U.S. Chamber and Oil Firms Sue Vermont Over Climate Damage Law
A small tractor works to remove water from a business as floodwaters inundate a street in Barre, Vermont, on July 12, 2023. (Photo by Charles Krupa/AP) The U.S. Chamber of Commerce, along with the American Petroleum Institute (API), has filed a federal lawsuit against Vermont. They are challenging the state’s groundbreaking law that requires fossil fuel companies to contribute financially to the damage caused by climate change over the past several decades. Oil Firms Sue Vermont Legal Battle Over Vermont’s Groundbreaking Law The lawsuit, filed Monday, seeks to block Vermont from enforcing its new law passed in 2024. This law makes Vermont the first state to hold fossil fuel companies accountable for climate-related damages. It follows devastating summer floods and other extreme weather events linked to climate change. Vermont is currently assessing the cost of climate change impacts starting from January 1, 1995. The plaintiffs argue that the law infringes upon the U.S. Constitution. They claim that the federal Clean Air Act already regulates greenhouse gases. Additionally, they assert that the state law violates commerce clauses by targeting large energy companies outside Vermont. They believe it is unrealistic to measure the specific impact of emissions from individual companies over time, given the global nature of greenhouse gas emissions. Tara Morrissey, senior vice president of the U.S. Chamber’s litigation center, criticized the law. She stated, “Vermont wants to impose massive retroactive penalties going back 30 years for lawful, out-of-state conduct that was regulated by Congress under the Clean Air Act.” Morrissey warned that the penalties would increase costs for consumers in Vermont and across the country. Vermont Defends Its Position Although the lawsuit has been filed, Vermont’s Agency of Natural Resources has not yet been formally served. Anthony Iarrapino, a Vermont-based lobbyist with the Conservation Law Foundation, defended the law. He said the lawsuit represents the fossil fuel industry’s attempt to evade accountability for the damage their products caused. “More states are following Vermont’s lead in holding Big Oil accountable for disaster recovery and cleanup costs,” Iarrapino said. The U.S. Chamber of Commerce, along with the American Petroleum Institute (API), has filed a federal lawsuit against Vermont. They are challenging the state’s groundbreaking law that requires fossil fuel companies to contribute financially to the damage caused by climate change over the past several decades. Oil Firms Sue Vermont Under Vermont’s law, the state treasurer, in consultation with the Agency of Natural Resources, will release a report by January 15, 2026. The report will assess the total costs to Vermont from greenhouse gas emissions between 1995 and 2024. It will cover impacts on public health, agriculture, natural resources, and infrastructure. The law adopts a polluter-pays approach. It targets companies involved in the extraction or refining of fossil fuels responsible for over 1 billion metric tons of greenhouse gas emissions. Funds collected from these companies will be used to improve infrastructure and climate resilience, such as upgrading stormwater drainage, retrofitting buildings, and enhancing roads and bridges. A Growing Trend Among States Vermont’s law has inspired other states, including New York. Governor Kathy Hochul recently signed a similar bill into law. The New York law requires major greenhouse gas emitters to contribute to a state fund aimed at repairing and preventing future climate damage. This trend shows a growing movement among states to hold fossil fuel companies accountable for the financial costs of climate change. For more on Vermont’s legal battle and the broader impact of state climate policies, visit JacobiJournal.com. To read further details, check out the original article from Bloomberg.
