False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
April 2, 2009

 
     
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TAF Testifies in Support
of FCA Amendments

TAF President Jeb White testified before the House Judiciary Committee in support of H.R. 1788, the False Claims Act Corrections Act of 2009, noting that the bill would "significantly enhance the Government’s ability to identify, prosecute and deter fraud on U.S. Government programs" by closing and correcting a number of loopholes that fraud-feasors have used and abused to drain billions of dollars from the U.S. Treasury.  The FCA Corrections Act would also modernize the law to address new types of fraudulent schemes, and clarify procedural questions, while strengthening the Government’s Civil Investigative Demand authority. >> To read the testimony (PDF)
    

California Sues Seven Labs 
California is suing seven private medical labs, alleging they cost the state hundreds of millions of dollars by overcharging
Medi-Cal by as much as 400 percent.  The whistleblower in this case is Chris Riedel, CEO of Hunter Laboratories, who refused to join in the price-gouging practices.  The seven defendants are: Quest Diagnostics; Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America. >> To read the complaint (PDF)


Par Pharma Subpoenaed

Par Pharmaceuticals says the U.S. Department of Justice is investigating promotional practices associated with sales of the appetite-stimulant Megace.
>> To read more

Radiology Firm to Pay $2 Million
A Las Vegas radiology firm has agreed to pay $2 million to settle charges they billed Medicare for diagnostic tests without providing treating doctors' orders.  >> To read more

Houston Hospital to Pay
$9.9 Million for Outlier Fraud

The Methodist Hospital in Houston has agreed to pay $9.9 million to settle charges it inflated outlier claims in order to recover more money from  Medicare.  >> To read more

A Three-Legged Watchdog
How easy is it to rip off Medicare?  Consider this: the Government Accountability Office not only created a phony review for a phony product, they also created a phony institutional review board and got it approved by HHS despite the fact that the company was named "Trooper Dog" and the address was 1234 Phulovit Lane in Chetesville, AZ. >> To read more 

Sikorsky
to Pay $2.9 Million
Sikorsky, a division of United Technologies, has agreed to pay over $2.9 million to resolve charges it failed to test ballistic plates installed next to the pilot and co-pilot on Black Hawk helicopters. >> To read more
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