The False Claims Act (FCA) is an American federal law that imposes liability on persons and companies who defraud governmental programs. It is the federal government's primary litigation tool in combating fraud against the government. The law includes a qui tam provision that allows people who are not affiliated with the government, called "relators" under the law, to file actions on behalf of the government. This is informally called "whistleblowing", especially when the relator is employed by the organization accused in the suit. Persons filing actions under the Act stand to receive a portion of any recovered damages.
Barry Jay Minkow is a former American businessman, pastor, and convicted felon. While still in high school, Minkow founded ZZZZ Best, which appeared to be an immensely successful carpet-cleaning and restoration company. However, it was actually a front to attract investment for a massive Ponzi scheme. ZZZZ Best collapsed in 1987, costing investors and lenders $100 million in one of the largest investment frauds ever perpetrated by a single person, as well as one of the largest accounting frauds in history. The scheme is often used as a case study of accounting fraud.
A professional employer organisation (PEO) is an outsourcing firm that provides services to small and medium-sized businesses (SMBs). Typically, the PEO offering may include human resource consulting, safety and risk mitigation services, payroll processing, employer payroll tax filing, workers' compensation insurance, health benefits, employers' practice and liability insurance (EPLI), retirement vehicles, regulatory compliance assistance, workforce management technology, and training and development. The PEO enters into a contractual co-employment agreement with its clientele. Through co-employment, the PEO becomes the employer of record (EoR) for tax purposes through filing payroll taxes under its own tax identification numbers. As the legal employer, the PEO is responsible for withholding proper taxes, paying unemployment insurance taxes and providing workers’ compensation coverage.
State Farm Insurance is a group of mutual insurance companies throughout the United States with corporate headquarters in Bloomington, Illinois. Founded in 1922, it is the largest property, casualty, and auto insurance provider in the United States.
Insurance fraud is any act committed to defraud an insurance process. It occurs when a claimant attempts to obtain some benefit or advantage they are not entitled to, or when an insurer knowingly denies some benefit that is due. According to the United States Federal Bureau of Investigation, the most common schemes include premium diversion, fee churning, asset diversion, and workers compensation fraud. Perpetrators in the schemes can be insurance company employees or claimants. False insurance claims are insurance claims filed with the fraudulent intention towards an insurance provider.
Brent Roger Wilkes, is an American entrepreneur, defense contractor, civic leader. Wilkes became well known for his involvement with the Duke Cunningham defense contracting scandal and was indicted for his involvement in this scandal on February 13, 2007. He was indicted on new charges which superseded the previous ones on May 10, 2007. Wilkes was convicted on all 13 counts on November 5, 2007. On March 27, 2008, the Court of Appeals ordered him released on bail pending appeal, finding in part "that the appeal raises a 'substantial question' of law or fact likely to result in reversal, a new trial or a sentence not including a term of prison". On January 6, 2009, after serving eleven months in federal custody, the last six months at Federal Correctional Institution, Terminal Island, Wilkes was released, pending appeal. Wilkes lost his appeals and was released in September 2022.
Kyle Dustin "Dusty" Foggo, is a former American government intelligence officer. He was convicted of honest services fraud in the awarding of a government contract and sentenced to 37 months in the federal prison at Pine Knot, Kentucky.
Misclassification of employees as independent contractors is the way in which the United States and other countries classify the problem of false self-employment. In the U.S., it can occur with respect to tax treatment or the Fair Labor Standards Act.
Thomas James Kirk II operated several fraudulent higher education organizations, including LaSalle University in Mandeville, Louisiana, the University of San Gabriel Valley, and Bienville University. Kirk's "LaSalle University" was shut down in 1996 following a raid by the FBI. Kirk was indicted for tax fraud in 1996 and, after a plea agreement, was sentenced to five years in U.S. federal prison. Kirk later died in January 2008.
