False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG May 15, 2007
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			$634 million for OxyContin Purdue Frederick Co. and three of its executives have pled guilty to misbranding prescription painkiller OxyContin and will pay more than $634.5 million, including a $276 million criminal fine, $160 under federal and state false claims acts, and $130 million to settle private civil claims.  In announcing the settlement, U.S. Attorney John Brownlee of the Western District of Virginia, noted that "In the process [of illegally marketing the drug], scores died ... and an even greater number became addicted." >> To read more
			$102 Million FCA Verdict Three Bill L. Harbert-owned construction companies were found guilty of bid rigging in a Washington, D.C. jury trial, and were hit with a $102 million verdict. All three of the companies were engaged in bid-rigging for water and sewer systems installed in Egypt in the 1980s. The work was paid for with U.S. government money as part of the Camp David Peace Accords.  >> To read more
			Getnick Interviewed in CCR TAF Chairman Neil Getnick, of Getnick & Getnick, was recently interviewed by Corporate Crime Reporter.  While celebrating the passage of a New York FCA and the appointment of Jim Sheehan as Medicaid Inspector General for New York, Getnick noted that other states continue to miss out on millions in FCA recoveries. >> To read more (PDF)
			Bullet Proof Vest Makers Fear Consultant Testimony Second Chance Body Armor Inc. and Toyobo Co. Ltd. are trying to prevent a former consultant and his firm from testifying on defects in the material Zylon used to make "bullet proof" vests, many of which were sold to or partially paid for by the U.S. Government.  >> To read more
			MRI Company Faces Charges The Attorney General of Illinois says a Virginia-based company selling MRI equipment paid large kickbacks to Chicago-area doctors in the form of sham lease agreements. Training presentations detailed "scenarios" in which referring physicians could make $177 to $277 per MRI scan. >> To read more
			Antipsychotics for Kids? The New York Times reports that doctors accepting payments from drug companies are prescribing powerful antipsychotic drugs such as Risperdal, Seroquel, Zyprexa, Abilify, and Geodon for such non-FDA approved purposes as weight gain.  Zyprexa, Risperdal and Seroquel represent combined sales of $12 billion in 2006.  >> To read more
			$869 Air Mattresses? A new Medicare Fraud Strike Force in South Florida has identified $142 million billed for unnecessary or nonexistent durable medical equipment and service. More investigations are under way.  >> To read more
			Orthotics Riddled by Fraud Ninety percent of the U.S. orthotics industry is under investigation for kickbacks and billing fraud.  DePuy, Zimmer, Biomet, Stryker, and Smith & Nephew have combined annual revenues of more than $15 billion.  Settlement talks are reportedly nearing conclusion for all but one company. >> To read more
			Calculating the Kickback The Wall Street Journal reports that an internal Johnson & Johnson memo calculated that a physician who bought nearly $1 million of Procrit over 15 months would get a "rebate" check for $237,885 -- a major incentive to prescribe the medication in higher doses than might otherwise have occurred. >> To read more (subscription)