FY 2014 Winners' Corner!

 

September 2014:

  • Smith & Nephew will pay $8 million to settle allegations that it violated the Trade Agreements Act (TAA). The TAA requires Government contractors to certify that they will only sell products to the Government that originate in the United States or a country that has signed a trade agreement with the United States.  In this case, Smith & Nephew violated the TAA by selling products that were manufactured in Malaysia, which is a country that has not executed a trade agreement with the United States. The relator in this case was Sam Cox, his share has not been determined. >> Read More.

  • Meridian Surgical Partners, LLC (“Meridian”), a health care company specializing in the management of ambulatory surgical centers (ASCs), has agreed to pay a total of $5.12 million for allegedly engaging in an illegal kickback scheme that defrauded taxpayers out of millions of dollars in Medicare payments. This case was not intervened by DoJ and is one of the few cases to allege successfully that payments of ownership interests in an ASC to physicians in exchange for patient referrals are kickbacks that violate the False Claims Act. The relator, Thomas Simmons, originally brought the case in 2011, his share has not been disclosed. >> Read More.

  • M.K. Battery, Inc., East Penn Manufacturing Co., Inc. and other corporations will pay $5.5 million to resolve a claim that the defendants substituted a battery used in Humvee gun turrets that had lesser capacities than the batteries the Army believed it was buying. Former M.K. Battery employee David McIntosh filed the qui tam suit. >> Read More.

  • A Plus Home Health Care Inc. and its owners, Tracy Nemerofsky and her father, Stephen Nemerofsky, will pay $1.65 million to settle allegations that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals. The settlement resolves allegations that were originally brought by William Guthrie, a former director of development at A Plus. >> Read More.

  • Episcopal Ministries to the Aging Inc. (EMA) has agreed to pay $1.3 million to the government for submitting false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc. The settlement further resolves allegations that EMA failed to prevent other RehabCare practices designed to inflate Medicare reimbursement. >> Read More.

  • Shire Pharmaceuticals LLC will pay $56.5 million to resolve civil allegations that it violated the False Claims Act as a result of its marketing and promotion of several drugs including Adderall XR, Vyvanse (which are approved for the treatment of attention deficit hyperactivity disorder (ADHD)), and  Pentasa and Lialda (which are approved for the treatment of mild to moderate active ulcerative colitis). The allegations resolved by the settlement arose from a lawsuit filed by Dr. Gerardo Torres, a former Shire executive, and a separate lawsuit filed by Anita Hsieh, Kara Harris and Ian Clark, former Shire sales representatives. >> Read More.

  • Enzo Clinical Laboratories will pay $3.5 million to resolve allegations that it wrongfully input diagnosis codes into claim forms that it submitted for payment to the Centers for Medicare & Medicaid Services (“CMS”). Specifically, when a physician ordered tests to be performed at Enzo but did not submit a diagnosis code to go along with the order, Enzo employees would select and assign codes which they believed would be most likely to lead to reimbursement from CMS. Enzo did not – as it was required to do – go back to the physician to obtain the missing code. >> Read More.

  • Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (BJC) and Dr. Narasimhulu Neelagaru will pay more than $500,000 to resolve allegations surrounding BJC’s payment of compensation to Dr. Neelagaru for professional services in excess of fair market value.  The alleged period for these improper payments and patient referrals was from 2000-2009.  Because of the nature of these payments to Dr. Neelagaru by BJC, the United States claims that BJC received improper payments by the Medicare program for patients referred to BJC by Dr. Neelagaru. >> Read More.

  • Caremark L.L.C. will pay $6 million to settle allegations that Caremark knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plan. The allegations arose from a lawsuit filed by Donald Well, a former Caremark employee. Well will receive $1.02 million plus interest. >> Read More.

August 2014:

  • Hewlett-Packard Co. (HP) has agreed to pay $32.5 million to resolve allegations that the company overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. The lawsuit, filed under the False Claims Act, alleged that Hewlett-Packard failed to comply with the pricing terms of their contract with the USPS and overcharged the government for services provided. >> Read More.

  • Community Health Systems Inc. (CHS) agreed to pay $98.15 million to resolve allegations that the company knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services. The settlement also resolves allegations that one of the company’s affiliated hospitals, Laredo Medical Center (LMC), improperly billed the Medicare program for certain inpatient procedures and for services rendered to patients referred in violation of the Stark Law. >> Read More.

  • McKesson Corporation will pay $18 million to resolve allegations that it improperly set temperature monitors used in shipping vaccines under its contract with the Centers for Disease Control and Prevention (CDC). McKesson allegedly failed to comply with the shipping and handling requirements of its vaccine distribution contract with the CDC.  The contract required McKesson to ensure that during shipping, vaccines were maintained at proper temperatures by, among other things, including electronic temperature monitors set to detect when the air temperature in the box reached two degrees Celsius and below or eight degrees Celsius and above. From approximately April 2007 to November 2007, McKesson failed to set the monitors to the appropriate range, and as a result, knowingly submitted false claims to the CDC for shipping and handling services that did not satisfy its contractual obligations. >> Read More.

  • The Carondelet Health Network will pay $35 million to settle accusations that it submitted false claims to Medicare and other federal health programs for inpatient rehabilitation services billed between April 2004 and December 2011.  The qui tam suit was filed by Jacqueline Bloink, a former employee. Her relator share is approximately $6 million. >> Read More.

  • Samsung Electronics America Inc. (Samsung) will pay $2.3 million to resolve allegations that it caused the submission of false claims for products sold on General Service Administration (GSA) Multiple Award Schedule (MAS) contracts in violation of the Trade Agreements Act of 1979 (TAA). GSA MAS contracts require the vendor to certify that all products it offers for sale comply with the TAA. Under TAA, all purchased products must be made in the United States, or another designated country with which the United States has a trade agreement.  The suit was brought by Robert Simmons, a former Samsung employee. >> Read More.

  • The Washington Metropolitan Area Transit Authority (WMATA) has paid $4,240,341 to resolve allegations that it filed false claims in connection with using federal funds to impermissibly award a contract for a financial management information technology project without using competitive procurement procedures. As a condition of receiving grant funds, WMATA certified that it would comply with and FTA rules mandating full and open competition when procuring goods and services using FTA grant funds. Further, WMATA certified that it would not award contracts in a manner that created a conflict of interest.  WMATA allegedly violated both the competition requirement and avoidance of “conflict of interest” rule in awarding the financial management information technology contract. >> Read More.

  • Ralex Services Inc., and its owner, Leah Friedman, will pay $2.2 million for allegedly submitting more than 62,000 false claims to the joint state and federal Medicare programs between 2002 and 2006. The nursing home’s alleged claims used Medicaid reimbursement rates based, in part, on up-coded Patient Review Instruments, which falsely represented the degree of care required. The defendants exaggerated residents’ diagnoses, conditions and required treatments in the reports, and routinely stated that residents were receiving treatments, including for oxygen and suctioning, when such treatments were neither required nor given. The investigation came after allegations were lodged by whistleblower Carolyn Hinestroza, a former assistant director of nursing at the facility. >> Read More.

