False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG April 12, 2005
		Sign Up for this FREE Newsletter n TAF Home Page n About TAF-EF n The False Claims Act n Previous Newsletters n Email editor Please take a moment to forward this FREE electronic newsletter to others that might be interested!        "Fraud and falsehood only dread examination. Truth invites it." - Samuel Johnson
			Comparative Resources:  Florida Florida has 158 investigators, analysts and attorneys working on health care fraud cases, and is happy even though it recovers less than $30 million a year. Florida Governor Jeb Bush is asking for 50 more investigators reports Florida Attorney General Charlie Crist who says Florida "will continue pursuing those who would defraud the system to feed their own craven greed. Stealing from the taxpayers while harming Florida’s neediest citizens is something we simply cannot, and will not, tolerate."
			Comparative Resources:  United States of America In their FY 2006 budget request, the Civil Division of the U.S. Department of Justice has asked for $2 million for 26 positions (17 attorneys) "to handle more than 125 separate health care fraud matters involving numerous pharmaceutical manufacturers and other related entities."  The U.S. Attorneys are also asking for $3 million for 32 positions (13 attorneys) "to supplement U.S. Attorney resources in the aggressive burgeoning criminal and civil prosecutions of pharmaceutical health care fraud..."  In the first 6 months of FY 2005, over $872 million in False Claims Act settlements were won.
			Fast Fact:   nOver 500 drug cases are under investigation by the U.S. Department of Justice.  nSettlement of just 10 drug manufacturing cases (all those resolved to date) has returned over $2.4 billion to the U.S. Government and the 50 states.
			Florida False Claims Act Drug Suit Florida Attorney General Charlie Crist has joined a Florida False Claims Act lawsuit brought against three pharmaceutical manufacturers by Ven-A-Care of the Florida Keys.  In the complaint Florida and Ven-a Care assert that  Sandoz, Inc., Ivax Pharmaceuticals, Inc., and Purepac Pharmaceutical are "marketing the spread" in a fraud that has already cost state taxpayer approximately $25 million. The generic drugs named are used to treat depression, schizophrenia, seizures, angina and other serious ailments.  Ven-a-Care were relators in the year 2000 Fresenius case (see below).
			Fresenius Gets Second Subpoena Fresenius Medical Care AG, the world's biggest provider of kidney dialysis, got a subpoena from U.S. authorities looking into possible kickbacks between the company and doctors.  In 2000, Fresenius was nailed for $486 million ($385 million under the False Claims Act), for paying kickbacks to doctors, prescribing medicines and services that were not needed, and billing Medicare and Medicaid exorbitant sums.  The latest subpoena is unrelated to another subpoena which Fresenius has received related to renal testing and "vitamin therapy" billed to Medicare and Medicaid.
			A Slow Flight to Justice In 1999 the U.S. Department of Justice and the Air Force filed suit against United Technologies Corp.'s Pratt & Whitney division claiming that the U.S. Air Force had been defrauded out of more than $75 million for jet engines purchased between 1985 and 1990 to power F-15 and F-16 fighter jets.  A bench trial is now underway in Dayton, Ohio, with final arguments scheduled for Thursday.
			PharMerica Fraud PharMerica has agreed to pay the Federal Government $5.98 million to settle a False Claims Act lawsuit alleging violations of the Medicare anti-kickback statute in connection with PharMerica's purchase of a Virginia long-term care pharmacy. The pharmacy was open for a single day day before being sold and closed.