A whistleblower case in New York alleging false income tax claims was settled for $1.1 million.
In the case, real estate developer Asher Roshanzamir was accused of wrongfully deferring income tax payments to both the city and state of New York. The ensuing investigation performed by the state attorney general’s office uncovered evidence that he had, in fact, wrongfully deferred payments by disguising $5 million in equity contributions as loans.
The whistleblower had become aware of this wrongdoing and immediately filed a complaint in the state Supreme Court. These actions are somewhat common, and are often referred to as “drop and swap” maneuvers that essentially involve like-kind exchanges of real estate properties as a means of getting around tax payments.
For his role in exposing the wrongdoing, the whistleblower will receive $200,000.
Violations under the FCA are among the most common types of whistleblower claims. They are particularly common in the healthcare industry, as providers may commit violations by overbilling Medicare and Medicaid for unnecessary services or services that were never rendered. These types of violations can rack up costs for everyone and defraud the government of a great deal of money.
If someone within your organization believes there has been a False Claims Act violation, it’s important that you take the issue seriously. You should also know that whistleblowers are protected under federal law, and you must have a sound process in place for investigating and responding to these claims.
Contact the skilled Dallas attorneys at Whistleblower Law for Managers to learn more about how you can best protect your business or organization.