May 2024 - cypherpunks@lists.ogf.org

United States - Government Contracts, Procurement & PPP - A False Claims Act Year In Review, And A Look Forward—Part I
by Gunnar Larson 16 May '24

16 May '24

https://www.mondaq.com/unitedstates/government-contracts-procurement--ppp/1… *In this two-part article, the authors review the basic elements of the civil False Claims Act, its qui tam provisions, recent Department of Justice enforcement statistics and a number of recent False Claims Act developments. In particular, this first part begins by briefly reviewing the basic elements of the civil False Claims Act (FCA), its qui tam provisions, and recent Department of Justice enforcement statistics. It then discusses the Supreme Court's decisions regarding the government's authority to dismiss* qui tam *actions under 31 U.S.C. § 3730(c)(2)(A), and the correct pleading standard required to prove scienter. The conclusion of this article, to be published in the next issue of* Pratt's Government Contracting Law Report, *will review Biden administration actions relating to the FCA, the status of proposed amendments to the FCA, the growing FCA enforcement against private equity firms, ongoing FCA enforcement against pandemic relief fraud, and rising FCA scrutiny on required cybersecurity measures as well as the increased FCA enforcement on higher education institutions.* The civil False Claims Act (FCA)1 was enacted in 1863 in response to allegations of fraud in Civil War procurements. The FCA has since become the government's weapon of choice to combat fraud, waste, and abuse in government contracting. The FCA makes it unlawful for a person to knowingly: (1) present or cause to be presented to the government a false or fraudulent claim for payment, or (2) make or use a false record or statement that is material to a claim for payment.2 A person acts "knowingly" under the FCA if he or she acts with "actual knowledge, deliberate ignorance or reckless disregard of the truth or falsity of information."3 Mistakes and ordinary negligence, however, are not actionable under the FCA.4 The FCA provides for up to treble damages and as of February 12, 2024, penalties of between $13,946 and $27,894 per violation. Violators are also subject to administrative sanctions, including potential suspension, debarment, or program exclusion from participating in government contracts. The FCA has a lengthy statute of limitations of no less than six years and, in some cases, up to 10 years after a violation has been committed. The FCA permits private citizens, known as qui tam relators, to bring cases on behalf of the government. In qui tam cases, the complaint and a written disclosure of all relevant evidence known to the relator must be served on the U.S. Attorney for the judicial district of the court where the case was filed as well as on the U.S. Attorney General. The qui tam complaint is then ordered sealed for a period of at least 60 days, and the government is required to investigate the allegations contained therein and decide whether to intervene. If the government declines to intervene, the relator may proceed with the complaint on behalf of the government. The complaint must be kept confidential and is not served on the defendant until the seal is lifted. Relators may receive a "whistleblower bounty" of between 15 and 25 percent of the recovery if the government intervenes in their cases and between 25 and 30 percent if the government declines. JUSTICE DEPARTMENT REPORTS MORE THAN 1,200 NEW FCA CASES AND BILLIONS OF DOLLARS IN RECOVERIES Figure 1 charts new FCA cases per year, which shows a steady increase in qui tam-driven cases.5 Well over 700 FCA cases have been filed each year for the past 14 years and a high percent of those cases have been qui tam cases. Many qui tam cases remain under seal for years pending an intervention decision by the Department of Justice (DOJ). In 2023, there was a high-water mark in new FCA cases brought by both the government and qui tam relators for a total of 1,212, likely linked to the expenditure of substantial federal funds related to pandemic relief and the ever increasing budgets tied to federal healthcare and other procurement programs. This uptick started back in 2020 during the beginning of the COVID-19 pandemic and related federal stimulus. In 2020, 2022, and 2023, the government also filed more new FCA cases than in prior years, showing the FCA remains a high priority for enforcement. The DOJ collected over $2.68 billion in settlements and judgments in 2023, a slight increase from 2022 FCA monetary recoveries of $2.2 billion, but still trending downwards from prior years when there were more individual big settlements. Nonetheless, in 2023, DOJ pulled in 543 settlements and judgments, the highest number in a single year since the FCA amendments in 1986. Figure 2 shows annual recoveries by the government in FCA cases and compares recoveries coming from qui tam cases where the government declined to intervene versus non-qui tam cases or qui tam cases where the government intervened.6 Consistent with recent trends, DOJ reported recoveries ($1.8 billion) in 2023 mostly came from settlements and judgments from the healthcare industry, including managed care providers, hospitals, pharmacies, laboratories, long-term acute care facilities, and physicians. DOJ reported that additional 2023 recoveries reflected its focused attention on new enforcement priorities such as pandemic relief programs and cybersecurity requirements in government contracts and grants. To view the full article please click here. * Scott F. Roybal is a partner at Sheppard, Mullin, Richter & Hampton LLP and a member of its Governmental practice group. He handles government contract disputes, investigating and litigating qui tam False Claims Act cases and related whistleblower actions, and defends individuals and corporations in a wide range of civil and criminal fraud investigations. Jennifer Le is a senior associate within the firm's Governmental practice group who works on matters involving the government, including disputes, litigations and investigations. Both are residents in the firm's Los Angeles office and may be reached at sroybal(a)sheppardmullin.com and jle(a)sheppardmullin.com, respectively. Footnotes 1. 31 U.S.C. § 3729 et seq. 2. 31 U.S.C. §§ 3729(a)(1)(A)–(B) (2009); U.S. ex rel. Rose v. Stephens Inst., 909 F.3d 1012, 1017 (9th Cir. 2018). 3. 31 U.S.C. § 3729(b). 4. United States v. Sci. Applications Int'l Corp., 626 F.3d 1257 653 F. Supp. 2d 87 (D.D.C. 2009). 5. DOJ Office of Public Affairs, Fraud Statistics—Overview (February 22, 2024). 6. See footnote 1 above.

