Alleged False Claims Act Violators Receive Billions in COVID-19 Relief

Weekly Newsletter | August 28, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Fox 8: Prosecuted and Paid: Government doles out billions in coronavirus relief money to companies that paid out millions in fraud-related cases 225 parent companies have paid out for government fraud accusations in the last decade and also received relief money through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Since 2010, these companies have paid nearly $13 billion in settlements and penalties related to accusations of violating the False Claims Act.

TAFEF News: As Pandemic Relief Fraud Continues, Oversight Remains Essential From Rolexes to Lamborghinis, fraudsters are compromising emergency public funding to enrich themselves, obstructing the overall function and effectiveness of unemployment insurance and putting Americans who need assistance at risk.

CBSNews: Paycheck Protection Program fraud cases are on the rise The article summarizes the growing number of fraud cases surrounding the Paycheck Protection Program, which was designed to help small businesses to continue to pay their workers and stay afloat during the pandemic.

Dept. of Justice: Nevada Man Charged with Using COVID-Relief Funds to Buy House A Nevada man was arrested in connection with allegations that he fraudulently obtained more than $500,000 in Paycheck Protection Program loans and the Economic Injury Disaster Loan (EIDL) program. He then, allegedly, laundered the funds through friends and family in order to buy a house.

NBC Miami: Miami Neighbors Claimed to Be Farmers in $1.1 Million COVID Relief Fraud: Feds Two neighbors claimed to be farmers as part of a $1.1 million scheme to receive fraudulent coronavirus aid loans and are now facing charges. Authorities said that the neighbors submitted four fraudulent applications for over $1.1 million in forgivable Paycheck Protection Program and Economic Injury Disaster Loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Case Settlements & Opinions


Dept. of Justice: DUSA Pharmaceuticals to Pay U.S. $20.75 Million To Settle False Claims Act Allegations Relating to Promotion of Unsupported Drug Administration Process DUSA Pharmaceuticals, Inc has agreed to pay the United States $20.75 million to resolve allegations that DUSA caused physicians to submit false claims to Medicare and the Federal Employee Health Benefit Program by knowingly promoting an administration process for the drug Levulan Kerastick that contradicted the product instructions approved by the U.S. Food and Drug Administration (FDA) and was unsupported by sufficient clinical evidence.

Konica Minolta settles electronic health records whistleblower case for $500,000 On Thursday, the Department of Justice announced that Konica Minolta Healthcare Americas Inc. has agreed to pay $500,000 to resolve allegations that a former subsidiary, Viztek LLC, an electronic health records company, caused users to submit false claims for incentive payments to the government by falsely certifying that its product complied with all applicable HHS requirements. The whistleblower who raised the allegations was a former Viztek employee.

Dept. of Justice: Government obtains more than $5 million in judgments to resolve healthcare fraud allegations against Georgia chiropractor, practice A chiropractor and her medical practice have been ordered to pay more than $5 million to resolve a civil fraud complaint filed by the federal government. The practice allegedly violated the False Claims Act by submitting claims to the Medicare Program for hundreds of surgical procedures involving implantable neurostimulators, when in actuality the practice used an acupuncture device commonly referred to as a “P-Stim.”

WYMT: Floyd County dentist pleads guilty to health care fraud A licensed dentist who owned and operated Tackett Family Dentistry in McDowell, submitted false and unnecessary claims to Kentucky Medicaid for reimbursement for dental procedures and services performed at his practice. He admitted to submitting more than $95,000 in reimbursement claims to Kentucky Medicaid and its fiscal intermediaries for unnecessary dental procedures.

Dept. of Justice: Memphis Woman Pleads Guilty in $2 million Healthcare Fraud Scheme A Memphis woman pleaded guilty on Tuesday to healthcare fraud and aggravated identity theft. She owned and operated Caring Hearts Memphis and allegedly submitted over $2 million in fraudulent billing to Humana, a private health insurance provider, for services that were not actually rendered. She also allegedly committed aggravated identity theft by forging patients' signatures without their knowledge or permission on consent-for-services forms and progress notes containing fraudulent misrepresentations about services not actually performed.

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