DOJ Fraud Settlements

September 22, 2016 - 

A federal jury in Los Angeles convicted Michael Huynh, the owner of a California medical clinic, for his role in a health care fraud scheme and for filing false income tax returns. Evidence at trial showed that Huynh provided false prescriptions to a pharmacist and co-conspirator, Farhad N. Dany Sharim, who submitted false claims to insurance companies for drugs that were never dispensed.  DOJ


September 21, 2016 - 

Michigan doctor Hussein Awada agreed to pay $200,000 to resolve charges he violated the False Claims Act by writing prescriptions for oxycodone and other controlled medications and billing for medical services without medical justification.  According to the government, Awada conspired with patient “marketers” to write prescriptions for tens of thousands of dosages of oxycodone and other controlled medications for no medical purpose and then used the patient data to submit bills to Medicare for services that were either never performed or were medically unjustified.  Awada also caused these same patients to receive medically unnecessary monthly x-rays, and other invasive tests, to help conceal his fraud.  Awada previously pled guilty to these charges and was sentenced to 84 months in prison and pay $2.3 million in restitution.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Heather Henson, who worked as a receptionist for Awada at his medical practice.  She will receive a whistleblower award of $36,000.  DOJ (EDMI)


September 21, 2016 - 

ExxonMobil Pipeline Company agreed to pay $12 million in natural resource damages to resolve claims stemming from the July 2011 oil spill into the Yellowstone River.  DOJ


September 19, 2016 - 

North American Health Care Inc., a California-based operator of dozens of skilled nursing facilities (along with its Chairman John Sorenson and Senior Vice President of Reimbursement Analysis Margaret Gelvezon) agreed to pay $30 million to resolve charges they violated the False Claims Act by billing for medically unnecessary rehabilitation therapy services.  Whistleblower Insider


September 15, 2016 - 

Japanese auto parts supplier Alpha Corporation agreed to plead guilty and pay a $9 million criminal fine for its role in a price-fixing and bid-rigging conspiracy involving automotive access mechanisms for installation in cars manufactured and sold in the United States and elsewhere.  Access mechanisms consist of inside and outside door handles, tailgate or trunk handles, keys, lock sets, door locks and electrical and mechanical steering column locks.  Alpha is the 46th company to be charged with participating in an anticompetitive scheme involving auto parts.  DOJ


September 14, 2016 - 

Healthmark Investment Trust, partial owner of Florida-based compound pharmacy QMedRx, agreed to pay $7.75 million to resolve allegations QMedRx violated the False Claims Act by billing the federal healthcare programs for prescriptions tainted within the meaning of the Anti-Kickback Statute.  The government is still pursuing penalties and fines from other owners and participants within QMedRx.  DOJ (MDFL)


September 14, 2016 - 

Romy Macasaet and his Illinois-based home health care company Home Bound Healthcare, Inc. agreed to plead guilty and pay $6.8 million to resolve charges of violating the False Claims Act and the Anti-Kickback Statute by paying kickbacks to medical directors to obtain referrals of Medicare beneficiaries to his company, which was one of the largest home health care and hospice companies in Illinois.  Macasaet acknowledged that he retained and paid medical directors a monthly fee solely for the purpose of obtaining patient referrals and not for medical services, and that he used medical director agreements to conceal the payment of kickbacks.  As part of the settlement, Macasaet agreed to divest his ownership interest in Home Bound.  DOJ (NDIL)


September 12, 2016 - 

Birmingham-based Regions Bank agreed to pay $52.4 million to settle charges that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.  According to the government, Regions’ misconduct caused HUD to incur substantial losses by paying insurance claims for loans not eligible for FHA mortgage insurance.  Whistleblower Insider


September 9, 2016 - 

Los Angeles nursing home Westlake Convalescent Hospital and two physicians who worked there, Dr. Jasvant Modi and his wife Dr. Meera Modi, agreed to pay $3,563,140 to resolve charges they violated the False Claims Act by participating in a scheme to improperly transfer patients recruited from the “Skid Row” district to a hospital for medically unnecessary services, and then transfer the patients from the hospital to the nursing home for medically unnecessary stays.  According to the government, Westlake paid illegal kickbacks to a “care consortium” on Skid Row in exchange for patient referrals to Westlake.  Jasvant Modi allegedly readmitted patients from Westlake to the now-closed Temple Community Hospital and then back to Westlake to extend the patients’ Medicare-covered stays at Westlake, knowing the patients did not require further services at either facility.  Meera Modi allegedly signed medical orders for non-payable services for these same patients. Westlake allegedly billed Medicare and Medi-Cal for medically unnecessary services provided to these patients.  The allegations originated in a whistleblower lawsuit brought by former Westlake employee Ricardo Gonzales under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $534,471 from the proceeds of the government’s recovery.  DOJ (CDCA)


September 9, 2016 - 

Dmitriy V. Melnik, the owner and operator of Candy Color Lenses, a major online retailer of colored contact lenses, pleaded guilty to importing counterfeit and misbranded contact lenses from suppliers in Asia and then selling them over the internet without a prescription to tens of thousands of customers around the country.  According to the plea agreement, Melnik imported large quantities of colored contact lenses from China and South Korea that he knew were counterfeit and/or unauthorized by the FDA and many of which bore labels with counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG.  Melnik admitted that some of the contact lenses he sold were contaminated with potentially hazardous bacteria.  DOJ


