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Category Archives: Fraud, Deception and False Claims

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Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims

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

On April 30, 2026, the Department of Justice’s (“DOJ”) National Fraud Enforcement Division (“Fraud Division”) announced 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. [1] Announced by Assistant Attorney General Colin McDonald, the new Strike Force signals a significant… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

FAR Council Issues Implementation Guidance for Executive Order 14398: New DEI Contract Clause Requirements for Federal Contractors

On April 20, 2026, the Federal Acquisition Regulatory (FAR) Council issued agency implementation guidance for Executive Order (E.O.) 14398, “Addressing DEI Discrimination by Federal Contractors,” which President Trump signed on March 26, 2026. The guidance introduces a new contract clause — FAR 52.222-90 — and establishes tight deadlines for agencies to incorporate the clause into… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

GSA AI Procurement Rules Would Introduce New Disclosure and Use-Rights Requirements for Federal Contractors

The General Services Administration (GSA) Federal Acquisition Service has released draft contract terms and conditions related to artificial intelligence (AI)-related procurements through a new proposed GSAR clause 552.239-7001, “Basic Safeguarding of Artificial Intelligence Systems (FEB 2026) (GSAR Deviation), that would impose material new requirements on contractors and service providers supplying artificial intelligence capabilities to the… Continue Reading
Fraud, Deception and False Claims

Ninth Circuit Ruling in FCA Case Predicated on 340B Pricing Violations Has Significant Implications for Pharma Manufacturers 

On March 17, 2026, the U.S. Court of Appeals for the Ninth Circuit issued a significant opinion in United States ex rel. Adventist Health System of West v. AbbVie Inc., reversing the district court’s dismissal of a qui tam complaint brought under the False Claims Act (FCA) against four major drug manufacturers. The Ninth Circuit held that the… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

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
Fraud, Deception and False Claims, Government Contracts

New GSA Proposal Could Expose Federally Funded Institutions With Programs Perceived as DEI-Related

The General Services Administration has proposed requiring all federal funding recipients to certify that they do not maintain diversity, equity, inclusion and accessibility programs. Recipients also would also need to certify they are not knowingly hiring or recruiting undocumented staff. The GSA estimates the proposal would impact approximately 222,760 entities — including colleges and universities.… Continue Reading
Fraud, Deception and False Claims

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 February 19, 2026, Brenna Jenny, Deputy Assistant Attorney General (DAAG) in the U.S. Department of Justice’s (DOJ) Commercial Litigation Branch, delivered a keynote speech on enforcement priorities under the False Claims Act (FCA) with respect to diversity, equity, and inclusion (DEI) programs.  Jenny’s reported remarks… Continue Reading
Fraud, Deception and False Claims

Creation of DOJ Fraud Division Signals Increased White-Collar Enforcement

On Jan. 8, 2026, the White House announced the establishment of the DOJ’s Division for National Fraud Enforcement. The Trump administration stated that the new division will “combat the rampant and pervasive problem of fraud in the United States” and “enforce the Federal criminal and civil laws against fraud targeting Federal government programs, Federally funded… Continue Reading
Fraud, Deception and False Claims

California Defense Contractor and Private Equity Firm Agree to Pay $1.75M to Resolve False Claims Act Liability Relating to Voluntary Self-Disclosure of Cybersecurity Violations

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

DOJ and HHS Reestablish False Claims Act Working Group, Delineate Healthcare Enforcement Priorities

On July 2, 2025, the U.S. Department of Justice (DOJ) and U.S. Department of Health and Human Services (HHS) announced they will reestablish the DOJ-HHS False Claims Act Working Group. Originally formed in December 2020 at the tail end of the first Trump administration, this partnership focuses on advancing enforcement of the False Claims Act… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims

Order Limiting Strict Liability Has Implications on FDCA Enforcement for Companies, Individuals

On May 9, 2025, President Trump signed an Executive Order titled “Fighting Overcriminalization in Federal Regulations.” The Order seeks to reduce the regulatory burden on Americans and prevent individuals from being criminally penalized for unknowingly violating complex regulations.  In pursuit of these goals, the Order sets forth a policy “generally disfavor[ing]” strict liability crimes.  Agencies… Continue Reading
Fraud, Deception and False Claims