How to Conduct an Effective Fraud Investigation: The Complete Guide
Effective Fraud Investigation: Fraud investigations are essential for identifying, addressing, and preventing deceitful activities that can harm an organization’s finances, reputation, and integrity. This comprehensive guide outlines the steps and best practices for conducting a thorough and effective fraud investigation. What is a Fraud Investigation? A fraud investigation systematically examines potential instances of deceit, dishonesty, or unethical behavior intended to benefit a perpetrator financially. The process involves gathering evidence, analyzing records, conducting interviews, and verifying data to confirm fraudulent activities, identify perpetrators, and take corrective or legal actions to mitigate harm. Effective Fraud Investigation Steps to Conduct a Fraud Investigation 1. Steps to Take Before Launching a Fraud Investigation Before starting an investigation, assess the situation to determine if it warrants action. Consider the following: 2. Planning the Investigation Planning ensures the investigation is organized, focused, and efficient. 3. Conducting Effective Interviews Interviews are a cornerstone of any investigation, providing first-hand insights and evidence. 4. Reviewing Records and Documents Records provide objective evidence that can validate or disprove allegations. 5. Analyzing and Validating Evidence Assess the quality and relevance of collected evidence to draw conclusions. 6. Writing the Investigation Report A clear, factual report is critical for presenting findings and supporting decision-making. Best Practices for Fraud Investigations Frequently Asked Questions What is needed before starting a fraud investigation?Evaluate the credibility of allegations, assess available evidence, and create a detailed investigation plan. What must you include in a fraud investigation?Interviews, document reviews, evidence analysis, and a comprehensive report are essential components. What is the purpose of a fraud investigation?To uncover fraudulent activities, identify perpetrators, and recommend corrective actions to prevent recurrence. How do you ensure confidentiality during a fraud investigation?Restrict information access, conduct discreet interviews, and secure sensitive documents and data. Why is documentation important?Accurate records provide accountability, support legal actions, and demonstrate due diligence. How Case IQ Can Help Case IQ offers powerful case management software to streamline fraud investigations. Features include: Enhance your organization’s fraud prevention and investigation capabilities with Case IQ’s tools. Protect your assets, employees, and reputation with better oversight and data-driven insights. For in-depth analysis and the latest updates on major legal cases, business trends, and more, visit Jacobi Journal. Stay ahead with expert insights, breaking news, and exclusive content tailored to professionals like you.
BTW Solutions Faces Accountability in Federal Workers’ Compensation Billing Case
BTW Solutions, a Benton, Arkansas-based drug wholesaler and billing service, recently agreed to pay $1.5 million to settle a federal lawsuit. The lawsuit alleged fraudulent practices within the federal workers’ compensation program. Federal prosecutors accused BTW of selling drugs to physicians at cost while billing the Office of Workers’ Compensation Programs (OWCP) at inflated rates—sometimes up to 12 times the original cost. According to court documents, the company shared these inflated profits with participating doctors. BTW Solutions: How the Scheme Operated BTW Solutions marketed its services as a way for physicians to increase revenue by prescribing certain pain creams and durable medical equipment. The company’s promotional materials suggested that doctors could earn more than $100,000 annually by prescribing to just five patients per week. Although BTW claimed it did not bill Medicare or Medicaid, it incorrectly asserted that federal anti-kickback statutes (AKS) did not apply to its operations. However, prosecutors clarified that these laws cover all federal healthcare programs, including the OWCP. The Whistleblower’s Role The scheme was exposed through a whistleblower lawsuit filed by Elizabeth Young, a former sales agent for BTW. Young, now residing in Florida, filed the qui tam lawsuit in 2017 after leaving the company. With over 25 years of experience in medical product sales, she alleged that BTW, along with a compounding company and 10 physicians, engaged in illegal activities. These practices allegedly violated both the AKS and the federal False Claims Act. In 2023, the U.S. government intervened, significantly increasing the case’s importance. Legal and Financial Implications Faced with a lengthy legal battle, BTW chose to settle without admitting guilt. OWCP Director Christopher Godfrey highlighted that the settlement helps recover funds and reinforces the integrity of the Employees’ Compensation Fund. Peter Leary, the U.S. Attorney for the Middle District of Georgia, emphasized that the resolution demonstrates the Anti-Kickback Statute’s vital role in protecting medical decisions from improper financial incentives. Unanswered Questions The settlement raises questions about the fate of the accused physicians and the compounding company involved. Additionally, the portion of the settlement awarded to Young, under the qui tam provisions, has not been disclosed. Typically, whistleblowers receive between 15% and 25% of the recovered funds. Looking Ahead This case serves as a stark reminder of the legal and ethical standards governing federal healthcare programs. For more investigative pieces and updates on cases like this, visit Jacobi Journal. For the original source of this report, click here.