September 9, 2016 - 

Rutgers Organics Corporation agreed to pay an estimated $19 million to complete the cleanup of the Nease Chemical Superfund Site near Salem, Ohio and to pay an additional $500,000 to restore injured natural resources at the site and nearby areas.   The company further agreed to pay an additional $1 million to reimburse federal and state agencies for their past response and assessment costs.  DOJ


September 9, 2016 - 

James Robert Liang, a Volkswagen engineer, pleaded guilty for his role in a nearly 10-year conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles.  Liang admitted that beginning in about 2006, he and his co-conspirators started to design a new “EA 189” diesel engine for sale in the United States, and when they realized they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented a so-called defeat device to cheat the emissions tests.  DOJ


September 8, 2016 - 

Houston-based Goodman Company L.P. agreed to pay a $5.55 million civil penalty to settle allegations that it violated the Consumer Product Safety Act by failing to timely inform the Consumer Product Safety Commission of a fire risk posed by certain air conditioning and heating units, many of which were installed in hotels, schools and hospitals.  The settlement also resolves allegations that when Goodman ultimately reported the fire risk, it misrepresented the number of fires that had occurred.  DOJ


September 7, 2016 - 

Medical equipment supply companies U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc., along with their owners and presidents, agreed to pay more than $12.2 million to resolve allegations that they violated the False Claims Act by making unsolicited calls to Medicare beneficiaries to sell them durable medical equipment.  According to the government, the two companies created a fictitious company called Diabetic Experts Inc., which they used to make the unsolicited calls, and then submitted claims to Medicare for the equipment they sold in violation of the Medicare Anti-Solicitation Statute.  Whistleblower Insider


September 7, 2016 - 

Clinical psychologists Beverly Stubblefield and John Teal pleaded guilty for their involvement in a fraudulent psychological testing scheme that preyed upon Medicare recipients living in nursing homes throughout the Southeastern United States.  Stubblefield and Teal practiced as clinical psychologists at Nursing Home Psychological Services, Inc. and Psychological Care Services, Inc. and they admitted their companies billed Medicare for psychological tests to nursing home residents throughout Mississippi, Louisiana, Florida and Alabama which were not medically necessary or not provided at all.  They further admitted they repeatedly tested the same nursing home residents even though some were incapacitated and could not meaningfully participate in testing.  DOJ


August 31, 2016 - 

Clear Vue Eye Center and its owner, Dr. Monique Barbour, agreed to pay $1 million to resolve allegations that they violated the False Claims Act by overbilling Medicare for patient visits at nursing homes and assisted living facilities, and for billing for procedures purportedly performed while Dr. Barbour was out of the country.  According to the government, Dr. Barbour billed excessively for patient visits, billing for more than 12 hours a day and often for more than 20 hours in a 24-hour period.  Records reviews show that many of the procedures billed were medically unnecessary with little patient benefit and that Dr. Barbour billed procedures at the most profitable rates regardless of the procedure’s proper billing code.  The allegations originated in a whistleblower lawsuit brought by former Clear Vue employee Lori Moore under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of $200,000 from the proceeds of the government’s recovery.  DOJ (SDFL)


August 25, 2016 - 

Fairbanks Morse Engine agreed to pay $142,500 to settle charges it violated the False Claims Act by overcharging the Navy on a subcontract for engine repairs on the USS Ashland.  DOJ (EDVA)


August 24, 2016 - 

New York hospitals Beth Israel Medical Center (d/b/a Mount Sinai Beth Israel), St. Luke’s-Roosevelt Hospital Center (d/b/a Mount Sinai St. Luke’s) and Mount Sinai Roosevelt, and Continuum Health Partners, agreed to pay $2,950,000 to settle charges that they violated the federal and New York False Claims Act by willfully delaying repayment of over $800,000 in Medicaid overpayments that resulted from improper claims submitted because of a software error.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined award from the proceeds of the government’s recovery.  DOJ (SDNY)


August 24, 2016 - 

The insurance carrier for defunct, for-profit cosmetology school B&H Education, Inc., which operated the Marinello Schools of Beauty in locations across Southern California, agreed to pay $8,631,000 to resolve allegations the school violated the False Claims Act by obtaining federal student loan funds for ineligible students who received bogus high school diplomas.  The allegations originated in a whistleblower lawsuit filed by six former B&H employees under the qui tam provisions of the False Claims Act.  The whistleblowers will collectively receive a whistleblower award of $2.5 million from the proceeds of the government’s recovery.  In addition to the $8.6 million payment, the insurer will also pay $2,369,000 to the six whistleblowers’ attorneys.  DOJ (CDCA)


August 23, 2016 - 

Walter Crummy, a former officer and owner of MCC Construction Company, pleaded guilty to conspiring to commit wire fraud and agreed to pay forfeiture of $105,618.  According to court documents, MCC and others conspired with two companies that were eligible to receive federal government contracts set asides for small, disadvantaged businesses with the understanding that MCC would illegally perform all of the work.  In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011.  MCC previously pleaded guilty to conspiring to commit fraud by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay roughly $1.8 million in criminal penalties and forfeiture.  DOJ


