False Claims Act, qui tam, fraud, whistleblower, relator, settlement, civil fraud, fraud against government

	False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG March 8, 2005
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			Texas Team Fights Fraud Working on a budget of less than $500,000 per year, eight lawyers in the Texas fraud control unit are winning huge settlements from drug makers that have been gaming the Medicaid system. The key to their success? A series of strong Attorney Generals (one of whom is now a Senator from Texas), and a close alliance with whistleblowers and their attorneys. >> To read more
			Florida Sues Tenet for $1 Billion Florida has sued Tenet Healthcare under the state's Racketeer Influenced Corrupt Organizations Act, claiming the company illegally boosted "outlier" supplemental claims to Medicare, thereby stealing money from publicly supported hospitals. Caymus Partners analysts Jeff Villwock describes it as "like stealing from the poor to give to the rich." Florida Attorney General Charles Crist said of Tenet: "Tenet has reached the pinnacle of corporate wrongdoing, with ongoing criminal activity spanning at least 14 years." The DoJ started a False Claims Act investigation into Tenet's outlier frauds two years ago, but the case remains unresolved. >> To read more
			Defective Mice Nullify Research A leading supplier of genetically pure laboratory mice and rats has agreed to pay the federal government $7.2 million for knowingly selling genetically contaminated stock. The mice are among the most commonly used research rodents in the world, and sell for over $7 apiece. Vast amounts of health care research may now have be tossed out as a consequence, resulting in untold millions of dollars of lost research and time. This is the third time in the last 10 years that Harlan, Sprague, Dawley Inc. has had to pay costs or damages for health care research compromised by genetic deficiencies in their widely used rats and mice. >> To read more
			More Troubles for Medco Medco is bracing for another fraud investigation. The Office of the Inspector General of the U.S Department of Health and Human Services recently issued a subpoena on Medco for documents related to a whistleblower complaint filed in September 2003. The complaint, which remains under seal, accuses the company of defrauding Medicare and Medicaid by failing to pass along rebates owed to government programs and also suggests the company has engaged in illegal kickbacks. >> To read more
			Is Bloomberg Confused by Staff? The New York City False Claims Act has been passed by the City Council but has not been vetoed or signed by Mayor Michael Bloomberg. The Gotham Gazette notes the law would could mean "more scrutiny of the city's vast network of human services contractors, where fraud can not only lead to cost overruns, but inadequate care for those who need it most." Bloomberg's staff has apparently told the Mayor that criminal investigations could be hindered by False Claims Act lawsuits. A search has found no real world examples of such hindrances.
			HealthEssentials Bankruptcy After federal agents raided its offices to collect evidence of health care fraud last fall, HealthEssentials Solutions dropped its plans for a public stock offering. Now the health care company has filed for bankruptcy protection. HealthEssentials was founded by Michael Barr who was a co-founder of Vencor, a nursing home company that was nailed for $104.5 million fraud in 1998. >> To read more