August 7, 2025

🗣️Whistleblowers and compliance professionals take notice! In this week's edition of Whistleblower Insider, we analyzed another case that reminds us how fraud within government programs, like the FCC’s Lifeline Program, remains a top False Claims Act enforcement priority.

🔐Calling more cybersecurity whistleblowers! The DOJ announced settlements of two False Claims Act cases involving cybersecurity fraud last week, highlighting how the government is doubling down on going after such violations.

✈️We reported on an airline company that allegedly violated the False Claims Act by misusing pandemic relief funds.

❓Does participating in fraud disqualify you from becoming a whistleblower? We're unpacking this query as part of our Whistleblower Question of the Week series, harking back to the origins of the False Claims Act where Congressional supporters remarked: “Sometimes it takes a rogue to catch a rogue.” 

⚖️Plus: More whistleblower-related news and government enforcement actions. 

 DOJ Continues False Claims Act Crusade Against Cybersecurity Violations: More Cybersecurity Whistleblowers Wanted

On July 31, the DOJ announced settlements of two False Claims Act cases involving cybersecurity fraud. The first, against California-based Illumina Inc., involved allegations that the company sold federal agencies certain genomic sequencing systems with cybersecurity vulnerabilities. The second, against California-based defense contractor Aero Turbine Inc. and its private equity partner Gallant Capital Partners, involved allegations Aero Turbine violated the cybersecurity requirements in a contract it had with the Air Force. 

Read the full story here.

 Q Link Wireless Carrier To Pay $110M For Defrauding Government Program To Support Low Income Cell Phone Needs

On July 28, the DOJ announced that Florida-based telecommunications provider Q Link Wireless and its owner Issa Asad agreed to pay roughly $110 million to settle criminal and civil charges of violating the False Claims Act by defrauding the FCC’s Lifeline Program.

Read the full story here.

 Delta Air Lines Agrees to Pay $8.1M For Alleged False Claims Act Violations Related to Misuse of Pandemic Relief Funds

Delta Air Lines will pay $8,100,000 to settle allegations that it violated the False Claims Act by giving compensation to corporate officers and employees that surpassed monetary limits the company agreed to in 2020. This was part of the Department of the Treasury’s Payroll Support Program (PSP) that placed compensation caps for employees of participating companies.

Read the full story here.

  Whistleblower Question of the Week: Does Participating in Fraud Disqualify You from Becoming a Whistleblower?

This week, we're unpacking this question. Participating in fraud does not necessarily disqualify someone from becoming a whistleblower or from receiving a whistleblower reward. But it may complicate matters or impact the amount awarded under the various whistleblower reward laws and programs.

Read the full story here.

In Case You Missed It:

• DOJ Settles Two False Claims Act Customs Cases, Reinforcing That Customs Fraud Remains a Top Enforcement Priority
  
  
• Berg Companies, Inc. To Pay $3.3M To Settle False Claims Act Claims For Alleged Bid Rigging On Government Contracts
  
  
• IRS Whistleblower Office Honors National Whistleblower Day
  
  
• Whistleblower Question of the Week: What Was America’s First Whistleblower Law?