The Risks of Rushing In: A Closer Look at DOJ Criminal Division’s Updated Corporate Enforcement Policy in the Broader Enforcement Landscape

I. Introduction: More Clarity, But Not a Complete Roadmap On June 10, Matthew Galeotti, the Head of the U.S. Department of Justice’s (DOJ) Criminal Division, delivered remarks at an event hosted by the American Conference Institute,[1] in which he discussed recent updates to the division’s Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP).[2] The revisions mark… Continue Reading
Fraud, Deception and False Claims

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

On May 12, 2025, the United States Department of Justice’s (“DOJ”) Criminal Division released a major policy memorandum outlining its enforcement priorities for the upcoming year. Unsurprisingly, the number one priority for the Division was investigating and prosecuting white-collar crimes related to waste, fraud, and abuse—and particularly healthcare fraud. This emphasis on prosecuting healthcare fraud… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

DOJ Announces Initiative to Use False Claims Act to Investigate DEI Practices

On May 19, 2025, the U.S. Department of Justice’s (DOJ) Deputy Attorney General announced its new Civil Rights Fraud Initiative, which aims to use the False Claims Act (FCA) to investigate and pursue claims against entities that tolerate antisemitism, allow men to enter women’s spaces or compete in female athletic competitions, or engage in unlawful… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

Department of Justice Suggests “Aggressive” Enforcement of False Claims Act

In a speech to the Federal Bar Association’s annual qui tam conference on Feb. 20, 2025, Michael Granston, Deputy Assistant Attorney General for the Commercial Litigation Branch at the U.S. Department of Justice, discussed how the Trump administration plans to “aggressively” enforce the False Claims Act (FCA). His statements come on top of other comments from Trump… Continue Reading
Compliance, Fraud, Deception and False Claims

State Attorneys General Poised to Crack Down On Price Gouging Amid Market Pressure

This past Thursday, New York Attorney General Letitia James issued a warning to businesses against price gouging for eggs and poultry. The current bird flu outbreak began in March 2024 but has become a topic of increasing concern for consumers and businesses in the new year after more than 13 million hens—necessary to the success… Continue Reading
Compliance, Fraud, Deception and False Claims

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

McGuireWoods partners Brett Barnett, Mindy Sauter, Mike Elliott, and Michael Podberesky recently 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. Read on to learn about the eight key… Continue Reading
Fraud, Deception and False Claims

Federal District Court Finds Private-Insurer Relator Can Proceed with False Claims Action

Last month, the U.S. District Court for the District of New Jersey held that a private company could proceed with its whistleblower action against a clinical laboratory that allegedly submitted false claims to the federal government for medically unnecessary urine drug tests (UDTs). The lawsuit is part of a growing trend of nontraditional whistleblower-like insurance… Continue Reading
Fraud, Deception and False Claims

1st Circuit Rejects Convicted Former Medical Device Executives’ Off-Label “Free Speech” Theory

A federal appeals court recently upheld misdemeanor convictions of two former Acclarent Inc. executives for commercially distributing an adulterated and misbranded medical device by misleading the U.S. Food and Drug Administration regarding the device’s intended use. Read on for details about the decision, which rejected claims that their off-label promotion amounted to constitutionally protected commercial… Continue Reading
Fraud, Deception and False Claims

Lessons for Providers and Practice Entities: Ophthalmology Groups Pay Millions to Settle Co-Management, Optometrist Relationship Allegations

Two ophthalmology practice groups recently reached settlements with the U.S. government totaling nearly $20 million to resolve allegations that their third-party cataract arrangements violated several healthcare laws. Read on to discover how the settlements offer guidance to vision providers with respect to the government’s focus on ophthalmology-optometry relationships, and whether the settlements’ lessons have broader… Continue Reading
Fraud, Deception and False Claims

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 sought reimbursement from Blue Cross Blue… Continue Reading
Fraud, Deception and False Claims

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

The U.S. Supreme Court recently resolved a circuit split by holding that, in a False Claims Act action, (1) the government may seek dismissal of a qui tam case in which the government initially declined to intervene over the relator’s objection so long as it later intervened in the litigation, and (2) district courts should… Continue Reading

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