Original subtitles

Captioning sponsored by CBS >> I LIVED IN FEAR EVERY DAY.

WHAT I WOULD FACE.

>> YEAH, I WAS SCARED.

DID I THINK SOMETHING MIGHT HAPPEN?

YOU NEVER KNOW WHEN MONEY'S INVOLVED.

THIS IS BUSINESS.

>> IT'S DAVID VERSUS GOLIATH.

>> IT'S A HUGE CORPORATION.

THE INTIMIDATION IS THERE.

IT'S THE FEAR FACTOR EVERYBODY FEEDS ON.

>> WHAT WOULD YOU DO WHEN SOMETHING JUST FEELS WRONG?

>> I WAS A DENTIST, AND I SAW UNNECESSARY PROCEDURES, CHILDREN

BEING TRAUMATIZED.

I WAS STRESSED TO MY EYEBALLS.

>> WHEN YOU FEAR PEOPLE COULD GET HURT?

>> I WOULD HEAR CHILDREN CRYING AT WORK, ALL DAY.

>> Reporter: DO YOU BELIEVE THAT THE STRESS FROM WORKING AT KOOL

SMILES BROKE UP YOUR MARRIAGE?

>> MOST DEFINITELY.

IT IS GOING TO CHANGE EVERYTHING ABOUT YOU.

>> THEY'RE TAKING ADVANTAGE OF LITTLE KIDS.

THEY WERE DOING BABY ROOT CANALS ON TEETH THAT COULD'VE HAD

REGULAR FILLINGS.

IT WAS MONEY.

IT WAS PRODUCTION.

>> 911, WHAT IS YOUR EMERGENCY?

>> WE HAVE A CHILD THAT IS NON- RESPONSIVE.

>> WOULD YOU BLOW THE WHISTLE?

THESE PEOPLE DID.

>> I AM DR. MICHAEL GREENWALD.

>> I'M DR. RAI.

>> I AM A WHISTLEBLOWER.

>> AND I'M A WHISTLEBLOWER.

>> I AM MYCHAL WILSON, AND I AM A WHISTLEBLOWER.

I WAS A PHARMACEUTICAL SALES REP FOR BRISTOL-MYERS SQUIBB, AND I

WITNESSED VARIOUS FORMS OF FRAUD SUCH AS KICKBACKS IN EXCHANGE

FOR PRESCRIPTIONS.

>> Reporter: DO YOU THINK PATIENTS WERE PUT AT RISK BY

THIS PROCEDURE?

>> COMPLETELY.

>> THEY USED THE LAW, GOING UNDERCOVER...

>> I SAVED DOCUMENTS, AND I KEPT THEM IN MY STORAGE UNIT.

WHEN SOMEONE'S DOCUMENTING YOU, YOU SHOULD DOCUMENT THEM.

THIS IS THE HOT DOC BOX, EVIDENCE WHICH WOULD LATER

BECOME VALUABLE EVIDENCE.

>> ...PUTTING EVERYTHING ON THE LINE.

>> I BECAME SO PARANOID THAT I STARTED CHECKING UNDER THE HOOD

OF MY CAR.

>> FOR THE FEW WHO WIN, THE REWARDS CAN BE STAGGERING.

>> I CAN SAY IT WAS A MULTIMILLION-DOLLAR AWARD.

>> BUT THERE ARE NO GUARANTEES.

>> I HAVE SEEN PEOPLE GO INTO BANKRUPTCY.

THEY GET BLACKLISTED.

IT'S VERY STRESSFUL.

>> I ALWAYS KNEW WHAT I WAS DOING WAS RIGHT, AND I ALWAYS

KNEW THAT WHAT THEY WERE DOING WAS WRONG.

>> THEIR BIGGEST MISTAKE WAS HIRING ME.

>> Reporter: I'M ALEX FERRER.

THIS IS "WHITLEBLOWER."

WHAT'S THE LAST THING YOU IMAGINE WOULD EVER HAPPEN WHEN

YOU TAKE YOUR KID TO THE DENTIST?

MEET DR. MICHAEL GREENWALD, A SUCCESSFUL CONNECTICUT DENTIST

WHO SOLD HIS PRACTICE AND WENT TRAVELING.

>> THE GRASS IS ALWAYS GREENER ON THE OTHER SIDE.

>> Reporter: YOU HAD YOUR FILL OF ADVENTURE.

>> OH, LORD, IF I SAW ANOTHER PALM TREE, I SWEAR I'D GO CRAZY.

>> Reporter: AN ONLINE JOB POSTING CAUGHT HIS EYE.

>> HEY, IN CASE YOU DIDN'T ALREADY KNOW, KOOL SMILES IS AN

AWESOME FAMILY DENTIST!

>> KOOL SMILES!

>> Reporter: KOOL SMILES IS A MASSIVE, NATIONWIDE CORPORATION

WITH MORE THAN 120 CLINICS CATERING TO KIDS.

>> KOOL SMILES TYPICALLY TARGETED THOSE THAT ARE

RECIPIENTS OF MEDICAID.

IT IS AN INSURANCE THAT PROVIDES COVERAGE FOR A POPULATION THAT

OTHERWISE COULDN'T SEEK COVERAGE.

IT'S FANTASTIC.

I THOUGHT IT WAS JUST, WOW, THIS IS A GREAT IDEA.

WE'RE TREATING CHILDREN.

THEY'RE UNDERSERVED.

WE'RE GOING TO DO SOME GOOD.

>> Reporter: HE TOOK THE JOB, AND REALITY HIT.

SO, WHAT IS YOUR FIRST IMPRESSION WHEN YOU START

WORKING AT KOOL SMILES?

>> FIRST IMPRESSION?

PRODUCTION.

>> Reporter: LIKE A MILL?

>> LIKE A MILL.

IT'S CHICKEN NUGGETS GETTING PRODUCED DOWN A CONVEYOR BELT.

I THINK THE SETTING WAS CONTROLLED CHAOS.

>> Reporter: HE SAYS CORPORATE OWNERS DICTATED THE WORK TO BE

DONE.

>> I'D LISTEN TO WHAT THEY'D RECOMMEND IN TERMS OF TREATMENT,

AND IT RUBBED ME THE WRONG WAY.

"INSTEAD OF DOING ONE FILLING, WE WANT YOU TO GO TO TOWN AND DO

EVERYTHING.

IF NOT EVERYTHING IN THE ENTIRE MOUTH, AT LEAST THE ENTIRE LEFT-

HAND SIDE OR THE ENTIRE RIGHT- HAND SIDE, TOP AND BOTTOM."

IT'S PRETTY AGGRESSIVE TREATMENT, ESPECIALLY FOR A

LITTLE FIVE- OR SIX-YEAR-OLD.

>> Reporter: DR. GREENWALD SAYS KOOL SMILES TREATMENTS WEREN'T

JUST AGGRESSIVE, THEY WERE EXCESSIVE.

HE SAYS DENTISTS REGULARLY PERFORMED UNNECESSARY TOOTH

EXTRACTIONS AND ROOT CANALS ON BABY TEETH.

AND THEN, THERE ARE STAINLESS STEEL CROWNS LIKE THESE WHICH

COST US ABOUT $4 A PIECE.

THEY WERE A HIGH-PROFIT ITEM FOR KOOL SMILES.

GREENWALD SAYS DENTISTS THERE PUT WAY TOO MANY OF THEM ON

TEETH THAT WOULD EVENTUALLY FALL OUT ON THEIR OWN.

HERE'S HOW IT WORKED.

>> YOU HAVE SOME BABY TEETH, PEDIATRIC TEETH, THAT HAVE JUST

A LITTLE PINHOLE INTO THE ENAMEL, THE HARD SURFACE OF THE

TOOTH.

