Former Owners of Telemarketing Company Agree to Pay At Least $4 Million to Resolve False Claims Act Allegations

Two Florida men have agreed collectively to pay at least $4 million to resolve allegations that they violated the False Claims Act by engaging in schemes to generate prescriptions for compounded drugs and refer those prescriptions to pharmacies in exchange for illegal kickbacks. Many of those prescriptions were billed to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees, and military dependents.

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These companies then separate valuable materials for reuse (including gold, silver, platinum, and rare earth metals) from toxic materials for disposal (including brominated materials and lead). Traditional methods include burning to remove non-metal parts and separation using strong acids. New separation technologies are being used or piloted to recover precious and rare earth metals. For example, robotic disassembly uses machine learning and computer vision to more rapidly pick and sort items. Another new technology uses ultrasound to speed up the chemical removal of gold from cell phone SIM cards. Figure 2. Emerging separation technologies for recycled electronics Other technologies are emerging, like biometallurgy, which uses microorganisms to separate high-value metals from other materials, such as plastics, glass, and glue. For example, naturally occurring bacteria can oxidize gold in acidic solutions, making it soluble and thus easier to separate from other materials. Other advanced techniques, such as magnetic or electrochemical separation, are showing promise in the laboratory with existing technology. For example, in one study, researchers used ultrasound to dissolve nickel and gold within a SIM card. They then used a magnetic field to separate the dissolved nickel, which is magnetic, from the gold, which is not. Similarly, other techniques use electric fields to separate dissolved metals based on their weight and electric charge. How mature is it? Recycling technology is well established for some traditional single-stream processes, such as aluminum recycling. However, electronic devices are more complex and require disassembly and separation. At least one consumer electronics manufacturer is piloting robotic disassembly for its products. Emerging separation technologies such as ultrasound have come to market in the past decade and are being used. Manual disassembly and shredding are decades old. Biometallurgy is being tested in pilot plants, and new microorganisms are being developed in laboratories to treat electronic waste. Opportunities Increase supply and reduce imports. Recycling could increase the domestic supply of precious and rare earth metals and reduce the current U.S. reliance on overseas sources. Grow the green economy. Developing advanced recycling technologies could promote domestic business and employment. Reduce hazardous practices. A significant amount of recycling currently occurs in the developing world, where methods include open-pit burning. New technology could reduce the use of such methods, which are hazardous to the environment and human health. Lessen environmental impacts. Developing advanced recycling technologies could reduce the environmental impacts of raw ore mining and landfill disposal of hazardous materials such as lead and brominated materials. Challenges Market challenges. Markets for recovered materials may be limited, and the value of recovered materials may not be enough to cover the costs of equipment for collection, sorting, disassembly, and separation. Secure destruction of personal information. Many electronic devices contain PII. Shredding them may effectively destroy PII but may also make high-value material harder to recover. Counterfeit electronic parts. Exported used electronics may serve as a source of counterfeit electronic parts, which, as GAO previously reported, could disrupt parts of the Department of Defense supply chain and threaten the reliability of weapons systems. (See GAO-16-236, linked below.) Rapid technological development. As consumer electronics made with new materials get smaller, new technologies for separation may be needed to recycle valuable materials. Policy Context and Questions With the volume of electronic waste expected to grow, questions include: How can programs to support technological innovation, economic development, and advanced manufacturing be leveraged to promote a more robust domestic electronics recycling industry? What efforts can the federal government, states, and others make to incentivize recycling rather than disposal? What are the potential benefits and challenges of such policies? What strategies can the public and private sectors implement to address the risk that exports of used electronics will contribute to unsafe recycling practices, disclosure of PII, and counterfeit electronics? How can reductions in exports bolster job growth? For more information, contact Karen Howard at (202) 512-6888 or HowardK@gao.gov.
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    In U.S GAO News
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  • Higher Education: Department of Education Should Further Assess College Access Grant Programs
    In U.S GAO News
    Why This Matters The Department of Education gives grants to schools and organizations that provide disadvantaged students with services to help them attend college. These eight grant programs are collectively known as “TRIO”, named for the original three programs. Congress provides over $1 billion each year to these programs, but Education could do more to understand how well these grants work to help students. Key Takeaways Education could improve the information it has about TRIO programs in two areas: (1) grantee performance data, and (2) program assessments. Schools and organizations report data to Education to show how the TRIO grants they receive have been working. For example, organizations that receive grants to encourage students to complete college report on the numbers and percentages of students who received services and earned degrees.  Education evaluates grantees’ performance using the self-reported data, but has done little to verify the data. Accurate performance data are important because returning grantees can earn points for past performance in the next grant competition—increasing the likelihood that they will receive new grants. Almost 80 percent of recent TRIO grants went to returning grantees.  Therefore, grantees may have an incentive to report a more positive picture than warranted. Officials from an organization representing TRIO grantees told us there is a risk that some grantees may report inaccurate information.  As for assessing the individual TRIO programs, studies of some programs are outdated. In addition, Education has never assessed the effectiveness of three of the seven TRIO programs that serve students, and did not have any new assessments planned as of August 2020. How GAO Did This Study We analyzed data from Education about TRIO grantees and applicants. We also reviewed relevant federal laws and regulations and agency documents, and interviewed Education officials and other TRIO stakeholders. Education should take additional steps to ensure the reliability of grantees' performance data and develop a plan for assessing the effectiveness of the TRIO programs that serve students. Education generally agreed with our recommendations. For more information, contact Melissa Emrey-Arras at (617) 788-0534 or emreyarrasm@gao.gov.
