As of July 08, 2011

FY 2011 False Claims Act Settlements

To compare these results to last year's statistics >> click here


Major False Claims Act Cases
Resolved in Fiscal Year 2011


Company Amount Date Nature of the fraud
CSI Engineering, CSI Design Build, and company president Debdas Ghosal $200,000.00 10/1/2010 used false statements to obtain contracts from several government agencies (HUBZone) 
Saehan Bank  $2,200,000.00 10/4/2010 misrepresented or withheld information to induce the SBA to fund a loan under the SBA’s 504 loan program
Dartmouth College  $275,000.00 10/4/2010 engaged in improper conduct with respect to six contracts between the College and the Veterans Affairs Medical Center in White River Junction, Vermont
Christus Health Systems $970,987.00 10/6/2010 billed Medicare for ineligible costs and expenses and failed to disclose overpayments
40 Pharmaceutical Companies $82,000,000.00 10/6/2010 published inflated prices for prescription drugs, which caused the overpayment of millions of dollars in drug costs
Edward J. Quinn  $395,000.00 10/7/2010 improperly billing Medicare for uncovered thoracic electrical bioimpedance tests
McKesson Corporation  $24,000,000.00 10/18/2010 inflated the average wholesale prices for over 400 pharmaceuticals
Quicksort, Inc., Quicksort LA Inc., and Quicksort Sacramento Inc.  $4,200,000.00 10/20/2010 misrepresented the pre-sort level of mail submitted to the U.S. Postal Service
ELA Medical, Inc $10,000,000.00 10/25/2010 billing and kickback fraud
GlaxoSmithKline (and subsidiary SB Pharmco Puerto Rico Inc) $600,000,000.00 10/26/2010 adulterated drugs made at GSK’s manufacturing facility in Cidra, Puerto Rico.
Rocky Mountain Instrument Company (RMI),  $1,000,000.00 10/29/2010 caused prime defense contractors to submit false claims for payment to the Pentagon and engaged in the illegal export of sensitive technical data
Simi Valley Hospital  $5,150,000.00 11/3/2010 knowingly submitted false claims to Medicare for chemical dependency and psychiatric patient services performed between 1991 and 1997
The Louis Berger Group Inc $46,500,000.00 11/5/2010 overbilled the U.S. government in connection with international contracts for work on behalf of the United States Agency for International Development (USAID) and the U.S. Department of Defense  
Mylan Inc.,  $2,600,000.00 11/8/2010 reported false and inflated prices to drug industry price reporting services
St. Joseph Medical Center  $22,000,000.00 11/9/2010 violated the False Claims Act, the Anti-Kickback Act, and the Stark Law when it entered into a series of professional services contracts with MidAtlantic Cardiovascular Associates (MACVA)
Hewlett-Packard Corporation  $16,250,000.00 11/10/2010 violated the competitive bidding rules of the Federal Communications Commission’s E-Rate Program
CFP Group and company president Roberto Clark  $150,000.00 11/10/2010 used false statements to obtain a contract from the Department of Veterans Affairs. (HUBZone)
Ameritox, Ltd $16,300,000.00 11/16/2010 paid kickbacks to providers to induce them to refer Medicare business
Four student aid lenders (Nelnet Inc. and Nelnet Educational Loan Funding Inc.; Southwest Student Services Corp.; Brazos Higher Education Authority and Brazos Higher Education Service Corp.; Panhandle Plains Higher Education Authority and Panhandle Plains Management and Servicing Corp.) $57,750,000.00 11/17/2010 violated the False Claims Act by improperly inflating their entitlement to certain interest rate subsidies from the U.S. Department of Education.
Surgical Monitoring Systems, Inc. (dba Sentient Medical Systems) and former CEO, Jeffrey H. Owen $2,768,795.00 11/17/2010 improperly billed the Medicare program for an excessive number of monitoring hours and for services provided to multiple patients at the same time.
American Grocers, Inc. and company owner Samir Itani  $13,200,000.00 11/19/2010 engaged in false or fraudulent conduct by shipping food products past or near their expiration dates to United States troops stationed in the Middle East.  