August 22, 2016 - 

Rubycon Corporation, Elna Co., Ltd. and Holy Stone Holdings Co., Ltd. pleaded guilty for their roles in a conspiracy to fix prices for electrolytic capacitors which store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment. Previously, NEC TOKIN Corp. and Hitachi Chemical Co. Ltd. pleaded guilty to participating in the same worldwide conspiracy.  The charges are all part of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry.  DOJ


August 18, 2016 - 

Harley-Davidson agreed to pay a $12 million civil penalty and to stop selling and to buy back and destroy illegal devices that increase air pollution from their motorcycles and to sell only models of these devices that are certified to meet Clean Air Act emissions standards.  The company also agreed to spend $3 million to mitigate air pollution through a project to replace conventional woodstoves with cleaner-burning stoves in local communities.  According to the government, Harley-Davidson manufactured and sold approximately 340,000 illegal devices, known as “super tuners,” that caused motorcycles to emit higher amounts of certain air pollutants than what the company certified to EPA.  DOJ


August 17, 2016 - 

Louis Yeung, the former vice president of California wholesale tool company Eastern Tools & Equipment was sentenced to 63 months in prison and ordered to pay roughly $9.6 million in restitution for his role in a scheme to defraud East West Bank that resulted in losses of over $9 million.  Yeung admitted that he and his co-conspirators defrauded East West Bank by making material misrepresentations about Eastern Tools’ accounts receivable and its financial statements to obtain and maintain a loan with the bank.  DOJ


August 17, 2016 - 

Dr. Yasin Khan, Dr. Elizabeth Khan, Dr. Dong Ko, Westfield Hospital and affiliated entities including a related pain clinic, Lehigh Valley Pain Management, agreed to pay $690,441 to resolve allegations they violated the False Claims Act by submitting false health care billings for services performed by non-physicians as “incident to” the services of supervising physicians when, in fact, supervising physicians were away from the office or otherwise incapable of supervising.  The allegations originated in whistleblower lawsuit filed Margaret Reynard under the qui tam provisions of the False Claims Act.  Ms. Reynard will receive a whistleblower award of roughly $124,000 from the proceeds of the government’s recovery.  DOJ (EDPA)


August 17, 2016 - 

Florida urologist Robert A. Scappa agreed to pay $250,000 to resolve allegations that he violated the False Claims Act by causing claims to be submitted to federal health care programs for laboratory tests that were not medically necessary.  During the relevant time period, Scappa was a urologist practicing as part of Scappa Urology, which was a division of 21st Century Oncology, LLC., a nationwide provider of integrated cancer care services.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former medical assistant who worked for Dr. David Spellberg of Naples Urology Associates, which was also a division of 21st Century Oncology.  The whistleblower will receive an award of $37,500 from the government’s recovery.  This amount is in addition to a $3.2 million share she will receive as the result of the $19.75 million settlement previously reached with 21st Century Oncology.  DOJ (MDFL)


August 16, 2016 - 

Pittsburgh-based national banking association PNC Bank N.A. agreed to pay $9.5 million to resolve allegations it violated the False Claims Act in connection with the issuance of loans guaranteed by the Small Business Administration (SBA).  According to the government, for numerous loans brokered by Jade Capital & Investments LLC., PNC failed to adhere to the requirements of the SBA program including demanding adequate bank and IRS tax records from the borrowers, ensuring that the borrowers had the ability to repay the loans, and failing to apply prudent lending standards.  Whistleblower Insider


August 15, 2016 - 

Miami resident Ramon Collado Gonzalez pleaded guilty to participating in a $4.2 million home health care fraud scheme.  As part of his guilty plea, Gonzalez admitted being recruited by Mildrey Gonzalez and Milka Alfaro, the owners of Miami health care agency Golden Home Health Care Inc., to falsely represent himself to be Golden’s owner so they could improperly obtain funds from Medicare.  DOJ


August 12, 2016 - 

Massachusetts-based research and development company Agiltron, Inc. and its president, Jing Zhao, agreed to pay $2.25 million to resolve allegations that they violated the False Claims Act by seeking disbursements from federal agencies for falsified labor costs in order to maximize charges to grants and contracts awarded by federal agencies.  Agiltron received funds under 15 grants and contracts awarded through the federal Small Business Innovation and Small Business Technology Transfer programs.  According to the government, Agiltron and Zhao engaged in a scheme in which they directed employees to charge labor hours to the awards that did not correspond with their actual time and effort, to alter their completed timesheets, and to discard or destroy documents.  DOJ (DMA)


August 11, 2016 - 

UK-based e-commerce retailer Trod Ltd. (doing business as Buy 4 Less) pleaded guilty to fixing the prices of certain posters sold online through Amazon Marketplace.  Specifically, the company admitted to agreeing with competitors to adopt pricing algorithms for the sale of certain posters sold on Amazon with the goal of offering online shoppers the same price for the same product and coordinating changes to their respective prices.  The prosecution is part of the government’s ongoing antitrust investigation into price fixing in the online wall décor industry.  DOJ


