False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG March 13, 2007
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			KBR's "Lipstick on a Pig" Memo Kellogg Brown and Root (KBR) may be forced to repay the U.S.  government $400 million because it allowed subcontractors to hire private security forces in Iraq when that job was supposed to be done by the U.S. military. KBR never asked the Pentagon for security forces, and one KBR official warned that allowing subcontractors to unilaterally hire mercenaries and bill the U.S. Government for them was a liability that would fall squarely on the shoulders of KBR. "[Sub-contractors are] an agent of KBR and if anything happens, KBR is in the pot with them. Even with lipstick, a pig is a pig."  >> To read more
			Neurometrix Investigation Neurometrix, a company that sells non-invasive nerve induction testing equipment and supplies is under investigation for possible kickbacks and fraud.  The Neurometrix test is quick to administer and non-invasive, which means doctors can make a couple of hundred dollars for just 15 minutes of work, while Neurometrix reportedly makes a 70 percent profit from sales of testing equipment and supplies.  A grand jury has been convened to investigate kickback allegations.  >> To read more
			New Mexico Passes FCA New Mexico's House and Senate have passed False Claims Act legislation.  The new bill, soon to be signed into law by Governor Bill Richardson, is called the "Fraud Against Taxpayers Act," and is parallel to the Federal False Claims Act.  >> To read the New Mexico legislation
			Maryland Needs an FCA Sidney Rocke, former Maryland assistant attorney general and supervisor of the Maryland Health Care Fraud Unit, writes in The Baltimore Sun that "By failing to enact a false claims act, our state is missing an important safeguard against fraud and waste ... [T]here is no good reason Maryland's treasury should not have this protection. It is high time for the legislature to act." >> To read more
			Westchester Hospital Fraud Investigation Westchester Medical Center is under investigation for possible fraud and kickback violations -- a fact that came as an unwelcome surprise to the County Board of Legislators which had given the hospital $57 million over two years to help it bail out of a financial crisis. >> To read more
			Elan Facing Kickback Probe An Irish newspaper reports that Elan is under investigation by the U.S. Department of Justice and the U.S. Department of Health and Human Services for the promotion of Zonegran, an epilepsy drug that Elan used to make before selling the patent to Dainippon Pharmaceutical.  Elan notes that it faces "substantial fines" if found guilty.  >> To read more
			SCCI to Pay $7.5 Million SCCI Health Services Corporation has agreed to pay $7.5 million to settle allegations the company violated the Stark self-referral statute and the False Claims Act. SCCI, which was purchased by Triumph Hospital in 2005, operates long term acute care facilities across the United States. >> To read more
			Barak Obama, FCA Attorney Presidential Candidate Barak Obama's first job out of Harvard Law School was with the law firm of Miner Barnhill & Galland, where he wrote a major portion of an appeals brief for the Chandler FCA case which ultimately went to the Supreme Court (TAF filed an amicus).  The Chandler case was finally settled in December for $5 million. >> To read more