John Carlo Inc. and Angelo Iafrate Construction Company $1,407,000.00 11/19/2010 knowingly submitted false claims related to a federally funded construction project at Detroit Wayne County Metropolitan Airport
Dr. Walter Janke, Lalita Janke, and Medical Resources LLC $22,600,000.00 11/24/2010 submitted false diagnosis codes
CDI Corporation  $1,950,000.00 11/24/2010 wrongfully charged employees’ labor costs to purchase orders that would be reimbursed by the U.S. military.
Dey, Inc.  $3,500,000.00 11/29/2010 reported inflated or bogus average wholesale prices on certain drugs used to treat asthma and chronic obstructive pulmonary disease
Woodhaven Pharmacy Services, Inc. (dba Remedi Seniorcare) $1,279,575.00 12/1/2010 illegally distributed misbranded and adulterated drugs.
Lockheed Martin Corporation  confidential agreement 12/2/2010 safety issues associated with the multi-billion dollar Deepwater contract, which was intended to provide the United States Coast Guard with a reconfigured fleet of 123-foot patrol boats
Matthew Stevens, Michelle Dahlberg, their speech therapy businesses and three hospitals in Eastern Idaho  $2,425,000.00 12/2/2010 used unqualified aides when delivering speech therapy services to outpatients of Eastern Idaho Regional Medical Center, Madison Memorial Hospital, and Idaho Falls Recovery Center.  
Ronald T. Lim  $175,000.00 12/3/2010 submitted or caused to be submitted claims for payment to Medicare and the California Medicaid Program for drugs that were not dispensed to beneficiaries
Abbott Laboratories Inc., B. Braun Medical Inc., Roxane Laboratories Inc. (Boehringer Ingelheim Roxane Inc.) and affiliated entities  $421,000,000.00 12/7/2010 knowingly reported false and inflated prices for numerous pharmaceutical products.  
Kos Pharmaceuticals, (a subsidiary of Abbott Laboratories) $41,000,000.00 12/7/2010 knowingly caused the submission of false or fraudulent claims for payment to federal healthcare programs in association wcholesterol drugs Advicor and Niaspan
Northrop Grumman Corporation $5,210,000.00 12/8/2010 failed to fully disclose cohesion problems with their Advance Topcoat System to the Air Force
Elan Corporation, PLC and Eisai Company, Ltd $214,500,000.00 12/15/2010 off-label marketed the anti-seizure medication Zonegran
Dey Inc., Dey Pharma L.P. (formerly known as Dey, L.P.) and Dey L.P. Inc.  $280,000,000.00 12/20/2010 reported false prices for Albuterol Sulfate, Albuterol MDI, Cromolyn Sodium and Ipratropium Bromide
Ray A. Silao, M.D $92,000.00 12/22/2010 falsely billed Medicare for Thoracic Electrical Bioimpedance (TEB) tests by falsely representing that the patients receiving the tests met applicable Medicare coverage requirements
John D. Archbold Memorial Hospital Inc. $13,900,000.00 12/22/2010  made false representations to the Georgia Department of Community Health.
Detroit Medical Center  $30,000,000.00 12/30/2010 violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute, by engaging in improper financial relationships with referring physicians.  
St. John's Mercy Health Care and St. John's Health System, Inc $2,200,000.00 12/30/2010 improperly billed the federal health care programs for services were not medically necessary or covered.
Seven Hospitals $6,300,000.00 1/4/2011 submitted false claims to Medicare.  (kyphoplasty)
MSO Washington, Inc and Charles Plunkett $565,000.00 1/7/2011 submitted claims to Medicare and Medicaid for reimbursement for medically unnecessary services; services lacking proper documentation; upcoded services; and services that were never rendered
Fastenal Company $6,250,000.00 1/13/2011 submitted false claims in connection with the General Services Administration’s Multiple Award Schedule program
Young Adult Institute, Inc $18,000,000.00 1/18/2011 submitted false claims for Medicaid reimbursement after improperly inflating expense reports
St. Jude Medical Inc $16,000,000.00 1/20/2011 knowingly and intentionally used post-market studies and a patient registry as means to pay kickbacks to induce participating physicians to implant St. Jude pacemakers and implantable cardioverter defibrillators (ICDs) in their patients.