CFPB Accused Rocket Homes Engaged in Illegal Kickback Scheme
The Consumer Financial Protection Bureau (CFPB) has accused Rocket Homes, a subsidiary of Rocket Companies, and The Jason Mitchell Group of engaging in an illegal kickback scheme. According to the CFPB, this alleged practice steered mortgage applications toward Rocket affiliates, undermining fair competition and increasing costs for homebuyers. Allegations Against Rocket Homes The CFPB claims that Rocket Homes, one of the largest mortgage lenders in the United States, incentivized real estate brokers and agents. Specifically, they offered referrals and inducements to funnel real estate settlement business to Rocket affiliates, including Amrock and Rocket Mortgage. Moreover, The Jason Mitchell Group reportedly encouraged these referrals by offering “dog bone” awards. They gave awards, such as $250 gift cards, to agents who made the most referrals to Rocket’s affiliates. CFPB Director Rohit Chopra criticized these actions, stating, “Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal. At a time when homeownership feels out of reach for so many, companies should not illegally block competition in ways that drive up the cost of housing.” Rocket Homes Responds CFPB Accused Rocket Homes: Rocket Homes firmly rejected the CFPB’s allegations, calling the lawsuit baseless. In a statement, the company said, “The facts are clear – data shows one-third of consumers with a loan application already in progress with Rocket Mortgage, before contacting Rocket Homes, chose to close with a different lender. This proves Rocket Homes is committed to empowering homebuyers to make the best decisions for their unique needs.” However, representatives for The Jason Mitchell Group did not immediately comment on the allegations. Broader Enforcement by CFPB This lawsuit marks the third major action taken by the CFPB in recent days. For instance, it follows lawsuits against Walmart and major banks like JPMorgan Chase, Bank of America, and Wells Fargo over their alleged mishandling of fraud in peer-to-peer payment systems. For more updates on consumer finance and real estate, visit JacobiJournal.com. Source: Consumer Financial Protection Bureau Read the official release here.
Oregon Contractor Faces $135K Fine for Persistent Safety Violations
Oregon’s Occupational Safety and Health Division (OSHA) has imposed a $135,407 fine on Newberg-based contractor View Top Construction LLC for repeatedly neglecting to protect employees from dangerous fall hazards. This significant penalty reflects Oregon OSHA’s strict enforcement of workplace safety standards and its zero-tolerance policy for recurring violations. Details of the Violations of Oregon Contractor The penalty followed an inspection at a Hillsboro job site where View Top Construction was working on the roof of a residential property. As part of Oregon OSHA’s prevention-focused emphasis program targeting fall hazards across all industries, inspectors observed an employee installing roofing materials without properly using the provided fall protection system. Although the employee wore a fall protection harness, it was not connected to a fall protection anchor, exposing the worker to a potential 17-foot fall. Oregon OSHA cited the company for three distinct violations under the Oregon Safe Employment Act: Increased Penalties for Repeat Violations of Oregon Contractor Under Oregon OSHA’s penalty structure, fines escalate significantly for repeated noncompliance. Despite earlier citations, View Top Construction continued to expose employees to preventable risks, prompting this substantial financial penalty. Workplace Safety Emphasis This case underscores the importance of adhering to workplace safety regulations. Preventable incidents not only jeopardize employees’ well-being but also lead to costly consequences for employers. For more updates on workplace safety and regulatory compliance, visit JacobiJournal.com. Source: Oregon OSHA Read the official release here.
Doctor Pleads Guilty to $3 Million Workers’ Comp Fraud Scheme
Physician Admits to Defrauding California Workers’ Comp Fund Doctor Pleads Guilty: A Southern California doctor has agreed to plead guilty to defrauding the state’s workers’ compensation trust fund of over $3 million. The Justice Department announced that Dr. Kevin Tien Do, 59, of Pasadena, conspired to submit fraudulent claims to California’s Subsequent Injuries Benefits Trust Fund (SIBTF) even after being suspended from the program due to a prior healthcare fraud conviction. Fraudulent Activities After Suspension Doctor Pleads Guilty: Dr. Do’s plea agreement details his role in the scheme, which lasted from October 2018 to February 2023. Despite his suspension from California’s workers’ comp program in 2018, Do continued working for Liberty Medical Group Inc. in Rancho Cucamonga. He authored and edited medical reports used to claim compensation from the SIBTF. These reports were billed under the names of other doctors to hide his involvement. Liberty’s owner, a co-conspirator who was neither a doctor nor a licensed medical professional, reportedly edited Do’s reports. Although California law requires medical corporation owners to hold medical licenses, this co-conspirator was a California