As of October 25, 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
GlaxoSmithKline (and subsidiary SB Pharmco Puerto Rico Inc) $600,000,000 10/26/2010 adulterated drugs made at GSK’s manufacturing facility in Cidra, Puerto Rico

(plus 150 million criminal penalties)
Abbott Laboratories Inc., B. Braun Medical Inc., Roxane Laboratories Inc. (Boehringer Ingelheim Roxane Inc.) and affiliated entities  $421,000,000 12/7/2010 knowingly reported false and inflated prices for numerous pharmaceutical products
Dey Inc., Dey Pharma L.P. (formerly known as Dey, L.P.) and Dey L.P. Inc.  $280,000,000 12/20/2010 reported false prices for Albuterol Sulfate, Albuterol MDI, Cromolyn Sodium and Ipratropium Bromide
Quest Diagnostics $241,000,000 5/19/2011 failed to comply with California's "comparable charge" regulations

(State False Claims Act)
Elan Corporation, PLC and Eisai Company, Ltd $214,500,000 12/15/2010 off-label marketed the anti-seizure medication Zonegran
Actavis Mid-Atlantic LLC and Actavls Elizabeth $170,000,000 2/2/2011 overcharged the state Medicaid program

(State False Claims Act Case - Jury verdict on appeal)
Par Pharmaceuticals, Inc. and Par Pharmaceuticals Companies, Inc.  $154,000,000 8/24/2011 reported inflated average wholesale pricing information that caused government entities to pay inflated reimbursements for drugs under Medicare and Medicaid
Maxim Healthcare Services, Inc.,  $150,000,000 9/12/2011 billed Medicaid programs and the Veterans Affairs program for services that were not rendered, services that were not properly documented, and services that were performed by 13 unlicensed offices
Verizon Communications Inc. $93,525,411 4/5/2011 overcharged the General Services Administration (GSA) on invoices dealing with government-wide voice and data telecommunications services contracts
Medline Industries, Inc. and The Medline Foundation $85,000,000 3/11/2011 paid kickbacks to hospitals and other health care providers that purchased company products under Medicare and Medicaid
Fresenius Medical Care AG (Renal Care Group, Renal Care Group Supply Company, and Fresenius Medical Care Holdings, Inc.) $82,600,000 5/26/2011 fraudulently billed the Medicare program for supplies and equipment provided to End Stage Renal Disease patients
40 Pharmaceutical Companies $82,000,000 10/6/2010 published inflated prices for prescription drugs, which caused the overpayment of millions of dollars in drug costs
Watson Pharmaceuticals Inc.  $79,000,000 9/15/2011 defrauded U.S. and state governments by causing Medicaid to overpay for drugs
AstraZeneca Pharmaceuticals LP and AstraZeneca LP $68,500,000 3/10/2011 promoted its psychiatric drug Seroquel for unapproved uses
Sandoz Inc.  $66,000,000 9/15/2011 defrauded U.S. and state governments by causing Medicaid to overpay for drugs
LHC Group Inc. $65,000,000 9/30/2011 improperly billed Medicare, TRICARE and the Federal Employees Health Benefits program for services that were not medically necessary and for services rendered to patients who were not homebound
Accenture LLP  $63,675,000 9/12/2011 submitted or caused false claims for payment in connection with numerous U.S. government information technology contracts
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 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.
