Whistleblower News From The Inside — February 25, 2016

By the C|C Whistleblower Lawyer Team

Clinic owner and four medical professionals sentenced in $4 million Medicare fraud scheme – Five New York residents received criminal sentences for filing false claims for physical therapy and other services based on patient referrals to unlicensed massage therapists. DOJ

NJ judge rules compliance with Medicare rules is a condition of payment – In a non-intervened case brought by four whistleblowers alleging a hospice company misclassified patients as eligible for hospice, a federal court, accepting the “implied certification” theory of liability, ruled private parties can enforce a Medicare condition of payment. National Law Review

Alaska flight company ordered to compensate whistleblower pilot – Homer, Alaska based Bald Mountain Air Service faces more than $500,000 in penalties from the U.S. Department of Labor’s Occupational Safety and Health Administration over claims it retaliated against a former pilot who reported safety problems to federal investigators. Alaska Dispatch News

Whistleblower sues Pennsylvania AG office for retaliation – A former state narcotics agent filed a whistleblower retaliation suit claiming he was targeted after he reported that his supervisor ordered the destruction of evidence. Citizens Voice

Leaders of Utah polygamous sect arrested and accused of fraud – Several top leaders from Warren Jeffs’ polygamous sect were arrested on Tuesday on federal accusations of food-stamp fraud and money laundering, marking one of the biggest crackdowns on the group in years. The Guardian

CMS increasing on-site provider visits to deter fraud – Initial visits will target providers and suppliers receiving high Medicare reimbursements in areas at a heightened risk for fraud; CMS also plans to better monitor potentially fraudulent provider addresses. Becker’s Hospital Review