False Claims Act Update & Alert


Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
January 28, 2012


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Cooper Health System to Pay $12.6 Million
New-Jersey based Cooper Health System and Cooper University Hospital have agreed to pay $12.6 million to settle a False Claims Act case alleging the hospital created the Cooper Heart Institute Advisory Board (“CHIAB”), a sham entity to pay doctors with high-volume medical practices upwards of $18,500 each to do little more than watch four lectures per year hosted at an elegant banquet facility. The whistleblower, Dr. Nicholas L. DePace, is a nationally-recognized expert in cardiology who was approached by Cooper Health to join CHIAB. >> To read more



New Sheriffs at the SEC?
Reeling from
critics who note that SEC and DoJ enforcers have yet to so much as accuse a major Wall Street CEO of civil or criminal fraud, the Obama Administration appears to be gearing up to put more teeth in enforcement, with the appointment of former U.S. Attorney Mary Jo White to head the SEC, and the naming of Vincente Martinez at the CFTC whistleblower office to run the Office of Market Intelligence at the SEC.  

CVS Medicare Part D Case Advances
CVS is getting ham
mered pretty early on in a False Claims Act case involving alleged Medicare Part D fraud.  Judge Walter D. Buckwalter has
rejected all of the points put up by the company, which runs a pharmacy benefits management (PBM) program, as well as a retail pharmacy operation .  The Department of Justice has filed a ‘statement of interest’ in the case, but has not yet joined.  >> To read more

Justice for All?
U.S. District Judge Terrence Boyle has expressed outrage that the DoJ has proposed a deferred prosecution agreement for
WakeMed Health and Hospitals in what is believed to be the first case in which a U.S. hospital has been charged criminally with making false statements to rip off Medicare. Boyle called the agreement, which also called for WakeMed to pay $8 million, a “slap on the hand," noting that a deferred-prosecution agreement is normally offered to marijuana-smoking teenagers visiting the local beach, not to corporations accused of financial crimes in excess of a million dollars. The judge said he would revisit the 116-page proposed settlement agreement on February 5th.

Taking Fraud Seriously?

Does B. Braun Medical take corporate compliance seriously?  They say so, but if you watch this video, produced at great time and expense with custom music, lyrics and costumes in 2011 after the company was nicked for $14.7 million under the False Claims Act in 2010, you will notice that the fraudsters escape from law enforcement which is presented as not being focused on its job.