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  • Attorney General William Barr Delivers Video Remarks for the Virtual National Law Enforcement Training on Child Exploitation
    In Crime News
    Good morning, the Department of Justice is pleased to once again host the National Law Enforcement Training on Child Exploitation.
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    In Crime News
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  • Justice Department Warns About Fake Unemployment Benefit Websites
    In Crime News
    The Department of Justice has received reports that fraudsters are creating websites mimicking unemployment benefit websites, including state workforce agency (SWA) websites, for the purpose of unlawfully capturing consumers’ personal information.
    [Read More…]
  • Nuclear Safety: DOE and the Safety Board Should Collaborate to Develop a Written Agreement to Enhance Oversight
    In U.S GAO News
    The Department of Energy's (DOE) Order 140.1 included provisions inconsistent with the Defense Nuclear Facilities Safety Board's (DNFSB) original enabling statute—the statute in place when the order was issued—and with long-standing practices. For example, GAO found that Order 140.1 contained provisions restricting DNFSB's access to information that were not included in the statute. GAO also found Order 140.1 to be inconsistent with long-standing DNFSB practices regarding staff's access to certain National Nuclear Security Administration (NNSA) meetings at the Pantex Plant in Texas, where nuclear weapons are assembled and disassembled (see fig.). In December 2019, the National Defense Authorization Act for Fiscal Year 2020 (FY20 NDAA) amended DNFSB's statute to clarify and confirm DNFSB's authority and long-standing practices between the agencies. DOE replaced Order 140.1 with Order 140.1A in June 2020. National Nuclear Security Administration's Pantex Plant, Located Near Amarillo, Texas DNFSB, DOE, and NNSA officials that GAO interviewed identified concerns with Order 140.1 that GAO found are not addressed under DOE's Order 140.1A. In particular, DOE's Order 140.1A was not part of a collaborative effort to address DNFSB's remaining concerns related to access to information and other regular interagency interactions. For example, DNFSB officials cited concerns that DOE could interpret a provision of DNFSB's statute authorizing the Secretary of Energy to deny access to information in a way that could limit DNFSB access to information to which it has had access in the past. GAO has previously recommended that agencies develop formal written agreements to enhance collaboration. By collaborating to develop an agreement that, among other things, incorporates a common understanding of this provision, DOE and DNFSB could lessen the risks of DNFSB being denied access to information important for conducting oversight. DOE and NNSA officials, as well as contractor representatives involved in operating the facilities, also raised concerns that insufficient training on Order 140.1 contributed to uncertainties about how to engage with DNFSB staff when implementing the order, a problem that GAO found could persist under Order 140.1A. Providing more robust training on Order 140.1A would help ensure consistent implementation of the revised order at relevant facilities. Established by statute in 1988, DNFSB has broad oversight responsibilities regarding the adequacy of public health and safety protections at DOE defense nuclear facilities. In May 2018, DOE issued Order 140.1, a new order governing DOE's interactions with DNFSB. DNFSB raised concerns that the order could affect its ability to perform its statutory mandate. Congressional committee reports included provisions for GAO to review DOE Order 140.1. This report examines (1) the extent to which the order was consistent with DNFSB's original enabling statute and with long-standing practices, as well as actions DOE has taken in light of changes to the statute outlined in the FY20 NDAA; and (2) outstanding areas of concern that DNFSB and DOE identified, and the potential effects of these concerns on how the two agencies cooperate. GAO reviewed legislation and agency documents; visited DOE sites; and interviewed DNFSB, DOE, and NNSA officials and contractor representatives. GAO is making a recommendation to DOE and DNFSB that they collaborate to develop a written agreement, and an additional two recommendations to DOE, including that it develop more robust training on Order 140.1A. DOE and DNFSB agreed to develop a written agreement. DOE agreed with one of the other two recommendations, but did not agree to provide more robust training. GAO maintains that the recommended action is valid. For more information, contact Allison Bawden at (202) 512-3841 or bawdena@gao.gov.
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  • Vivint Smart Home to Pay $20 Million for Violating the Fair Credit Reporting Act
    In Crime News
    The Department of Justice, together with the Federal Trade Commission (FTC), announced a $20 million settlement resolving alleged violations of the FTC Act and the Fair Credit Reporting Act (FCRA), including violations of the Red Flags Rule. The settlement includes $15 million in civil penalties, which represents the largest civil penalty ever paid to resolve FCRA violations under the FTC Act.
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  • Justice Department Requires Waste Management To Divest Assets In Order To Proceed With Advanced Disposal Services Acquisition
    In Crime News
    The Department of Justice announced today that Waste Management, Inc. (WMI) will be required to divest 15 landfills, 37 transfer stations, 29 hauling locations, over 200 waste collection routes, and other assets in order to proceed with its $4.6 billion acquisition of Advanced Disposal Services, Inc. (ADS).  The department said that without the divestiture, the proposed acquisition would substantially lessen competition for small container commercial waste collection or municipal solid waste disposal services in over 50 local markets.
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    In Space
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