July 2014:

  • RE/MAX Allegiance Relocation Services, a move management company, has agreed to pay the government $509,807 to resolve allegations that it violated the False Claims Act by overbilling for transportation services. The government alleged that RE/MAX charged for move management services that were not provided and overbilled agencies on other moves by charging inapplicable tariff rates. >> Read More.
  • Infirmary Health System Inc. (IHS), two IHS-affiliated clinics, and Diagnostic Physicians Group P.C. (DPG) have agreed to pay $24.5 million to the United States to settle allegations that they paid or received illegal kickbacks in connection to filing Medicare claims. The lawsuit, filed under the False Claims Act, alleges that the two IHS-affiliated clinics had agreements with DPG to pay the group a percentage of Medicare payments for tests and procedures referred by DPG physicians. >> Read More.
  • Matson Navigation Co. Inc., Hawaii’s largest cargo container shipping company, will pay $9.95 million to resolve allegations  that the company improperly billed the U.S. Department of Defense, costing $2 million a year in damages. The lawsuit, filed on behalf of Illinois freight consultant Mario Rizzo under the False Claims Act, alleged that Matson billed the government for ocean transport fuel charges when rail was used for some portion of transport. >> Read More.

  • HSBC Holdings PLC has agreed to pay $10 million to settle False Claims Act allegations that it defrauded taxpayers by submitting inflated bills to process residential foreclosures. HSBC admitted and accepted responsibility for having failed to properly police foreclosure-related fees in 2009 and 2010. >> Read More.

  • Rose Mary Kindred, a resident of Merrillville, Indiana, has settled a civil action under the False Claims Act that Kindred accepted $54,318 in Veterans Affairs benefits after her mother died. The federal court ruled that Kindred must pay $162,954, representing treble damages. >> Read More.

  • Carthage Area Hospital has settled a civil action under the False Claims Act with the State of New York for $750,000. The case involves allegations that Carthage double-billed Medicare for operating room services and ambulatory services between 2006 and 2010. >> Read More.

  • Advanced Power & Lighting and two of the company’s former officers have agreed to  pay a total of $780,000 to settle allegations that they deliberately underpaid workers on several federally funded projects covered by the Davis-Bacon Act, and then violated the False Claims Act by submitting false and fictitious payroll records to conceal their conduct. The civil settlement resolves a qui tam lawsuit filed by a former APL employee. >> Read More.

  • Halifax Hospital Medical Center will pay $85 million to resolve allegations that it violated the Stark Law when they provided kickbacks to medical oncologists and providing incentive bonus’ for prescription drugs and tests that the oncologists ordered and Halifax billed to Medicare. Additionally, the settlement resolves allegations that Halifax paid three neurosurgeons more than the fair market value of their work. The settlement resolves a qui tam lawsuit filed by Elin Baklin-Kunz, a former employee of the hospital. Baklid-Kunz will receive $20.8 million of the settlement. >> Read More.

  • American International Biotechnology LLC will pay the U.S. government $343,739.45 to settle alleged False Claims Act violations. AIB allegedly obtained improper referrals for genetic tests billed to Medicare. The settlement resolves a civil lawsuit filed against AIB under the qui tam provisions of the False Claims Act. >> Read More.

  • BNP Paribas has entered into an $80 million settlement with the federal government to resolve claims that the financial institution submitted false claims for payment guarantees issued by the U.S. Department of Agriculture. The government alleged that between 1998 and 2005, BNP Paribas knowingly participated in a sustained scheme to defraud the USDA’s Supplier Guarantee Program. >> Read More.

  • Vascular Solutions, Inc. ("VSI") will pay $520,000 to settle allegations of off-label marketing of various medical devices and paying kickbacks to physicians to promote their products. The qui tam suit was filed by former VSI employee Desalle Bui. >> Read More

June 2014:

  • Medtronic Inc. agreed to pay $9.9 million to resolve allegations the company used various types of kickback payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic. Whistleblower and former Medronic employee, Adolfo Schroeder, alleged the company paid physicians to speak at events intended to increase the flow of referral business, developed marketing plans for physicians at no cost, and provided tickets to sporting events to physicians. Schroeder will receive approximately $1.73 million of the settlement. >> Read More.

  • Omnicare Inc., has agreed to pay $124.4 million to settle allegations that they offered improper financial incentives to nursing facilities in exchange for their continued business. The lawsuit, filed under the False Claims Act, states that Omnicare submitted false claims by entering into below-cost contracts with the nursing facilities in order to induce the facilities to select Omnicare as their pharmacy provider. >> Read More.

  • Shands Health Care System will pay $3.25 million to settle allegations that six of its Florida hospitals submitted improper outpatient billing which resulted in overpayments from Medicaid, Medicare and TRICARE. Terry Myers, founder and President of YPRO Corporation, a healthcare consulting firm hired by Shands in 2006 to conduct Medicare/Medicaid audits, filed the qui tam suit. Myers filed the complaint after Shands failed to correct the overbilling issues and self-report the overpayments to the government. >> Read More. 

  • Elizabethtown Hematology Oncology PLC will pay $3.7 million to settle claims that they extended the period of chemotherapy for their patients to pad their bills to the government. Dr. Ijaz Mahmood filed the qui tam suit alleging that from 2006 to 2013 doctors at Elizabethtown unnecessarily and improperly extended the duration of chemotherapy infusion treatment times for their patients. Dr. Mahmood will receive a relator’s share of $283,412. >> Read More.

  • U.S. Bank has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration that did not meet applicable requirements. As part of the settlement, U.S. bank admitted that between 2006 and 2011,  it repeatedly certified insurance mortgage loans for the FHA that did not meet HUD underwriting requirements. >> Read More.

  • SunTrust has agreed to pay $418 million to resolve its liability under the federal False Claims Act for originating and underwriting loans that violated its obligations as a participant in the Federal Housing Administration (FHA) insurance program. As a participant in that program, SunTrust had the authority to originate, underwrite and certify mortgages for FHA insurance. >> Read More.

May 2014:

  • King’s Daughters Medical Center (KDMC) will pay $41 million to resolve allegations that between 2006 and 2011, KDMC billed for numerous unnecessary coronary stents and diagnostic catheterizations for Medicare and Medicaid patients who did not need them. The government also alleged that the physicians falsified medical records in order to justify the unnecessary procedures, generating millions in fraudulent reimbursements for KDMC. >> Read More.

  • Reunion Mortgage, Inc. and its former co-owners have agreed to pay $1.04 million to settle allegations that the company submitted false claims to the Federal Housing Administration. The settlement resolves allegations that Reunion Mortgage falsely certified that certain loans met the U.S. Housing and Urban Development's ("HUD") requirements and were eligible for FHA insurance. >> Read More.

  • Baptist Health System Inc. (Baptist Health) has agreed to pay $2.5 million to settle allegations that from September 2009 to October 2011, two neurologists in the Baptist Health network misdiagnosed patients with various neurological disorders, such as multiple sclerosis, which caused Baptist Health to bill federal health care programs for medically unnecessary services.  Although Baptist Health placed one of the physicians at issue on administrative leave in October 2011, it did not disclose any misdiagnoses to the government until September 2012. Whistleblower Verchetta Wells, a former Baptist Health employee, filed the qui tam suit and will receive a $424,155 share of the settlement. >> Read More.