attorney employed as a prosecutor for the Orange County District Attorney’s Office during the scheme and later became an Orange County Superior Court judge. Concealing the Fraudulent Scheme To obscure his participation, Liberty Medical Group submitted claims to the California SIBTF without listing Do’s name. Instead, the fraudulent claims listed other physicians, allowing Liberty to receive payments exceeding $3 million. Do’s plea agreement acknowledges that Liberty’s owner actively facilitated the fraud. Tax Evasion and Financial Misreporting In addition to the mail fraud conspiracy, Do admitted to filing a false tax return. Specifically, he failed to report $66,227 in income from Liberty Medical Group on his 2021 tax return, further violating federal law. Maximum Penalties for Guilty Plea Once Do formally enters his guilty plea, he will face significant legal consequences. For the mail fraud charge, he could receive up to 20 years in federal prison. The tax fraud charge carries a maximum sentence of three years. These potential sentences underscore the severe penalties for fraudulent activities and tax evasion. Investigations and Prosecution This case is being investigated by the FBI, IRS Criminal Investigation, and the California Department of Insurance. The prosecution team includes Assistant U.S. Attorneys Charles E. Pell of the Orange County Office and Ryan J. Waters of the Asset Forfeiture and Recovery Section. Stay Informed on Workers’ Comp Fraud Cases For more updates on workers’ compensation fraud and legal issues, visit Jacobijournal.com, your trusted source for industry news and legal insights. To view the full report from the Justice Department, visit the official DOJ website.
California Vocational School CEO Faces 23 Felony Charges for Insurance Fraud
California Vocational School CEO: Hazel Ortega, the CEO of one of California’s largest vocational return-to-work counselling centers, is facing 23 felony charges, including insurance fraud, theft, and forgery. Ortega, 53, who resides in La Habra, appeared in court this week after a California Department of Insurance (CDI) investigation uncovered evidence of her alleged fraudulent activities. Allegations of Forgery and Coercion California Vocational School CEO: The CDI launched its investigation following complaints from insurers who accused Ortega of defrauding at least four insurance companies. According to the allegations, Ortega forged documents on behalf of injured workers without their knowledge or consent. Her business, Ortega Counseling Center, reportedly referred injured workers to unapproved schools ineligible to receive voucher funds through California’s Supplemental Job Displacement Benefit (SJDB) program. The SJDB program provides financial assistance of $6,000 to $10,000 for injured workers seeking educational retraining or skill enhancement. To qualify, workers must use the funds at state-approved or accredited institutions. Ortega, however, pressured injured workers to attend unapproved schools and failed to inform them of alternative, eligible options. Detectives interviewed injured workers who had SJDB and vocational counselling invoices submitted by Ortega. These workers revealed they never saw or reviewed the forms Ortega submitted to insurers on their behalf. A History of Fraudulent Schemes This is not the first time Ortega has faced legal trouble. She was previously charged in Los Angeles County for her role in a separate insurance fraud scheme that reportedly netted nearly $1 million. Investigators allege that Ortega, along with other vocational counsellors, received approximately $500,000 in illegal kickbacks for referring injured workers to a fraudulent school in the Los Angeles area. The Los Angeles County District Attorney’s Office is currently prosecuting Ortega’s case. If convicted, she could face significant penalties, including restitution to defrauded insurers and potential prison time. Broader Implications for Injured Workers This case highlights critical vulnerabilities within programs designed to assist injured workers. Fraudulent activities like those alleged against Ortega undermine the integrity of vital benefits, leaving already vulnerable individuals without the support they need to return to work. The Jacobi Journal will continue to monitor this case and report on its implications for the vocational counselling industry. Stay informed by visiting jacobijournal.com for updates and in-depth analysis on legal and medical issues affecting workers’ compensation programs. For related stories:
New Jersey Supreme Court Rules Insurer Not Obligated to Defend Employer in Injury Lawsuit
