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False Claims Act Update & Alert |
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Taxpayers
Against Fraud Education Fund | Washington, D.C. |
WWW.TAF.ORG |
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Previous
Newsletters
Since
1986, total settlements and judgments under the False
Claims Act have topped $19 billion.
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 Medco
to Pay $155 MillionMedco Health Solutions Inc. will pay $155 million plus legal fees to settle three False Claims Act lawsuits previously joined by the Federal Government. The settlement covers a wide variety of cheats, including: shorting prescriptions, canceling prescriptions to avoid paying non-performance penalties, soliciting and accepting kickbacks from pharmaceutical manufacturers to favor their drugs, and paying kickbacks to health plans to obtain business. The relators will receive $23 million as their award for helping the Government achieve this recovery. >> To read more |
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 Hospital
Consultant Nailed for $64.25 Million by Court The District Court for the Northern District of Illinois has ordered that a health care consultant who effectively controlled a teaching hospital, first as CEO until 1997 and later through a management company, must repay three times the amount of Medicare and Medicaid claims submitted by the hospital from 1995 through 2000, plus a $7,500 penalty for each claim. >> To read more |
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 Gunpowder
Fraud For perhaps as long as 30 years, the St. Marks Powder company, located in Crawfordville, Florida, has been producing gunpowder for the U.S. military but not testing it as required. St. Marks, a division of General Dynamics, rushed to self-disclose the fraud when they found out a whistleblower might be coming forward. Under the FCA, a company is required to pay double damages, rather than triple damages, if they self-disclose. >> To read more |
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 Navy Shipper to Pay
$4.2
Million
An
Illinois shipping company has
agreed to pay $4.2 million to settle Justice
Department accusations that it deliberately
overcharged Norfolk Naval Shipyard for
delivering cargo. The company was paying
kickbacks and bribes to get business, and then billing the Government at dramatically inflated rates.
>>
To read
more
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Atlanta's Northside Hospital and
two physician-owned entities will
pay a total of $6.9 million to settle claims raised in a
"whistleblower" lawsuit that they violated the False
Claims Act by submitting claims to the Medicare program
that were tainted by improper financial and referral
relationships. >>
To
read more |
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 Armstrong Williams
and the FCAArmstrong Williams, a conservative commentator whose 2003 deal to promote President Bush's education agenda spawned a Justice Dept. probe, has agreed to pay $34,000 to settle False Claims Act charges. >> To read more |
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Hospital
Settles for
$6.9 Million