Taxpayers Against Fraud Education Fund is a nonprofit, public interest organization dedicated to combating fraud against the Federal Government through the promotion and use of the Federal False Claims Act and its qui tam provisions.
Subscribe to Our FREE Newsletter Common Types of Fraud:   Fast Facts about the FCA   The Government Counts on Whistleblowers:  More than 80 percent of the False Claims Act cases that are now pursued by the U.S. Department of Justice are initiated by whistleblowers.   Cheaters Pay Whistleblower Awards: Companies cheating the U.S. Government pay whistleblower rewards – not one dime comes from U.S. taxpayers.  The reason for this is that the False Claims Act calls for triple damages so that the Government can be made whole, not only by recouping the cost of whistleblower awards, but also by recovering the cost of investigations, prosecutions, and lost interest.   Big Cases Require Big Investments: Big fraud cases prosecuted under the False Claims Act often require many years of litigation and investigation.  For example, the whistleblower in the first Columbia-HCA fraud case spent 13 years pursuing his False Claims Act lawsuit.  The law firm that spearheaded this case invested more than 85,000 hours in the case.  In the end, the various frauds perpetrated by Columbia-HCA returned over $1.5 billion to the U.S. Treasury.   Frivolous Lawsuits are Discouraged:  Because most False Claims Act lawyers work on a contingency basis, they only get paid if they win. This means that they are unlikely to invest time, money and energy building a case that they themselves do not feel will be productive.  In addition, under the False Claims Act, a complainant can be required to pay the defendants attorney’s fees if the court finds that the claim was frivolous or brought primarily for purposes of harassment.   The False Claims Act Provides Some Employment Protections:  If an employee is fired, demoted, harassed, or otherwise discriminated against for filing a False Claims Act suit, the law provides for reinstatement, double back pay, and compensation for special damages, including litigation costs and reasonable attorneys’ fees.   Drug Company Frauds are Pervasive and Large:  Over 180 pharmaceutical fraud cases, covering more than 500 drugs, are now under investigation by the U.S. Department of Justice under the False Claims Act.  Settlement of just 16 drug manufacturing cases returned over $4 billion to the U.S. Government and the 50 states.   Routine Mistakes and  Errors are Not  Prosecuted Under the  False Claims Act: The False Claims Act is not used to correct minor billing mistakes or errors, as these frauds are not systematic and rarely amount to truly large sums of money.      Newsletters January 10, 2012 n Actavis to Pay Over $202 Million n GE Healthcare to Pay $30 Million n J&J's Massive Risperdal Liabilities n Container Shipper to Pay $32 Million n DoJ Targets 11 Swiss Banks n Merck to Pay $24 Million for AWP n Ranbaxy to Pay $500 Million n Denver Hospital to Pay $6.3 Million n Serious Trouble at BNY Mellon n Success and the SEC n Record Whistleblower Recoveries n What Could Go Wrong? n Medtronic To Pay $23.5 Million n SEC Chases Big Mortgage Fraudsters n Bomb Case Settled for $4.75 Million December 15, 2011 n Our Amazing 2012 Prediction: $9 Billion to be Recovered in False Claims Act Cases in 2012 November 23, 2011 n Sandoz to Pay $150 Million n Merck to Pay $950 Million n Pfizer Pays to Block Generic Lipitor n Looking at Lab Fraud n Contract Fraud n Fighting Is a Joke November 7, 2011 n False Claims Act Returns Over $4 Billion to Federal and State Governments n Glaxo Agrees to $3 Billion Settlement n New York City to Pay $70 Million n Feds File $830 Million Single Damages Claims Against Allied Home Mortgage n BNY Mellon Is Negotiating With U.S. October 21, 2011 n Abbott Reserves $1.5 Billion n U.S. Sues Foreign Bank Over Grain Deal n Ex-Louis Berger Group President Charged n Pfizer Nailed... Again n Cephalon Under Multiple Guns n Bankers Charged in Tax Probe n TARP Bank Fraud? October 7, 2011 n Oracle to Pay $200 Million n New York Sues Bank for $2 Billion n Home Health Provider to Pay $65 Million n Specialty Hospital to Pay $7.5 Million n Banks Stealing From Disabled Veterans n Food Fraud in New York and Iraq n The Fraud Lobby September 30, 2011 n The $160 Billion Rip Off n DME Maker Hill-Rom to pay $41.8 Million n Defense Contractors Pay Over $30 Million n Big Cases on the Horizon n Par and Walgreens Coach Drugstore Liars n Boston Scientific to Pay $9.25 Million n Harry Markopolos on How to Find Fraud September 20, 2011 n TAF 2011 Award Winners n Watson and Sandoz Settle AWP Cases For Combined Total of $155 Million n DoJ Joins Case Against Par n Relator Nails Maxim for $150 Million n CardioNet Plunges 20% on DoJ Probe n BP Amoco to Pay $20.5 Million n U.S. Joins Suit Against Halifax Hospital n $125 Billon a Year in Improper Payments, With $70 Billion by Medicare and Medicaid n Scios Pays $85 Million for Off-label September 13, 2011 TAF 20011 Award Winners ..n Integrity in Government Award: Michael F. Hertz ..n Lawyers of the Year Award: Ken J. Nolan and Marcella Auerbach ..n Whistleblower of the Year Award: Chris Riedel ..n Lifetime Achievement Award: Neil V. Getnick September 1, 2011 n Par to Pay $154 Million n MN Transit Co. to Pay $4.6 Million n Taleo to Pay $6.49 Million n J&J's Criminal Risperdal Charges n Stretching Boats and the Truth n Good Products Are Not Enough n Health Care Fraud