The Louis Berger Group Inc $50,600,000 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 

Plus $18.7 million in criminal penalties)
Laboratory Corporation of America (LabCorp) $49,500,000 7/21/2011 overcharged California's Medicaid program and gave doctors kickbacks for patient referrals
Oracle America Inc $46,000,000 1/31/2011 violated the False Claims Act and the Anti-Kickback Act
Serono (Serono Laboratories, Inc., EMD Serono, Inc., Merck Serono S.A., and Ares Trading S.A.) $44,300,000 5/4/2011 paid kickback to health care providers to induce them to promote or prescribe Rebif
Hill-Rom Company, Inc. $41,800,000 9/27/2011 submitted numerous false claims to the Medicare program for certain specialized medical equipment for patients who did not qualify for the equipment and patients who had died or were no longer using the equipment
GlaxoSmithKline LLC and SB Pharmco Puerto Rico Inc.  $40,750,000 6/23/2011 failed to comply with federal manufacturing guidelines in the production Kytril, Bactroban, Paxil and Avandamet
Kos Pharmaceuticals, (a subsidiary of Abbott Laboratories) $38,159,742 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

(Federal: $33,705,310; State: $4,454,432)
(Plus Criminal fine: $3,360,000)
UCB Inc $34,000,000 6/9/2011 illegally promoted Keppra
Detroit Medical Center  $30,000,000 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.  
Rickey Kanter (Dr. Comfort) $27,000,000 4/11/2011 falsely represented and marketed shoe inserts for diabetic patients
CareSource, CareSource Management Group Co. and CareSource USA Holding Co $26,000,000 2/1/2011 defrauded Medicaid by submitting false data and by receiving reimbursements for health care services that were not provided
Blue Cross Blue Shield of Illinois $25,000,000 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
Novo Nordisk, Inc.  $25,000,000 6/10/2011 off-label marketed the hemophilia drug NovoSeven
McKesson Corporation  $24,000,000 10/18/2010 inflated the average wholesale prices for over 400 pharmaceuticals
Dr. Walter Janke, Lalita Janke, and Medical Resources LLC $22,600,000 11/24/2010 submitted false diagnosis codes
St. Joseph Medical Center  $22,000,000 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)
Science Applications International Inc. (SAIC) $22,000,000 9/29/2011 submitted false claims under a contract with the General Services Administration (GSA)
BP Amoco (formerly Amoco Corp.) and related companies  $20,500,000 9/16/2011 knowingly underpaid royalties owed on natural gas produced from federal and Indian leases 
Young Adult Institute, Inc $18,000,000 1/18/2011 submitted false claims for Medicaid reimbursement after improperly inflating expense reports
CVS Pharmacy Inc $17,500,000 4/15/2011 submitted inflated prescription claims to Medicaid
Anadarko Petroleum Corporation, Kerr-McGee Corporation and their affiliates  $17,000,000 6/20/2011 knowingly underpaid royalties owed on natural gas produced from federal and Indian leases
Avaya and CIT Group $16,500,000 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
Ameritox, Ltd $16,300,000 11/16/2010 paid kickbacks to providers to induce them to refer Medicare business
Hewlett-Packard Corporation  $16,250,000 11/10/2010 violated the competitive bidding rules of the Federal Communications Commission’s E-Rate Program
St. Jude Medical Inc $16,000,000 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.
Marci Taylor, Treehouse Behavioral Services, PLLC, Treehouse Pediatric Center, PLLC, and The Autism Clinic of Texas   $14,000,000 9/21/2011 submitted false claims for payment to the TRICARE program
John D. Archbold Memorial Hospital Inc. $13,900,000 12/22/2010  made false representations to the Georgia Department of Community Health.
American Grocers, Inc. and company owner Samir Itani  $13,200,000 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.  