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Winter for the Met Gala spectacle
by pro2rat＠yahoo.com.au 16 May '24

16 May '24

Since the Met Gala on May 6, this digital revolt has emerged as a ‘digital guillotine’, where users are blocking celebrities and their brands. This not only hides their content, but also their sponsored ads and any business-related marketing from social media.” Red, yellow and green lists The Block Out works on a traffic system, with red designating those who should be blocked and deplatformed entirely for either supporting Israel or remaining silent on the issue and wasting the potential of their mammoth online followings. Yellow is assigned to stars who should be pressured and not platformed, in a bid to encourage them to “exercise humanity amongst those who seem to refuse”. And green is the category of celebrities who have advocated for Palestine and should therefore be rewarded by social media users. Until now, Social Prally explained that “there’s no concentration of clear goal on what we’re aiming for with this blocklisting, and people are blocking just to block”. “We need to focus in on these circles and make sure attention is targeted”. A long list of “Zionists you should block” includes Olivia Wilde, Adam Sandler, Dwayne ‘The Rock’ Johnson, Chris Pine, Aubrey Plaza, Floyd Mayweather, Lana Del Ray, Jerry Seinfeld, Chris Rock, Will Ferrell and Katy Perry. A significant proportion of those on the list are Jewish celebrities. Also on the red list are “those with massive followings [who] have remained silent”, including Beyonce, Taylor Swift, Miley Cyrus, Justin Bieber, Drake, Rihanna, Nicki Minaj, Kevin Hart, Dua Lipa, Jennifer Lopez, Lady Gaga and Timothy Chalamet. Beyonce makes the red list for not using her enormous profile to speak out about Gaza. Picture: A yellow list features personalities who “know what is happening and can’t pretend they don’t” with followers of the campaign urged to “put pressure on them and their platform to speak out”. “If a celebrity or influencer is still silent on a massively mediatised genocide, they would rather protect their ‘image’ or business than condemn it,” Social Prally explained. “They’d rather spend over $75k on Met Gala tickets than saving people from near certain death. They would rather be socially or economically complicit in the murder of children than even talk about it. Those celebrities include Billie Eilish, JoJo Siwa, Doja Cat, Charlie XCX and Troye Sivan as well as prominent social media influencers Mr Beast, Addison Rae, Emma Chamberlain, Dylan Mulvaney and Chris Olsen. And a green list circulating among supporters of the Block Out designated those who have shown support for Palestine. “These celebrities shave spoken out, collected or provided donations, or boycotted events,” Social Prally explained. “This does not mean you should protect their IP [intellectual property] and support their business if they are still affiliated with silent/Zionist people.” But they should be platformed and supported online, in a bid to encourage their famous peers to do so. The list includes Emma Watson, Mark Ruffalo, Angelina Jolie, Macklemore, Pedro Pascal, Julia Fox, Susan Sarandon and Sandra Oh. ‘We made them rich’ Growing disillusionment online about stars who have been silent on the conflict and the plight of Palestinian civilians killed reached fever pitch in the wake of the Met Gala. “It’s time for the people to conduct what I want to call a ‘digital guillotine.’ A ‘digitine,’ if you will,” TikTok influencer @ladyfromtheoutside declared earlier this month, kicking off the Block Out movement. “It’s time to block all the celebrities, influencers and wealthy socialites who are not using their resources to help those in dire need. We gave them their platforms. It’s time to take it back, take our views away, our likes, our comments, our money.” The Block Out movement aims to put pressure on celebrities to use their platforms to bring awareness to the plight of Palestinians. Picture: AFP Since the furore over her video, which some critics said was like watching “from District 12” in reference to the film series The Hunger Games, Kalil has deleted the TikTok and apologised for causing offence. She clarified that she hadn’t actually attended the Met Gala but was working as a red carpet reporter for E! News outside. But her attempt at an apology backfired when explaining she hadn’t spoken out about Gaza because “I’m not informed enough to talk about it in a meaningful and educational way”. Kalil has lost about 100,000 followers in the wake of the controversy. According to NBC News, social media analytics indicated many of those stars who feature on the red list have also seen their online follower numbers fall. Angelina Jolie is one of a number of celebrities on the Block Out’s green list. Picture: Getty At the weekend, Palestinian journalist Bisan Owda, who has chronicled the Gaza conflict on social media, urged more users to join the Block Out movement. ‘Disgusting’: Star’s Israel posts slammed Stars bare their bums at Met Gala “Let’s all block the people who we made famous and rich … who are living in a fantasy world … destroying our environment, society, harmony and economy, and don’t even put some effort to educate themselves about us, the 99 per cent of the world’s population who made them,” Owda said in an Instagram video. As of Tuesday, the Palestinian Health Authority said some 35,000 people – mostly civilians, many of them women and children, have been killed since Israel’s ground and air assault Professor Rat https://www.news.com.au/entertainment/celebrity-life/digital-guillotine-gro… There is an app for this at stiffs dotcom. Cut off the head of the snake!

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Insurer Says Security Co. Not Covered For Nightclub Injuries
by Gunnar Larson 16 May '24

16 May '24

Insurer Says Security Co. Not Covered For Nightclub Injuries <https://www.law360.com/newyork/articles/1837686?nl_pk=ac5a3855-e47c-4403-be…> By Jennifer Mandato A security services company is not owed coverage for three underlying personal injury lawsuits stemming from multiple shooting and stabbing incidents at a Florida gentlemen's club, an insurer told a New York federal court, stating its policies exclude coverage for injuries sustained at clubs and assault. Complaint attached | Read full article » <https://www.law360.com/newyork/articles/1837686?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1837686?nl_pk=ac5a3855-e47c-4403-be…>

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AI Job Recruiter Joonko Blames CEO Fraud For Ch. 11 Filing
by Gunnar Larson 16 May '24

16 May '24

AI Job Recruiter Joonko Blames CEO Fraud For Ch. 11 Filing <https://www.law360.com/newyork/articles/1837470?nl_pk=ac5a3855-e47c-4403-be…> By Rick Archer AI-powered employee recruitment venture Joonko Diversity Inc. has filed for Chapter 11 protection in a Delaware bankruptcy court, saying its business had rested almost entirely on fraudulent claims made by its ex-CEO. 2 documents attached | Read full article » <https://www.law360.com/newyork/articles/1837470?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1837470?nl_pk=ac5a3855-e47c-4403-be…>

