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.