>> Reporter: A CAVITY.

>> YEAH, A TEENY LITTLE CAVITY.

AND, ON MEDICAID, A SMALL, SILVER FILLING, A GENERAL

PRACTICE MIGHT GET REIMBURSED $35, $45.

BUT ON A METAL CROWN, MAYBE CLOSE TO $250, $300.

>> Reporter: AND A ROOT CANAL?

>> ADD ANOTHER $150.

SO, EACH TOOTH WENT FROM A $30, $40 FILLING TO A $500 GAIN.

>> Reporter: EXPECTATIONS: DO AS MUCH WORK AS POSSIBLE BECAUSE

THE SUITS AT KOOL SMILES ASSUMED MEDICAID PATIENTS WOULDN'T BE

COMING BACK ANYTIME SOON.

>> THEY'D SAY, "WELL, THIS MAY BE YOUR ONLY CHANCE OF TREATING

THE CHILD, SO, ACTUALLY, WE'RE DOING THEM A FAVOR BY

PREEMPTIVELY TREATING THAT TOOTH BECAUSE THEY MAY NOT SEEK

TREATMENT AGAIN FOR ANOTHER FIVE YEARS."

>> Reporter: UNLIKE DR. GREENWALD, WHO HAD 30 YEARS OF

DENTISTRY UNDER HIS BELT, KOOL SMILES RECRUITS WERE MOSTLY

YOUNG, INEXPERIENCED DENTISTS, RECENT IMMIGRANTS.

DR. RAI WAS ONE OF THEM.

>> I HAD A RECRUITER CALL ME, AND I WAS LOOKING FOR A JOB AT

THAT TIME.

I WAS STRUGGLING TO FIND A POSITION.

>> Reporter: AND WHAT DID YOU LIKE ABOUT THE OFFER?

>> THEY SAID THEY DID NOT NEED ANY EXPERIENCE, AND THAT THEY

WILL TRAIN US.

IT WAS A DREAM JOB.

>> Reporter: WHAT DID THEY OFFER YOU AS A STARTING SALARY?

>> THE TOTAL PACKAGE WAS $180,000.

I'M GOING TO GIVE YOU A SMALL, LITTLE SHOT THERE.

IS THAT OKAY?

>> Reporter: WITH A NEW BABY AT HOME AND A MOUNTAIN OF STUDENT

DEBT, DR. RAI PACKED HER BAGS AND SHIPPED OFF TO AMARILLO,

TEXAS.

HOW BIG WERE YOUR STUDENT LOANS WHEN YOU GOT OUT OF DENTAL

SCHOOL?

>> I HAD AROUND $250,000.

>> Reporter: THAT'S LIKE A MORTGAGE.

>> YES, MORE THAN THAT.

JUST THE OPPORTUNITY TO BE ABLE TO PRACTICE AND BE ABLE TO

SUPPORT MY FAMILY WAS MOST IMPORTANT TO ME.

>> Reporter: BUT IT WAS A DEAL WITH THE DEVIL.

>> YOU HAVE A REPORT CARD THAT SHOWS THAT... HOW MUCH YOU'RE

PERFORMING, HOW MUCH PER PATIENT YOU'RE PRODUCING.

AND YOU KNOWTHE COMPENSATION OF EACH PROCEDURE.

IT DOESAFFECT THE MEDICAL JUDGMENT.

>> Reporter: THOSE REPORT CARDS WERE COLOR-CODED-- GREEN FOR

PRODUCTIVE DENTISTS, RED FOR THOSE WHO FAILED TO HIT THEIR

NUMBERS.

>> THEY WOULD PUT UP TARGET SHEETS SAYING, "LAST WEEK, YOU

PRODUCED $5,000 ON MONDAY.

THIS COMING WEEK, WE'D LIKE YOU TO PRODUCE $6,000."

IF THEY DIDN'T MEET THE NUMBERS, THEY WERE OUT THE DOOR.

THIS WAS PURELY PRODUCTION.

THIS WAS CHASING A BONUS.

AND...

>> Reporter: "CHASING A BONUS" BECAUSE THE DENTISTS WERE PAID

ACCORDING TO HOW THEY WORKED?

>> YES.

AND I WAS WATCHING SOME OF THE DENTISTS GETTING $5,000 TO

$10,000 A MONTH IN PRODUCTION BONUS.

>> [ BABY CRYING] >> Reporter: TAKE A LOOK AT

THIS.

KOOL SMILES USED A TYPE OF THESE SO-CALLED PAPOOSE BOARDS THAT

COULD POTENTIALLY CAUSE PHYSICAL OR PSYCHOLOGICAL HARM.

KOOL SMILES SAYS THEY WERE USED IN ONLY 1.5% OF CASES, BUT DR.

GREENWALD AND OTHER WHISTLE- BLOWERS DISAGREE AND SAY KOOL

SMILES USED THEM MUCH MORE THAN NECESSARY.

>> IMAGINE A BURRITO MADE OF VELCRO.

IT'S A LONG, NARROW BOARD THAT HAS FABRIC COMING FROM BOTH

SIDES.

THE CHILD, IN ORDER TO MANAGE THEM, IS LAID DOWN ON THE BOARD,

AND THE TWO SHEETS OF VELCRO ARE FOLDED OVER.

AND AT THIS POINT, THEY'RE SORT OF, LIKE, MUMMIFIED.

>> Reporter: HAVE YOU EVER USED IT?

>> THAT'S A GOOD QUESTION.

NO.

>> Reporter: I HEAR THAT KOOL SMILES HAD HAIR DRYERS AVAILABLE

IN THEIR TREATMENT ROOMS FOR PATIENTS.

CAN YOU TELL ME WHY THEY WOULD HAVE HAIR DRYERS?

>> SMALL CHILDREN IN A PANIC STAGE, IT'S NOT UNKNOWN FOR THEM

TO OFTENTIMES URINATE THEMSELVES.

HAIRDRYER WAS THERE TO DRY THEM OFF.

>> Reporter: GREENWALD SAYS WHILE THE USE OF HAIR DRYERS AND

PAPOOSE BOARDS WAS QUESTIONABLE, HIS BIG FEAR WAS THAT SOMEONE

WOULD REALLY GET HURT.

THE STAKES COULD NOT HAVE BEEN HIGHER.

>> 911, WHAT IS THE ADDRESS OF YOUR EMERGENCY?

>> I'M AT KOOL SMILES.

>> YOU NEED POLICE OR MEDICAL?

>> MEDICAL.

>> Reporter: DR. MICHAEL GREENWALD SAYS DEMANDS AT KOOL

SMILES WERE DANGEROUS, DENTISTS TREATING CHILDREN IN ASSEMBLY

LINE FASHION.

>> THE FASTER YOU WORK, THE SLOPPIER YOU CAN GET, AND YOU

RUN THE RISK OF INJURING THE CHILD.

MAYBE SLIPPING WITH THE HIGH- SPEED DRILL, CUTTING THEIR

CHEEK, CUTTING THEIR TONGUE.

>> I THOUGHT THERE WAS NO ENDING TO THIS.

I FELT LIKE A SLAVE, AND HUMILIATED EVERYDAY.

>> Reporter: DR. RAI SAYS KOOL SMILES REQUIRED ITS NEW

EMPLOYEES TO SIGN AN IRON-CLAD EMPLOYMENT CONTRACT THAT MADE IT

ALMOST IMPOSSIBLE FOR THEM TO QUIT.

>> IF I BREAK OUT OF MY CONTRACT, I CAN'T JUST LEAVE

BECAUSE THEY'LL SUE US.

IT'S A HUGE CORPORATION WITH LAWYERS.

THE INTIMIDATION IS THERE.