Innovative Resources Group, LLC (dba APS Healthcare Midwest) $13,000,000 2/22/2011 submitted false claims to Medicaid, through the Georgia Department of Community Health, for specialty services that were not provided
Tamimi Global Company Ltd. $13,000,000 9/16/2011 paid kickbacks and illegal gratuities 
Gentiva Health Services  $12,500,000 6/1/2011 billed Medicare for advertising costs and other related expenses that are not covered by the program
ELA Medical, Inc $10,000,000 10/25/2010 billing and kickback fraud
TriWest Healthcare Alliance Corporation $10,000,000 9/9/2011 failed to give TRICARE the benefit of negotiated discounts with service providers under letters of agreement
Guidant LLC $9,250,000 9/26/2011 caused the Veterans Affairs Department, Defense Department, Medicare and Medicaid to overpay for implantable cardiac devices
Catholic Healthcare West $9,100,000 2/18/2011 seven of its hospitals submitted false claims to Medicare
Securitas GmbH Werkschutz  $9,100,000 4/5/2011 billed the Army, under contracts to provide security at U.S. Army installations in Germany, for guard hours not actually worked
Dyncorp International, LLC (and subcontractor The Sandi Group) $8,700,000 4/22/2011 submitted false claims related to a State Department civilian police training program in Iraq
Cardinal Health Inc $8,000,000 4/21/2011 paid kickbacks to induce referral orders for its prescription drugs
FedEx Corp.  $8,000,000 5/3/2011 misused security delay codes 
Innovative Resources Group, LLC (dba APS Healthcare Midwest) $7,500,000 5/3/2011 violated the Clean Water Act, the Hazardous Waste Management Act, and the Wetlands Protection Act
Wheelabrator Technologies Inc. $7,500,000 5/3/2011 improperly disposed of contaminated sludge and waste water at its plants . also improperly treated and disposed of ash at its plants
Armor Group North America Inc.and affiliates $7,500,000 7/7/2011 submitted false claims for payment involving a State Department contract
Pacific Coast Hematology, Inc. $7,500,000 8/5/2011 submitted false claims to the Centers for Medicare and Medicaid Services
Taleo Corp. $6,490,000 8/16/2011 knowingly caused false claims to be submitted to the Transportation Security Administration (TSA) 
Seven Hospitals $6,300,000 1/4/2011 submitted false claims to Medicare.  (kyphoplasty)
Fastenal Company $6,250,000 1/13/2011 submitted false claims in connection with the General Services Administration’s Multiple Award Schedule program
Dr. Rakesh Nathu $5,700,000 6/30/2011 submitted false claims to federal health care programs for various radiation oncology service
Westcliff Medical Laboratories, Inc. $5,360,000 10/10/2011 defrauded California's Medicaid program
Northrop Grumman Corporation $5,210,000 12/8/2010 failed to fully disclose cohesion problems with their Advance Topcoat System to the Air Force
Simi Valley Hospital  $5,150,000 11/3/2010 knowingly submitted false claims to Medicare for chemical dependency and psychiatric patient services performed between 1991 and 1997
Academy for Educational Development  $5,000,000 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
Abri Health Plan Inc. and Universal American Financial Corp. $4,800,000 9/25/2011 misled customers about the scope of the Medicare Part C coverage plans and sometimes enrolled them without their consent
Minnesota Transit Constructors Inc. (MnTC) $4,600,000 8/24/2011 knowingly submitted false claims related to a federally-funded transit construction project in Minneapolis
Janzen, Johnston & Rockwell Emergency Medicine Management Services Inc. (JJ&R) $4,600,000 9/1/2011 submitted inflated claims to Medicare and Louisiana’s Medicaid program
Quicksort, Inc., Quicksort LA Inc., and Quicksort Sacramento Inc.  $4,200,000 10/20/2010 misrepresented the pre-sort level of mail submitted to the U.S. Postal Service
Fluor Hanford Inc.,  $4,000,000 6/17/2011 knowingly submitted false claims and paid and received kickbacks relating to a contract to operate and manage mixed radioactive waste
Noble Jewelry Ltd.,  $3,850,000 9/1/2011 engaged in a scheme involving the submission of false customs declarations and false jewelry shipment invoice
Dey, Inc.  $3,500,000 11/29/2010 reported inflated or bogus average wholesale prices on certain drugs used to treat asthma and chronic obstructive pulmonary disease
Midtown Imaging LLC  $3,000,000 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
Surgical Monitoring Systems, Inc. (dba Sentient Medical Systems) and former CEO, Jeffrey H. Owen $2,768,795 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 Medical Response  $2,700,000 5/26/2011 knowingly submitted falsely inflated claims through its Brooklyn and Long Island offices
Ultralife Corporation $2,700,000 6/2/2011 failed to provide current, accurate and complete cost and pricing data related to three contracts with the U.S. Army
Mylan Inc. $2,600,000 11/8/2010 reported false and inflated prices to drug industry price reporting services

(State False Claims Act)
Pharmacia Corporation $2,500,000 2/18/2011 inflated drug costs
Greater Metropolitan Orthopaedics Institute (GMO) $2,500,000 1/6/2011 submitted false claims to Medicare, TRICARE Management Administration and the Federal Employees Health Benefits Program
The City of Dallas  $2,470,000 6/7/2011 knowingly defrauded Medicare and the Texas Medicaid program by miscoding claims submitted to the programs
Matthew Stevens, Michelle Dahlberg, their speech therapy businesses and three hospitals in Eastern Idaho  $2,425,000 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.  
