In a False Claim Act Suit even the Chief Executive Officer is targeted
In a False Claim Act suit, a whistleblower reports all fraud in his knowledge executed by government contractors to the federals. But the Department of Justice (DOJ) represented by a Deputy Attorney General, Sally Quillan Yates, has written a memo, the “Yates Memo” explaining how the DOJ will prosecute the individuals connected with companies subject to a False Claim Act suit.
This memo exhibits six key steps. One of them requires than the company involved in the False Claim Act suit must provide to the DOJ all relevant facts relating to the individuals responsible for the misconduct. But also the DOJ will not release culpable individuals from civil or criminal liability when resolving a matter with corporation, unless absent extraordinary circumstances or approved departmental policy. With these two key steps, the DOJ recommends to sue all individuals who are involved in the fraud, including the Chief Executive Officer of the company which incurred his civil and criminal liability.
It is why Tonya Mallory, the CEO of Health Diagnostic Laboratory (HDL) is a defendant in a federal qui tam lawsuit, even though HDL settled with the government after practicing illegal kickbacks to physicians and unnecessary tests, thus abusing Medicare and Tricare.
For a free and confidential consultation with one of our experienced San Francisco Qui Tam attorneys, please call 888-503-8267 or 415-441-8669 or send an email under the Contact Us portion of this website.