August 11, 2016 - 

Tracy Richardson Brown, the owner of New Orleans-based medical equipment supply company, Psalms 23 DME LLC was sentenced to 80 months in prison and to pay roughly $2 million in restitution for directing a scheme to defraud Medicare out of more than $3.3 million.  According to the evidence introduced at trial, Brown paid patient recruiters for the names and billing information of Medicare beneficiaries and used it to bill Medicare for power wheelchairs and various knee, elbow and back braces.  However, the vast majority of these patients did not need, and often did not receive or even want, this equipment.  DOJ


August 10, 2016 - 

Lincoln Military Housing, which owns and operates dozens of on-base and off-base military housing communities throughout Southern California, agreed to pay $200,000 to resolve allegations that it unlawfully evicted active-duty servicemembers and their families by obtaining default judgments against them in violation of the Servicemembers Civil Relief Act (SCRA).  According to the government, Lincoln Military requested default judgments against servicemembers without filing the affidavits required by the SCRA to alert the court of the tenants’ military status.  This put servicemembers at risk of being evicted without having an opportunity to participate in the case and without having an attorney assigned to represent them.  DOJ


August 10, 2016 - 

Douglas daCosta agreed to pay $40,000 to resolve allegations that he submitted false claims to the government for paid sick leave when he worked as a federal law enforcement agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives.  According to the government, daCosta claimed more than 80 days of paid sick leave for which he was not eligible, and at the same time he was feigning illness he was working in the private sector.  DOJ


August 9, 2016 - 

Chevron Mining Inc. agreed to pay $143 million in cleanup work at the Chevron Questa Mine Superfund site near Questa, New Mexico under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund.  DOJ


August 9, 2016 - 

John Bennett, the former chief executive at Bennett Environmental Inc., a Canada-based company that treats and disposes of contaminated soil, was sentenced to serve 63 months in prison and pay roughly $3.8 million in restitution in connection with the payment of kickbacks to obtain subcontracts at a New Jersey Superfund site overseen by the EPA and Army Corps of Engineers.  According to court documents, Bennett conspired with others at Bennett Environmental to pay kickbacks, that included money wired to a co-conspirator’s shell company, lavish trips and entertainment expenses and personal gifts in an effort to guarantee the award of soil treatment contracts to his company.  As a result, Bennett Environmental was fraudulently awarded tens of millions of dollars in soil treatment and disposal contracts and the company won contracts at higher prices than it otherwise would have bid.  DOJ


August 9, 2016 - 

Tokyo-based Hitachi Automotive Systems Ltd. agreed to plead guilty and pay a criminal fine of at least $55 million for its role in a conspiracy to allocate markets, fix prices and rig bids for shock absorbers installed in automobiles sold to U.S. consumers.  DOJ


August 8, 2016 - 

HSBC Finance Corporation, as successor to HSBC Auto Finance Inc., agreed to pay $434,500 to resolve allegations that it violated the Servicemembers Civil Relief Act by repossessing 75 cars owned by protected servicemembers without obtaining the necessary court orders.  DOJ


August 8, 2016 - 

The Estate of Dr. Kenneth Michael Rice and Texas-based physician practice management group UMC Physicians agreed to pay roughly $3.3 million to settle charges of violating the False Claims Act for billing Medicare/Medicaid for in-person evaluation and management services at the higher physician fee rate when the services were not provided by physicians.  They also allegedly billed normal evaluation and management services to Medicare at the higher critical-care rate.  DOJ (NDTX)


August 8, 2016 - 

Sherman Hills Realty LLC and Park Management LLC agreed to pay $125,000 to resolve allegations of violating the False Claims Act by failing to provide qualifying tenants with utility reimbursement funds provided to Sherman by the Department of Housing and Urban Development to be disbursed to low and no income tenants at the Sherman Hills Apartments in Wilkes-Barre, Pennsylvania.  DOJ (MDPA)


August 5, 2016 - 

A series of anesthesia businesses collectively known as Sweet Dreams Nurse Anesthesia agreed to pay roughly $1 million to settle charges they violated the False Claims Act, Anti-Kickback Statute and Georgia False Medicaid Claims Act by paying unlawful kickbacks to health care providers for referrals.  According to the government, one alleged scheme involved Sweet Dreams’ provision of free anesthesia drugs to ambulatory surgery centers (ASCs) in exchange for granting Sweet Dreams an exclusive contract to provide anesthesia services at those ASCs.  A second alleged scheme allegedly involved the agreement of an affiliate of Sweet Dreams to fund the construction of an ASC in exchange for contracts for Sweet Dreams’ selection as the exclusive anesthesia provider.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Adam Nauss.  He will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (MDGA)