  • Tenet Healthcare Corp paid $5 million to settle allegations that the company paid kickbacks to doctors by allowing them to lease offices at below-market rates in return for patient referrals. The suit was filed in July 2009 by Marc Osheroff who received a 20% share of the settlement. >> Read More.

  • A federal court in South Carolina found New Deal’s Food Market and its owner, Issa M. Saba, liable for over $238,000 for presenting false claims for the payment of food stamps. Investigators discovered that Saba had illegally purchased food stamps from legitimate food stamp recipients for cash, violating the federal False Claims Act. >> Read More.

  • The Lane Construction Corporation, along with McAfee Design and Distributing Company, will pay the United States a total of $400,000 to resolve allegations that these companies submitted false claims under the Department of Transportation’s Disadvantaged Business Enterprise (DBE) program. The civil settlement resolves a qui tam lawsuit filed in South Carolina; the relator’s share is $80,000. >> Read More.

  • Moretrench American Corporation has agreed to pay $3 million to settle a civil fraud lawsuit for engaging in fraudulent conduct to exploit regulations designed to increase the role of minority-owned businesses. By exploiting these regulations, Moretrench secured a subcontract on the federally-funded World Trade Center Transportation HUB project. In the settlement, Moretrench admitted wrongdoing and accepted responsibility. >> Read More.

  • Dr. Wasfi Makar, a Florida oncologist who ran American Cancer Treatment Centers in two locations, was ordered to pay $89.6 million. Joseph McBride, a former employee in Dr. Makar’s office, filed the qui tam lawsuit alleging that the Centers were falsely billing Medicare for services it wasn’t capable of performing. The whistleblower’s share of the settlement had not yet been determined. >> Read More.

  • Calloway Laboratories, Inc. will pay $4.675 million to settle allegations of false billings submissions to West Virginia Medicaid and Medicare. From 2009 through 2013, Calloway Labs routinely billed Medicare and West Virginia Medicaid using a code designated for pathology services, which were not knowingly ordered by the U.S. Department of Health and Human Services. >> Read More.

  • Ashland Hospital Corp. has agreed to pay $40.9 million to resolve allegations that it submitted false claims to Medicare and Kentucky Medicaid programs for medically unnecessary coronary stents and diagnostic catheterizations, and had prohibited financial relationships with physicians referring patients to the hospital. The settlement also resolves allegations that the hospital paid certain cardiologists salaries in excess of fair market value, violating the Stark Law. >> Read More.

  • First Call Ambulance Services, LLC., will pay $500,000 to settle allegations that it violated the False Claims Act when submitting payments covering advanced life support services for its ambulance runs. Many of these services were considered medically unnecessary. The initial investigation into First Call was prompted by a qui tam complaint; the relator who filed the complaint will receive an unconfirmed share of the settlement proceeds. >> Read More.

April 2014:

  • Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that from 2008 to 2010 they billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase payments.  This settlement resolves seven lawsuits pending against Amedisys in federal court. The whistleblowers, primarily former Amedisys employees, will collectively split over $26 million. >> Read More.

  • OtterBox has paid $4,300,000 to the United States to resolve allegations that they violated the False Claims Act and the Tariff Act of 1930 by knowingly underpaying customs duties owed to the United States. From January 1, 2006 through December 31, 2011, OtterBox knowingly omitted the value of “assists” from the dutiable value they declared to Customs on entry documents for imported products. As a result, OtterBox knowingly underpaid customs duties it owed to the United States. A former OtterBox employee filed the lawsuit; they received a $830,000 relator’s share. >> Read More.    

  • Dr. Devender Batra and Belmont Cardiology, Inc., will pay  $1 million thus ending an investigation into improper compensation arrangements between Dr. Batra and Belmont Cardiology, and Ohio Valley Medical Center in Wheeling and its sister facility, East Ohio Regional Hospital in Martins Ferry, OH. The alleged improper arrangements caused the two hospitals to submit false claims for prohibited referrals for various health services from January 2009 to August 2010. >> Read More.

  • CRC Health Group will pay $9.25 million to settle allegations that between 2006 and 2012 they provided substandard services, repeatedly exceeded its patient capacity, and double-billed TennCare’s prescription drug program. Former New Life Lodge (a CRC Health Group facility) employee Angela Cederoth filed the suit. The settlement will be divided between the state and federal governments with the State of Tennessee slated to receive approximately $3.4 million. >> Read More.

  • Hope Cancer Institute, Inc., and its owner, oncologist Dr. Raj Sadasivan, will pay 2.9 million to settle claims that they defrauded federally-funded medical insurance programs.  According to the suit, Dr. Sadasivan routinely overbilled Medicare, Medicaid and the Federal Employees Health Benefits Program for chemotherapy drugs, including Rituxan, Avastin and Taxotere. Hope Cancer employees, Krisha Turner, Crystal Dercher and Amanda Reynolds, filed the suit. Dr. Sadasivan and Hope Cancer will also be excluded from participating in Medicare, Medicaid, and all other Federal health care programs for a period of 10 years. >> Read More

  • Frazier Masonry Corp., F-Y Inc., CTI Concrete & Masonry Inc., Masonry Technology Inc., Masonry Works Inc., Russell Frazier and Robert Yowell paid the government 1.9 million to resolve allegations that they misrepresented their disadvantaged small business status in connection with military construction contracts. The government alleged that the defendant masonry subcontractors and their principals misrepresented to prime contractors that they were small businesses, and that these misrepresentations caused the prime contractors to falsely certify that they had complied with the small business provisions of the contracts in claiming payment. Former Frazier Masonry employee Rickey Howard filed the suit, he will receive $393,383 of the settlement. >> Read More.

  • Dana Kay and affiliates will pay the federal government $10 million for fraudulently valuing imports in order to avoid millions of dollars in tariffs. Dana Kay and its affiliates produced an invoice for U.S. Customs that undervalued the price of a garment by, on average, $2.50 a unit, which allowed them to avoid nearly 55 cents of tariffs per garment.  Michael Krigstein filed the suit, he will receive 23% of the amount recovered. >> Read More.

  • Alliance Rehabilitation, LLC has agreed to pay $2.78 million to the United States to settle allegations that the firm’s billings to Medicare and the TRICARE health program violated the False Claims Act. Between 2007 and 2012, the companies allegedly submitted claims which falsely represented that the physical therapy services being billed were rendered or directly supervised by the correct physical therapist. The investigation was prompted by a qui tam lawsuit filed by two former employers, who will receive more than $400,000 as their share of the government’s recovery. >> Read More.

  • Computer Sciences Corporation, Inc. will  pay $1.1 million to resolve allegations that the company falsified qualifications of its employees in order to bill for labor charges at rates higher than allowed under a government contract. Computer Science Corp. allegedly submitted false resumes for employees to qualify them for higher paying positions, thereby falsely increasing the amount of money for labor charged by Computer Sciences. >> Read More.

  • Astellas Pharma US Inc. will pay $7.3 million to resolve allegations that it violated the False Claims Act by unlawfully promoting the drug Mycamine for uses not approved by the Food and Drug Administration. The allegations resolved by the settlement arose from a qui tam lawsuit filed by Frank Smith, a former Astellas sales representative; Smith will receive $708,852. >> Read More.

