Concerns About Fraud and Abuse Due to Prescription Rule Changes

Updated: Sep 13


Weekly Newsletter | August 21, 2020 | Subscribe


COVID-19 Related Fraud

----------------------------------------------------------------------------------- WFTV: Prescription rule changes during pandemic lead to concerns about opioid abuse, fraud Changes to prescription rules during the COVD-19 pandemic could be opening opportunities for abuse and fraud. The rules relating to telehealth and the prescribing of opioids have relaxed in response to the pandemic; therefore, leading to the unintentional increase of risk for doctor shopping and inappropriate opioid prescribing in 2020.


Dept. of Justice: Acting Manhattan U.S. Attorney Announces Charges In $7 Million Scheme to Defraud Loan Programs Intended to Help Small Businesses During COVID-19 Pandemic The Department of Justice announced the arrest over an alleged fraudulent scheme to obtain over $7 million government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic.


Dept. of Justice: Southfield Man Charged in Multi-State Identify Theft and Unemployment Fraud Scheme A Michigan man was charged in a criminal complaint for his alleged role in multi-state unemployment insurance fraud scheme aimed at defrauding the State of Michigan, the State of Pennsylvania, and the U.S. Government of funds earmarked for unemployment assistance during the COVID-19 pandemic.


Case Settlements & Opinions

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Reuters: U.S. sues Teva over alleged kickbacks for multiple sclerosis drug The government sued Teva Pharmaceutical Industries Ltd, accusing them of causing the submission of false claims to Medicare by using kickbacks to boost sales of its multiple sclerosis drug Copaxone. The Department of Justice said that Teva illegally paid two seemingly independent charitable foundations more than $300 million from 2006 to 2015 to cover co-payments of Copaxone patients, shielding them from a quadrupling of Copaxone’s price to $73,326 a year.


National Law Review: Whistleblowers Share $8 Million False Claims Act Settlement of Unpaid Import Duties Allegations As part of the recent CWD Holdings False Claims Settlement, the whistleblowers involved receive $1.48 million. CWD Holdings agreed to pay $8 million after allegedly falsely reported the brake pads as unmounted, thus avoiding fees. Whistleblowers are eligible to collect anywhere from 15% to 30% of the recovery, including from settlements.


Dept. of Justice: Puerto Rico Legislator Indicted for Theft, Bribery, and Fraud A Puerto Rico legislator was indicted for alleged participation in a years-long theft, bribery, and kickback conspiracy. The legislator was allegedly defrauding the Commonwealth by inflating her assistant’s bi-weekly salary, and the assistant would keep a portion and kickback between $1,000 an d $1,500.


RRSpin: Man charged in Medicaid fraud ordered temporarily detained A man was charged in a multimillion-dollar Medicaid fraud scheme. He was charged with 54 counts of wire fraud, 6 counts of aggravated identity theft, conspiracy to commit money laundering, and 11 counts of conducting transactions in criminally derived property with fraud and money laundering. The indictment alleges that a $13 million fraud funded a lifestyle full of private jets, penthouses and luxury resorts.





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