August 1, 2016 - 

Houston-based cargo handling company Jacintoport International LLC and its Miami-based ocean transport affiliate Seaboard Marine Ltd. agreed to pay $1.075 million to settle charges they violated the False Claims Act in connection with a warehousing and logistics contract for the storage and redelivery of humanitarian food aid.  Specifically, the government alleged that Jacintoport, under the supervision and control of Seaboard, charged ocean carriers more for stevedoring than permitted to load over 50,000 tons of humanitarian food aid, and these inflated stevedoring charges were subsequently lumped into other costs for delivering humanitarian food aid and passed on to the government.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by John Raggio, a shipping contractor who allegedly received an invoice from Jacintoport that contained the excessive stevedoring charge.  He will receive a whistleblower award of $215,000 from the proceeds of the government’s recovery.  DOJ


August 1, 2016 - 

St. Joseph’s Hospital Health Center agreed to pay $3.2 million to resolve allegations it violated the federal False Claims Act and New York False Claims Act by billing the state Medicaid program for mental health services provided by unqualified staff.  Specifically, the government alleged that St. Joseph’s billed Medicaid for mobile-crisis outreach services that failed to comply with Comprehensive Psychiatric Emergency Program (CPEP) staffing requirements.  The allegations originated in a whistleblower lawsuit filed by registered nurse Catherine Lembo under the qui tam provisions of the federal and New York False Claims Acts.  Ms. Lembo will receive a whistleblower award of $560,000 from the proceeds of the government’s recovery.  Whistleblower Insider


July 29, 2016 - 

A judgment for $4,752,101.50 was entered against LXE Counseling, LLC and its owner Lexie Darlene George (a/k/a Lexie Darlene Batchelor) for violations of the False Claims Act, the Oklahoma Medicaid False Claims Act and the Oklahoma Medicaid Program Integrity Act.  Specifically, LXE and Batchelor were found to have submitted claims to Oklahoma Medicaid for services that were, among other things: provided by unqualified persons; based on falsified time and service records; double billed; unauthorized or not provided.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (WDOK)


July 29, 2016 - 

Syed Imran Ahmed, a New York surgeon who practiced at hospitals in Brooklyn and Long Island, was convicted of submitting millions of dollars in fraudulent claims to Medicare.  According to the evidence, Ahmed submitted more than $25 million in false claims to Medicare for incision-and-drainage and wound debridement surgeries he did not perform.  DOJ


July 29, 2016 - 

Honeywell International Inc. and Georgia Power Company have agreed to pay an estimated $28.6 million to clean up the 760-acre saltwater marsh at the LCP Chemicals Superfund Site in Brunswick, Georgia.  Between 1919 and 1994, the LCP Chemicals site hosted a petroleum refinery, an electric power generation facility and various manufacturing operations which led to widespread contamination of the site’s soil, groundwater, surface water and sediment with mercury, polychlorinated biphenyls (PCBs) and other hazardous substances.  The site was placed on the federal Superfund list in 1996.  DOJ


July 28, 2016 - 

South Carolina hospital Lexington County Health Services District Inc. (d/b/a Lexington Medical Center) agreed to pay $17 million to resolve allegations it violated the False Claims Act and the Physician Self-Referral Law (known as the Stark Law) by maintaining improper financial arrangements with 28 physicians.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Lexington Medical Center physician Dr. David Hammett.  He will receive a whistleblower award of roughly $4.5 million from the proceeds of the government’s recovery.  Whistleblower Insider


July 27, 2016 - 

Deremedx Dermatology, P.C. (d/b/a Dermatique) and its owner Dr. Barry A. Solomon agreed to pay roughly $300,000 to resolve charges they violated the False Claims Act repeatedly billing Medicare and Medicaid for services performed as if Solomon were supervising the procedures even though he was not in the office and was in some cases out of the country.  Solomon also billed for so-called “impossible days” in which he submitted claims for more hours than he could have possibly worked.  The allegations originated in a whistleblower lawsuit filed by Diane Vitale under the qui tam provisions of the False Claims Act.  She will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (EDNY)


July 27, 2016 - 

The University of Pittsburgh Medical Center, together with the University of Pittsburgh Physicians, UPMC Community Medicine, Inc., and Tri-State Neurosurgical Associates-UPMC, Inc., agreed to pay roughly $2.5 million to settle charges they violated the False Claims Act by submitting false claims to Medicare.  Specifically, the government alleged that certain neurosurgeons employed by UPMC submitted claims for assisting with or supervising surgical procedures performed by other surgeons, residents, fellows, or physician assistants, when those neurosurgeons did not participate in the relevant surgeries to the degree required.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (WDPA)


July 27, 2016 - 

Connecticut psychiatrist Dr. Anton Fry and his company CPC Associates agreed to pay $36,704 to resolve allegations they violated the False Claims Act by submitting improper claims to Medicare for psychiatric services that were provided over the phone instead of by meeting with the beneficiaries in the office and treating them in person.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Jodi Cohen, a former patient of Dr. Fry, and Medical Bill Consultants, LLC, a billing company.  They will receive a whistleblower award of $6,239 from the proceeds of the government’s recovery.  DOJ (DCT)


July 27, 2016 - 

Cement manufacturer Cemex Inc. will invest approximately $10 million to cut emissions of harmful air pollution at five of its cement manufacturing plants in Alabama, Kentucky, Tennessee and Texas to resolve alleged violations of the Clean Air Act.  It will also pay a $1.69 million civil penalty, conduct energy audits at the five plants, and spend $150,000 on energy efficiency projects to mitigate the effects of past excess emissions of nitrogen oxides (NOx) from its facilities.  DOJ