San Diego Gas & Electric (SDGE) provides natural gas and electricity to San Diego County and southern Orange County in southwestern California, United States. It is owned by Sempra, a Fortune 500 energy services holding company based in San Diego.
Eddie Ray Kahn is an American tax protester. Kahn is currently in prison for tax crimes, with a tentative release date of 2026. Kahn founded the group American Rights Litigators and ran the for-profit businesses "Guiding Light of God Ministries" and "Eddie Kahn and Associates." According to the U.S. Justice Department, all three organizations are or were illegal tax evasion operations.
Carol Chien-Hua Lam is a former United States Attorney for the Southern District of California. Lam was sworn into office on an interim basis on September 4, 2002. On November 12, 2002, Lam was further sworn in as a Senate confirmed presidential appointee. She oversaw the Rep. Randy "Duke" Cunningham military contracting corruption case. Lam was one of eight attorneys fired in the Dismissal of U.S. attorneys controversy.
Metabolife International, Inc. was a multi-level marketing company based in San Diego, California which manufactured dietary supplements. Metabolife's best-selling product, an ephedra supplement called Metabolife 356, once generated hundreds of millions of dollars in annual sales. However, Metabolife 356 and other ephedra-containing supplements were linked to thousands of serious adverse events, including deaths, which caused the U.S. Food and Drug Administration (FDA) to ban the sale of ephedra-containing dietary supplements in 2004.
The Ohio Bureau of Workers' Compensation provides medical and compensation benefits for work-related injuries, diseases and deaths. It was founded in 1912. With assets under management of more than $29 billion, it is the largest state-operated and second largest overall provider of workers’ compensation insurance in the United States.
Happy's Pizza is an American regional chain of restaurants, serving pizza, ribs, chicken, seafood, sandwiches, pasta and salad.
Health care fraud includes "snake oil" marketing, health insurance fraud, drug fraud, and medical fraud. Health insurance fraud occurs when a company or an individual defrauds an insurer or government health care program, such as Medicare or equivalent State programs. The manner in which this is done varies, and persons engaging in fraud are always seeking new ways to circumvent the law. Damages from fraud can be recovered by use of the False Claims Act, most commonly under the qui tam provisions which rewards an individual for being a "whistleblower", or relator (law).
The Philippine Health Insurance Corporation (PhilHealth) was created in 1995 to implement universal health coverage in the Philippines. It is a tax-exempt, government-owned and controlled corporation (GOCC) of the Philippines, and is attached to the Department of Health. On August 4, 1969, Republic Act 6111 or the Philippine Medical Care Act of 1969 was signed by President Ferdinand E. Marcos which was eventually implemented in August 1971.
Samuel "Mouli" Cohen is an Israeli-American entrepreneur, venture capitalist, and convicted fraudster who claimed to have held the positions of president, chairman, and CEO of several public and private video game companies which, according to Cohen, "have generated over $3 Billion in shareholder value". The companies Cohen has been involved in since the 1980s include: Playnet Technologies, Voltage Capital, LAMIA, Aristo International and Ecast. In April 2012, Cohen was sentenced to 22 years in federal prison for a conviction on 15 counts of wire fraud, 11 counts of money laundering and three counts of tax evasion. He is currently serving a 22-year prison sentence at Terminal Island Federal Correctional Institution.
Nikola Corporation is an American manufacturer of heavy-duty commercial battery-electric vehicles, fuel-cell electric vehicles, and energy solutions. It presented several vehicle concept vehicles from 2016 to 2020, the first of which was a natural gas fueled turbine-electric semi truck. The company went public on June 4, 2020. In February 2022, the company projected deliveries of between 300 and 500 of its first battery-electric semitrucks — known as the Nikola Tre — to customers. The company delivered its first two battery-electric trucks in December 2021. Like Tesla, Inc., the company is named in honor of Nikola Tesla, but these are not related to the inventor. Nikola Corporation is based in Phoenix, Arizona.