  • Three St. Petersburg, Fla.-based organizations (All Children’s Hospital, Pediatric Physician Services, and All Children’s Health System) have settled a whistleblower lawsuit brought under the False Claims Act for $7 million. The lawsuit, which alleged violations of the Stark Law, claimed that Pediatric Physician Services paid physicians more than the market value of their services. The allegations arose from a qui tam lawsuit filed by the former Director of Operation for Pediatric Physician Services. Relator’s share information has not yet been disclosed. >> Read More.

  • The Medical Center of Southeastern Oklahoma and its parent company, Health Management Associates, Inc., have agreed to pay $1,065,000 to the United States and $435,000 to the state of Oklahoma to resolve allegations that the hospital improperly billed both state and federal Medicaid programs for hospital services that were not medically necessary. The allegations were initially raised in a qui tam lawsuit filed by Sandra Simmons, who will receive $159,750 as part of the settlement. >> Read More.

  • Community Health Systems (CHS), the nation’s largest operator of acute care hospitals, has agreed to pay $98.15 million to resolve multiple lawsuits alleging that the company knowingly billed government health care programs for inpatient services that should have been billed as outpatient services. The settlement resolves multiple qui tam lawsuits filed by several whistleblowers under the False Claims Act. The relators’ share for the multiple whistleblowers has not yet been determined. >> Read More.

  • Somerset Medical Center, a regional medical center located in New Jersey, has agreed to pay $435,640 to settle allegations that it violated the Federal False Claims Act by making improper rental payments to a cardiology group that referred large numbers of patients to the hospital. The settlement resolves a qui tam lawsuit filed by a physician and an administrator, both former Somerset employees. Their share has not yet been released. >> Read More.

March 2014:

  • Sikorsky Aircraft Corp. will pay $3.5 million to resolve allegations that it inflated the price of spare parts . The complaint alleged that from Feb. 7, 2008 to Sept. 8, 2011, Sikorsky failed to disclose accurate, complete and current cost and pricing data to the Army Aviation and Missile Life Cycle Management Command (AMCOM). Sikorsky allegedly failed to disclose that it had lower prices for certain parts. As a result, the government paid artificially excessive prices for those parts. >> Read More.
  • Bizlink Technology, Inc. (BTI) has paid $1.2 million to settle allegations that it violated the False Claims Act by underpaying customs duties owed on goods imported from China. The complaint alleges that from 2006 through 2008, BTI underpaid customs duties by obtaining two sets of invoices for each shipment from Chinese factories: one true invoice that BTI paid, and a second invoice falsely stating a lower cost. The false invoices were allegedly used to calculate the customs duties that BTI paid on the imported goods, resulting in substantial underpayments. The whistleblower, a former BTI employee, will receive $252,000 as his share of the recovery. >> Read More.
  • Stryker Corporation and Alliant Enterprises paid over $1 million to resolve allegations that the companies failed to disclose to government negotiators complete pricing information, resulting in higher costs to government agencies. Stryker sold medical equipment through the Federal Supply Schedule pursuant to modifications to a contract that the VA had previously awarded to Alliant. The lawsuit alleged that because Alliant was used to sell the Stryker-manufactured products, the defendants provided none of Stryker’s commercial pricing history to the VA for price comparison purposes, and that Alliant understated expected sales of the products, which allegedly allowed the defendants to avoid scrutiny and overcharge the VA. >> Read More.
  • Duke University Health System, Inc. will pay $1 million to resolve allegations that it made false claims in conjunction with services provided to beneficiaries of Federal health care programs. The complaint alleges that Duke billed the government for services provided by physician assistants (PA’s) where PA’s were acting as surgical assistants, which is not allowed under government regulations, and increased billing by inappropriately unbundling claims for cardiac and anesthesia services. Former Duke PRMO, LLC employee Leslie Johnson filed the qui tam suit on behalf of the government. >> Read More.
  • Okland Construction Co. Inc. will pay $928,000 to resolve allegations that it submitted false claims under the Small Business Administration’s mentor-protégé program. The complaint alleged that Okland Construction did not form a qualifying joint venture with Saiz Construction and thus was not eligible to jointly bid on or perform the primary functions of 8(a) contracts (mentor-protégé program). Okland Construction allegedly misrepresented to the government that its employees were employees of Saiz Construction. The government also alleged that Okland Construction’s relationship with Saiz Construction violated the terms of an SBA set-aside contract awarded to Saiz Construction that required Saiz Construction to perform at least 15 percent of the labor on the contract minus the cost of materials. The suit was filed by Abel Saiz (owner of Saiz Construction), he will receive of $148,480. >> Read More.
  • American Family Care will pay $1.2 million to resolve allegations that it knowingly submitted claims to Medicare for visits that were billed at  higher rates than was appropriate. The allegation claims that American Family Care knowingly selected codes for services that exceeded those actually provided in order to artificially increase reimbursement amounts. The qui tam suit was filed by former American Family Care employee Anita C. Salters. >> Read More.
  • Memorial Hospital, an Ohio acute care hospital in Fremont, Ohio, agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute. The settlement involved allegations that financial relationships that Memorial had with two physicians – a joint venture between Memorial and a pain management physician and an arrangement under which an ophthalmologist purchased intraocular lenses and then resold them to Memorial at inflated prices - violated statutory requirements. The State of Ohio, which paid for some of the Medicaid claims at issue, will receive $600,383 of the settlement amount. >> Read More.
  • Pharmaceutical manufacturer Teva Pharmaceuticals USA Inc. and a subsidiary, IVAX LLC, have agreed to pay the government and the state of Illinois $27.6 million for making payments to induce prescriptions of an anti-psychotic drug for Medicare and Medicaid beneficiaries. The settlement resolves allegations that Teva and IVAX made payments to Dr. Michael J. Reinstein, to induce the prescription of generic clozapine.  The payment scheme began in August 2003, when Dr. Reinstein agreed to switch his patients to generic clozapine if IVAX agreed to pay him a $50,000 “consulting agreement” and to provide other benefits. Clozapine is generally considered a drug of last resort. While clozapine is approved for treatment-resistant forms of schizophrenia, clozapine  has serious potential side effects including a potentially deadly decrease in white blood cells, seizures, inflammation of the heart muscle and increased mortality in elderly patients. Civil action against Reinstein remains pending in the Northern District of Illinois. >> Read More.
  • Sea Star Line and Horizon Lines have agreed to pay $1.9 million and $1.5 million respectively, to resolve allegations that they violated the False Claims Act by fixing the price of government cargo transportation contracts between the continental United States and Puerto Rico. Former executives of Sea Star and Horizon Lines used personal email accounts to share confidential bidding information, thereby enabling each of the shippers to know the transportation rates that its competitor intended to submit to federal agencies for specific routes. Former Sea Star Line executive William B. Stallings filed the lawsuit. He will receive $512,719 of the recovered funds. >> Read More.
  • The parent company for Hospice Compassus has agreed to pay $3.92 million to settle allegations that the company submitted false reimbursement claims to the federal government for hospice care to patients who were not eligible for such care. The settlement results from whistleblower lawsuits filed by two former Hospice Compassus employees. They will receive approximately $712,000 of the settlement. >> Read More.
  • Lantheus Medical Imaging & Bristol-Myers Squibb have agreed to pay $6.2 million to New York State and New York City to settle a whistleblower-initated case involving their failure to pay corporate taxes from 2002 to 2006, when Lantheus was known as Bristol-Myers Squibb Medical Imaging.  This is one of the first successful cases under the tax provisions of the New York State False Claims Act.  >> Read More
  • Halifax Hospital agreed to pay a record-setting $85 million settlement in a whistle-blower lawsuit that alleged more than a decade of illegal kickbacks to physicians and Medicare fraud. To date the largest amount ever paid in a Stark violation came from Tuomey Healthcare systems in South Carolina, which paid $39.3. The lawsuit was first filed in 2009 by Halifax Health employee Elin Baklid-Kunz, a former compliance officer for the 678-bed Daytona Beach hospital. She will receive a 24. 5 percent relator’s share as part of the settlement. Additionally, Halifax must enter a corporate integrity and compliance program. >> Read More.
  • Shell Oil Co. will pay the state of Massachusetts $4 million to resolve allegations that it improperly siphoned money from a fund to help clean up environmentally contaminated gas stations. Shell tapped into the state’s Underground Storage Tank Petroleum Product Cleanup Fund even though it received insurance payments to cover the cost of cleaning contamination at its gas stations. Shell will pay the state $2 million and pay back the fund more than $1.9 million. >> Read More.
  • Florida-based physician, Dr. Steven Chun, has agreed to pay $750,000 to resolve allegations that he and his clinic billed Medicare for physician office visits that he did not perform. The allegations covered by the settlement were raised in a lawsuit filed by Cathia Gavin and Penelope Thomas, who both formerly worked as nurses for Dr. Chun. In addition to the $750,000 payment, Dr. Chun will enter into a three-year Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. >> Read More.
  • Dr. John Kiely, an ophthalmologist based in Lutherville, Maryland, will pay the United States $1.4 million to settle claims under the federal False Claims Act that he submitted and caused the submission of false claims by Bon Secours Hospital to Medicare and Medicaid programs. Dr. Kiely had submitted claims to Medicare and Medicaid for laser eye procedures that fell outside of the medical standard of care, and therefore could not be reimbursed by Medicare or Medicaid. >> Read more.