WE WOULD HAVE TO PAY THEM $500 A DAY IF WE LEFT.

>> Reporter: $500 EVERY DAY?

>> EVERY DAY FOR 60 DAYS IF I DIDN'T GIVE THEM THE NOTICE.

IT'S THE FEAR FACTOR EVERYBODY FEEDS ON.

>> Reporter: HOW DID THAT AFFECT YOUR PERSONAL RELATIONSHIPS?

>> IT'S ALREADY HURT ME AND MY LOVED ONES, SO I'VE BEEN IN MY

OWN HEALING PHASE RIGHT NOW.

IT HAS AFFECTED PROFOUNDLY.

>> Reporter: DR. RAI FINALLY BUCKLED UNDER THE PRESSURE TO

HIT HER DAILY QUOTAS.

AFTER LESS THAN TWO YEARS AT KOOL SMILES, SHE GAVE HER

NOTICE.

SHE WANTED OUT.

BUT BEFORE THAT TIME WAS UP, DR. RAI STOOD HER GROUND.

SHE OBJECTED TO THE DECISION TO CLEAN A CHILD'S TEETH BECAUSE

SHE SAYS HE HAD A SERIOUS INJURY.

>> HE WAS BIT BY A PIT BULL JUST A WEEK BEFORE, AND THE CHILD

COULD NOT OPEN THEIR MOUTH.

THIS CHILD HAD STITCHES EXTERNALLY AND INTERNALLY, AND I

COULDN'T DO AN EXAM ON THE CHILD.

AND THEN, I DISMISSED THE PATIENT.

>> Reporter: DID YOU GET SOME BLOWBACK FROM KOOL SMILES

BECAUSE YOU DIDN'T CONTINUE WITH TREATING THE PATIENT AND BILLING

FOR IT?

>> YES.

THE HYGIENIST WENT AND COMPLAINED.

I WAS LET GO ON THAT DAY.

>> Reporter: DR. RAI'S LIFELONG DREAM TO BE A DENTIST WAS

COLLAPSING.

SHE FELT LIKE A FAILURE.

HER MARRIAGE WAS IMPLODING.

DO YOU BELIEVE THAT THE STRESS FROM WORKING AT KOOL SMILES

BROKE UP YOUR MARRIAGE?

>> YES.

MOST DEFINITELY.

>> Reporter: NOW A SINGLE MOM WITHOUT A JOB, DR. RAI WAS IN

SURVIVAL MODE.

SHE FOUND PART-TIME WORK AS A DENTIST BUT WAS HAUNTED BY THE

MISTREATMENT OF THE KIDS SHE SAW AT KOOL SMILES.

>> I WAS NOT HAPPY.

I USED TO BE A VERY PATIENT PERSON.

I WOULD NOT SNAP.

I STARTED SNAPPING.

>> Reporter: SHE WAS DETERMINED TO TAKE ACTION AND TURNED TO A

LAWYER FOR HELP.

ATTORNEY DAN MILLER TOLD HER SHE HAD A STRONG CASE AS A

WHISTLEBLOWER.

IN LAYMAN'S TERMS, WHAT IS A WHISTLEBLOWER SUIT?

>> WHISTLEBLOWER SUIT IS A MATTER IN WHICH A PERSON WHO HAS

INSIDE INFORMATION ABOUT A FRAUD COMES FORWARD AND ON BEHALF OF

THE GOVERNMENT, AND THEY SEEK TO GET THE GOVERNMENT'S MONEY BACK

BY SUING THE FRAUDSTER.

>> Reporter: GIVE ME THE SPIEL THAT YOU WOULD GIVE TO A CLIENT

WHO IS A PROSPECTIVE WHISTLEBLOWER WITH YOU.

>> WE WOULD CAUTION THE PERSON OF THE RISKS OF BEING A

WHISTLEBLOWER.

IT CAN COST THEM THEIR CAREER.

IT'S VERYSTRESSFUL.

AND THE WHISTLEBLOWER, THEY CAN BE SUED BY THEIR EX-EMPLOYER.

>> Reporter: DR. RAI STILL HAD STUDENT LOANS AND KNEW THAT

STANDING UP TO A MULTIMILLION- DOLLAR CORPORATION LIKE KOOL

SMILES COULD END HER CAREER.

BUT SHE WAS WILLING TO TAKE THE RISK.

>> THE CORPORATE DENTISTS, THEY MAY SEE YOU AS A TRAITOR.

YOU MAY LOSE FRIENDS FOR NOT SHARING THIS INFORMATION.

ONCE THIS EXPERIENCE HAS HAPPENED, YOU'RE GOING TO TAKE

IT WITH YOU THROUGHOUT YOUR LIFE.

IT IS GOING TO CHANGE YOU.

IT IS GOING TO CHANGE EVERYTHING ABOUT YOU.

SO, EITHER YOU CAN DO SOMETHING ABOUT IT OR YOU CAN KEEP THE

EXPERIENCE WITHIN YOURSELF.

YOU STILL HAVE A CHANCE IF YOU COME FORWARD.

>> Reporter: BY THE TIME DR. RAI FILED HER WHISTLEBLOWER LAWSUIT

IN TEXAS, DR. GREENWALD HAD ALREADY GATHERED THE GOODS ON

KOOL SMILES.

>> THANK GOD FOR TECHNOLOGY.

I COULD LOOK AT MY COWORKER'S PATIENT'S X-RAYS AND CHARTS.

I COULD ALSO DIGITALLY TRAVEL TO OTHER OFFICES ACROSS THE STATE

OR ACROSS THE COUNTRY.

I JUST STARTED BRINGING UP THE CHARTS OF SOME OF MY CO-WORKERS.

>> Reporter: HE HAD SECRETLY BECOME A DENTAL DETECTIVE,

KNOWING HE COULD BE FIRED OR SUED.

SO, FOR SIX MONTHS, YOU BASICALLY WERE WORKING

UNDERCOVER, SO TO SPEAK, TO BUILD YOUR WHISTLEBLOWER CASE?

>> I WANTED TO STOP THIS.

IT WAS INSANE.

PICK ON SOMEONE YOUR OWN SIZE.

YOU'RE STEALING MONEY FROM EVERY TAXPAYER IN THIS COUNTRY BY

COMMITTING FRAUD.

ADD TO THAT, YOU'RE PICKING ON FIVE-YEAR-OLDS?

>> Reporter: GREENWALD'S ATTORNEY FILED THIS 42-PAGE

COMPLAINT ALLEGING MEDICAID FRAUD.

TWO MONTHS LATER, THE DENTIST EAGERLY MET WITH FEDERAL AGENTS

TO SHARE THE EVIDENCE HE'D COLLECTED.

>> THEY TOOK OVER THE CASE THAT I HAD PRESENTED AND DECIDED TO

MOVE FORWARD WITH IT AS THEY FELT IT WAS JUSTIFIED.

I DILIGENTLY MAINTAINED SOME RECORDS OF NAMES, DATES, TIMES,

PROCEDURES.

>> Reporter: SHOWING THAT PROCEDURES WERE DONE THAT MAYBE

WEREN'T WARRANTED, SHOWING THE CULTURE AT KOOL SMILES THAT WAS

PRODUCE, PRODUCE, PRODUCE?

>> YES.

I DIDN'T WANT TO BASE THIS ON JUST PURE HEARSAY.

I WANTED TO SAY, "LOOK AT THIS DATE, LOOK AT THIS OFFICE."

I STARTED PULLING UP RECORD NAMES FROM NEW MEXICO AND

ARIZONA AND MARYLAND AND VIRGINIA AND TEXAS AND GEORGIA.

AND I REALIZED, "OH, MY GOD, THIS IS PERVASIVE THROUGHOUT THE

ENTIRE SYSTEM."

