Weekly Newsletter | July 17, 2020 | Subscribe
COVID-19 Related Fraud
----------------------------------------------------------------------------------- Dept. of Justice: U.S. Attorney's Office Shuts Down Multiple Websites Claiming to Offer Preorders of COVID-19 Vaccinations The U.S. Attorney’s Office for the Western District of Kentucky has filed a lawsuit in Louisville to shut down a webpage, six related web addresses, and a related Facebook page that the suit says are attempting to lure viewers to “pre-register” for a non-existent COVID vaccine in exchange for Bitcoin.
TAFEF News: "I Would Do Anything for Work, But I Won't Sign That": A Discussion of COVID-19 Waivers TAFEF member Anna Dover, Counsel at Bracker & Marcus LLC, walks through recent developments of employer and state-mandated waivers to insulate businesses from COVID-19 liability.
TAFEF News: Combatting the Reasonable Misinterpretation Defense In Coronavirus-Related False Claims Act Cases TAFEF member Erin M. Campbell, Attorney at Helmer, Martins, Rice & Popham LPA, wrote an article and filmed a video to explain the reasonable misinterpretation defense and how proving a knowing violation of the False Claims Act in these cases could be impacted by the rapidly shifting regulatory landscape.
Dept. of Justice: Washington, D.C. Contractor Charged with COVID-19 Relief Fraud The owner of a construction contracting firm in Washington, D.C. was charged with COVID-19 fraud after allegedly submitting fraudulent documents to a bank seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Dept. of Justice: Florida Man Charged with COVID-19 and Health Care Fraud A Florida man was arrested on allegations that he allegedly sought several Paycheck Protection Program (PPP) loans and participated in a scheme to defraud Medicare of at least $5.6 million. It is also alleged that part of the PPP loans was potentially used in furtherance of the Medicare fraud scheme.
Dept. of Justice: Texas Man Charged with COVID-19 Relief Fraud A Texas man was taken into custody on allegations that he obtained more than $1.1 million in Paycheck Protection Program loans. He has been charged in a criminal complaint with making false statements to a financial institution, wire fraud, bank fraud, and engaging in unlawful monetary transactions.
Dept. of Justice: Tulare County Man Indicted for Falsely Marketing Herbal Mixtures as FDA-Approved Treatment for COVID-19 A California man was arrested after a federal grand jury returned a five‑count indictment on July 9, charging him with mail fraud and introducing a misbranded drug into interstate commerce with the intent to defraud. He allegedly marketed and sold a package of herbal mixtures named “Emergency D-Virus Plan of Care” that he claimed treated COVID-19, and he sold it through his companies, Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc.
Dept. of Justice: Winchester Man Charged with COVID Fraud The president and CEO of Sosuda Tech, LLC was indicated in connection for allegedly filing more than $13 million in forgivable loans through the Paycheck Protection Program (PPP). He was indicted on four counts of wire fraud and one count of making a false statement to a financial institution.
Case Settlements & Opinions
Dept. of Justice: Universal Health Services, INc. And Related Entities to Pay $122 Million to Settle False Claims Act Allegations Universal Health Services, Inc., UHS of Delaware, Inc. (together, UHS), and Turning Point Care Center, LLC (Turning Point), a UHS facility located in Moultrie, Georgia have agreed to pay a combined total of $122 to resolve allegations that they violated the False Claims Act by allegedly billing for medically unnecessary inpatient behavioral health services, failing to provide adequate and appropriate services, and paying illegal inducements to federal healthcare beneficiaries.
Dept. of Justice: Twenty-Seven Skilled Nursing Facilities Controlled by Longwood Management Corporation to Pay $16.7 Million to Resolve False Claims Act Allegations Longwood Management and its twenty-27 affiliated nursing facilities have agreed to resolve allegations that they violated the false claims act by alleging submitting false claims to Medicare for rehabilitation services that were not necessary or reasonable.
Patch: San Francisco Doctor to Pay $400,000 in Medicare Fraud Case The owner and operator of San Francisco Pain Management and Physical Therapy, which operated under the name Total Health Plus agreed to pay $400,000 to resolve allegations that he violated the False Claims Act by charging Medicare for physical and occupational therapy performed by unlicensed people.
Times Leader: Medicaid Fraud Most Hurts Those Who Depend on It Pennsylvania State Rep. Aaron Kaufer’s House Bill 2350 was passed last week. It is part of a Medicaid Fraud Reform bill package aimed to strengthen requirements for Medicaid providers, ensure that taxpayer funds are being used responsibly, provide stronger system oversight and make proper adjustments to the Medicaid system to increase its usefulness and reliability.
SEC: SEC Issues $3.8 Million Whistleblower Award The Securities and Exchange Commission announced a $3.8 million award to a whistleblower. The whistleblower provided significant information, helping SEC disrupt an ongoing fraudulent scheme and return millions of dollars to harmed investors.
Dept. of Justice: Durable medical equipment company owner admits participation in kickback scheme A Florida man, running a durable medical equipment company, admitting to participating in a Medicare kickback and telemedicine fraud scheme. He admits paying kickbacks in return for “leads,” which were in actuality signed orders from physicians and nurse practitioners, and then billing those orders to Medicare Part B and Medicare Part C using WI Medical.