  • West Penn Allegheny Health Systems, Inc. (WPAHS) has agreed to pay the United States over $1.5 million to settle False Claims Act allegations. WPAHS allegedly leased space to physicians at below-market rates to induce referrals of patients to WPAHS, which violated the Anti-Kickback Statute and Stark Law. These referrals, the United States alleged, resulted in improper claims being submitted to federal health care programs. >> Read More.

  • Valley Heart Consultants, Drs. Carlos Mego and Subbarao Yara, have agreed to pay $3.9 million to settle a suit brought by the United States alleging violations of the federal false claims act. The lawsuit alleged that from 2004 to 2010, Drs. Mego and Yara billed Medicare for nuclear stress tests and physical examinations which were allegedly substandard. The investigation which led to the settlement arose from a qui tam lawsuit filed in 2007 by two former employees of Valley Heart Consultants. >> Read More.

February 2014:

  • Doshi Diagnostic Imaging Services P.C. and its parent company, Diagnostic Imaging Group LLC has agreed to pay the federal government and the states of New York and New Jersey a total of $15.5 million to settle allegations that they billed Medicare and Medicaid for enhanced three-dimensional (3D) images -when a patient had certain CT scans done - even though the enhanced 3D images weren't ordered by the patient's doctors, weren't medically necessary and often were never even taken. The qui tam lawsuits were filed "under seal" in 2009 and 2010 in district courts in New Jersey and Brooklyn, New York.>>Read More.
  • Diagnostic Imaging Group (DIG) has agreed to pay a total of $15.5 million to resolve allegations that falsely billed federal and state health care programs for tests that were not performed or not medically necessary and by paying kickbacks to physicians. The federal government will receive $13.65 million of the settlement and the remaining $1.85 million will go to New York and New Jersey. The allegations resolved by the settlement were raised three whistleblowers: Mark Novick, M.D., Rey Solano and Richard Steinman, M.D. They  will receive $ 1.5 million , $ 1.07 million and $ 209,250 , respectively, as part of today’s settlement. >> Read More.
  • Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. have agreed to pay $192.7 million to resolve criminal and civil liability arising from  marketing of the prescription drug Lidoderm. The resolution includes a deferred prosecution agreement and forfeiture totaling $20.8 million and civil false claims settlements with the federal government and the states and the District of Columbia totaling $171.9 million. As part of the settlement, Endo Pharmaceuticals Inc. has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services Office. >> Read More.
  • EndoGastric Solutions Inc., a medical-device manufacturer, has agreed to pay the federal government up to $5.25 million to resolve allegations that it encouraged doctors to over-charge federal health-care programs for a procedure using their device.  The government also alleged the company paid kickbacks to physicians to induce them to use the device. >> Read More.
  • Vector Planning and Services Inc. (VSPI), an information technology and consulting firm has agreed to pay the government $6.5 million to settle False Claims Act allegations that the company inflated claims for payment under several Navy contracts. The government alleged that, from 2005 to 2009, VPSI inflated its indirect cost billings to the government by improperly including direct costs, for which it had already been paid, in indirect cost accounts that were then allocated across its government contracts and billed again. The government further alleged that VPSI submitted claims for other costs that were never incurred. >> Read More.
  • The A.I.M. Center, Inc. (AIM), which operates a community mental health facility located in Chattanooga, Tenn., has agreed to pay $800,000 to settle allegations that it violated the federal False Claims Act (FCA) and the Tennessee Medicaid False Claims Act (TNMFCA). The government alleged that from 2009 through 2012, the AIM Center knowingly submitted numerous false claims to the TennCare/Medicaid program by overcharging for psychosocial rehabilitation (PSR) services and engaged in "upcoding" by submitting claims for services that were more lengthy and more expensive than the services actually provided. >> Read More.
  • MPRI Inc. has agreed to pay $3.2 million to resolve allegations that it submitted false labor charges on a contract to support the Army in Afghanistan. The government alleged that MPRI billed for employees who had not worked because they had been granted leave and were out of the country.  The alleged false billing occurred between March 2005 and October 2010. >> Read More.
  • Foley Family Property Management, Inc., a California company, has agreed to pay $640,000 to settle allegations that the company submitted false claims to the U. S. Department of Housing and Urban Development in violation of the federal False Claims Act. The settlement resolves allegations the company submitted false claims to HUD’s Section 8 multi-family housing program from November 2005 through January 2011.  The government contended that the company submitted claims to HUD for foreign citizens who were not eligible for Section 8 assistance because they were not in the United States lawfully. >> Read More.
  • SelfRefind, a chain of addiction treatment clinics, PremierTox LLC, a clinical laboratory that performs urine testing and Drs. Bryan Wood and Robin Peavler, the owners of SelfRefind and PremierTox, have agreed to pay $15.75 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Kentucky’s Medicaid program for tests that were medically unnecessary, more expensive than those performed or billed in violation of the Stark Law. Of the total $15.75 million settlement amount, the federal share is $13.01 million, and the remaining $2.74 million will be paid to the Commonwealth of Kentucky. >> Read More.
  • JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).  As part of the settlement,  JPMC admitted that for more than a decade, it approved thousands of ineligible FHA loans and hundreds of VA loans. >> Read More.
  • Howard Aleff and Reena Slominski, a married couple from Knoxville, Iowa, have entered into a civil judgment with the United States and will pay over $1.3 million to the federal government for allegedly submitting 132 false claims to the U.S. Department of Agriculture and the Farm Services Agency. >> Read More.