>> Reporter: ON DECEMBER 16, 2017, DR. GREENWALD'S WORST

NIGHTMARE CAME TRUE.

THAT'S THE DAY JOSEPH GASTELUM AND VERONICA DE LOS REYES TOOK

THEIR SON, ZION, TO A KOOL SMILES CLINIC IN YUMA, ARIZONA.

HE WAS JUST TWO YEARS OLD.

>> ZION, HE'S... HE'S PERFECT.

SAY THANKS!

HE'S SO BEAUTIFUL.

HE'S SO HANDSOME.

A REAL HANDSOME BABY!

HE WENT FOR CLEANINGS AND CHECKUPS TWICE.

THEY SAID HIS TWO FRONT TEETH WERE, LIKE, GETTING BAD, SO THAT

HE NEEDED TO GET THEM CROWNED.

YOU COULD KIND OF SEE IT.

>> THEY WANTED TO PREVENT IT FROM GETTING WORSE.

>> YEAH.

>> SO, OF COURSE, WE WANT THE BEST FOR HIM, SO WE SAID, "OKAY,

LET'S DO IT."

>> SO, HE WAS KIND OF SCARED, BUT I TOLD HIM HE WAS GOING TO

BE OKAY.

>> Reporter: VERONICA SAYS THE ANESTHESIOLOGIST PUT A MASK ON

ZION.

>> HE FELL ASLEEP.

AND THEY TOLD ME THAT THEY WERE GOING TO HOOK HIM UP AND GET HIM

READY TO DO THE WORK, SO TO GIVE HIM A KISS AND TO GO WAIT IN THE

WAITING ROOM.

[ CRYING] IT ACTUALLY WAS, LIKE, AN HOUR

BEFORE THEY CALLED ME, AND THAT'S WHEN I STARTED LOOKING AT

HIM.

AND I NOTICED THAT HIS CHEST WASN'T MOVING, LIKE TO BREATHE.

>> 911, WHAT'S YOUR EMERGENCY?

>> I AM AT KOOL SMILES.

WE HAVE A CHILD THAT... HE'S NOT... NOT RESPONSIVE.

>> Reporter: ACCORDING TO POLICE REPORTS, AN ANESTHESIOLOGIST

ATTEMPTED TO REVIVE ZION, BUT COULDN'T.

>> AND HE NEVER CAME OUT OF THAT PLACE OKAY.

HE NEVER WOKE UP.

>> Reporter: KOOL SMILES DENTISTS WORKED ON MUCH MORE

THAN ZION GASTELUM'S TWO FRONT TEETH.

IN THE END, HE HAD SIX STAINLESS STEEL CROWNS AND THREE BABY ROOT

CANALS.

ZION GASTELUM WAS DEAD, BUT KOOL SMILES STILL SENT MEDICAID A

BILL FOR $2,604.

>> THEY'RE JUST MONEY HUNGRY.

THEY DON'T WANT TO HELP YOU.

THEY WANT TO HELP THEMSELVES.

>> EVERYBODY NEEDS TO KNOW WHAT THEY DID TO OUR SON SO IT

DOESN'T HAPPEN TO ANYBODY ELSE.

THEY WERE SUPPOSED TO WATCH MY SON.

THEY WERE SUPPOSED TO TAKE CARE OF HIM, AND THEY DIDN'T.

AND NOW HE'S GONE, AND HE WAS ONLY TWO.

[ CRYING] >> Reporter: THE AUTOPSY REPORT

CLASSIFIED THE CAUSE AND MANNER OF ZION'S DEATH AS UNDETERMINED.

HIS HEARTBROKEN PARENTS INTEND TO SUE KOOL SMILES.

IN A STATEMENT TO CBS, KOOL SMILES WROTE:

IN A STATEMENT TO CBS, KOOL SMILES WROTE:

DR. RAI AND DR. GREENWALD'S WHISTLEBLOWER LAWSUITS WERE

FILED BEFORE ZION'S DEATH.

SIX OTHER KOOL SMILES EMPLOYEES, CONCERNED FOR CHILDREN'S SAFETY,

ALSO BLEW THE WHISTLE.

THEY WERE IN IT FOR THE LONG HAUL.

>> I KNEW THAT I WANTED TO FOLLOW MY CONSCIENCE AND FOLLOW

THE TRUTH, WHATEVER PRICE IT MAY BE.

>> THEIR BIGGEST MISTAKE WAS HIRING ME.

>> Reporter: I'M ALEX FERRER.

THIS IS "WHISTLEBLOWER."

DR. RAI SPENT YEARS WORKING AS A PART-TIME DENTIST IN TEXAS AS

SHE STRUGGLED TO MAKE ENDS MEET.

DR. GREENWALD WENT BACK INTO PRIVATE PRACTICE.

NEITHER DENTIST HAD ANY REGRETS ABOUT TAKING ON KOOL SMILES.

>> I DIDN'T KNOW WHAT WAS GOING TO HAPPEN.

JUST THE MACHINE OF THE FEDERAL SYSTEM CONFUSED ME.

THESE PEOPLE PUT EVERYTHING INTO IT-- THOUSANDS OF MAN HOURS,

MILLIONS OF PAGES OF DOCUMENTATION.

THEY WANTED TO MAKE SURE THAT THEY WERE ABSOLUTELY RIGHT.

>> Reporter: THE WHISTLEBLOWERS HAD NO IDEA IF THEY WOULD GET

ANYTHING AT ALL FROM THEIR LAWSUITS UNTIL 2018.

NEARLY TEN YEARS AFTER THE CASE BEGAN, THEIR WAIT WAS FINALLY

OVER.

KOOL SMILES SETTLED, AGREEING TO PAY THE U.S. GOVERNMENT $24

MILLION FOR ALLEGED MEDICAID FRAUD.

DR. RAI, DR. GREENWALD AND THE SIX WHISTLEBLOWERS SPLIT

$4 MILLION OF THAT.

KOOL SMILES PAID THE MONEY, BUT ADMITTED NO WRONGDOING.

>> "WE DIDN'T DO ANYTHING WRONG, BUT HERE'S $24 MILLION."

PLEASE.

YOU'RE JUST NOT ADMITTING TO IT, THAT'S ALL.

>> Reporter: THIS DEVOTED DENTIST WHO GREW UP IN INDIA IS

NOW LIVING IN A REMOTE PART OF ALASKA, PRACTICING HER PASSION.

SHE IS CONTENT NOW, RAISING HER DAUGHTER A WORLD AWAY FROM THAT

KOOL SMILES CLINIC IN AMARILLO, TEXAS.

>> MY LIFE NOW IS VERY PEACEFUL.

RURAL ALASKA HERE, LIFE IS SLOW.

LIFE IS NOT ABOUT THAT MUCH PRESSURE.

>> Reporter: SHE IS HAPPY AT HER NEW JOB, WORKING IN A NATIVE

AMERICAN HEALTH CLINIC.

>> HOW ARE YOU DOING TODAY?

WE SEE OUR PATIENTS AND GIVE THEM THE BEST POSSIBLE SERVICE

THAT WE CAN WITHOUT ANY CONFLICT OF INTEREST.

THERE'S NO BONUS SYSTEMS THAT WE ARE GOING TO GET HERE.

THERE'S NO NUMBERS I NEED TO HIT.

>> I DID SOMETHING GOOD.

EVERYBODY OUGHT TO TRY THAT.

MY DAUGHTER'S NOT GOING TO, IN ANOTHER 30 YEARS, LOOK AT HER

CHILDREN AND SAY, "YEAH, YOU'RE GRANDPA WAS A DENTIST."

SHE'S GOING TO SAY, "YOUR GRANDPA DID SOMETHING GOOD."

