False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG December 21, 2004
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			New Chicago False Claims Act Rocked by recent scandals, the Chicago City Council has adopted a municipal False Claims Act to empower citizens to file lawsuits against unscrupulous City contractors and others who defraud City government. Under the ordinance, sponsored by Mayor Richard Daley and Alderman Joe Moore, whistleblowers could recoup up to triple damages for the City, while earning up to 30 percent of that total plus legal expenses.  The ordinance is based on the federal False Claims Act. >> To read the law
			HealthSouth Prepares for Trials HealthSouth is scheduled for two separate fraud trials in January.  Jury selection in the first trial starts January 5th, and the criminal charge is that Richard Scrushy, CEO of HealthSouth masterminded a $2.7 billion fraud at his former company, the largest U.S. operator of rehabilitation hospitals in the U.S. The second trial is scheduled to start in mid-January. This trial is a civil fraud trial under the False Claims Act, with HealthSouth the defendant.  The charge: that HealthSouth billed for group physical therapy as if it were individual therapy. To read the whistleblower complaint against HealthSouth >> Click here.  To read the DoJ Complaint >> Click here.
			Anatomy of a Contract Attorneys for embattled security firm Custer Battles are contending in court that the company cannot be sued under the False Claims Act because the allegedly stolen money belonged to Iraqis, not Americans. Unfortunately for Custer Battles, the plain paper contract makes clear it is with the U.S. Army and the United States of America. >> To see page one of the contract
			Tenet: No Limit to the Hubris Patients have suffered through unnecessary heart surgery at Tenet Hospitals, and the company has been charged with defrauding the government of many millions of dollars. Top officials of the company are now complaining to the press, however, that fraud prosecutions in San Diego are making a global fraud settlement with the company more difficult. >> To read more
			California Law Law Requires Pharmaceutical Co. Compliance On September 29, Calif. Governor Arnold Schwarzenegger signed into law S.B. 1765 (aka, the "Fair Drug Marketing Bill"), which requires pharmaceutical companies to implement a "comprehensive compliance program" by July 1, 2005. The law converts formerly suggested standards of practice (HHS OIG and PhRMA), into legally binding standards, but enforcement and penalties are unaddressed. >> >> To read the new law
			OIG Investigations Net $2 Bil. The HHS Office of Inspector General says it netted nearly $2 billion in "investigative receivables" in Fiscal Year 2004 according to the agency's twice yearly report to Congress. To read the report (PDF) >> Click here
			You Can Help Fight Fraud The TAF Education Fund fights fraud on a daily basis, but we ask for money only once a year.  We do not ask for a specific amount, but we do hope that people will make as generous a contribution as they can to our nonprofit efforts.  All contributions to the TAF Education Fund are tax-deductible, as we are a 501(c)3 nonprofit organization. To make a contribution by credit card >> Click here.