False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
April 19, 2005
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"Fraud and falsehood only dread examination. Truth invites it."
- Samuel Johnson
FY 2005: $887 Million in 6-Months
The False Claims Act brought in over $887 million in recoveries to the Federal Government during the first six months of Fiscal Year 2005. "Over $14 billion stolen from taxpayers has been recovered by the Federal False Claims Act since 1986," says Jim Moorman, President of Taxpayer's Against Fraud. "Seventy percent of the cases involve Medicare or Medicaid fraud." To read the release, and to see a complete listing of FY 2005 cases settled during the first six months of the Fiscal Year >> click here
United Technologies Faces
Potential $600 Million Liability
United Technologies Corp. faces up to $600 million in damages from a U.S. Government lawsuit that claims the company's Pratt & Whitney division inflated cost estimates for fighter jet engines. The trial, which began in October, is being heard without a jury, and final arguments began last week. >> To read more
U.S. to Join TX Caremark Suit
The Texas Attorney General's office says the Federal Government will unseal a suit against Caremark within the next two weeks. Meanwhile, Tennessee magistrate judge Joe Brown says he will let the Federal Government join another case against Caremark now filed in Tennessee: "I don't think there's any way you're going to keep the United States out," Brown said. "They do pay the lion's share of [Medicaid], and they've got a big -- a big -- stake in it." It remains unclear whether the Texas and Tennessee cases will be joined. >> For more information
Illinois Joins Medicaid Case
Illinois is intervening in a Medicaid case the DoJ has declined. The case involves an employee's allegations that Amerigroup's Illinois subsidiary was "cherry-picking" certain Medicaid patients over others as a way to increase profits. State Attorney General Lisa Madigan says the Illinois Department of Public Aid, paid "$45 million more than it should have," as a consequence of the cherry-picking scheme. The case is scheduled for a June 20 trial in U.S. District Court in Chicago. >> To read more
U. of Alabama to Pay $3.39 Million
The University of Alabama at Birmingham and two related entities will pay the U.S. Government $3.39 million to settle charges of false billing for health research from 1996 through last year. UAB overstated the amount of time they were spending on a research grant and were billing Medicare for clinical research trials paid to a private sponsor of the research. >> To read more
Fraud Judgments and Bankruptcy
Section 708 of S. 256, the just-passed bankruptcy reform bill, prevents corporations from discharging False Claims Act settlements or judgments as part of a bankruptcy proceeding. The language will go into effect six months after the legislation is signed into law.