Real Housewives & Whistleblower Make Strange Bedfellows
August 15, 2014
I was recently catching up with an old friend from my former industry of medical device and our conversation turned to “Did you hear about the new guy on RHONJ, he worked for Cell Pharmaceuticals and was a whistleblower; but, was awarded $2.8 million and ended up with nothing?” So much is wrong with that sentence the least which a male heterosexual colleague and I were discussing Real Housewives like it was the Super Bowl. I have a theory that there’s at least one sociopath on almost every reality show. It’s also bringing to light the less common female sociopath.
Get ready to toss aside some IQ points:
Jim Marchese is married to Amber (who was friends with Melissa Gorga prior to the show who is SIL to Teresa & Joe Giudice who have pled guilty to fraud changes) I know I hate myself for knowing this (no judgment I bet half of you already knew this). Let me start by saying Jim Marchese is an obnoxious narcissistic man (typical former rep) who is President of a Mortgage Company who stated he was an attorney (who doesn’t practice-hey we’ve heard a similar story on this site before) and did not want to be around the Giudice while the remainder of the case was settling because he works for the Attorney General who is prosecuting fraud cases. There is so much fraud in that sentence I can barely see straight.
The U.S. State’s Attorney (or more likely one of the Assistant State’s Attorneys) prosecute fraud not the Attorney General who released a statement stating just that-and wait for it-they don’t work with Jim Marchese in any capacity. And now for the most widely falsely reported information from reputable new sources regarding whistleblowers:
According to The New York Times Cell Pharmaceuticals agreed to pay $10.5 million to the government to settle the charges. That put Mr. Marchese in line to receive as much as a quarter of that sum, or $2.8 million, as his reward for blowing the whistle.
Flag on the play!
This lack of transparency from the DOJ when it comes to whistleblower payouts is meant to make them look like heroes and the whistleblower look like a greedy bastard. What people in the industry know (or any Qui Tam Attorney) is that the $10.5 million is the total collected but whistleblower awards are based off a percentage (arbitrarily decided amount of Medicare/Medicaid (CMS) payments) and then 15 % of that number less taxes and attorney fees.
So for an example let’s say that
10% of all payments (average) of that the $10.5 were Medicare/Medicaid
That takes it down to $1.05 million
And it reported he received 15% (the most common amount awarded)
$150,000 (taxes and 33% go attorneys)
Well he did end up with almost nothing and the Feds even tried to wriggle out of paying him this amount saying he was the master mind behind fraud. This guy is no more a master mind to anything than I am the Queen of England. There is definitely more to this story that we’ll never know (unless a certain boy band wants to float a sister some insider info on a dead case)?
He does not nor does any whistleblower from Pharma or device receive a straight % from the whole number. Ever. That’s only in SEC whistleblower cases is a straight 15% awarded (because no one ever gets the full amount).
While I am not a fan of a man who falsely brags about working with the government and plays the role like he made so much money as a whistleblower the crooks in this scenario are without a doubt the DOJ who never explain to the taxpayers where the rest of that money is allocated. And maybe they should reach out and investigate the House of Marchese because things still aren’t adding up to their income to lifestyle. I know one person who would gladly warm up a cell if they found fraud in Jim Marchese’s business.
And as always if you want to grab some alcohol for your favorite Housewife and go down a really long rabbit hole here is the industry insider link to Jim (James Marchese) on the Cell Pharmaceutical CafePharma Board. Either-You’re Welcome or I’m sorry.