26 States (+Puerto Rico) Join False Claims Act Suit

Updated: Sep 13, 2020

Weekly Newsletter | July 24, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Dept. of Justice: Malden Man Indicted for CARES Act Pandemic Unemployment Fraud and Identity Fraud A Malden, Mass. man was charged with identity fraud and with submitting fraudulent applications under the Pandemic Unemployment Assistance (PUA), a program providing unemployment-related benefits for individuals impacted by COVID-19. He was indicated on two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim to the United States.

Dept. of Justice: Nevada COVID-19 Task Force Provides Guidance For Victims Of Unemployment Benefits Fraud Nevada’s COVID-19 task force recently received reports suggesting that personal identifying information of some present and past residents have been used to file fraudulent applications for unemployment benefits. Potential victims typically learn of the fraudulent activities when either they receive a letter from the Nevada Department of Employment, Training and Rehabilitation (DETR) relating to an application for benefits they never sought, and/or their employer receives a similar notification from DETR.

Case Settlements & Opinions


Modern Healthcare: Lab Company to Pay $12 Million to Settle Kickback Allegations Cordant Healthcare Solutions agreed to pay close to $12 million to resolve allegations that it paid kickbacks to boost its urine testing business. Cordant allegedly paid millions of dollars from 2013 to 2015 to Northwest Physicians Laboratories and Genesis Marketing Group in exchange for referrals of urine tests that were funded by federal healthcare programs.

Whistleblower Law Collaborative: States Join Client’s Lawsuit Against Mallinckrodt 26 states plus Puerto Rico have intervened in The Whistleblower Law Collaborative’s False Claims Act suit against Mallinckrodt, in which the federal government intervened in March. The complaint alleges that Mallinckrodt violated federal and state False Claims Acts by failing to pay hundreds of millions of dollars in Medicaid rebates for its high-priced drug Acthar.

CBS Baltimore: Defense Contractor To Pay $1M To Resolve Overbilling Claims A Maryland defense contractor agreed to pay nearly $1 million in a settlement over claims that it overbilled the National Security Agency for contract work. This settlement agreement resolves claims against iNovex Information Systems Inc. under the False Claims Act.

Dept. of Justice: Transportation Broker for MassHealth Agrees to Pay $300,000 to Resolve False Claims Allegations The Montachusett Regional Transportation Authority (MART) has agreed to pay $300,000 to resolve allegations that it violated the False Claims Act by submitting reimbursement claims for rides that never happened. The government alleges that, from Jan. 1, 2011 through Dec. 31, 2015, MART submitted reimbursement claims to MassHealth for thousands of rides that MART’s contracted transportation companies did not actually provide.

National Law Review: CFTC Whistleblowers Awarded over $1 Million The Commodity Futures Trading Commission (CFTC) announced two whistleblower awards totaling more than $1 million granted for whistleblowers who assisted in a successful enforcement action. The first whistleblower opened the investigation while the second provided first-hand information about the underlying scheme.

Dept. of Justice: CWD Holdings To Pay $8 Million To Resolve False Claims Act Allegations Relating To Unpaid Import Duties CWD Holdings has agreed to pay $8 million to resolve allegations that it violated the False Claims Act by knowingly avoiding paying tariffs on certain imported brake parts. The settlement arises out of allegations that CWD falsely claimed that the mounted brake pads it in fact imported, which carried a 2.5% tariff, were unmounted brake pads, which required no tariff.

Dept. of Justice: Washington, D.C. Dentist and Two Others Facing Federal Indictment in Maryland on Charges Related to a Scheme to Defraud Medicaid A federal grand jury in Maryland has indicated a licensed dentist, his business partner, and one other on the federal charges of conspiracy to violate the federal Anti-Kickback Statute and conspiracy to commit health care fraud and mail fraud.

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