Prosecutions on Rise n Iraq Case Against KBR to Proceed n Point & Counterpoint August 3, 2011 n Will New York Be the Decider? n Medco and AstraZeneca Receive Joint Subpoenas Over Kickbacks n DoJ Sues Mortgage Company n CFTC Whistleblower Rules Ahead n Confessions of an SEC Whistleblower July 27, 2011 n LabCorp to Pay $49.5M for Medicaid fraud n What the IRS Could Learn from the SEC n Bipartisan Support for Overpayment Recovery n DoJ Intervenes In Nurses' Registry Lawsuit n Blackwater Trial Starts in Virginia n DaVita Under the Gun for "Burn to Earn" n Fox in the Chicken House? July 14, 2011 n Feds Probe Cephalon About Off-Label Marketing of Treanda n Caterpillar Accused of Massive Tax Cheat n ArmorGroup Settles Kabul Guard Case for $7.5 Million n Katrina Trailer FCA Case n James Cox Is NY Medicaid IG General n Vegas Doctor to Pay $5.7 Million June 24, 2011 n Questions are Being Asked About the IRS Whistleblower Program n KPMG Says Top Managers Most Likely to be Fraudsters n New York "CityTime" Fraud n Is Justice More Than Blind? n Medicare Data Mining June 17, 2011 n Novo Nordisk Settles for $26.7 Million n Billion Dollar Cases Under Investigation? n Solvay's Off-label Testosterone Therapy n DoJ Intervenes in Stent Case n The View from Australia n Gilead Gets a Subpoena June 10, 2011 n UCB to Pay $34 Million for Off-Label Marketing of Epilepsy Drug Keppra n Five Banks Prepare to Pa y More Than $20 Billion for Mortgage Fraud n McKesson and First Databank Have Very Big FCA Problems n Gentiva to Pay $12.5 Million n Radiology Clinic Pays $3 Million for Kickback Violations June 2, 2011 n Abbott's in Talks Over Depakote n A Potentially Explosive Case n Bring Heat and They May See Light n Massachusetts Looks at Forex Fraud n Fresenius Faces Treble Damages May 25, 2011 n SEC Adopts Whistleblower Rules n California to use FCA in Mortgage Cases n CA and IL Join For-profit School Case n Court Says FOIA Is Public Disclosure n New York Attorney General Holds Whistleblower Conference n File Under "Ironic" n How to Count Success in Mortgage Fraud Prosecutions? May 13, 2011 n Quest to Pay $241 Million n Big Pharma Drugs the Grandfolks n Grassley Sends SEC A Strong Message n Big Oil Shells Out Again n Forest Labs Gets a Subpoena n DoJ Money May Have Strings May 5, 2011 n Waste Company Pays $7.5 Million to State n Deutsche Bank Faces Billion Dollar Mortgage Fraud False Claims Act Case n Serono To Pay $44.3 Million For Rebif Fraud n Par Pharma to Pay $145 Million n FedEx To Pay $8 Million n Ranbaxy's Lipitor Problem n Feds Join Student Recruitment Case April 27, 2011 n CVS Agrees To Pay $17.5 Million n HHS Moves to Exclude Forest Labs CEO n Intermune's Ex-CEO Gets Nailed Glaxo's Former VP Goes to Trial Marketing Research or Gateway to Payola? n The Craigslist Doctors n Tenet as Whistleblower? n Dyncorps to Pay $8.7 Million for Iraq Fraud n Unimplemented Recommendations?   April 13, 2011 n First IRS Whistleblower Case Settles Under the New Law n Verizon to pay $93 Million n DoJ Joins Xenaderm Case n Pay to Place Heart Surgery? n Billions Down the Drain n Nashville Wants Fraud Cases! n This Sole Man Got the Boot n German Firm Pays $9.1 Million for Not Guarding the U.S. Army April 1, 2011 n It's Not Free Speech When You're Paid n Register Today for the TAF-EF IRS Whistleblower Boot Camp! n Public Interest Advocacy Fellowship n Between Iraq and a Hard Place n Agility Faces Criminal, Civil Charges March 24, 2011 n Case Against BP Oil Platform Goes Forward n NYC Ripped Off Medicare for Tens of Millions n Medline to Pay $85 Million n KV Pharma CEO Gets Jail, Exclusion, Fine n Pfizer Protonix Settlement in the Works? n California Insurance Commission Joins Case Against Bristol Myers-Squibb n Occidental Oil to Pay $2 Million March 11, 2011 n Public Interest Advocacy Fellowship with TAF Education Fund March 4, 2011 n Amgen Execs Afraid of Self-incrimination? n A Judge Not Yet Impressed With J&J n Contract Fraud in Iraq and Afghanistan n Foreign Exchange Fraud Probes Widen n Is Big Fraud Good Business at DoD? February 25, 2011 n DoJ Joins Case Against KBR in Iraq n BCBS of Illinois to Pay $25 Million n New York Leads the Way n APS Healthcare to Pay $13 Million n Catholic Healthcare to Pay $9.1 Million n Alaska DigiTel to Pay $1.6 Million February 18, 2011 n A Watchdog You Can Believe In n Small DOJ Budget Increase in 2011 n Does Cephalon Have a Fentora Problem? n Is an Ohio FCA on the Horizon? February 7, 2011 n Texas Jury Trial Results in $170 Million Verdict in Pharmaceutical Fraud Case n Oracle to Pay $46 Million n CareSource Pays $26 Million, Sheds Light on Absence of Ohio FCA n State Pension Frauds and State FCA Laws n The Force Is Strong in That One January 28, 2011 n VA Pursues Pension Fund Fraud n Counting Cases Under Seal n New York Suits Up to Pursue Tax Fraud n What They're Saying: Tony West n Rigsby Katrina Case Moves Forward January 20, 2011 n New York to Get Serious on Tax Cheats n Hacking at the Pharma Backlog n A Growth in Insanity or Just Payola? n The SEC Intends to Reward Integrity n SEC Whistleblower Program Rules n SEC Whistleblower Office Seeks Budget January 19, 2011 n TAF Names New Executive Director  January 14, 2011 n Did NYC Ripoff Medicaid? n Is Mortgage Fraud a New FCA Frontier? n Kill 13 and Get Probation? n A Freight Train of Pharma Fraud n Hardware Distributor to Pay $6.25 million for GSA Fraud                                                                                                                         