False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
January 07, 200
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Ad Agency to Pay $15 Million
Leo Burnett, a Chicago ad company, will pay $15.5 million to settle a False Claims Act suit which alleges the company overbilled the U.S. Army for a recruitment campaign when it submitted invoices from affiliates as if they were independent contractors, and did not include lower cost bids from competitors. >>
To read more
    

Treatment Center Fraud
Four NY hospitals paid kickbacks to get more patients into their drug treatment programs, while another paid people to search homeless shelters in order to recruit patients (through bribery) to enter a three-day detox facility. All in all, seven hospitals are accused of billing Medicare and Medicaid out of more than $50 million. >> To read more

David Ogden, Deputy AG
David Ogden has been named Deputy Attorney General.  Ogden was Assistant Attorney General for the Civil Division from 1999 to 2001, Chief of Staff and Counselor to the AG from '97 to '99, and Associate Deputy AG from '95 to '97.>> To read more

A Look Into WellCare’s Fraud
WellCare was raided by federal and state agents last year, and now a class action lawsuit suggests why: WellCare is alleged to have transferred Medicaid revenue to a Cayman Island subsidiary in order to buy sham "reinsurance" while billing the cost to the states as a direct medical expense. >> To read more


Another Bulletproof
Vest Settlement
Protective Products International Inc. (PPI) has agreed to pay the United States $960,000 to resolve allegations it violated the False Claims Act by supplying defective Zylon vests. >> To read more


Feds to Bail Out Hedge Funds?

Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200 billion program intended to support consumer credit. Will the FCA apply?  >> To read more

Teva Pays $7 Million in Mass.
Teva Pharmaceuticals and its subsidiary Ivax, have agreed to pay $7 million to Massachusetts to settle a False Claims Act case involving Average Wholesale Price violations. Teva and Ivax are two of the 13 drug manufacturers sued by the state in 2003 for FCA violations.  >> To read more
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Advising the Qui Tam Whistleblower
The second edition of the bestselling Advising the Qui Tam Whistleblower by Robin Page West is now available from the American Bar Association, with a portion of the proceeds to come back to TAF.  This publication provides complete and concise information to assist an attorney in evaluating a client's potential claim. >> To order