  • Sanborn Map Company Inc. will pay $2.1 million to the U.S. government to resolve allegations that it submitted false claims in connection with U.S. Army Corps of Engineers contracts. From 2005 to 2011, Sanborn worked with the U.S. Army Corps of Engineers to produce maps for U.S. convoy routes in Iraq and other military and civilian projects. The company allegedly used unapproved foreign contracts to save money, which violated contractual obligations. The allegations arose from a qui tam lawsuit filed by James Peterson, a former Sanborn employee. Peterson’s share of the settlement has not yet been determined. >> Read More.

  • Medicus Laboratories, LLC will pay $5 million and to enter into a 5-year Corporate Integrity Agreement to settle allegations that Medicus submitted false or fraudulent claims to Medicare. Specifically, the Office of the Inspector General contended that Medicus knowingly presented multiple, prohibited claims to Medicare for a single patient encounter and submitted claims for other laboratory tests not covered by Medicare. >> Read More.

  • Dr. Steven Chun, a Florida-based physician and the owner of Sarasota Pain Associates, has agreed to pay $750,000 to resolve allegations that he billed Medicare for physician office visits that he did not perform. The allegations covered by this settlement were initially raised in a qui tam lawsuit filed by Cathia Gavin and Penelope Thomas, both former nurses who worked with Dr. Chun. >> Read More.

  • Omnicare Inc. has agreed to pay the government $4.19 million to settle allegations that it engaged in an illegal kickback scheme in violation of the False Claims Act. The civil settlement resolves a qui tam lawsuit filed by an unnamed whistleblower; their share in the settlement is $397,925. >> Read More.

January 2014:

  • Saint Joseph Health System Inc. will pay $16.5 million to resolve allegations that it violated the False Claims Act by submitting claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary cardiac procedures. The government alleged that doctors performed numerous invasive cardiac procedures, including coronary stents, pacemakers, coronary artery bypass graft surgeries and diagnostic catheterizations, on Medicare and Medicaid patients who did not need them. The complaint was filed by three Lexington, Ky. cardiologists, they will receive a total of $2.46 million of the $16.5 million settlement. >> Read More.
  • General Electric Hitachi Nuclear Energy Americas LLC (GE Hitachi) has agreed to pay $2.7 million to resolve allegations that it made false statements and claims to the Department of Energy and the Nuclear Regulatory Commission (NRC) concerning an advanced nuclear reactor design. GE Hitachi allegedly made false statements to the NRC and Department of Energy about a component of the advanced nuclear Economic Simplified Boiling-Water Reactor (ESBWR) known as the steam dryer.  The NRC requires that applicants for nuclear reactor design certification, such as GE Hitachi, demonstrate that vibrations caused by the steam dryer will not result in damage to a nuclear plant.  The government alleged that GE Hitachi concealed known flaws in its steam dryer analysis and falsely represented that it had properly analyzed the steam dryer in accordance with applicable standards. LeRay Dandy, a former employee of GE Hitachi, filed the suit on behalf of the government. >> Read More. 
  • Ohio based Basco Manufacturing Co. will pay $1.1 million to resolve allegations that it violated the False Claims Act by submitting false customs declarations on aluminum extrusions from China. The suit alleges Basco engaged in an illegal practice known astransshipping to avoid paying required duties by shipping aluminum extrusions through Malaysia. Basco allegedly knew the aluminum extrusions were merely repackaged in Malaysia and had not undergone any substantial transformation that would have justified the changing of the product’s country of origin. >> Read More.
  • RehabCare Group Inc., Health Systems Inc. and its affiliate, Rehab Systems of Missouri L.L.C have agreed to pay $30 million to settle False Claims Act violations in connection to an illegal kickback scheme allegation. According to the complaint, RehabCare allegedly obtained contracts to provide therapy to patients in 60 Rehab Systems nursing homes in exchange, for a payment of $400,000 to $600,000 upfront and allowed Rehab Systems to retain a percentage of the revenue generated by each referral.>> Read More.
  • St. James Healthcare and its parent company, Sisters of Charity of Leavenworth Health System have agreed to pay $3.85 million to resolve allegations that they violated the Anti-Kickback Statute, the Stark Law and the False Claims Act. The settlement resolves allegations that St. James and Sisters of Charity provided improper financial incentives to physicians and physician groups. These incentives included payments that increased the share values for the physicians and physician groups in a joint venture that resulted in below fair market value lease rates for the physicians renting space in a medical office building. Additional incentives included below fair market value lease rates for the land upon which a medical office building was constructed and other below fair market value arrangements related to shared facilities, use and maintenance. >> Read More.
  • Florida physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he knowingly billed Medicare for vein injections and physician office visits performed by unqualified personnel. Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office and allegedly performed unnecessary vein injections and ultrasound imaging procedures. Further, unqualified personnel allegedly met with patients at Sharma’s Life’s New Image Clinic, a weight loss clinic in the Tampa, and were billed as physician office visits using Sharma’s Medicare provider number. The allegations were originally filed by Patti Lovell, former office manager for Sharma. >> Read More.
  • St. Mary Medical Center (SMMC) will pay over $2.3 million to the federal government to resolve allegations of improperly administering certain physician income guarantee agreements. Between 2005 and 2010, SMMC had 15 physician income guarantee agreements for recruited physicians and failed to properly administer the terms of certain recruitment contracts, resulting in net overpayments to certain recruitment physicians. Because some of these physicians billed to federally funded programs, the United States alleged that false claims were submitted to the government. >> Read More.

  • Taylor, Bean & Whitaker Mortgage Corporation and Home America Mortgage, Inc. have agreed to pay the United States $320 million to settle allegations that they falsified loan applications to secure federally funded insurance for home loans that ultimately defaulted. The lawsuit was initiated in 2006  by former Home America Vice President of Operations Stephanie Kennedy and former Home America loan processor Comfort Friddle. Their share of the settlement has not yet been released. >> Read More.

  • Dr. Abhijit Deshpande, a Washington state-based physician, has agreed to pay the United States over $89,000 to resolve allegations that his clinics incorrectly overbilled federal and state healthcare programs between 2009 and 2011, violating the False Claims Act. Dr. Deshpande accepted responsibility for these billing errors and working with the United States and the State of Washington to obtain a mutually agreeable resolution to these allegations. >> Read More.

  • CareFusion Corp. will pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses unapproved by the Food and Drug Administration. The settlement resolves a qui tam lawsuit filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion. Her share of the settlement is $3.26 million. >> Read More.