Newsletter Index		TAF Names New Executive Director Neil Getnick, Chairman of the Board of Taxpayers Against Fraud (TAF) and the TAF Education Fund, has announced that Kristin Amerling has been named Executive Director of TAF and the TAF Education Fund, effective January 30, 2012. Amerling comes to TAF after serving for three years as Chief Counsel, Democratic Staff, to the House Committee on Energy and Commerce under Representative Henry Waxman (D-CA), and before that for ten years as Chief Counsel and Counsel to the House Committee on Oversight and Government Reform under Rep. Waxman. >> To read more    Actavis to Pay Over $202 Million After losing at trial in Texas last year, Actavis Group has agreed to settle and pay  $202 million which will release the company from price-gouging charges in other states as well as Texas. Though the U.S. Department of Justice did not join Texas or the other state cases, it will recover $108 million from the settlement while the relator, Ven-A-Care of the Florida Keys, will collect $15.6 million. Notes Ven-A-Care counsel Jim Breen: "The U.S. declined to intervene, which means the Justice Department didn’t invest any resources in this case. Ven-A-Care and its legal team funded and pursued the case, and took all the risks.” | Jan. 10, 2012 Ranbaxy to Pay $500 Million Indian generic drug maker Ranbaxy Laboratories says it has signed an agreement with the U.S. FDA to pay $500 million to settle charges that the company fabricated bioequivalency and stability data in order to sell HIV/AIDS drugs to the President’s Emergency Plan for AIDS Relief program (PEPFAR). | Jan. 10, 2012 GE Healthcare to Pay $30 Million GE Healthcare has agreed to pay $30 million to settle a False Claims Act lawsuit in which a whistleblower alleged a GE Healthcare company marketed a cardiac diagnostic drug as one that could be diluted and extended to more patients than intended. | Jan. 10, 2012 J&J's FCA Risperdal Liabilities Johnson & Johnson will reportedly pay more than $1 billion to settle civil charges with the U.S. and most states over off-label marketing of the antipsychotic drug Risperdal, with another $400 million reportedly earmarked for a criminal plea.  Those payments do not clear the deck for J&J, however. The company goes to trial this week in Texas on the same, and additional, charges, with the state seeking $1 billion. Johnson & Johnson has already lost state judgments on the marketing of Risperdal in South Carolina and Louisiana for sums totaling almost $600 million. South Carolina judge Roger L. Couch noted in his damages decision that J&J's profits on Risperdal were 97 percent of sales, or $28.9 billion, between 1994 and 2010. | Jan. 10, 2012 Container Shipper to Pay $32 Million Norfolk, Virginia-based Maersk Line and its Danish parent company have agreed to pay $31.9 million to settle charges they submitted inflated cargo invoices for goods shipped to U.S. troops in Afghanistan and Iraq. | Jan. 10, 2012 Merck to Pay $24 Million Merck has agreed to pay $24 million to the state of Massachusetts for price-gouging the state on Medicaid drugs. | Jan. 10, 2012   Medtronic to Pay $23.5 Million Medtronic has agreed to pay $23.5 million to settle cardiac defibrillator and pacemaker cases. This is just one more in a series of False Claims Act settlements made by Medtronic. Previous cases were settled for $40 million (2006, kickbacks) and $75 million (2008, spinal implants). | Jan. 10, 2012   TAF Education Fund Advocacy Fellowship Taxpayers Against Fraud Education Fund's one-year Public Interest Advocacy Fellowship is a tremendous opportunity for a recent college graduate who is contemplating a career in the legal field. >> For more information      Our Amazing 2012 Prediction:   $9 Billion to be Recovered in False Claims Act Cases in 2012 Will $9 billion be returned to the American people in FY 2012 thanks to cases filed under the False Claims Act? Things are lining up that way. Among the big cases queued up or already settled: n.Merck: The Vioxx off-label marketing fraud has been settled for $950 million. n.GlaxoSmithKline: A series of drug frauds is said to be settled in principle for $3 billion. n.Abbott: The company has reserved $1.5 billion to settle litigation associated with the illegal marketing of Depakote. n.Amgen: The company has reserved $780 to settle litigation associated with the illegal marketing of Aranesp. n.Oracle: The company has settled a GSA price-gouging case for $200 million. n.NYC: New York City will pay $70 million for Medicare billing fraud. n.LHC Groups, a home health care provider, will pay $65 million for billing fraud. n.Pfizer: The company is expected to either go to trial or settle a case dealing with the illegal marketing of Protonix. The minimum recovery under either scenario is expected to be in excess of $500 million. n.Ranbaxy: A settlement in excess of $400 million is expected for adulteration of HIV drugs. n.Sandoz (Novartis):  The company has agreed to pay $150 million for Average Wholesale Price fraud involving a series of drugs. n.Maxim: The company has agreed to pay $150 million for Medicaid home health care fraud. n.Johnson & Johnson:  The company has agreed to settle a criminal charge related to illegal marketing of Risperdal, and a civil settlement in excess of $1 billion is expected. n.Agility/Public Warehouse. The Kuwaiti-based defense contractor is expected to settle a price-gouging case for a sum in excess of $500 million. n.WellCare Health Plans: The company has reached a preliminary deal with DoJ for a sum in excess of $137 million, to settle a case involving billing for newborn health care services. n.Medtronic: The company has agreed to pay over $23 million for fraud related to cardiac defibrillators and pacemakers. 