I'M PROUD.

>> Reporter: AND IF GIVEN A CHOICE, DR. GREENWALD SAYS HE

WOULD BLOW THE WHISTLE ALL OVER AGAIN.

>> WAS IT WORTH IT?

ABSOLUTELY.

DID I WANT TO SEE THEM PUNISH KOOL SMILES?

YES.

DID I WANT TO SEE THEM SHUT DOWN KOOL SMILES?

NO.

>> Reporter: WHY NOT?

>> THERE'S NOT A LOT OF DENTISTS OUT THERE THAT WILL TREAT

MEDICAID.

IT'S 120 OFFICES, TIMES HOW MANY CHILDREN EACH ONE SEES.

YOU ARE REMOVING ACCESS.

SO, DO YOU DESTROY ACCESS TO CARE FOR THE SAKE OF PUNISHING A

COMPANY?

NO.

>> Reporter: WE REPEATEDLY ASKED KOOL SMILES FOR AN ON-CAMERA

INTERVIEW, BUT THE COMPANY NEVER AGREED TO ONE.

IN A STATEMENT, KOOL SMILES WROTE:

IN A STATEMENT, KOOL SMILES WROTE:

WHAT IS YOUR MESSAGE TO THE OWNERS OF KOOL SMILES?

>> I'M NOT GOING TO STOP.

SOME PEOPLE ARE CHEERING THE YANKEES; I'M CHEERING THE... THE

FEDS FOR NAILING THIS PERSON FOR FRAUD AND NAILING THAT ONE.

AND I'M REALIZING, "OH, MY GOD, IT'S LIKE IF I COULD HAVE A

CAREER CHANGE TOMORROW, I'D GO TO WORK FOR THEM."

I WANT TO CATCH THE BAD GUYS.

AND YOU KNOW WHAT?

I DID.

>> Reporter: SOME WHISTLEBLOWER CASES INVOLVE HUNDREDS OF

MILLIONS OF DOLLARS.

WHEN YOUR DOCTOR PRESCRIBES A DRUG, IS IT BASED ON WHAT'S BEST

FOR YOUR HEALTH?

OR HAS THE DOCTOR'S DECISION BEEN INFLUENCED BY KICKBACKS

FROM A DRUG COMPANY?

MYCHAL WILSON WAS A YOUNG, AMBITIOUS PHARMACEUTICAL SALES

REP FROM HUMBLE BEGINNINGS IN WASHINGTON, D.C.

>> WALKING TO SOCCER PRACTICE, PASSING THE UNITED STATES

SUPREME COURT BUILDING, YOU KNOW, YOU ALWAYS SEE THE

WORDS: EQUALITY, JUSTICE.

>> Reporter: HE DIDN'T IMAGINE HIMSELF A SALESMAN WHEN HE FIRST

MOVED TO LOS ANGELES IN THE EARLY '90s.

HE WAS JUST ONE MORE ASPIRING ACTOR.

>> I WAS IN SOME TV ROLES LIKE HOWARD STERN, "SON OF THE

BEACH."

>> OKAY, CHAD, HOW !¡BOUT BUFFY?

[ LAUGHTER] >> Reporter: WERE YOU ABLE TO

SUPPORT YOURSELF ON ACTING?

>> UH, NO.

>> Reporter: THAT'S WHY HE TOOK A JOB IN PHARMA SALES.

>> I SOLD SKIN MEDICINES.

I SOLD EYE DROPS FOR BACTERIAL CONJUNCTIVITIS.

AND THEN, THE V.E.D., WHICH IS KNOWN AS THE VACUUM ERECTION

DEVICE.

>> Reporter: I'M SORRY?

>> THE V.E.D., VACUUM ERECTION DEVICE.

>> Reporter: VACUUM ERECTION.

>> SO, THIS IS PRE-VIAGRA.

[ LAUGHS] >> Reporter: WHAT IS A VACUUM

ERECTION DEVICE?

>> [ LAUGHS] I HAVE ONE BACK THERE.

I CAN BRING IT FOR SHOW AND TELL, IF YOU WANT.

>> Reporter: I'D RATHER YOU DIDN'T, BUT...

[ LAUGHS] I'M CUR... I'M... I'M HALF

SCARED TO ASK YOU THE PITCH AND CURIOUS ON THE OTHER HAND.

SELL A LOT OF THESE?

>> YEAH, I DID, ACTUALLY.

>> Reporter: HE WAS SO GOOD AT HIS NEW ROLE, IN 1998, HE LANDED

A JOB WITH A GIANT: BRISTOL- MYERS SQUIBB.

IT WAS GOOD MONEY COMPARED TO ACTING-- AROUND 40 GRAND PLUS

PERKS TO START.

HIS SPECIALTY: MARKETING POWERFUL DRUGS THAT NETTED THE

COMPANY BILLIONS.

>> THERE WAS GLUCOPHAGE.

IT'S FOR TYPE-TWO DIABETES.

THEN, THERE WAS PRAVACHOL, WHICH IS A CHOLESTEROL-LOWERING DRUG.

>> Reporter: WILSON SHOWED US WHERE HE PLIED HIS TRADE.

SO, THIS IS CEDARS?

>> THEWORLD FAMOUS CEDARS, CEDARS-SINAI MEDICAL CENTER.

>> Reporter: DID BRISTOL-MYERS SQUIBB TRAIN YOU ON HOW TO TALK

TO DOCTORS IN... IN PITCHING THEIR DRUGS?

>> OH, YES.

COMPLETELY.

THERE'S A LARGE TRAINING CLASS.

YOU WERE TRAINED ON THE DRUGS, THE DISEASE STATE, THE SALES,

THE MESSAGING.

AND THEN, AFTER THAT, ALSO WHAT TO DO WHEN YOU GOT OUT IN THE

FIELD.

YOU PRESENT THE INFORMATION TO THE PHYSICIAN.

MAYBE YOU'RE DOING SOME LUNCHES.

YOU COULD TAKE THEM TO A LAKERS GAME, A KINGS GAME.

>> Reporter: WILSON WAS EXPECTED TO SPEND TENS OF THOUSANDS OF

DOLLARS A YEAR TO INFLUENCE DOCTORS.

IT WAS A SWEET GIG, AT FIRST.

HOW MUCH WOULD YOU DROP FOR THESE DOCTORS, ENTERTAINING

THEM?

>> YOU KNOW, YOU'D DIVIDE UP THE COST AMONGST MANAGERS AND OTHER

REPS.

SO, SAY, ON MY EXPENSE REPORT, IT MAY ONLY SHOW FOUR OR FIVE

GRAND, BUT THE TOTAL EVENT MAY EVEN BE, LIKE, $15,000 OR

$20,000 TO WINE AND DINE THESE PHYSICIANS.

>> Reporter: FOR A DINNER.

>> FOR A DINNER, YEAH.

>> Reporter: ONE YEAR INTO HIS JOB, THINGS STARTED TO SHIFT

WHEN WILSON TOOK ADVANTAGE OF A GENEROUS COMPANY EDUCATION

BENEFIT, ENROLLING IN LAW SCHOOL AT NIGHT.

>> MY MANAGERS WOULD GET MAD AT ME BECAUSE IT'S "YOU'VE GOT TO

DO A DINNER PROGRAM AT SPAGO OR A.O.C.," OR SOMETHING LIKE THAT.

>> Reporter: WINE AND DINE THE DOCTORS.

>> YES.

AND "YOU AREN'T DOING YOUR JOB.

WHY WEREN'T YOU AT THE LAKERS GAME LAST NIGHT?

WE HAD THE BOX SUITES."

YOU KNOW, YOU SEE ALL THE STARS UP THERE, LIKE ICE CUBE AND

EVERYTHING.