Red River Computer Co., Inc.  $2,300,000 8/18/2011 failed to follow equipment and support provisions within contracts it had with several federal agencies
Dr. Monica Mehta $2,250,000 3/7/2011 double-billed federal health care programs
Saehan Bank  $2,200,000 10/4/2010 misrepresented or withheld information to induce the SBA to fund a loan under the SBA’s 504 loan program
St. John's Mercy Health Care and St. John's Health System, Inc $2,200,000 12/30/2010 improperly billed the federal health care programs for services were not medically necessary or covered.
Dartmouth-Hitchcock Medical Center $2,200,000 4/26/2011 improperly billed various federal health programs for services performed by resident staff exclusive of sufficient supervision by physicians
Shell Oil Company $2,200,000 5/10/2011 underpaid royalties owed on natural gas produced from federal leases
Dr. Mark W. Izard $2,200,000 6/1/2011 fraudulently billed Medicare and Medicaid for medical services that he did not provide
Occidental Petroleum Corporation, Occidental Oil and Gas Corporation, and OXY USA Inc $2,050,000 3/22/2011 knowingly underpaid royalties owed on natural gas produced from federal leases
Lockheed Martin Inc $2,000,000 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)
CDI Corporation  $1,950,000 11/24/2010 wrongfully charged employees’ labor costs to purchase orders that would be reimbursed by the U.S. military
Rex Healthcare $1,900,000 4/4/2011 submitted false claims to Medicare
Peninsula Regional Medical Center (PRMC) $1,800,000 8/10/2011 failed to take action to prevent medically unnecessary cardiac stent procedures
Novo Nordisk, Inc.  $1,725,000 6/10/2011 allegations involving the diabetes drugs Novolin, Novolin 70/30, Novolog, and Novolog 70/30
The Texas cities of Plano, Frisco, Richardson, Mesquite, Celina, DeSoto, Corpus Christi, Cedar Hill, Rowlett, North Richland Hills and University Park $1,690,000 8/23/2011 Improperly coded Medicaid claims involving ambulance services
CHI Institute  $1,600,000 7/24/2011 misled students and the federal government about the availability of promised educational programs
Alaska DigiTel LLC $1,556,075 2/22/2011 submitted false claims to the Federal Communications Commission’s (FCC) Low Income Support Program
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 1/25/2011 defective Zylon fiber
Kellum Family Medical Practice Associates $1,500,000 3/21/2011 employed unlicensed personnel to treat Medicare, Medicaid and Tricare patients  
CH2M Hill Hanford Group Inc.,  $1,500,000 9/22/2011 submitted false claims and paid kickbacks in connection with a contract to operate and manage mixed radioactive waste at the Department of Energy’s (DOE) Hanford Nuclear Site in Washington State
John Carlo Inc. and Angelo Iafrate Construction Company $1,407,000 11/19/2010 knowingly submitted false claims related to a federally funded construction project at Detroit Wayne County Metropolitan Airport
UT Southwestern Medical Center and Parkland Memorial Hospital  $1,400,000 9/1/2011 falsely billied Medicare and Medicaid for patient care
Woodhaven Pharmacy Services, Inc. (dba Remedi Seniorcare) $1,279,575 12/1/2010 illegally distributed misbranded and adulterated drugs.