Lockheed Martin Inc $2,000,000.00 1/24/2011 conspired to submit false claims under a contract with the General Services Administration (GSA) in support of the Naval Oceanographic Major Shared Resource Center (NAVO MSRC)
N.I. Teijin Shoji Co. Ltd., aka N.I. Teisho of Japan, and an American subsidiary, N.I. Teijin Shoji (USA) Inc $1,500,000.00 1/25/2011 defective Zylon fiber
Oracle America Inc $46,000,000.00 1/31/2011 violated the False Claims Act and the Anti-Kickback Act
CareSource, CareSource Management Group Co. and CareSource USA Holding Co $26,000,000.00 2/1/2011 defrauded Medicaid by submitting false data and by receiving reimbursements for health care services that were not provided
Actavis Mid-Atlantic LLC and Actavls Elizabeth $170,000,000.00 2/2/2011 overcharging the state Medicaid program
Senior Care Group Inc $953,375.00 2/10/2011 defrauded the Medicare program
Cheyenne Vision Clinic, P.C $235,000.00 2/14/2011 company improperly billed the federal government and the Wyoming Medicaid program for extended color vision exams
Pharmacia Corporation $2,500,000.00 2/18/2011 inflated drug costs
Catholic Healthcare West $9,100,000.00 2/18/2011 seven of its hospitals submitted false claims to Medicare
Alaska DigiTel LLC $1,556,075.00 2/22/2011 submitted false claims to the Federal Communications Commission’s (FCC) Low Income Support Program
Innovative Resources Group, LLC (dba APS Healthcare Midwest) $13,000,000.00 2/22/2011 submitted false claims to Medicaid, through the Georgia Department of Community Health, for specialty services that were not provided
Blue Cross Blue Shield of Illinois $25,000,000.00 2/24/2011 denied nursing care coverage for sick children and fraudulently shifted the cost of this care to the state and federal Medicaid program
Avaya and CIT Group $16,500,000.00 3/4/2011 submitted false claims seeking payment for phone system services to federal and state agencies...Avaya will pay $13.4 million and CIT Group will pay $3.1 million
AstraZeneca Pharmaceuticals LP and AstraZeneca LP $68,500,000.00 3/10/2011 promoted its psychiatric drug Seroquel for unapproved uses
Medline Industries, Inc. and The Medline Foundation $85,000,000.00 3/11/2011 paid kickbacks to hospitals and other health care providers that purchased company products under Medicare and Medicaid
Kellum Family Medical Practice Associates $1,500,000.00 3/21/2011 employed unlicensed personnel to treat Medicare, Medicaid and Tricare patients  
Occidental Petroleum Corporation, Occidental Oil and Gas Corporation, and OXY USA Inc $2,050,000.00 3/22/2011 knowingly underpaid royalties owed on natural gas produced from federal leases
Rex Healthcare $1,900,000.00 4/4/2011 submitted false claims to Medicare
Verizon Communications Inc. $93,525,410.96 4/5/2011 overcharged the General Services Administration (GSA) on invoices dealing with government-wide voice and data telecommunications services contracts
Securitas GmbH Werkschutz  $9,100,000.00 4/5/2011 billed the Army, under contracts to provide security at U.S. Army installations in Germany, for guard hours not actually worked
Dr. William J. Garrity $380,000.00 4/11/2011 improper billing to Medicare
Rickey Kanter (Dr. Comfort) $27,000,000.00 4/11/2011 falsely represented and marketed shoe inserts for diabetic patients
Kevin O'Brien $98,000.00 4/13/2011 falsely billed Medicare for procedures for services not covered by the health care program
CVS Pharmacy Inc $17,500,000.00 4/15/2011 submitted inflated prescription claims to Medicaid
Cardinal Health Inc $8,000,000.00 4/21/2011 paid kickbacks to induce referral orders for its prescription drugs
Norton Healthcare  $782,842.00 4/21/2011 Medicare overbilling
Dyncorp International, LLC (and subcontractor The Sandi Group) $8,700,000.00 4/22/2011 submitted false claims related to a State Department civilian police training program in Iraq
Sunpower Inc. $1,233,829.00 4/22/2011 improperly billed NASA for unallowable organizational costs 
Dartmouth-Hitchcock Medical Center $2,200,000.00 4/26/2011 improperly billed various federal health programs for services performed by resident staff exclusive of sufficient supervision by physicians
Masonicare Health Center  $447,776.00 4/26/2011 false claims claims for leuprolide acetate (Lupron) injections
Par Pharmaceutical Companies, Inc $154,000,000.00 4/27/2011 inflated average wholesale pricing information
Duane Reade Inc. $369,744.00 4/27/2011 submitted false claims to the New York Medicaid program and illegally paid doctors to prescribe more prescription drugs
Innovative Resources Group, LLC (dba APS Healthcare Midwest) $7,500,000.00 5/3/2011 violated the Clean Water Act, the Hazardous Waste Management Act, and the Wetlands Protection Act
FedEx Corp.  $8,000,000.00 5/3/2011 misused security delay codes 
Wheelabrator Technologies Inc. $7,500,000.00 5/3/2011 improperly disposed of contaminated sludge and waste water at its plants . also improperly treated and disposed of ash at its plants
Serono (Serono Laboratories, Inc., EMD Serono, Inc., Merck Serono S.A., and Ares Trading S.A.) $44,300,000.00 5/4/2011 paid kickback to health care providers to induce them to promote or prescribe Rebif
Quest Diagnostics $241,000,000.00 5/9/2011 did not comply with California's "comparable charge" regulations.  This resulted in overpayments by Medi-Cal, the state's Medicaid program, for laboratory testing services.