4Bottom line: A $9 billion recovery, counting civil, state and criminal fines, is within the realm of possible for FY 2012.  | Dec. 15, 2011 . Merck to Pay $950 Million Merck, the second-largest drug maker in the U.S., says it will pay $950 million to settle charges related to illegal marketing of the painkiller Vioxx. A subsidiary, Merck Sharp & Dohme, will plead guilty to one count of misbranding and pay a criminal fine of $321.6 million.  Of the $628.3 million paid to resolve civil claims, $426.4 million will go to the federal government and almost $202 million will go the states. Seven states continue to litigate over money owed their state Medicaid programs. >> To read more |Nov. 23, 2011 Sandoz to Pay $150 Million Sandoz has agreed to pay $150 million to settle a False Claims Act case originated by Ven-a-Care of the Florida Keys, a small specialty pharmacy in Florida that has helped recover $3 billion back to the U.S. Government and the states. The Medicaid best price case was filed in 2000, but was never joined by DoJ. The cost of this litigation was born by the relators and their counsel, as well as the states of Florida and California. Of the $150 million to be paid, $75 million is allocatable to California, $38.888 million to Florida, and $35.1111 million to the Federal Government and other states. >> To read more | Nov. 18, 2011 Amgen Announces $780 Million Litigation Reserve Amgen has announced a $780 million litigation reserve in expectation of settling a series of False Claims Act cases dealing with kickbacks and off-label marketing associated with Aranesp.  Aranesp is only one of several anemia drugs, including Procrit and Epogen, under investigation for kickback and off-label marketing.  All three anemia drugs are manufactured by Amgen, but Procrit is sold and marketed by a subsidiary of Johnson & Johnson. >> To read more | Nov. 1, 2011   False Claims Act Returns Over $4 Billion to Federal and State Governments In FY 2011, federal and state False Claims Act cases returned over $4 billion back to U.S. taxpayer-funded programs.  This sum does not include criminal fines, but does include several large state False Claims Act settlements, including over $300 million recovered by the state of California in a series of laboratory fraud cases.  The largest fraudster nailed in FY 2011 -- GlaxoSmithKline -- is likely to be the largest fraudster nailed in FY 2012 as well. | Nov. 7, 2011 Glaxo Agrees to $3 Billion Settlement GlaxoSmithKline has announced that it has reached a $3 billion "agreement in principle" to settle federal government investigations into drug sales, marketing practices, and overbilling of Medicare and Medicaid.  Among the drugs covered in this settlement are Avandia, Wellbutrin, and Paxil. >> To read more | Nov. 7, 2011 New York City to Pay $70 Million New York City has agreed to pay the federal government $70 million for engaging in a long-running billing scam in which it charged the federal government as much as $150,000 a year for services that should have cost half as much. The whistleblower and lawyers will share a $14.7 million award for bringing the evidence to the U.S. Government and helping bring and build this case.  >> To read more | Nov. 7, 2011  Feds File $830 Million Claim Against Allied Home Mortgage The U.S. Department of Justice has filed a False Claims Act case against Allied Home Mortgage Capital Corp, and two top executives, accusing them of running a massive fraud scheme that cost the government at least $834 million in insurance claims on defaulted home loans. Over 31 percent of Allied's FHA loans defaulted.  >> To read more | Nov. 7, 2011 Abbott Reserves $1.5 Billion for Depakote Settlement Abbott Laboratories has recorded a $1.5 litigation reserve for the third quarter to cover the costs associated with a False Claims Act case alleging the company promoted the off-label use of Depakote, an anti-seizure drug.  Business Week reports the settlement will be for $1.3 billion, of which $500 million will be a criminal fine and $800 million will be paid as part of a federal and state civil settlement. >> To read more | Oct. 21, 2011 Oracle to Pay $200 Million The Oracle Corporation has agreed to pay $200 million for price-gouging and failing to meet their contractual obligations to the General Services Administration (GSA).  This is the largest False Claims Act settlement that the GSA has ever obtained, among the top 30 FCA cases of all time, and the second time Oracle has been nailed under the False Claims Act.  In 2008, Oracle paid nearly $100 million for engaging in a similar fraud. | Oct. 7, 2011 New York Sues Bank for $2 Billion New York's Attorney General and the U.S. Department of Justice have each filed separate civil lawsuits alleging Bank of New York Mellon systematically overcharged investors in foreign exchange currency trades. New York's Attorney General, who filed cases under the New York False Claims Act and the Martin Act, seeks to recover more than $2 billion in damages.  