False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
August 20, 2010

 
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WellCare to Settle for $137 Million?
WellCare Health Plans says it has reached a $200 million settlement in a class-action lawsuit and a $137.5 million preliminary deal with the U.S. Department of Justice Department on False Claims Act charges. The company paid $80 million last year to settle a Florida Medicaid fraud case.  The current FCA case was brought by former WellCare analyst Sean Hellein who wore a wire for 18 months as part of an undercover investigation which produced more than 1,000 hours of audio and video surveillance. Hellein's FCA complaint claimed WellCare stole $400 million to $600 million, and notes the company  held a celebratory dinner to honor those who successfully disenrolled 425 infants.  >> To read more
    


Nelnet to Pay $55 Million

Nelnet has agreed to pay $55 million to settle a False Claims Act case alleged the company had defrauded the government as part of a student loan subsidy program.  The lawsuit was brought by former U.S. Education Department specialist Jon Oberg.  >> To read more

Grand Canyon Education Pays $5.2 Million
Grand Canyon Education has settled a False Claims Act case for $5.2 million.  The case revolved around the improper compensation for "enrollment counselors" who were, in fact, cash-incentivized student recruiters for the online university. >> To read more

States Strengthen False Claims Acts
New York and Illinois have strengthened their state False Claims Acts to comply with the federal government's Fraud Enforcement and Recovery Act (FERA).  The New York Act, spearheaded by Senator Eric. T. Schneiderman, now also allows qui tam plaintiffs to bring actions for tax fraud when the net income or sales of the defendant total $1 million or more and the damages pleaded in the action exceed $350,000.

The Pharma Fraud Show
The Bureau of Investigative Journalism has put together a 25-minutes video which notes that "the United States healthcare industry is the world’s biggest – with $300 billion a year spent on prescription drugs alone, and rising. But recent months have seen health scandal after health scandal, with some of the world’s biggest pharmaceutical companies fined billions of dollars  These cases are beginning to reveal vast corruption in the drug industry, with revelations of fraud, of cover-ups of fatal side effects and huge kickbacks paid to doctors." >> To see the video

Indiana Attorney General Calls for More  Whistleblowers to Come Forward
Laws are only as good as law enforcement, a point Indiana Attorney General Greg Zoeller see
ms to get.  His office has just put out a press release urging whistleblowers to come forward.

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