False Claims Act Update & Alert

 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
April 11, 2006

   

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NY Needs a False Claims Act
In an April 10th editorial in The Albany Times Union, James Moorman, President of Taxpayers Against Fraud, notes that NY's legislature continues to fiddle while the state loses an estimated $4.4 billion a year due to Medicaid fraud.  A central issue:  The failure of the New York Senate to pass legislation that would allow the state to qualify for an additional award under the Deficit Reduction Act.  Notes Moorman:  "There is a lot at stake if only the Senate and the Assembly can get their act together. In one case alone, last year, New York would have retained an additional $17 million had the new federal law been in effect with a qualifying State False Claims Act to match. The state is likely to lose in excess of $100 million annually without a qualifying State False Claims Act.  It's time for our legislators to allow New York to blow the whistle right."  >> To read more
 
AEPTEC to Settle With Navy
AEPTEC Microsystems has agreed to pay the U.S. Government $1.6 million to settle claims the company shifted labor costs from fixed-fee contracts with the Navy to cost-plus contracts.  The contracts deal with shipboard technology to automate inventory control and maintenance monitoring. >> To read more
 
Florida To Join FCA Lawsuit
Florida has joined a state False Claims Act case against
Convergys, which claimed it had data security systems in place before it was awarded a $350 million contract to computerize Florida's human-resources system.  In fact, data security was so lax unauthorized employees could easily access confidential information without leaving a trace -- including information on the Governor, the state's Chief Financial Officer, and the Attorney General. >> To read more
 
California Airport Fraud
A Los Angeles paving firm that managed projects for Orange County's John Wayne Airport will pay $2.5 million to settle a federal whistleblower lawsuit alleging company officials conspired to pad invoices and pocket the cash. >> To read more
 
The Best Money Can Buy?
The Center for Public Integrity reports that the drug industry spent more than $44 million on lobbying state governments in 2003 and 2004, and $8 million on candidates for state offices PhRMA spent more than $4.5 million, while Eli Lilly, GlaxoSmithKline, Pfizer, and Johnson & Johnson spent over $3 million each. >> To read more
 
Texas Ropes in the Money
Quote of Note:  "For Texas taxpayers, the Medicaid Fraud Prevention unit is a bargain. Working on a budget of less than $500,000 per year, the eight lawyers in the fraud unit are getting huge settlement payments from the drug makers. More importantly, their lawsuits should deter the drug makers from continuing to bilk taxpayers."
- The Texas Observer