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DoorDash Inks Deal To End NY AG's Conviction Bias Claims
by Gunnar Larson 16 May '24

16 May '24

DoorDash Inks Deal To End NY AG's Conviction Bias Claims <https://www.law360.com/newyork/articles/1837563?nl_pk=ac5a3855-e47c-4403-be…> By Bonnie Eslinger DoorDash has reached a settlement with New York Attorney General Letitia James to resolve allegations that the food delivery platform regularly rejected applicants with criminal histories without considering factors such as the nature of the conviction and its bearing on the job sought, the law enforcement official's office announced Wednesday. Settlement attached | Read full article » <https://www.law360.com/newyork/articles/1837563?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1837563?nl_pk=ac5a3855-e47c-4403-be…>

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Archegos Ex-Accountant Tells Jury Of 'Vendetta' Inside Fund
by Gunnar Larson 16 May '24

16 May '24

Archegos Ex-Accountant Tells Jury Of 'Vendetta' Inside Fund <https://www.law360.com/newyork/articles/1837558?nl_pk=ac5a3855-e47c-4403-be…> By Pete Brush A key cooperating witness had a "personal vendetta" against a former Archegos executive charged in the government's $36 billion market distortion case, according to testimony Wednesday by an ex-accountant at the fallen fund. Read full article » <https://www.law360.com/newyork/articles/1837558?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1837558?nl_pk=ac5a3855-e47c-4403-be…>

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Crypto 'Academy' Closed After Probe Into False Assurances
by Gunnar Larson 16 May '24

16 May '24

Crypto 'Academy' Closed After Probe Into False Assurances <https://www.law360.co.uk/financial-services-uk/articles/1837368?nl_pk=a94fc…> By Joel Poultney A cryptocurrency firm that "recklessly" persuaded customers to put money into investment plans has been wound up after the government's insolvency agency found that the company had given false assurances and traded without regulatory approval. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1837368?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1837368?nl_pk=a94fc…>

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Jackson Walker Seeks Sanctions Over Judge Romance Suit
by Gunnar Larson 15 May '24

15 May '24

Jackson Walker Seeks Sanctions Over Judge Romance Suit <https://www.law360.com/legalethics/articles/1836561?nl_pk=153d4a8a-6fb9-4a5…> By Lynn LaRowe Jackson Walker LLP asked a Texas federal court Monday to sanction lawyers and their "disgruntled millionaire" client for leveling racketeering allegations in a lawsuit over a former bankruptcy judge's romantic relationship with a former firm lawyer, saying the claims are "frivolous" and "conclusory." Motion attached | Read full article » <https://www.law360.com/legalethics/articles/1836561?nl_pk=153d4a8a-6fb9-4a5…> | Save to favorites » <https://www.law360.com/legalethics/articles/1836561?nl_pk=153d4a8a-6fb9-4a5…>

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Repository Denies Withholding Investment Data From Fund
by Gunnar Larson 15 May '24

15 May '24

Repository Denies Withholding Investment Data From Fund <https://www.law360.co.uk/financial-services-uk/articles/1832728?nl_pk=a94fc…> By Eddie Beaver A securitization repository has denied "capriciously" withholding investment data from an investment fund, claiming that it never received a request for the information and did not know the fund existed. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1832728?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1832728?nl_pk=a94fc…>

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Chevron Says $268K Fine For Fake News Clips Must Stand
by Gunnar Larson 15 May '24

15 May '24

Chevron Says $268K Fine For Fake News Clips Must Stand <https://www.law360.com/legalethics/articles/1836357?nl_pk=153d4a8a-6fb9-4a5…> By James Mills Chevron on Friday urged the Ninth Circuit to summarily toss a Seattle attorney's appeal challenging an order that he pay $268,000 for filing a fake newspaper article as a court exhibit, saying the attorney is raising arguments that have already been rejected. Brief attached | Read full article » <https://www.law360.com/legalethics/articles/1836357?nl_pk=153d4a8a-6fb9-4a5…> | Save to favorites » <https://www.law360.com/legalethics/articles/1836357?nl_pk=153d4a8a-6fb9-4a5…>

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