False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
January 14, 2011. . ![]()
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Did NYC Ripoff Medicaid?
The U.S. Attorney for the Southern District of New York has joined a False Claims Act lawsuit charging New York City with systematically violating Medicaid by charging the program for 24-hour personal care services for patients who did not need such services and/or who were not assessed as needing such services. >> To read more
Is Mortgage Fraud a New FCA Frontier?
Is mortgage fraud the "next frontier" in the False Claims Act arena? No one knows since FCA cases are filed under seal, but one thing is clear: the Justice Department is issuing subpoenas to companies like Countrywide and Bank of America regarding mortgage matters, and some previously successful FCA litigation firms seem to have an interest in what is going on. That said, False Claims Act cases require lots of evidence, are not easy to win, and generally require a substantial pattern of fraud before they are of interest to the DoJ. More to be revealed, no doubt! >> To read more
Kill 13 and Get Probation?
In February of 2002, the Guidant Corp. discovered a design flaw in their Ventak implantable defibrillator device. By April of 2002, the company had fixed the problem, but decided to tell no one and to not recall any of the defective devices already out in the field. The result, according to prosecutors, is that at least 13 people died. What is justice in this kind of situation? Apparently, a lot less penalty than most Americans might imagine. No one at Guidant has lost their freedom, or even their job. The company is still doing business with Medicare and Medicaid. Along with a fine of $296 million, the company has merely been put "on probation" for three years. Probation? In the context of a corporation, what does probation even mean? > To read more
A Freight Train of Pharma Fraud
You can't bill Medicare and Medicaid for popsicles sold as sore throat relief or over-the-counter vitamins as FDA-approved prescription medications, even if you put fake FDA numbers on the side of the packaging. The U.S. Government has already joined False Claims Act cases that have returned over $100 million to the U.S. Treasury based on such frauds. Now DoJ is stepping aside to let 22 other False Claims Act cases progress forward. >> To read more
Hardware Co. to Pay $6.25 Million
Fastenal Company, a national hardware store distributor, has agreed to pay $6.25 million to settle a False Claims Act case in which the General Services Administration (GSA) charges the company with price-gouging and iolating made-in-America contract provisions. >> To read more.