  • Cadillac Asphalt LLC and Michigan Paving and Materials CO., will pay $3.8 million to the federal government to resolve allegations that they falsely claimed Disadvantaged Business Enterprise credits on a number of federally funded transportation projects. The allegations resolved by the settlement involved numerous federally funded transportation projects in Michigan between 2006 and 2010. >> Read More.

  • Michael R. Barr, a former chief executive of Kentucky-based HealthEssentials Solutions Inc., has agreed to pay $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004. The allegations resolved by the settlement arose in part from a qui tam lawsuit filed by former HealthEssentials employees Michael and Leigh RoBards. Mr. and Mrs. RoBards will receive a total of $153,000 from the settlement. >> Read More.

  • Stanley J. Swierzewski III, a Longmeadow, Massachusetts-based urologist, has agreed to pay the United States government $300,000 amidst allegations that he improperly billed Medicare for services under the “incident” to billings provisions of the Medicare program, violating the False Claims Act. >> Read More.

  • The City of New York Department of Education (DOE) has agreed to pay the federal government $1.375 million to settle allegations that the DOE submitted false claims to Medicaid for psychological counseling services to special education students in New York City public schools. A qui tam lawsuit filed by Dana Ohlmeyer prompted the investigation; she will receive $206,250 as her share of the settlement. >> Read More.

  • Tennessee Orthopedic Clinics P.C. and Appalachian Orthopedic Clinics P.C. will pay a combined $1.85 million to resolve allegations of violating both state and federal False Claims Acts. The clinics allegedly knowingly billed state and federal health care programs for medications that had been bought at discounted prices. The investigation was prompted by a qui tam lawsuit filed by Douglas Estey, a physician’s assistant; Estey will receive $323,750. >> Read More.

  • Dowson Farms, an Illinois-based family farm business, paid over $5.3 million to the United States to resolve allegations that it conspired to avoid statutory caps on federal farm subsidy payments from 2002 through 2008.The principal owners of the farm violated the False Claims Act by creating multiple entities, falsely claiming that these entities were actively engaged in farming separate and distinct from Dowson Farms. The settlement was reached out of court between Dowson Farms and the United States. >> Read More.

  • BioScrip will pay $15 million to resolve allegations under the False Claims Act that they received kickbacks from Novartis in exchange for recommending refills to patients. Novartis allegedly provided kickbacks to BioScrip, in the form of patient referrals and in the guise of rebates, in exchange for BioScrip recommending refills to its Exjade patients. Former Novartis sales representative Oswald Bilotta, filed the qui tam suit.  Bilotta’s portion of the settlement has not yet been determined. >> Read More.

December 2013:

  • Abbott Laboratories agreed to pay $5.4 million to resolve allegations that it knowingly paid kickbacks to prominent physicians for teaching assignments, speaking engagements and conferences with the expectation that these physicians would arrange for the hospitals with which they were affiliated to purchase Abbott’s carotid, biliary and peripheral vascular products. Steven Peters and Douglas Gray, former Abbott employees, originally brought the allegations. Peters and Gray will receive a total payment of more than $1 million. >> Read More.
  • Rural-Metro Corporation will pay $2.8 million to settle allegations that from 2007 to 2011 its ambulance divisions were falsely billing patient transports as emergencies in order to bill Medicare at higher rates. According to the complaint, after transporting patients from one hospital to another, Rural-Metro billed Medicare for the services and classified them falsely as emergencies, which are billed at a substantially higher rate. >>Read More.
  • Genzyme Corp. has agreed to pay a $22.3 million to settle off-label marketing allegations surrounding the sales of Seprafilm (a thin, hyaluronic acid-based membrane first approved in 1996 for use during surgery to prevent organs and muscle tissue from adhering). In the complaint, two former Genzyme sales representatives alleged that sales representatives taught doctors to use Seprafilm in other kinds of surgery - such as laparoscopic ones - by mixing it into a liquid and injecting it into the body. Relator shares have not released.  >> Read More.
  • Giga Inc will pay $300,000 to settle allegations that it sold the General Services Administration Chinese-made boots in violation of the Trade Agreements Act. According to the allegation, Giga violated the TAA by concealing the true origin of the boots it was selling to the agency. The settlement requires Giga to pay $300,000 in 24 monthly installments of $12,500 apiece. >> Read More.
  • Northrop Grumman will pay $11.4 million to settle allegations that it failed to abide by a 2002 settlement agreement with the Defense Contract Management Agency (DCMA). The government alleged that Northrop charged to its federal contracts certain costs for deferred compensation awards to key employees, even though it had promised not to do so as part of the earlier 2002 settlement. Consequently, the government was induced to pay more than $1.9 million in unallowable costs on thousands of vouchers and invoices. >> Read More.
  • Caremark LLC will pay the government and five states a total of $4.25 million to settle allegations that it knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who were eligible for drug benefits under Caremark-administered private health plans.  According to the complaint, Caremark allegedly used a computer claims processing platform called “Quantum Leap” to cancel claims for reimbursement submitted by Medicaid for dual eligibles. The government alleged that Caremark’s actions caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid. Janaki Ramadoss, a former Caremark quality assurance representative, filed the lawsuit. Ramadoss will receive approximately $505,680 as part of the settlement. >> Read More. 

  • Lymphedema & Wound Care Institute Inc., paid $4.3 million to settle allegations they submitted claims to Medicare for physical therapy treatments provided by unqualified therapists. The complaint alleged that from January. 2, 2006 through Sept. 12, 2012, Lymphedema billed Medicare for providing manual lymphatic drainage therapy to Medicare beneficiaries using massage therapists as opposed to physical therapists as required under the rules and regulations governing the Medicare program. A physician who specializes in manual lymphatic drainage treatments filed the suit; the whistleblower will receive 19% of the proceeds of the settlement. >> Read More.

  • Adventist Health System settled a qui tam lawsuit brought forth by two whistleblowers for an undisclosed amount and an Order of Dismissal was entered into the United States District Court for the Middle District of Florida on December 18, 2013. The lawsuit was originally filed in 2010 by Amanda Dittman and Dr. Charlotte Elenberger, both formerly affiliated with Florida Hospital Orlando. The lawsuit alleged violations of the federal False Claims Act, including rampant overbilling of federal and state healthcare programs. >> Read More.

  • Dr. Elie Korban, a Tennessee cardiologist, will pay $1.15 million to the federal government to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements. The allegations arose from a qui tam lawsuit filed by Dr. Wood M. Deming, who will receive an undetermined share of the settlement amount. >> Read More.

  • Gosselin Worldwide Moving, an overseas shipping company based out of Belgium, was accused of allegedly inflating shipping costs across channels and submitting a fraudulent certificate of independent pricing for government reimbursement. Gosselin will pay a $24 million civil penalty to the federal government. >> Read More.

  • St. James Healthcare, a hospital located in Butte, Montana, has agreed to pay $3.85 million to the federal government amidst allegations that it violated the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital. >> Read More.

November 2013:

  • Westland-Hallmark Meat packing Co. agreed to pay $3,116,802 for violating the False Claims Act for failing to provide humane treatment to animals sent to its facilities per terms of its contract with the federal government. Hallmark Meat Packing Co. was a federal contractor to the National School Lunch program. >> Read More.

