The FCA Insider

The FCA Insider

Insights and updates on False Claims Act Litigation

Category Archives: DOJ

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DOJ

DOJ Continues Increased Cybersecurity Enforcement:  Honeywell Aerospace Agrees to $2M FCA Settlement for Cybersecurity Noncompliance on DoW Contracts

On September 1, 2026, the U.S. Department of Justice (“DOJ”) announced a $2,042,518 False Claims Act (“FCA”) settlement with Honeywell Aerospace Inc. (“Honeywell Aerospace” or “Honeywell” or “the company”), resolving allegations that the company failed to comply with certain cybersecurity requirements in a contract with the U.S. Department of War (“DoW”). This settlement is the… Continue Reading
DOJ

DOJ’s New West Coast Strike Force Puts Health Care Providers on Notice

The DOJ’s National Fraud Enforcement Division announced on April 30, 2026, the formation of the West Coast Health Care Fraud Strike Force, a multi-district enforcement initiative spanning Arizona, Nevada and the Northern District of California. Announced by Assistant Attorney General Colin McDonald, the new Strike Force signals a significant escalation of federal healthcare fraud enforcement… Continue Reading
DOJ, FCA Litigation, Uncategorized

New Executive Order Targets DEI Practices by Federal Contractors, Imposes Mandatory Contract Clause and FCA Liability

Continuing his administration’s efforts to eliminate diversity, equity and inclusion (DEI) activities, President Donald Trump signed an executive order, “Addressing DEI Discrimination by Federal Contractors,” on March 26, 2026, that directs all executive departments and agencies to include a new clause in all federal contracts and subcontracts prohibiting what the order defines as “racially discriminatory… Continue Reading
DOJ

DAAG Provides Views on FCA Enforcement Focus: Targeting Discrimination, Not DEI Programs Per Se

At the Federal Bar Association’s 2026 Qui Tam Conference on Feb. 19, 2026, Deputy Assistant Attorney General Brenna Jenny delivered a keynote speech that provided insight into the DOJ’s enforcement priorities and viewpoints on FCA enforcement. From her perspective, the DOJ is not investigating federal contractors and grant recipients for having DEI programs, but for… Continue Reading
DOJ

DoW Announces Line-by-Line Review of Certain 8(a) Contracts Amid Government-wide Scrutiny of the 8(a) Program

The Jan. 16, 2026, announcement by Secretary of War Pete Hegseth that “every small business, sole source, 8(a) contract that is over $20 million” will undergo a “line by line review” raises significant questions and considerations for all government contractors that participate in 8(a) program activities. For example, 8(a) participants that are currently performing –… Continue Reading
DOJ

Creation of DOJ Fraud Division Signals Increased White-Collar Enforcement

On January 8, 2026, the White House announced the establishment of a new division of the Department of Justice: The Division for National Fraud Enforcement.  In a White House Fact Sheet, the Trump Administration stated that the new division will “combat the rampant and pervasive problem of fraud in the United States,” and “enforce the… Continue Reading
DOJ, FCA Litigation

Defense Contractor, Private Equity Firm to Pay $1.75M to Settle FCA Allegations Regarding Cybersecurity Violations

On July 31, 2025, the U.S. Department of Justice announced a $1.75 million False Claims Act (FCA) settlement with Aero Turbine, a California-based defense contractor, and private equity firm Gallant Capital Partners. The settlement arises out of allegations that Aero Turbine failed to comply with cybersecurity requirements under a U.S. Air Force contract and provided… Continue Reading
DOJ

Healthcare Fraud Enforcement in a Second Trump Administration: Trends, Priorities, and Implications

On May 12, 2025, the U.S. Department of Justice’s Criminal Division released a policy memorandum outlining its enforcement priorities for the upcoming year. The top priority for the division will be investigating and prosecuting white collar crimes related to waste, fraud and abuse — particularly healthcare fraud. This emphasis on prosecuting healthcare fraud reflects the… Continue Reading
DOJ

DOJ Targets Neurofeedback Billing in $15 Million Behavioral Health Fraud Case

On March 6, 2025, federal prosecutors charged a Minnesota couple with orchestrating a $15 million healthcare fraud scheme involving overbilling and submission of false claims for neurofeedback and other behavioral health services performed by a network of behavioral health clinics. This newly unsealed federal indictment underscores the Department of Justice’s increasing focus on fraud involving… Continue Reading
DOJ

“Call Us Before We Call You”:  DOJ’s New Corporate Whistleblower Awards Pilot Program

On Sept. 17, 2024, Deputy Assistant Attorney General Nicole Argentieri stressed the intense focus placed by the U.S. Department of Justice (DOJ) on incentivizing companies to maintain healthy corporate compliance programs – and highlighted key aspects of the Department’s newest enforcement tool. Speaking at the NYU School of Law’s Program on Corporate Compliance and Enforcement,… Continue Reading
DOJ, FCA Litigation