July 26, 2016 - 

Massachusetts-based State Street Bank and Trust Company agreed to pay a total of at least $382.4 million — including $155 million to the DOJ, $167.4 million in disgorgement and penalties to the SEC, and at least $60 million to ERISA plan clients in an agreement with the Department of Labor — to settle allegations that it deceived its custody clients when providing them with indirect foreign currency exchange (FX) services.  According to the government, State Street admitted that contrary to its representations to certain custody clients, it did not price FX transactions at prevailing interbank market rates and instead executed FX transactions by applying a predetermined, uniform mark-up (if the custody client was a FX purchaser) or mark-down (if the custody client was an FX seller) to the prevailing interbank rate for FX.  State Street is also alleged to have falsely informed custody clients that it provided “best execution” on FX transactions, that it guaranteed the most competitive rates available on FX transactions and that it priced FX transactions based on a variety of factors when, in fact, prices were largely driven by hidden mark-ups designed to maximize State Street’s profits.  The allegations originated from famed Bernie Madoff whistleblower Harry Markopolos under the whistleblower provisions of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).  State Street will pay an additional $147.6 to resolve private class action lawsuits filed by the bank’s customers alleging similar misconduct.  DOJ


July 25, 2016 - 

Chile-based commercial airline LATAM Airlines Group S.A. (TAM) agreed to pay a $12.75 million criminal penalty in connection with a scheme to pay bribes to Argentine union officials via a false consulting contract with a third-party intermediary in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).  According to the company’s admissions, executives at LATAM’s predecessor-in-interest, LAN Airlines S.A. (LAN), executed a fictitious $1.15 million consulting agreement with an advisor to the Secretary of Argentina’s Ministry of Transportation.  Although the agreement purportedly required the consultant to undertake a study of Argentine airline routes, the consultant never provided any such services and instead funneled the monies to Argentine labor union officials in exchange for the union agreeing to accept lower wages and not enforce what would have been a costly labor rule.  DOJ


July 22, 2016 - 

California-based medical device manufacturer Acclarent Inc., a subsidiary of Johnson & Johnson, agreed to pay $18 million to resolve allegations it violated the False Claims Act by causing health care providers to submit false claims to Medicare and other federal health care programs by marketing and distributing its sinus spacer product known as the Relieva Stratus MicroFlow Spacer (Stratus) for use as a drug delivery device without FDA approval of that use.  The government further alleged that Acclarent marketed the Stratus as a drug delivery device even after the FDA rejected the company’s 2007 request to expand the approved uses for the Stratus.  On July 20, Acclarent’s former CEO William Facteau and former VP of Sales Patrick Fabian were convicted of introducing adulterated and misbranded medical devices into interstate commerce.  The allegations originated in a whistleblower lawsuit filed by Melayna Lokosky under the qui tam provisions of the False Claims Act.  The whistleblower will receive an award of roughly $3.5 million from the proceeds of the government’s recovery.  DOJ


July 22, 2016 - 

Preferred Imaging, LLC, a provider of diagnostic imaging services, agreed to pay $3,510,000 to resolve allegations it violated the False Claims Act by improperly billing Medicare and Texas Medicaid for services performed without proper medical supervision.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Preferred Imaging employee Tracy Sifuentes.  She will receive a whistleblower award of $596,700 from the proceeds of the government’s recovery.  DOJ (NDTX)


July 20, 2016 - 

Nishikawa Rubber Co. Ltd. agreed to plead guilty and pay a $130 million criminal fine for its role in a conspiracy to fix the prices of and rig the bids for automotive body sealing products sold to Honda, Toyota, Subaru and certain of their subsidiaries and affiliates in the United States and elsewhere.  Automotive body sealing products consist of body-side opening seals, door-side weather-stripping, glass-run channels, trunk lids and other smaller seals, which are installed into automobiles to keep the interior dry from rain and free from wind and exterior noises.  DOJ


July 20, 2016 - 

Enbridge Energy Limited Partnership and several related Enbridge companies agreed to pay $177 million to resolve claims stemming from its 2010 oil spills in Marshall, Michigan, and Romeoville, Illinois.  Enbridge has agreed to spend at least $110 million to prevent spills and improve operations across nearly 2,000 miles of its pipeline system in the Great Lakes region.  Enbridge will also pay civil penalties totaling $62 million for Clean Water Act violations.  DOJ


July 19, 2016 - 

Ann Anyanwu, a registered nurse at Texas-based Medpsych Home Health Care, was convicted for participating in an $8 million Medicare fraud scheme involving fraudulent claims for home-health services.  According to the evidence, Anyanwu and others executed a scheme to submit to Medicare through Medpsych claims for home-health services to patients who did not receive them and did not qualify for them.  DOJ


July 15, 2016 - 

A Minnesota federal court entered a permanent injunction against Kwong Tung Foods Inc. (dba Canton Foods) to prevent the distribution of adulterated noodles and sprouts.  The government charged the company with violating the Food, Drug and Cosmetic Act by preparing and packaging the company’s food products under insanitary conditions.  DOJ