Shell Oil Company $2,200,000.00 5/10/2011 underpaid royalties owed on natural gas produced from federal leases
Fresenius Medical Care AG (Renal Care Group, Renal Care Group Supply Company, and Fresenius Medical Care Holdings, Inc.) $82,600,000.00 5/26/2011 fraudulently billed the Medicare program for supplies and equipment provided to End Stage Renal Disease patients
Areté Sleep LLC, Areté Sleep Therapy LLC and Areté Holdings LLC  $650,000.00 5/26/2011 submitted false claims to Medicare
American Medical Response  $2,700,000.00 5/26/2011 knowingly submitted falsely inflated claims through its Brooklyn and Long Island offices
Gentiva Health Services  $12,500,000.00 6/1/2011 billed Medicare for advertising costs and other related expenses that are not covered by the program
Dr. Mark W. Izard $2,200,000.00 6/1/2011 fraudulently billed Medicare and Medicaid for medical services that he did not provide
Ultralife Corporation $2,700,000.00 6/2/2011  failed to provide current, accurate and complete cost and pricing data related to three contracts with the U.S. Army
The City of Dallas  $2,470,000.00 6/7/2011 knowingly defrauded Medicare and the Texas Medicaid program by miscoding claims submitted to the programs
Midtown Imaging LLC  $3,000,000.00 6/8/2011 ubmitted false claims to Medicare from 2000 through 2008 by entering into improper leasing and professional services agreements with certain referring physicians and physician groups
UCB Inc $34,000,000.00 6/9/2011 illegal promotion of Keppra
Novo Nordisk, Inc.  $1,725,000.00 6/10/2011 allegations involving the diabetes drugs Novolin, Novolin 70/30, Novolog, and Novolog 70/30
Novo Nordisk, Inc.  $25,000,000.00 6/10/2011 off-label marketed the hemophilia drug NovoSeven
The Institute of International Education $1,000,000.00 6/16/2011 submitted false claims for payment to the State Department in connection with the funding it received to administer the Fulbright Program
Fluor Hanford Inc.,  $4,000,000.00 6/17/2011 knowingly submitted false claims and paid and received kickbacks relating to a contract to operate and manage mixed radioactive waste
Anadarko Petroleum Corporation, Kerr-McGee Corporation and their affiliates  $17,000,000.00 6/20/2011 knowingly underpaid royalties owed on natural gas produced from federal and Indian leases
GlaxoSmithKline LLC and SB Pharmco Puerto Rico Inc.  $40,750,000.00 6/23/2011 failed to comply with federal manufacturing guidelines in the production Kytril, Bactroban, Paxil and Avandamet
Pinelake Regional Hospital, LLC d/b/a Jackson Purchase Medical Center  $998,770.74 6/27/2011 inappropriately submitted additional charges to Medicare for certain inpatient admissions when, in fact, they should have been billed as outpatient admissions
Dr. Rakesh Nathu $5,700,000.00 6/30/2011 submitted false claims to federal health care programs for various radiation oncology service
Academy for Educational Development    6/30/2011 submitted false claims to the United States Agency for International Development (USAID) in connection with contracts to provide aid in Afghanistan and Pakistan
Armor Group North America Inc.and affiliates $7,500,000.00 7/7/2011 submitted false claims for payment involving a State Department contract
Total $3,349,889,179.70