YOU KNOW, I BECAME A BAD GUY.

MY PARENTS WERE MIDDLE CLASS PARENTS, MIDDLE CLASS FAMILY,

AND THEY SPENT THEIR MONEY ON PRIVATE EDUCATIONS FOR THEIR

SONS.

SO, I WAS LIKE, "THERE'S NO WAY.

I'M GOING TO LAW SCHOOL."

AND I WAS KIND OF BASICALLY, YOU KNOW WHAT?

I'M PROBABLY GOING TO BE THE FIRST ATTORNEY IN MY FAMILY, YOU

KNOW.

AND BEING A BLACK AMERICAN, THAT'S A VERY IMPORTANT THING.

>> Reporter: AS WILSON LEARNED MORE ABOUT THE LAW, HE STARTED

TO WONDER IF THE COMPANY WAS ASKING HIM TO DO SOMETHING

WRONG.

UNLIKE IN OTHER INDUSTRIES, THE FEDERAL ANTI-KICKBACK STATUTE

PROHIBITS REWARDING DOCTORS IN ORDER TO GET THEM TO PRESCRIBE

SPECIFIC DRUGS TO MEDICARE OR MEDICAID PATIENTS.

WILSON FELT UNEASY, BUT HE NEEDED THE JOB.

>> YOU WERE TO TARGET AND SPEND THE MONEY ON HIGH PRESCRIBERS.

YOU WOULD FIND CERTAIN DOCTORS WHO YOU KNEW WERE SUSCEPTIBLE TO

PERKS OR SWAG, WHATEVER YOU WANT TO CALL IT.

>> Reporter: LAVISH MEALS, EXPENSIVE BOOZE AND CIGARS, GOLF

OUTINGS, CONCERT TICKETS, SWEDISH MASSAGES, EVEN CASH

PAYMENTS.

>> PAY TO PRESCRIBE.

PAY FOR PLAY.

A QUID PRO QUO.

HOWEVER YOU WANT TO PUT IT, IT'S A BRIBE.

>> Reporter: AND THE PERKS WEREN'T JUST FOR DOCTORS; WILSON

SAYS HE WAS ENCOURAGED TO CATER LUNCHES FOR THEIR ENTIRE MEDICAL

OFFICE, EVEN BUY THEM BIRTHDAY GIFTS.

>> WHAT WOULD HAPPEN IS, YOU COULD GET INTO THE OFFICE PAST

THE NURSES AND THE OFFICE STAFF, AND GET INTO THE FILE CABINETS.

>> Reporter: BY "FILE CABINETS," MYCHAL WILSON MEANS PATIENT

RECORDS.

LAST TIME I CHECKED, THOSE RECORDS WERE SUPPOSED TO BE

CONFIDENTIAL.

BUT WILSON SAYS SALES REPS ENCOURAGED DOCTORS TO GIVE THEM

ACCESS TO PATIENT FILES SO THEY COULD REVIEW THOSE FILES AND

FLAG PATIENTS THE SALES REPS SAID COULD BENEFIT FROM CERTAIN

B.M.S. DRUGS.

DID IT START BOTHERING YOU AT SOME POINT THAT THESE PATIENTS

WERE GETTING PRESCRIPTIONS FOR THEIR MEDICAL CARE NOT BECAUSE

THE DOCTOR THOUGHT IT WAS THE BEST PRESCRIPTION FOR THEM BUT

BECAUSE, AS YOU SAY, THE DOCTOR WAS BEING BRIBED BY THE

PHARMACEUTICAL COMPANY TO WRITE THIS PARTICULAR SCRIPT?

>> YES.

I MEAN, IT BOTHERED ME A LOT.

YOU'RE HURTING A PATIENT.

IT'S COMPLETELY WRONG TO PULL PATIENT CHARTS.

IT'S COMPLETELY WRONG TO PUT THESE... SOME OF THESE PATIENTS

ON MEDICATIONS WHICH YOU KNEW THAT THEY SHOULD NOT BE ON OR

THAT THE COMPETITORS' DRUGS ACTUALLY MAY BE BETTER FOR THE

PATIENTS.

>> Reporter: RIGHT.

>> THESE ARE THE... THE BACK STAIRS THAT WE USED TO TAKE OVER

HERE FROM FLOOR TO FLOOR, DOCTOR TO DOCTOR, FILE CABINET TO FILE

CABINET TO GET THOSE PATIENT CHARTS.

>> Reporter: ONE OF THE DOCTORS WILSON USED TO CALL ON IS

CEDARS-SINAI CARDIOLOGIST DR. RICO SIMONINI.

HE LIKED WILSON, BUT NOT HIS PITCHES.

>> THERE'S DIFFERENT WAYS YOU COULD LEARN ABOUT A DRUG.

AND THE WORST WAY TO LEARN ABOUT A DRUG IS BY A REP WHO'S TRYING

TO SELL YOU ONE AND SHOWING YOU DATA THAT'S BEEN CHERRY-PICKED

FOR YOU TO LOOK AT BY PEOPLE WHO HAVE BEEN TRAINED TO SELL IT TO

YOU.

>> Reporter: BUT HE SAYS SOME OF HIS COLLEAGUES DIDFALL PREY TO

THE ILLICIT PERSUASION TECHNIQUES.

>> THEY SEEM TO FORGET THAT HIPPOCRATIC OATH THAT WE ALL

TAKE, AND... AND, YEAH, THEY GET CORRUPTED BY THE MONEY.

>> Reporter: FOUR YEARS INTO HIS JOB, WILSON BECAME CONVINCED

BRISTOL-MYERS SQUIBB WAS BREAKING THE LAW.

CONCERNED FOR PATIENTS' SAFETY, HE COMPLAINED TO MANAGEMENT.

THEY DID NOTHING, HE SAYS, BUT ASSIGN HIM A TOUGH NEW

SUPERVISOR.

>> SHE WAS A COMPLETE MICROMANAGER.

AND SHE TOTALLY, YOU KNOW, WAS DOCUMENTING EVERYTHING I WAS

DOING.

I ALWAYS LEARNED THAT WHEN SOMEONE'S DOCUMENTING YOU, YOU

SHOULD DOCUMENT THEM.

>> Reporter: WILSON KNEW HE HAD A GOOD JOB, BUT HE FELT

COMPELLED TO EXPOSE THE FRAUD.

>> MY POD MATES AND STUFF ARE SAYING, "YOU KNOW, THIS... YOU

KNOW, THIS MANAGER SAID, 'STAY AWAY FROM HIM, HE'S BAD NEWS.'"

OKAY?

OR, YOU KNOW, WHAT WOULD HAPPEN IS, I'D HAVE PEOPLE COME UP TO

ME AT REGIONAL SALES MEETINGS AND TAKE ME ASIDE AND SAY, "HEY,

DON'T... DON'T MESS IT UP FOR EVERYBODY."

>> Reporter: BELIEVING HIS DAYS IN THE JOB WERE NUMBERED, WILSON

STARTED HIS OWN UNDERCOVER OPERATION...

>> I SAVED DOCUMENTS, AND I KEPT THEM AT MY APARTMENT AND IN MY

STORAGE UNIT.

LUXURY SKY BOX.

HOW ABOUT THAT?

>> Reporter: ...COLLECTING HIGH- TICKET RECEIPTS...

>> CHARGERS VS. CLEVELAND.

>> Reporter: ...MAKING COPIES IN DOCTOR'S OFFICES...

>> LAKERS, CLIPPERS, $8,000.

>> Reporter: ...STASHING AWAY ALL THE PAPERWORK HE COULD.