July 14, 2016 - 

Columbia University agreed to pay $9.5 million to resolve charges it violated the False Claims Act for improperly seeking and receiving excessive cost recoveries in connection with research grants funded by the National Institutes of Health (NIH).  According to the government, Columbia impermissibly applied its “on-campus” indirect cost rate, instead of the much lower “off-campus” indirect cost rate, when seeking federal reimbursement for 423 NIH grants where the research was primarily performed at off-campus facilities owned and operated by the State of New York and New York City.  The government further alleged Columbia failed to disclose to NIH that it did not own or operate these facilities and that Columbia did not pay for use of the space for most of the relevant period.  The allegations originated with a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (SDNY)


July 14, 2016 - 

Jeffrey Robert Bonner of Sacramento, Cody Trevor Burgsteiner of Houston, and Darra Lee Shephard of Calgary, pleaded guilty for their roles in a $9 million “sweepstakes fraud” scheme to defraud hundreds of U.S. residents, many of them elderly.  As part of their guilty pleas, they each admitted that they worked in a call center in Costa Rica, which Bonner owned, where they placed telephone calls to U.S. residents, falsely informing them that they had won a substantial cash prize in a “sweepstakes” for which they had to pay a purported “refundable insurance fee.”  DOJ


July 14, 2016 - 

David Samson, former New Jersey Attorney General and the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, pleaded guilty to bribery for using his official authority to pressure the parent company of United Airlines to institute a non-stop flight from Newark, New Jersey, to South Carolina for his personal benefit.  DOJ


July 13, 2016 - 

Minnesota-based provider of hospice care Evercare Hospice and Palliative Care agreed to pay $18 million to resolve charges it violated the False Claims Act by claiming Medicare reimbursement for hospice care for patients not eligible for such care because they were not terminally ill.  Specifically, the government alleged that Evercare’s business practices were designed to maximize the number of patients for whom it could bill Medicare without regard to whether the patients were eligible for and needed hospice.  The allegations originated in whistleblower lawsuits filed by former employees of Evercare under the qui tam provisions of the False Claims Act.  They will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  Whistleblower Insider


July 13, 2016 - 

A Kentucky federal court entered a civil judgment of roughly $4.5 million against Vesta Brue and her medical device companies LifeTechniques, Inc. and Care Team Solutions LLC for violating the False Claims Act by making false statements that allowed them to receive millions of dollars in federal grants from the National Institutes of Health (NIH).  According to the settlement agreement, NIH awarded Brue and her companies five Small Business Innovation Research grants, worth millions of dollars, to support the development of electronic pillboxes customized for specific patient populations, including HIV and pediatric patients.  But Brue and her companies acknowledged that Brue spent the grant money on personal expenses, such as plastic surgery, jewelry, home renovations, and massages, among other expenses.  She also used grant money on business expenses not allowed under the grant regulations, such as costs associated with marketing and promoting her businesses.  DOJ (EDKY)


July 13, 2016 - 

Clothing importer Motives, Inc. and its affiliated foreign clothing manufacturers Motives Far East and Motives China Ltd. agreed to pay $13.375 million to settle charges of violating the False Claims Act by engaging in a double invoicing scheme to defraud the United States out of millions of dollars in customs duties.  As part of the settlement, the companies admitted to and accepted responsibility for under-reporting the value of its imported merchandise.  Under the scheme, the companies used two sets of invoices: one that undervalued the garments and was presented to the government for calculation of the appropriate customs duty, and the second that reflected the actual value of the garments.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (SDNY)


July 13, 2016 - 

Norwegian-based Wallenius Wilhelmsen Logistics AS agreed to plead guilty and pay a $98.9 million criminal fine for its involvement in a conspiracy to fix prices, rig bids and allocate customers for international ocean shipments of roll-on, roll-off cargo (such as cars, trucks, heavy-duty equipment) to and from the Port of Baltimore and other locations in the United States.  DOJ


July 12, 2016 - 

New Jersey couple Nita and Kirtish Patel and their diagnostic imaging companies Biosound Medical Services Inc. and Heart Solution PC were ordered to pay more than $7.75 million for violating the False Claims Act by submitting false claims to Medicare for thousands of falsified diagnostic test reports and the underlying tests.  The government had alleged that defendants created fraudulent diagnostic test reports, forged physician signatures on these reports, and then billed Medicare for the fraudulent reports and the underlying tests that were used solely to create these reports.  The government further alleged that defendants billed Medicare for neurological tests that they conducted without the required physician supervision.  The allegations originated in a whistleblower lawsuit filed by a former Biosound employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (DNJ)


July 7, 2016 - 

MD2U Holding Company agreed to pay $3.3 million and a percentage of its net income over the next five years to settle charges they violated the False Claims Act by submitting false medical claims to Medicare and other government health care programs, altering records to support false claims and providing services that were medically unnecessary.  Specifically, the government alleged MD2U submitted false billings for patients who were neither homebound nor home-limited; improperly billed the government for medically unnecessary visits; billed government health care programs at the highest payment codes (upcoding) when a lower code would have been more appropriate; and cloned medical records (a cut, copy, paste electronic program) in order to justify patient visits.  The company admitted being liable to the government for roughly $21.5 million.  DOJ


