False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
August 6, 2008

 
     
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More States Qualify Under DRA
The Office of the Inspector General of HHS has qualified four more states under
the Deficit Reduction Act of 2005.  The four states are CA, IN, RI, and GA.>> For a listing of state False Claims Acts
   

Pratt to Pay $52 Million

Pratt & Whitney and a subcontractor have agreed to pay more than $52 million to settle False Claims Act charges the company knowingly sold defective turbine blades for F-15 and F-16 fighter jet engines used by the Air Force. >> To read more

Conflict of Interest FCA

Science Applications International Corporation (SAIC) was found guilty of violating the False Claims Act and breaching a contract with the Nuclear Regulatory Commission. The federal jury awarded the U.S. $5.91 million under the False Claims Act with additional penalties of between $5,000 and $10,000 for each of 77 false claims and statements.  The case is the first conflict of interest claim under the FCA.  >> To read more

Justice Probes Bile Stent Fraud
The U.S. Attorney's Office in Boston is investigating the marketing of bile-duct stent to determine if companies such as Abbott Laboratories, Boston Scientific and Johnson & Johnson have been engaged in off-label marketing of the stents to cardiac surgeons and hospitals. >> To read more

Feds Seize Unapproved Drugs
Federal agents have seized $24.2 million worth of unapproved drugs from KV Pharmaceutical Co. in St. Louis.  The FDA required the company to stop manufacturing the affected drugs before Aug. 27, 2007, and to stop shipping the products before Nov. 26, 2007, but the company did not comply.  >> To read more

CoxHealth To Pay $60 Million
CoxHealth has agreed to pay more than $60 million to settled a False Claims Act lawsuit in which the company was charged with overbilling Medicare.  CoxHealth actually stole more money that they are being required to return to the U.S. Government because as federal agents began calculating the damages, it soon became clear Cox could not pay without going under. >> To read more

W.W. Grainger to Pay $6 Million
W.W. Grainger Inc. has agreed to pay $6 million to settle allegations it submitted false claims to United States government agencies.  The Lake Forest, Illinois company
sold the government special order facilities maintenance items at  inflated prices, and which we made overseas, counter to Grainger’s contract with the General Services Administration (GSA). >> To read more

Medicare:  Wide Open to Fraud
Approximately $1 billion of the $10 billion in annual Medicare payments the government makes for durable medical equipment is stolen or improper says the U.S. Government Accountability Office.  GAO reports its investigators had no problem getting a completely fake durable medical equipment company qualified for Medicare even though , the "company" had no office, no inventory, no experience, and no actual business.  Notes GAO: "[We  believe ... we could have fraudulently billed Medicare for ... millions of dollars."  >> To read more