Sunpower Inc. $1,233,829 4/22/2011 improperly billed NASA for unallowable organizational costs 
Rocky Mountain Instrument Company (RMI),  $1,000,000 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
The Institute of International Education $1,000,000 6/16/2011 submitted false claims for payment to the State Department in connection with the funding it received to administer the Fulbright Program
Pinelake Regional Hospital, LLC d/b/a Jackson Purchase Medical Center  $998,771 6/27/2011 inappropriately submitted additional charges to Medicare for certain inpatient admissions when, in fact, they should have been billed as outpatient admissions
Christus Health Systems $970,987 10/6/2010 billed Medicare for ineligible costs and expenses and failed to disclose overpayments
Senior Care Group Inc $953,375 2/10/2011 defrauded the Medicare program
Lydia Demski and Deerpath International Inc.  $800,000 9/21/2011 falsely participated in a veteran’s preference contract program
Norton Healthcare  $782,842 4/21/2011 Medicare overbilling
Primex $750,000 9/11/2011 defrauded California's Medicaid program
Areté Sleep LLC, Areté Sleep Therapy LLC and Areté Holdings LLC  $650,000 5/26/2011 submitted false claims to Medicare
Physicians Immunodiagnostic Laboratory, Inc., $600,000 9/11/2011 defrauded California's Medicaid program
MSO Washington, Inc and Charles Plunkett $565,000 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
St. Francis Hospital and Medical Center  $516,527 8/10/2011 overbilled Medicare for a prostate cancer treatment
Masonicare Health Center  $447,776 4/26/2011 false claims claims for leuprolide acetate (Lupron) injections
PRIDE Industries & PRIDE Industries One $400,000 7/12/2011 knowingly submitted false claims relating to a contract to provide maintenance services at the Department of the Army’s Ft. Bliss Army Base in El Paso, Texas.
Whitefield Medical Laboratory, Inc. $400,000 9/11/2011 defrauded California's Medicaid program
Edward J. Quinn  $395,000 10/7/2010 improperly billing Medicare for uncovered thoracic electrical bioimpedance tests
Dr. William J. Garrity $380,000 4/11/2011 improper billing to Medicare
Duane Reade Inc. $369,744 4/27/2011 submitted false claims to the New York Medicaid program and illegally paid doctors to prescribe more prescription drugs
Dr. Steven H. Stern  $349,860 9/27/2011 double-billed Medicare for Infliximab, a drug used to treat rheumatoid arthritis
Dartmouth College  $275,000 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
Cheyenne Vision Clinic, P.C $235,000 2/14/2011 company improperly billed the federal government and the Wyoming Medicaid program for extended color vision exams
Joseph Ubaghs  $210,000 7/8/2011 fraudulently billed Medicaid for individual and group psychotherapy services
CSI Engineering, CSI Design Build, and company president Debdas Ghosal $200,000 10/1/2010 used false statements to obtain contracts from several government agencies (HUBZone) 
Robert Gilkison and Cynthia Gilkison $200,000 3/1/2011 fraudulently received disability payments
Future Research Corporation  $200,000 9/21/2011 improperly obtained contracts from the Department of the Navy
Ronald T. Lim  $175,000 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
CFP Group and company president Roberto Clark  $150,000 11/10/2010 used false statements to obtain a contract from the Department of Veterans Affairs. (HUBZone)
Walgreen Co. $140,000 7/27/2011 fraudulently billed Medicaid and the Connecticut ConnPACE Program 
Kevin O'Brien $98,000 4/13/2011 falsely billed Medicare for procedures for services not covered by the health care program
Ray A. Silao, M.D $92,000 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
Christie Clinic, LLC $63,929 3/14/2011 falsely billed the lllinois Medicaid Program for lead testing for minors that was not performed
Gillis Brothers Inc.  $37,500 8/25/2011 improperly disposed of catch basin cleanings despite the terms of a contract with the Massachusetts Highway Department 
Johnson & Johnson's Scios unit  TBD 9/20/2011 misbranded the heart drug Natrecor

($85 million in criminal penalties)
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
Total $4,016,781,738