settles at $4.2 Million over Iraq Emergency Response System Testing False Claims

September 21, 2012

Lucent Technologies World Services Inc., a French-owned telecommunications company, is settling a whistleblower lawsuit at $4.2 million in relation to false claims of an Iraq 911-style emergency response system project.

Geoffrey Willson, who was hired by Lucent in 2004 as the senior contract manager on the project in Baghdad, filed the lawsuit; or rather, blew the whistle.

After discovering that Lucent falsely informed the U.S. government that it finished testing the system’s radio transmission sites and the network as a whole in order to get paid faster, Willson also learned that the company was committing accounting fraud. By blowing the whistle on the company he worked for, Willson took a risk but couldn’t turn his back on the truth.

Willson’s Seattle qui tam attorney, Stephen Teller of Teller & Associates, told The Washington Post, “My client was pretty courageous as a whistleblower, and he suffered a lot as a result of it.” As a consequence of reporting the corrupt behavior of Lucent, Willson was fired in retaliation; a time in which he was on vacation in England and Lucent refused to transport him home. Lucent also wrongfully accused Willson of impropriety.

According to The Washington Post, the special inspector general has reported that about $6 billion to $8 billion of the $51 billion in taxpayer money that the U.S. government spent on reconstruction in Iraq has fallen victim to waste, fraud, and abuse.

This case is a reminder of how serious illegal or fraudulent activity against the U.S. government is and that many lives can be affected by such actions. At Teller & Associates, I am dedicated to protecting the rights of individuals who have brought corrupt companies to justice. To learn about your legal rights and options in a qui tam case, please call me today at (206) 324-8969.

Source:

http://www.washingtonpost.com/business/lucent-paying-42-million-to-settle-lawsuit-over-testing-of-iraq-emergency-response-system/2012/09/21/6b68e6b8-040e-11e2-9132-f2750cd65f97_story.html