WASHINGTON (CN) — The U.S. Supreme Court appeared convinced Monday that a whistleblower could bring fraud claims against a Wisconsin telecommunications company for overcharging schools and libraries for internet services.
Wisconsin Bell tried to skirt the False Claims Act action by arguing that reimbursements under a federal assistance program for rural communities came from private funding, which is insulated from the law’s whistleblower suits but the justices didn't seem sold on that argument.
“Everybody understands that the carriers aren't doing this from the goodness of their hearts,” Justice Elena Kagan, a Barack Obama appointee, said. “Everybody understands that the carriers are doing it because of the U.S. government … That’s where the directive is coming from. That’s who’s responsible for schools getting what they’re getting.”
Richard Todd Heath sued Wisconsin Bell for misusing funds under the Schools and Libraries Universal Service Support program — known as the E-Rate program — which provides affordable telecommunication services to schools and libraries in rural and economically disadvantaged areas.
Under the program, providers are required to charge schools and libraries at the lowest customer rates available. In exchange, carriers can file reimbursement requests for the difference from the Universal Services Fund — which collects a percentage of telecommunication revenues for programs promoting the expansion of affordable phone and internet services.
Heath...
A chain of clinics in Texas is facing a potential $300 million fine after a jury ruled it knowingly submitted more than 20,000 fraudulent reimbursement claims to Medicare. The lawsuit against Heal...