The U.S. Department of Justice lawsuit notes that in a 2004 BNY Mellon email, one executive succinctly explained the personal-profit impetus for the fraud:  "... we all understand how the bonus pool funds." >> To read more | Oct. 7, 2011 Home Health Provider to Pay $65 Million Home health provider LHC Groups has agreed to pay $65 million to settle a False Claims Act case charging the company with upcoding and billing for medically unnecessary goods and services. Whistleblower Judy Master will receive over $12 million as an award under the settlement. >> To read more | Oct. 7, 2011 Banks Stealing From Disabled Veterans JPMorgan, Bank of America, Wells Fargo, and ten other banks are accused of overcharging military veterans by illegally baking legal fees into home loans documents in which the loans were guaranteed by the Veterans Administration.  In February, Wells Fargo agreed to refund millions of dollars in fees stolen from veterans, but that still leaves 12 other banks with a massive sum of pocketed money, and all thirteen banks holding loans that should not be guaranteed by the Veterans Administration and U.S. taxpayers.  >> To read more | Oct. 7, 2011 | The $160 Billion AWP Rip Off Sandoz, a generic drug unit of Novartis, recently settled a Medicaid Average Wholesale Price (AWP) drug overpricing lawsuit with Texas for $66 million.  As part of a related lawsuit against Sandoz, arguing the same set of facts, Iowa estimated the state had been overcharged  $1.6 billion over 13 years, and this is just Medicaid spending, and just spending on drugs!  Because the population of Iowa is almost exactly 1/100 the population of the U.S., that $1.6 billion, when given a national weight, works out to be $160 billion.  >> To read the Iowa complaint | Sept. 30, 2011 DME Maker Hill-Rom to pay $41.8 Million Hill-Rom, one of the largest national suppliers of durable medical equipment, has agreed to pay $41.8 million to settle a False Claims Act lawsuit alleging the company routinely submitted invoices for equipment not supplied to patients who did not qualify. The DoJ press release in this case not only names the whistleblowers, but also their private counsel.  Full applause to DoJ for recognizing the complete  public-private partnership! >> To read more | Sept. 30, 2011 $125 Billon a Year in Improper Payments, With $70 Billion by Medicare and Medicaid According to April testimony to a House panel by Kay Daly, the Government Accountability Office’s director of financial management and assurance, the U.S. Government made $125 billion in improper payments in 2010, of which the U.S. Centers for Medicare and Medicaid Services accounted for the largest portion; $70.4 billion of the total. >> To read more | Sept. 20, 2011 Defense Contractors Pay Over $30 Million SAIC (Science Applications International Corp.), Applied Enterprise Solutions, and Lockheed Martin, have agree to pay over $30 million to settle a False Claims Act lawsuit charging all three entities with bid rigging on a government contract with a potential value of up to $3.2 billion. The rigged contract was to establish and run a new National Center for Critical Information Processing and Storage (NCCIPS). >> To read more | Sept. 30, 2011 TAF 2011 Award Winners ..n "Honest Abe" Integrity in Government Award to Michael F. Hertz for 25 years of uncompromising professionalism, integrity, and judgment serving as a model for the Civil Division and the U.S. DoJ. ..n Lawyers of the Year Award to Ken J. Nolan and Marcella Auerbach who, last year alone, helped return over $1.3 billion back to the United States Government. ..n Whistleblower of the Year Award: Chris Riedel who, as CEO of Hunter Labs, filed 7 FCA cases in order to help restore competition to the California laboratory market. ..n Lifetime Achievement Award to Neil V. Getnick for his service to whistleblowers and the nation in helping strengthen the federal False Claims Act and get a New York State FCA enacted into law. >> To read more | Sept. 13, 2011 Relator Nails Maxim for $150 Million Maxim, one of the nation's largest health care staffing agencies, has agreed to pay $150 million settlement to settle a False Claims Act case filed by patient Richard West who discovered the company had billed for so many fraudulent services in his name that they had exceeded a monthly Medicaid cap, resulting in his being denied needed services. Noted a columnist in The Baltimore Sun, "If Washington is as serious about fighting medical fraud as it pretends to be, it will recruit an army of Richard Wests to burn off leeches like Maxim.... One man. One wheelchair, one respirator, one computer. And an outrage that somebody was ripping off the program that was keeping him alive." >> To read more | Sept. 20, 2011 Scios Pays $85 Million for Off-label Johnson & Johnson's Scios unit has agreed to pay $85 million and plead guilty to misbranding the heart drug Natrecor. In addition to a fine, Scios will be placed under organizational probation for three years.  