>> THIS IS THE ADVANCE REPORT, THE CAREER MANAGEMENT TOOL WHERE

WE ACTUALLY DOCUMENTED ALL THE FRAUD, ALL THE KICKBACKS WE WERE

GIVING TO PHYSICIANS.

>> Reporter: HE KNEW IT COULD ALL BE VALUABLE EVIDENCE.

>> THE COMPANY DID EVERYTHING TO... TO TRY TO TERMINATE ME.

BUT, YOU KNOW, I WAS THE NUMBER- THREE REP IN THE NATION FOR, YOU

KNOW, ONE OF ITS DRUGS: PLAVIX.

>> Reporter: MYCHAL WILSON SAYS HE WAS HARASSED, INTIMIDATED,

ACCUSED OF INSUBORDINATION.

IN SEPTEMBER 2004, BRISTOL-MYERS SQUIBB FIRED HIM FOR WHAT HE

SAYS WAS A COMMON PAPERWORK ERROR.

YOU NEVER GOT ANYTHING AFTER YOU WERE FIRED?

>> NO, AND THEN THEY TRIED TO DENY MY UNEMPLOYMENT, AS WELL.

>> Reporter: AS CONFIDENT A SALESMAN AS WILSON WAS, IT

PROVED IMPOSSIBLE TO FIND A JOB IN PHARMA SALES.

HE SAYS HE WAS BLACKBALLED.

>> I WENT ON INTERVIEWS, AND I WOULD GET TO THE THIRD AND

FOURTH INTERVIEW OF A NEW JOB, A MEDICAL DEVICE JOB OR A PHARMA

JOB.

THEN, ALL OF A SUDDEN, I REALIZED I DIDN'T GET THE JOB.

>> Reporter: HE WAS FORCED TO BORROW MONEY FROM HIS PARENTS,

THE VERY PEOPLE WHO RAISED HIM TO STAND UP FOR WHAT WAS RIGHT.

>> I COULDN'T LIVE OFF CREDIT CARDS BECAUSE AFTER, YOU KNOW, A

CERTAIN AMOUNT OF TIME YOU'RE UNEMPLOYED, YOU CAN'T PAY THE

BILL, YOU GET SHUT OFF, INTEREST COMPOUNDS, AND THEN YOU START

GETTING THE CALL-- 8:00 ON A SATURDAY MORNING, 8:01 ON A

SATURDAY MORNING-- THE COLLECTIONS CALL.

SO, IT WAS PRETTY... IT WAS PRETTY TOUGH.

>> Reporter: STILL STRUGGLING TO MAKE ENDS MEET, WILSON MANAGED

TO PASS THE CALIFORNIA BAR EXAM.

HE STARTED PRACTICING ENTERTAINMENT LAW.

THAT SAME YEAR, HE MET HIS FUTURE WIFE, SIMONE RODMAN.

>> OKAY, SIMONE'S GREAT.

SO, SHE, AT THE TIME, WAS WORKING FOR LEONARD NIMOY, THE

ACTOR.

AND I MET... I MET HER AND, YOU KNOW, WE'VE BEEN TOGETHER SINCE

OUR FIRST DATE.

>> Reporter: TRYING TO START A NEW LAW CAREER WHILE BURIED

UNDER A MOUNTAIN OF DEBT, MYCHAL WILSON FACED A GUT-WRENCHING

DECISION: SHOULD HE ALSO TRY TO TAKE ON THIS GIANT CORPORATION?

>> IF THERE AREN'T WHISTLEBLOWERS, THE FRAUD WILL

CONTINUE AND CONTINUE.

>> Reporter: HE KNEW IT WOULD BE AN UPHILL BATTLE TO TAKE ON

BRISTOL-MYERS SQUIBB, BUT WILSON WAS READY TO BLOW THE WHISTLE.

HE TURNED TO THE LAW FIRM OF WATERS, KRAUS AND PAUL.

>> WE THOUGHT MYCHAL'S CASE WAS OBVIOUSLY VERY COMPELLING, BUT,

LIKE ALL WHISTLEBLOWER CASES, THERE'S NO GUARANTEES THAT THIS

CASE IS EVEN GOING TO GO ANYWHERE.

THERE'S NOTHING EASY ABOUT IT.

>> Reporter: IN SEPTEMBER 2006, WILSON'S LAWYERS FILED A FEDERAL

SUIT ALLEGING THAT BRISTOL-MYERS SQUIBB ENGAGED IN FRAUDULENT AND

ILLEGAL PRACTICES.

THE LAWSUIT LAID OUT HOW SALES REPS TARGETED HIGH PRESCRIBING

PHYSICIANS BY OFFERING HIGH- PRICED PERKS.

>> THE ESSENCE OF THE CASE WAS THAT THE PRESCRIPTIONS HAD

BEEN... BEEN WRITTEN AS A RESULT OF THESE INDUCEMENTS AND THEN

WERE SUBMITTED TO THE FEDERAL GOVERNMENT FOR REIMBURSEMENT AS

MEDICARE.

>> Reporter: IN PLAIN ENGLISH, THE LAWSUIT ALLEGED THAT B.M.S.

DEFRAUDED THE GOVERNMENT BY PAYING ILLEGAL KICKBACKS TO

DOCTORS.

>> WHEN SOMEONE IS DOING SOMETHING FOR YOU, YOU'RE GOING

TO DO SOMETHING IN RETURN FOR THAT.

>> Reporter: ONE INDUCEMENT WAS ASSOCIATED WITH A FAMOUS

CALIFORNIA NAME: LUCIUS ALLEN, WHO ONCE PLAYED FOR THE L.A.

LAKERS.

HE AND HIS WIFE, EVE, WORKED WITH WILSON, MARKETING DRUGS FOR

BRISTOL-MYERS SQUIBB.

>> LUCIUS AND EVE WERE KIND OF THE CONDUITS TO THE STAPLES

CENTER, TO THE LAKERS, TO THE SUITES.

THE COMPANY KNEW THAT.

EVERYONE KNEW THAT.

THE DOCTORS KNEW THAT.

SO, THE LAKERS' DREAM CAMPS WAS SOMETHING THAT WAS CREATED BY

BRISTOL-MYERS SQUIBB.

THE DOCTORS COME, THEIR FAMILIES COME, AND THEY CAN DO DRILLS

WITH THE LAKERS.

THEY CAN PLAY WITH THEM.

>> Reporter: WILSON KNEW THAT AS A WHISTLEBLOWER, THERE WAS A

CHANCE HE COULD GET 15% TO 25% OF ANY MONEY THE GOVERNMENT

RECOVERED.

THERE WERE, HOWEVER, OTHER WHISTLEBLOWERS WITH WHOM HE

MIGHT HAVE TO SPLIT THE REWARD.

>> BUT THE KEY THING IS, I HAD THE GREAT MATERIAL EVIDENCE.

HOLLYWOOD BOWL, L.A.

PHILHARMONIC.

THIS IS ARROWHEAD POND.

>> Reporter: YOU HAD DONE THE WORK.

>> I HAD DONE THE WORK.

I HAD THE CHECKS, I HAD THE RECEIPTS, ALL THE... THE

ILLEGAL, YOU KNOW, INDUCEMENTS.

YOU KNOW, COPIES OF EVERYTHING.

ALL I REMEMBER IS BRINGING THEM TO MY ATTORNEY'S OFFICE, AND

MAYBE THERE WERE, LIKE, 14, 15 BANKER BOXES.

BUT I THINK, AT ONE POINT, I HEARD SOMETHING LIKE 40,000

PAGES OF DOCUMENTS.

>> Reporter: WHILE THE FEDERAL SUIT WAS PENDING, MYCHAL WILSON

FILED A SECOND SUIT, THIS TIME UNDER STATE WHISTLEBLOWER LAW IN

CALIFORNIA.