Insurer Not Obligated: The New Jersey Supreme Court recently ruled that Hartford Underwriters Insurance Co. had no duty to defend SIR Electric LLC against a personal injury lawsuit filed by an employee, Dionicio Rodriguez, who alleged negligence and intentional harm. This decision upholds the insurer’s stance and clarifies the scope of coverage under workers’ compensation and employers’ liability policies. Court’s Interpretation of Policy Coverage The high court supported the lower courts’ view that Hartford was not required to defend SIR Electric. Rodriguez’s claims of negligence and recklessness fell under the workers’ compensation exclusivity bar within Hartford’s policy. However, the court concluded differently on the intentional wrongdoing claim. It determined that this claim, while not covered under the workers’ compensation section, was excluded by the employer liability section due to its intentional nature. Insurer Not Obligated Case Background and Implications While working for SIR Electric, Rodriguez injured himself when opening an electrical panel. He initially filed for workers’ compensation benefits, which Hartford provided. Later, Rodriguez pursued a personal injury lawsuit against SIR, seeking additional damages. When SIR requested defense from Hartford, the insurer refused, prompting SIR to sue Hartford for wrongful denial of coverage. A trial judge sided with Hartford, dismissing SIR’s complaint. The judge categorized Rodriguez’s lawsuit as a Laidlow claim, based on a 2002 case that allows exceptions to the workers’ compensation exclusivity for intentional wrongs. The Supreme Court confirmed that the negligence-based claims were barred by workers’ compensation laws. However, it ruled that Rodriguez’s intentional wrongdoing claim was not covered because Hartford’s policy specifically excluded injuries intentionally caused by the employer. Legal Precedents and Future Impact The Supreme Court’s ruling clarifies that while workers’ compensation laws cover negligence claims, intentional wrongdoing is excluded from employer liability coverage under Hartford’s policy. This decision reinforces the parameters of workers’ compensation and employers’ liability policies in New Jersey. For further insights into legal rulings affecting insurance coverage, visit Jacobi Journal. For more detailed reporting, refer to the original article from AP News.
What Is a Trauma-Informed Approach?
Trauma-Informed Approach What Is a Trauma-Informed Approach? This method emphasizes understanding and responding to the psychological impact of trauma on individuals involved in fraud investigations. By recognizing signs of trauma and adjusting investigative strategies, insurers and law enforcement can: Key Strategies for Implementation Why This Matters Fraud investigations are inherently stressful, and trauma can compound the difficulty of obtaining reliable information. By adopting a trauma-informed approach, insurers can: Learn more about this innovative approach by exploring the full article on Insurance Fraud.org: Read More. For more updates on legal actions and regulatory news, visit Jacobi Journal.
Pasadena Doctor Admits to Workers’ Compensation Fraud, Exposing Systemic Vulnerabilities
A Pasadena-based physician has agreed to plead guilty to charges related to workers’ compensation fraud. This development is significant in the ongoing fight against fraudulent practices within California’s healthcare system. According to Pasadena Now, the doctor admitted to manipulating the workers’ compensation system for personal financial gain. Details of the Case The physician, whose name remains undisclosed, faced accusations of fraudulent billing practices and submitting false claims to insurance providers. These actions took place over several years, leading to substantial financial losses for workers’ compensation insurers. Prosecutors allege that the doctor exploited loopholes in the system to benefit from inflated or unnecessary medical treatments. Court documents reveal that the scheme not only harmed insurers but also undermined California’s medical and legal systems, which aim to protect injured workers. Impact on the Healthcare System Pasadena Doctor: This case highlights the broader issue of fraud within the workers’ compensation industry. Fraudulent practices burden insurers, raise premiums for employers, and erode trust in healthcare providers. Moreover, these actions compromise the availability of legitimate care for injured workers, who depend on the system for recovery. Legal Consequences By agreeing to plead guilty, the physician will face significant legal consequences, including restitution payments to affected insurers and potential jail time. Authorities remain committed to cracking down on similar fraudulent activities and ensuring justice is served. In this regard, the case will serve as a key precedent for future efforts to reduce workers’ compensation fraud in California. Preventive Measures To reduce fraud in the workers’ compensation system, experts recommend several proactive measures. These include stronger oversight mechanisms, increased collaboration between insurers and healthcare providers, and harsher penalties for offenders. Additionally, public awareness campaigns can educate stakeholders about the serious consequences of fraud. Conclusion Ultimately, this case underscores the need for vigilance and integrity within the medical and legal communities. It serves as a reminder of the importance of ethical practices to maintain trust and fairness in systems critical to public welfare. To protect the system, stakeholders across industries must work together to identify and eliminate fraud, ensuring resources go to those who genuinely need assistance. For more updates on legal actions and regulatory news, visit Jacobi Journal. For more updates on legal actions and regulatory news, visit Jacobi Journal.