The place to go is the OIG (Office of Inspector General) website..
Right side of page is box that says "Report Fraud"
I've never had to use it, so not sure how easy it is, or what kind of info they ask for, but I went to a Compliance Session they did earlier this year. The situation you described sounds like exactly the kind of things they look for--people who are knowlingly fraudulently billing out for more than they should. You can subscribe to their emails and get reports of all the criminals they catch, it is AMAZING!!
Hope this helps, and good for you for standing up for what you know is right!!
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