  • Johnson & Johnson and its subsidiaries agreed to pay more than $2.2 billion to resolve criminal and federal liabilities arising from allegations that the global healthcare giant violated the False Claims Act. Johnson & Johnson allegedly promoted the drugs Risperdal, Invega, and Natrecor for uses not approved by the Food and Drug Administration, and paid kickbacks to physicians and pharmacy providers. >> Read More.

  • Specialty Hospitals of America, LLC will pay $4.2 million to resolve allegations that it knowingly received reimbursement for inflated Medicare claims. The settlement resolves a lawsuit filed under the qui tam provisions of the False Claims Act by James Roark, Sr., a former employee of SHA. Mr. Roark will receive $798,000 as a relator’s share. >> Read More.

  • LG Chem Michigan, Inc. will pay the United States over $1.2 million to resolve allegations that the company improperly sought and obtained federal funds to pay employees who were engaged in recreational and volunteer activities. >> Read More.

  • Iraqi Consultants and Construction Bureau (ICCB) has paid the United States $2.7 million to resolve allegations that it violated the False Claims Act by bribing a government official to obtain United States government contracts in Iraq. The government alleged that between 2007 and 2008, ICCB paid brides to an Army Corps of Engineers procurement official to obtain advantageous information on several construction contracts with the Department of Defense in Iraq, and then knowingly overcharged the United States for services provided under those contracts. >> Read More.

  • AT&T has agreed to pay $3.5 million to settle allegations that it violated the False Claims Act by overbilling the Telecommunications Relay Services (TRS) Fund. The government alleged that between 2009 and 2011, as much as 80% of the calls for which AT&T claimed reimbursement were ineligible because the calls did not originate in the U.S. or were not placed by hearing- or speech-impaired individuals. The government’s investigation was initiated by a qui tam lawsuit filed by Constance Lyttle, who will receive $525,000. >> Read More.

  • Formosa Plastics Corp. USA has agreed to pay $23 million to settle a False Claims Act lawsuit alleging that the company knowingly made and sold substandard plastic  pipes that were later used to build water and sewer systems in several states. The case stems from a qui tam lawsuit filed in 2006 from a former quality assurance engineer, John Hendrix. >> Read More.

  • Baptist Health Systems has agreed to pay $3,675,000 to settle allegations that it violated the federal False Claims Act by filing false claims for reimbursement under the Medicare program. The federal investigation was triggered by a qui tam lawsuit filed by Norma Rivera; she will receive $661,500 as her share of the settlement. >> Read More.

  • The Ensign Group Inc., a nursing provider company based in Mission Viejo, CA, has agreed to pay $48 million to the federal government to resolve allegations that it knowingly submitted false claims to Medicare for medically unnecessary rehabilitation therapy services between 1999 and 2011. The allegations arose from qui tam lawsuits filed by two former Ensign therapists, Gloria Patterson and Carol Sanchez. Their share of the settlement had not yet been determined. >> Read More.

  • Lynch Ambulance Service has agreed to pay the United States over $3 million to settle a False Claims Act lawsuit for allegedly receiving overpayments from Medicare and other federal health care agencies for transporting ineligible patients. The settlement resolves a qui tam lawsuit filed by two former Lynch Ambulance employees, Jamie Weatherly and Dawn Lucero. >> Read More.

  • FreshPoint Inc., a Houston, Texas-based food distribution company and a subsidiary of Sysco Corp., has agreed to pay the federal government $4.2 million to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts. The allegations arose from a qui tam lawsuit filed by Charles Hall, a former FreshPoint employee. He will receive $798,000. >> Read More.

  • Vantage Oncology LLC has agreed to pay the federal government more than $2.08 million to settle allegations that it submitted false claims to Medicare for radiation oncology services performed at its Illinois centers from 2007 through 2012. The government alleged that Vantage double billed and overbilled Medicare for certain procedures and improperly billed for radiation treatment provided to patients without proper physician supervision. The settlement resolves a qui tam lawsuit filed by former Vantage employee Suleiman Refaei, who will receive $354,450. >> Read More.

  • CA Technologies will pay $11 million to settle allegations that they violated the federal False Claims Act and similar state and local statutes through the fraudulent billing of hundreds of public agencies on software maintenance renewal contracts from 2001 through 2009. The allegations settled were first asserted by former CA Technologies employee Ann Marie Shaw in a whistleblower qui tam lawsuit filed on July 18, 2006.  Shaw will receive approximately $2 million. >> Read More.

October 2013:

  • Boston Scientific Corp. and its subsidiaries have agreed to pay $30 million to resolve allegations that between 2002 and 2005 it knowingly sold defective heart devices to health care facilities that implanted the devices into Medicare patients. The qui tam lawsuit was initiated by James Allen, who had received one of the defective devices. As part of the settlement, Mr. Allen will receive $2.25 million. >> Read More.

  • Siouxland Community Health Center (SCHC), a community health center in Sioux City, Iowa, has agreed to pay $200,000 to resolve allegations that it violated both the Federal and the state of Iowa’s False Claims Act. SCHC allegedly improperly submitted claims to Iowa Medicaid for dental outreach services performed on children ineligible for these services. >> Read More.

  • Dr. Jun Xu and Rehabilitation Medicine and Acupuncture Center of Riverside, CT, have agreed to pay $300,000 to settle allegations of False Claims Act violations. Dr. Xu allegedly submitted fraudulent billings to Medicare for physical therapy purposes. >> Read More.

  • Kmart Corporation has agreed to pay the United States a total of $2,550,000 to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs including Medicare and Medicaid. >> Read More.

  • Global Medical Direct LLC, and it owners will pay $7 million to resolve False Claims Act allegations. The lawsuit alleged that Global Medical Direct compensated insurance brokerage firms and other companies based on the number of patients referred back to them for diabetic supplies, violating Anti-Kickback Statutes. >> Read More.

  • Omnicare Inc., the largest provider of pharmaceuticals and pharmacy services to nursing homes in the U.S., has agreed to pay $124.4 million for allegedly offering improper financial incentives to nursing facilities in return for their continued patronage of Omnicare to supply drugs to elderly Medicare and Medicaid patients. The settlement resolves allegations brought by two whistleblowers under the qui tam provisions of the False Claims Act. One of the whistleblowers, Donald Gale – a former Omnicare employee, will receive $17.24 million. >> Read More.

  • Hospice of the Comforter (HOTCI), based in Orlando, Florida, has agreed to pay $3 million to resolve allegations of submitting false claims to Medicare for hospice services provided to patients who were not eligible for Medicare hospice benefits. The allegations settled arose from a lawsuit filed by  former HOTCI employee, Douglas Stone, under the qui tam provisions of the False Claims Act. >> Read More.

  • Axway, Inc. will pay $6.2 million to settle allegations that it provided the General Services Administration (GSA) with defective pricing information in order to  obtain a contract with the GSA that permitted them to sell software licenses and related services to federal agencies at inflated prices. The settlement resolves a lawsuit filed under the qui tam provisions of the False Claims Act by Kenneth Marcus, a former employee of Axway.  Mr. Marcus will receive an award of $1.17 million. >> Read More. 

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