This plea agreement does not release Johnson & Johnson from a False Claims Act case joined by the U.S. Department of Justice which charged the company with illegal off-label marketing of Natrecor for "serial outpatient infusions" not approved by the FDA. >> To read more | Sept. 20, 2011 Watson and Sandoz Settle AWP Cases For Combined Total of $155 Million Watson Pharmaceuticals has agreed to pay $79 million, and Novartis's Sandoz unit has agreed to pay $66 million, to resolve two False Claims Act cases filed by Ven-a-Care of the Florida Keys charging the companies with systematically defrauding U.S. and state governments by causing Medicaid to overpay for generic drugs. This is the 18th successful lawsuit filed by Ven-a-Care, a small specialty pharmacy that has helped recover more than $2.3 billion of America's stolen money. >> To read more | Sept. 20, 2011 DoJ Joins Case Against Par   DoJ and 20 states have joined a False Claims Act case against Par Pharmaceuticals alleging Par and two foreign companies (Alphapharm and Genpharm) worked to defraud Medicaid by conspiring with Walgreens and other pharmacies to illegally switch prescriptions of generic Prozac (fluoxetine) and Zantac (ranitidine) to Par’s products which were billed to Medicaid at significantly higher prices. The case is being brought by Chicago pharmacist Bernard Lisitza, who has previously helped win FCA settlements and recoveries for the U.S. Government of $50 million (Omnicare, 2006), $37 million settlement (CVS, 2008), and $35 million (Walgreens, 2008).  Just two weeks ago, Par settled another FCA lawsuit for $154 million. >> To read more | Sept. 20, 2011 BP Amoco to Pay $20.5 Million BP Amoco (formerly Amoco Corp.) and related companies have agreed to pay $20.5 million to settle a False Claims Act case filed by Harold Wright. The United States government initially declined to intervene in this case, but intervened at the last moment "for the purpose of completing this settlement." Mr. Wright, who is now deceased, helped to recover more than $270 million in oil and gas revenue stolen from federal and Indian leases. >> To read more | Sept. 20, 2011   Par to Pay $154 Million Par Pharmaceutical of New Jersey has agreed to pay $154 million to settle a False Claims Act case brought by Ven-a-Care of the Florida Keys, charging the company with systematically lying about "Average Wholesale Price" of drugs sold to four state Medicaid programs. Under the agreement, $71.8 million will go to Texas, with the remaining $82.2 million to be shared by Florida, Kentucky, South Carolina, and Alaska. >> To read more | Sept. 1, 2011 Stretching Boats and the Truth Bollinger Shipyards pocketed $78 million as part of a contract to "stretch" the Coast Guard’s existing 110-foot patrol boats to 123-feet. In order to win the contract, Bollinger exaggerated the hull strength that would be achieved, and as a consequence all eight of the delivered vessels failed. >> To read more | Sept. 1, 2011   Will New York Be the Decider? New York Attorney General Eric Schneiderman seems to be poised to take the lead in two major fraud inquiries: one into whether banks have improperly skimmed hundreds of millions of dollars from state and local pension funds during foreign currency transactions, and another dealing with massive mortgage frauds that may have cost taxpayers hundreds of millions due to foreclosures on homes purchased with government-backed loans. >> To read more | August 3, 2011 LabCorp to Pay $49.5M for Medicaid Fraud LabCorps has agreed to pay $49.5 million to settle a whistleblower lawsuit claiming the company overcharged California's Medicaid program and gave doctors kickbacks for patient referrals. This settlement is the second of seven False Claims Act cases brought by Chris Riedel, CEO of Hunter Laboratories. The first settlement, paid by Quest Diagnostics, was for $241 million. >> To read more | July 27, 2011 Questions are Being Asked About the IRS Whistleblower Program After five years, the IRS whistleblower program has only one settlement under its belt and Congress, whistleblowers, and the public are starting to ask questions. What's going on? One answer suggested by an interview with the former Chief Counsel of the IRS, is that top management outside of the whistleblower office may be sabotaging the program because they see it as something forced down their throats by Capitol Hill. One thing is for certain: the Obama Administration and Congress are not going to be able to convince the public that it's a good idea to raise taxes or cut benefits so long as scores of billions of dollars are being left on the table in the form of languishing IRS whistleblower cases. >> To read more | June 24, 2011 Novo Nordisk Settles for $26.7 Million Novo Nordisk has agreed to pay $26.7 million to settle a False Claims Act case alleging the company aggressively off-label marketed an expensive hemophilia drug ($2,000 to $10,000 per vial) to both military and civilian physicians for non-hemophilia purposes, even though the drug was associated with higher rates of stroke and heart attack. The complaint alleges Novo Nordisk funneled prescription inducements to doctors and hospitals through nonprofit foundations in order to couch indirect payments as educational grants. >> To read more | June 17, 2011 Billion Dollar Cases Under Investigation? Whistleblowers, the U.S. Dep. of Health and Human Services, the U.S. Department of Justice, the Obama Administration, and nearly 50 bankrupt states are coming together to change the dynamics in the war on fraud. More than a dozen cases with prospects for billion dollar collections are now in the wings. Among them: 4 Johnson & Johnson (Risperdal) 4 Deutsche Bank (mortgage fraud) 4 Pfizer (Protonix) 4 Abbott Labs (Depakote) 4 Ranbaxy (HIV drugs) 4 Five big U.S. banks (mortgage fraud) 4 Public Warehouse (Kuwait fraud) 4 State Street and BNY Mellon (forex fraud) 4 Quest Diagnostics and six other labs (lab fraud) 4 Merck/Schering-Plough (Vytorin) >> To read more | June 17, 2011 UCB to Pay $34 Million for Off-Label Marketing of Epilepsy Drug Keppra UCB, a Belgian pharmaceutical company, has agreed to pay $34 million to settle a False Claims Act case alleging off-label promotion of the anti-epileptic drug Keppra for headache, mood control, and other non-FDA approved uses. The settlement includes civil penalties of nearly $26 million plus a criminal sanction of over $ 8.6 million. Other anti-epileptic drugs sold off-label for mood disorders, migraine, and bipolar disorders include Neurontin, Zonegran, and Trileptal.  >> To read more | June 10, 2011 SEC Adopts Whistleblower Rules Whistleblowers with knowledge of fraud won't have to report to their  company first in order to be eligible for an award under the Securities and Exchange Commission's final rules. In her remarks at the meeting, SEC Chairman Mary Schapiro, argued that: "incentivizing — rather than requiring — internal reporting is more likely to encourage a strong internal compliance culture." >> To read more | May 25, 2011 How to Count Success in Mortgage Fraud Prosecutions? The Federal Government and the States are moving to investigate massive frauds in the mortgage industry. The False Claims Act seems to be the weapon of choice in the battles ahead, with five banks offered $5 billion as their first ante. The states laughed at the low number and suggested another -- $30 billion. But is money alone enough to change banking culture?  Is more needed? >> To read more | May 25, 2011 Quest to Pay $241 Million Quest Diagnostics says it has agreed to pay $241 million to resolve a California False Claims Act case alleging the company overbilled the state Medicaid program for diagnostic-testing. The Quest case is one of seven private medical lab cases brought by Chris Riedel, CEO of Hunter Laboratories, whose company refused to price-gouge. The other six defendant companies are: Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America.  >> To read more  | May 13, 2011   Deutsche Bank Faces Billion Dollar Mortgage Fraud False Claims Act Case The U.S. Department of Justice has filed a False Claim Act lawsuit against Deutsche Bank AG and its wholly owned subsidiary, MortgageIT Inc.,  which was an approved direct endorsement lender which greenlighted over $5 billion of FHA-insured loans without doing due diligence on those loans as promised and certified. So far, the Federal Housing Administration has paid claims on more than 3,100 insured mortgages, totaling $386 million, and more claims are expected.  Said U.S. Attorney Preet Bharara (SD-NY): "As alleged, MortgageIT and Deutsche Bank ignored every type of red flag and breached every duty of due diligence before underwriting thousands of federally insured mortgages. While the homes the defendants issued loans for may have been built on solid ground, the defendants’ lending practices were built on quicksand. Ultimately, prudence was trumped by profit, and good faith took a back seat to good fees. This is exactly the kind of misconduct that our Civil Frauds Unit was created to combat.” >> To read more | May 5, 2011 Case Against BP Oil Platform Goes Forward A federal judge has declined to dismiss a whistleblower False Claims Act case against BP which alleges the company knowingly submitted false compliance certifications for its Atlantis oil rig in the Gulf of Mexico. BP's defense may be problematic: their own analysis, done by an independent firm, found that BP violated its own policies by not having completed engineering documents on board the drilling rig when it began operation in 2007. While the government has intervened in the lawsuit, the Bureau for Ocean Energy Management, Regulation and Enforcement has nonetheless issued a report saying that the Atlantis rig is "safe" to operate.  Safety and documentation allegations in this case predate the April 20, 2010 explosion of BP's Deepwater Horizon rig. | March 24, 2011 Pfizer Protonix Settlement in the Works? A joint motion filed by Pfizer and the U.S. Department of Justice has asked for a discovery deadline extension to "permit the parties to continue to engage in settlement discussions.”  In a separate filing last month, Pfizer cited earlier estimates from the government that its liability could exceed more than $2 billion. | March 24, 2011 California Insurance Commission Joins Case Against Bristol Myers-Squibb The California Department of Insurance has joined a qui tam lawsuit against Bristol Myers-Squibb, alleging the company provided illegal kickbacks to doctors in order to increase sales in California of such drugs as Plavix, Abilify and Avapro.  The lawsuit is the largest health insurance fraud case ever pursued by a California state agency. >> To read more | March 24, 2011 State Pension Frauds and State FCA Laws A host of states may have been defrauded out of many hundreds of millions of dollars by banks ripping off state pension funds in foreign currency trades.  California, Virginia, and Florida have already joined state False Claims Act cases, and New York is said to be investigating.  Not said:  states that have  Medicaid-only False Claims Act laws may miss out on recovering all of their stolen money.  Stay tuned!  >> To read more | Feb 7, 2011 CareSource Pays $26 Million, Sheds Light on Absence of Ohio FCA Whistleblowers Laura Rupert and Robin Herzog blew the whistle on CareSource Management Group in Ohio, which billed for, but did not provide, required screening, assessment, and case management for special needs adults and children.  