False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
April 15, 2008![]()
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Radiologist to Pay $7 Million
The owner of a chain of radiology centers in Boca Raton, Florida has agreed to pay $7 million to settle a False Claims Act lawsuit which charged the doctor with fraudulently billing Medicare for imaging tests that were not ordered, not medically necessary, and often never performed. The relator in this case was awarded a maximum 25% share. >> To read more
NC Dental Chain Pays $10 Million
Medicaid Dental Center in North Carolina, previously known as Smile Starters and Carolina Dental Center, has agreed to pay over $10 million to settle a False Claims Act case in which the company was charged with billing for medically unnecessary dental services on indigent children. >> To read more
Heartland Dental Pays $3 Million
Heartland Dental Care Inc., with dental practices in 12 states, has agreed to pay $3 million to the federal and state governments to settle allegations of improper Medicaid billing. >> To read more
OMB has Some Explaining to Do
The Bush administration continues to delay its explanation about how a multibillion-dollar loophole exempting overseas work from the False Claims Act was slipped into a rule intended to crack down on fraud. The loophole has drawn protests from Democrat and Republican lawmakers, and been disavowed by Attorney General Michael Mukasey. >> To read more
Entrepreneur of the Year?
House Oversight Committee Chair Henry Waxman (D-CA) wants 20-something executives of AEY to appear for a Congressional hearing to explain how they won a $300 million contract to provide munitions to Afghan forces. The bullets were 40-year old munitions made in China. >> To read more
Ista Off-Label Investigation
Ista Pharmaceuticals Inc. has received a subpoena from the U.S. Attorney's Office in Buffalo, NY requesting the production of documents regarding promotional and educational activities related to Xibrom, a drug used to treat inflammation following cataract surgery. >> To read more
Fast Fact:
The original 1863 False Claims Act provided for civil penalties of $2,000 per claim. Adjusted for inflation, that works out to be $41,000 in 2007 dollars. Current civil penalties under the False Claims Act are $5,500 to $11,000 per false claim.