WHAT WAS YOUR GOAL IN FILING THAT SECOND LAWSUIT?

>> SO, THE GOAL IN THE SECOND LAWSUIT WAS TO HOLD B.M.S.

ACCOUNTABLE FOR FRAUD ON... ON BEHALF OF THE PRIVATE INSURERS

IN CALIFORNIA AND STILL BRING ABOUT JUSTICE.

>> WE THOUGHT IT WAS A RIGHTEOUS CASE.

WELL, WE REALLY BELIEVED IN MYCHAL, AND WE... WE BELIEVED IN

THE... THE FACTS THAT HE WAS REPORTING.

AND WE HAD ADDITIONAL WITNESSES WHO WERE GOING TO SUPPORT WHAT

HE WAS SAYING.

>> Reporter: THOSE WITNESSES?

NONE OTHER THAN FORMER L.A.

LAKER LUCIUS ALLEN AND HIS WIFE, EVE.

>> THEY HAD PHOTOGRAPHS OF LAKERS AND DOCTORS AND THEIR

FAMILIES TOGETHER.

THEY HAD ACTUAL CHECKS, "THANK YOU" LETTERS, FOR THEIR

CONSULTING GIGS.

>> MYCHAL NEVER DOUBTED HIMSELF IN TAKING ON A MAJOR

PHARMACEUTICAL COMPANY.

I THINK THAT HE... HE FEELS SO STRONGLY ABOUT WHAT HE DOES, AND

I THINK HE REALLY DOES IDENTIFY WITH THE DAVID CHARACTER.

YOU KNOW, THE UNDERDOG.

>> Reporter: FOR MYCHAL WILSON AND HIS GROWING FAMILY, HIS

DAVID VERSUS GOLIATH BATTLE WAS WORTH PUTTING EVERYTHING ON THE

LINE.

>> I BECAME SO PARANOID THAT I STARTED CHECKING UNDER THE HOOD

OF MY CAR.

>> Reporter: HOW WOULD IT END?

>> I SPOKE OUT, I WAS TERMINATED.

>> Reporter: MYCHAL WILSON HAD A LOT RIDING ON THE WHISTLEBLOWER

LAWSUITS.

HE COULD GET A LIFE-CHANGING REWARD, OR ABSOLUTELY NOTHING.

>> PEOPLE THINK THAT IT'S EASY MONEY FOR WHISTLEBLOWERS TO

BRING THESE CASES.

IT'S A FARCE BECAUSE OF WHAT WHISTLEBLOWERS LIKE MYCHAL GO

THROUGH.

THEY HAVE TO BE INVOLVED IN A CASE FOR ALL THESE YEARS, WITH

NO GUARANTEE THAT IT'S GOING TO LEAD ANYWHERE AT THE END OF THE

DAY.

>> Reporter: THE FEDERAL CASE ENDED WITH A SHOCKER.

THE U.S. DEPARTMENT OF JUSTICE AND BRISTOL-MYERS SQUIBB SETTLED

IN JUST A YEAR.

THE COMPANY ADMITTED NO WRONGDOING, BUT PAID A

STAGGERING SUM TO RESOLVE ALLEGATIONS INVOLVING DRUG

MARKETING AND PRICING.

>> MY ATTORNEYS CALLED ME, AND THEY SAID, LIKE, "THE D.O.J.

JUST ANNOUNCED THAT THERE'S A TENTATIVE AGREEMENT FOR

$515 MILLION."

>> Reporter: HALF A BILLION DOLLARS?

>> YES.

>> Reporter: WILSON'S PERSISTENCE PAID OFF.

>> SO, I DID... I DID GET A PORTION OF THE AWARD.

I CAN SAY IT WAS A MULTIMILLION- DOLLAR AWARD.

>> Reporter: AS WILSON SET ABOUT BUILDING HIS LAW PRACTICE, HIS

CALIFORNIA CASE LANGUISHED FOR NINE LONG YEARS.

>> FOR A LAW FIRM TO EXPEND THE TIME, EFFORT AND RESOURCES, YOU

HAVE TO BE PRETTY, YOU KNOW, CONFIDENT THAT YOU'RE GOING TO

GET A GOOD RESULT AT THE END.

>> Reporter: HOW ABOUT $30 MILLION?

THAT'S WHAT BRISTOL-MYERS SQUIBB AGREED TO PAY IN THE STATE CASE

IN 2016, AGAIN WITHOUT ADMITTING ANY WRONGDOING.

ABOUT HALF OF THE SETTLEMENT WENT TO THE STATE OF CALIFORNIA;

THE REST WENT TO MYCHAL WILSON AND THE OTHER WHISTLEBLOWERS.

>> GIVEN WHAT MYCHAL HAD BEEN THROUGH AND OUR OWN FIRM IN

JUST... IN LITIGATING THE CASE ALL THAT TIME, IT WAS A GREAT

DAY.

>> Reporter: BRISTOL-MYERS SQUIBB DECLINED AN ON-CAMERA

INTERVIEW BUT GAVE US A STATEMENT SAYING, IN PART:

>> Reporter: MYCHAL WILSON BELIEVES HE MADE A DIFFERENCE

FOR PATIENTS.

>> MOST WHISTLEBLOWERS FEEL THEY HAVE TO DO THE RIGHT THING, AND

A LOT OF THAT INVOLVES BRINGING ABOUT A SENSE OF JUSTICE.

>> Reporter: IF HIS EXPERIENCE AS A WHISTLEBLOWER TAUGHT HIM

ANYTHING, IT WAS HOW TO BE A WHISTLEBLOWER LAWYER.

>> EXACTLY.

YEAH, YEAH.

SO, IT WAS GREAT THAT, YOU KNOW, WE KNOW THE PLAYBOOK NOW IN

TERMS OF, YOU KNOW, RETALIATION AGAINST THESE, YOU KNOW, THESE

COMPANIES, SO...

I'M PROBABLY THE... ONE OF THE ONLY ONES OUT THERE WHO MAY BE

BOTH THE WHISTLEBLOWER AND THE WHISTLEBLOWER ATTORNEY.

I... I... I KNOW THEIR ANXIETY.

I KNOW THEIR FEELING OF BEING SECLUDED.

>> Reporter: WILSON HAS BECOME A VERY PUBLIC ADVOCATE FOR

WHISTLEBLOWERS EVERYWHERE.

HE'S EVEN GOT HIS OWN WHISTLEBLOWER SHOW.

>> "RAD TV."

THE REASON WHY I DID MY OWN SHOW WAS TO INFORM THE PUBLIC OF WHAT

REALLY GOES ON AND TO GIVE SOMETHING BACK TO SOMEONE WHO,

SAY, IS HAVING THE SAME EXPERIENCE THAT I HAD BUT

DOESN'T KNOW WHAT TO DO.

AND YOU KNOW, THEY MAY SEE THE SHOW, THEY MAY SEE SOME OTHER

VICTIM OR WHISTLEBLOWER, AND SAY, "HEY, YOU KNOW WHAT?

I CAN DO THAT," AND, YOU KNOW, BRING ABOUT JUSTICE ULTIMATELY.

GOOD GAME.

MY SON WAS KIND OF LIKE, HE HAD CERTAIN QUESTIONS LIKE ANY YOUNG

KID DOES.

AND I SAID, "YOU KNOW WHAT?

I SLAY CORPORATE DRAGONS."

AND I LEAVE IT AT THAT.

>> TWO, FOUR, SIX, EIGHT, WHO DO WE APPRECIATE?

>> Reporter: TURNS OUT MYCHAL WILSON LIKES PLAYING THE HERO.

BLOW THE WHISTLE, CHANGE THE WORLD.

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