The case was settled for $26 million , but Ohio lost out on additional money from the Federal Government because the state remains without a state False Claims Act of any kind. >> To read more | Feb 7, 2011 New York Suits Up to Pursue Tax Fraud New York Attorney General Eric Schneiderman is creating a taxpayer-protection unit to target multi-state corporate tax fraud schemes under the recently-amended New York State False Claims Act.  The new unit will go after “millionaire tax cheats” that defraud the state of more than $350,000, and it will encourage whistleblowers to come forward.  “Today’s announcement is a signal to anyone thinking of ripping off New York taxpayers,” said Schneiderman.  We will go after you with every tool we have.” >> To read more | Jan 28, 2011   Counting Cases Under Seal In a joint letter to Senators Charles Grassley (R-IA) and Patrick Leahy (D-VT), DoJ Assistant Attorney General Ronald Weich and Assistant HHS Secretary Jim Esquea detailed the scope of False Claims Act cases under seal.  As of Jan. 4, 2011, there were 1,341 qui tam cases under investigation with no decision yet as to whether DoJ will intervene.  Of these cases, 885 involve healthcare fraud.  A total of 180 qui tam cases are under seal that allege pharmaceutical pricing and/or marketing violations.  An additional 80 cases involve hospital fraud.  >> To read more (PDF) | Jan 28, 2011 VA Pursues Pension Fund Fraud Virginia has joined a state False Claims Act case filed under the Virginia Fraud Against Taxpayers Act. The lawsuit, brought by a private whistleblower, seeks $150 million in damages from the Bank of New York Mellon, which has served as the master custodian of the Virginia Retirement System since 1988.  The lawsuit contends that since 2001 currency traders for the bank skimmed profits on currency transactions conducted on Virginia's behalf. >> To read more | Jan 28, 2011   Pharmaceutical Manufacturing Fraud Results in $750 Million FCA Settlement and Record Whistleblower Award  GlaxoSmithKline has agreed to pay $750 million to settle a False Claims Act case brought by a single whistleblower. Of the $750 million settlement, $150 million is a criminal fine, and $600 million will go to settle civil FCA charges.  The whistleblower and her legal team will share a $96 million award to be paid by GlaxoSmithKline.  The fraud involved systematic deceit related to product contamination and dosage irrregularities at GSK's plant in Cidra, Puerto Rico.   Drugs affected include Paxil, Avandia, Avandament, Coreg, Bactroban, Abreva, Cimetidine, Compazine, Denavir, Dyazide, Thorazine, Stelazine, Ecotrin, Tagamet, Relafen, Kytril, Factive, Dyrenium, and Albenza.  >> To read the complaint (140 page PDF)  | Oct. 26, 2010 WellCare to Settle for $137 Million? WellCare Health Plans says it has reached a $200 million settlement in a class-action lawsuit and a $137.5 million preliminary deal with the U.S. Department of Justice Department on False Claims Act charges. The company paid $80 million last year to settle a Florida Medicaid fraud case.  The current FCA case was brought by former WellCare analyst Sean Hellein who wore a wire for 18 months as part of an undercover investigation which produced more than 1,000 hours of audio and video surveillance. Hellein's FCA complaint claimed WellCare stole $400 million to $600 million, and notes the company  held a celebratory dinner to honor those who successfully disenrolled 425 infants.  >> To read more | Aug. 20, 2010   DoJ Joins HSUS Bad Meat Lawsuit The U.S. Department of Justice has joined a False Claims Act lawsuit filed by the U.S. Humane Society against a Southern California slaughterhouse whose workers were videotaped pushing "downer" cows down a chute to be processed for meat. Westland-Hallmark Meat Co. was, at one time, the second largest supplier of hamburger meat to the National School Lunch Program, and fraudulently certified that no meat from  "downer" cows entered the food supply. >> To read more | May 5, 2009 Updated Advising the Qui Tam Whistleblower The second edition of the bestselling Advising the Qui Tam Whistleblower by Robin Page West is now available from the American Bar Association, with a portion of the proceeds to come back to TAF.  This publication provides complete and concise information to assist an attorney in evaluating a client's potential claim, and to determine whether pursuit of a qui tam action is warranted. Use this volume as a starting point for further thinking. Nine companion forms are included.  >> To order   Join Taxpayers Against Fraud Taxpayers Against Fraud Education Fund is a 400-member strong organization of False Claims Act plaintiffs lawyers.  If you are a qui tam lawyer, and are not a member of TAF, you are missing out on the latest legal opinions, settlements, and practitioner strategies.  >> Join today  Fighting Healthcare Fraud: Whistleblower Statute Returns $15 for Every $1 Invested A TAF report by economist Jack Meyer, concludes that every dollar invested by the U.S. Government in investigation and prosecution of federal health care fraud returns $15 back to the American people -- a phenomenal rate of direct return that does not factor in the benefits of fraud deterrence.  >> To read more | August 2, 2006 One Click Statistics Sheet A simple one-click presentation (6 PDF pages) of official Department of Justice False Claims Act Statistics for FY 1987-2011 can be found >> here (note that this table does not include recoveries to the states in Medicaid cases, nor does it include criminal fines collected as an outgrowth of FCA cases).

CLICK HERE to add the TAF Education Fund web site to your favorites list.