Key Takeaways From McGuireWoods’ Webinar on Enforcement Against PE Funds in Healthcare

On July 9, 2024, McGuireWoods partners Brett Barnett, Mindy Sauter, Mike Elliott, and Michael Podberesky conducted a solution-oriented discussion of key enforcement and compliance developments that impact private equity (“PE”) funds in healthcare. They also highlighted relevant cases regarding the government’s increased interest in compliance diligence in the PE space.… Continue Reading
DOJ

Deputy Attorney General Monaco Announces New DOJ Whistleblower Program

At the American Bar Association’s 39th National Institute on White Collar Crime on March 7, U.S. Deputy Attorney General Lisa Monaco provided updates on criminal enforcement efforts and announced new Department of Justice initiatives, including a new whistleblower program. Read on for key insights into the DOJ’s recent efforts and developments in its enforcement strategy.… Continue Reading
DOJ, FCA Litigation, Settlements

DOJ Settles Self-Reported Referral Incentives With Dermatology Practice Manager

On Sept. 13, the U.S. Attorney’s Office for the Northern District of Texas announced a settlement with Oliver Street Dermatology Management LLC to resolve self-reported allegations that its acquisition of several dermatology practices violated the Stark Law, the Anti-Kickback Statute and the False Claims Act. Read on for details about this matter, plus helpful guidance… Continue Reading
DOJ, Individual Liability

Eleventh Circuit Affirms Order for $1.195 Million in Restitution and 48 Month Sentence in Commercial Insurance Healthcare Fraud Case

Last month, the Eleventh Circuit upheld a $1.195 million restitution order and 48-month sentence against Carlos Verdeza for three counts of healthcare fraud. See United States v. Verdeza, No. 21-10461, 2023 WL 3728960 (11th Cir. 2023). Verdeza was a case brought by the United States against a physician assistant who produced fraudulent patient files and… Continue Reading
DOJ, FCA Litigation

U.S. Supreme Court Clarifies DOJ’s Authority to Dismiss Whistleblowers’ False Claims Act Suits, Questions Constitutionality of Qui Tam Provisions

In United States ex rel. Polansky v. Executive Health Resources, Inc., the U.S. Supreme Court recently resolved a circuit split[1] by holding that in a False Claims Act (“FCA”) action (1) the Government may seek dismissal of a qui tam case in which it initially declined to intervene over the relator’s objection as long as… Continue Reading
Anti-Kickback Statute, DOJ, FCA Litigation, Settlements, Stark Law

Regional Hospital System and Two Physicians Pay More Than $69 Million to Settle False Claims Act, Involving Allegations of Improper Financial Relationships With Referring Physicians

On March 29, 2023, the U.S. District Court for the Eastern District of Michigan granted the parties’ joint stipulation for dismissal in U.S. ex. rel. Godsholl v. Covenant Healthcare, following three settlements of the relator’s claims pursuant to the False Claims Act, 31 U.S.C. § 3729 (“FCA”), the Michigan Medicaid False Claim Act, MCL 400.601,… Continue Reading
DOJ

New York Pharmacy Owners Indicted for Alleged Healthcare Fraud Scheme

On May 2, the U.S. Department of Justice announced the indictment of two New York state pharmacy owners for their participation in an alleged $29 million healthcare fraud scheme. They face charges of conspiracy to commit healthcare fraud, conspiracy to commit money laundering and conspiracy to pay illegal healthcare kickbacks and bribes. Read on for… Continue Reading
DOJ

Medicare Accelerated Payment Fraud Leads to Criminal Conviction

Government investigators focus on pandemic-related fraud has culminated in a recent criminal conviction  As announced by the Department of Justice (DOJ), on Friday, January 13, 2023, a federal jury convicted a Colorado physician of theft for misappropriating almost $250,000 in federal COVID-19 relief funds, including both the Medicare Accelerated and Advance Payment Program (“MAAPP”) and… Continue Reading
DOJ

Supreme Court to Review When DOJ May Dismiss Relator Suits

Last month, the Supreme Court granted certiorari in United States ex rel. Polansky v. Executive Health Resources, Inc., a case presenting the question whether the federal government forfeits the authority to dismiss False Claims Act (FCA) suits brought in its name if it first declines to intervene in them.… Continue Reading
DOJ, FCA Litigation

Supreme Court Signals Interest in Clarifying Pleading Requirements in False Claims Act Suits

The Supreme Court (Court) will soon decide whether to take up a critical (and long-running) issue concerning applicability of Federal Rule of Civil Procedure 9(b) pleading standards in False Claim Act (FCA) suits. To satisfy Rule 9(b)’s particularity requirement for fraud allegations, FCA plaintiffs generally have needed to detail specific false claims submitted by defendants.… Continue Reading

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