July 6, 2016 - 

New Jersey-based Pharmaceutical Innovations Inc. pleaded guilty to criminal charges and resolved a civil lawsuit arising from the company’s distribution of ultrasound gel contaminated with bacteria.  In addition to placing the company on two years probation, the court ordered the company to pay a criminal fine of $50,000 and to forfeit an additional $50,000 – the approximate value of the adulterated gel.  DOJ


July 6, 2016 - 

En Pointe Gov. Inc. (now known as Modern Gov IT Inc.), En Pointe Technologies Inc. (now known as Dinco Inc.), En Pointe Technologies Sales Inc. (now known as Collab9 Inc.), Dominguez East Holdings LLC and Din Global Corp. agreed to pay roughly $5.8 million to resolve allegations that they violated the False Claims Act by falsely certifying that En Pointe Gov. was a small business so it could obtain contracts set aside for small businesses and by underreporting sales under a General Services Administration (GSA) contract to avoid the payment of fees.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Minburn Technology Group, , a Virginia company that sells information technology products and services, and Anthony Colangelo, Minburn’s managing member.  Minburn and Colangelo will receive a whistleblower award of approximately $1.4 million.  DOJ


July 6, 2016 - 

The U.S. District Court for the Southern District of Alabama entered a consent decree of permanent injunction against BEK Catering LLC (dba Floppers Foods LLC) to prevent the distribution of adulterated and misbranded seafood products.  DOJ


July 5, 2016 - 

Massachusetts ophthalmologist Martin E. Cutler and his company Martin E. Cutler, M.D., P.C. agreed to pay $55,000 to resolve allegations they violated the False Claims Act by falsely billing Medicare for ophthalmic diagnostic imaging when there was no underlying diagnosis to justify the imaging.  They also allegedly falsely billed Medicare for office visits where a prior claim for the same visit had been denied and the new claim was not supported by Dr. Cutler’s documentation.  The allegations originated in a whistleblower lawsuit filed by Brian Sachs under the qui tam provisions of the False Claims Act.  Mr. Sachs will receive a whistleblower award of $11,000 from the proceeds of the government’s recovery.  DOJ (DMA)


July 5, 2016 - 

Drayer Physical Therapy Institute, LLC , with locations in in South Carolina and 14 other states, agreed to pay $7 million to settle charges of violating the False Claims Act by providing services to multiple patients simultaneously as though the services were being provided by a physical therapist or physical therapist assistant to one patient at a time.  The allegations originated in a whistleblower lawsuit filed by two former employees of Drayer under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of roughly $1.7 million from the proceeds of the government’s recovery.  DOJ (DSC)


June 30, 2016 - 

California-based Marshall Medical Center agreed to pay $5.5 million to settle allegations that it, along with Marshall Foundation for Community Health, El Dorado Hematology & Medical Oncology II, Inc., Dr. Lin H. Soe and Dr. Tsuong Tsai, violated the federal False Claims Act and California False Claims Act through a variety of Medicare and Medicaid billing improprieties.  The allegations originated in a whistleblower lawsuit filed by oncology nurse Colleen Herren under the qui tam provisions of the False Claims Act.

She will receive a whistleblower reward of roughly $1,430,000 from the proceeds of the government’s recovery.  DOJ (EDCA)


June 30, 2016 - 

Florida cardiologist Dr. Asad Qamar and his practice, the Institute of Cardiovascular Excellence (ICE), will pay $2 million plus release any claim to $5.3 million in suspended Medicare funds, to settle charges they violated the False Claims Act by billing for medically unnecessary procedures and paying kickbacks to patients by waiving Medicare copayments irrespective of financial hardship.  By waiving the required copayments, Dr. Qamar and ICE induced patients to agree to unnecessary and invasive procedures and other services.  Dr. Qamar’s and ICE’s illegal conduct made Dr. Qamar the highest paid Medicare cardiologist in the country in 2012 and 2013.  The allegations originated in two whistleblower lawsuits filed by Dr. Robert A. Green and Ms. Holly A. Taylor under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of roughly $1.3 million from the proceeds of the government’s recovery.  DOJ


June 30, 2016 - 

The University of Missouri-Columbia agreed to pay $2.2 million to settle allegations that it violated the False Claims Act by submitting false claims for radiology services to federal programs such as Medicare, Medicaid, and TRICARE.  Specifically, the government alleged that certain attending physicians certified that they had reviewed the images associated with interpretative reports prepared by resident physicians when, in fact, they had not reviewed those images.  DOJ (WDMO)


June 30, 2016 - 

SRA International Inc., Galaxy Scientific Corp. (GSC), Galaxy Technology LLC, and Engineering Integrated Services L.L.C. agreed to pay roughly  $1.1 million to resolve allegations they violated the False Claims Act through GSC’s use of shell affiliates to improperly induce the government to fund and award task orders, disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit with respect to certain military contract.  The allegations originated in a whistleblower lawsuit filed by former GSC contracting officer John Carr under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of roughly $250,000 from the proceeds of the government’s recovery.  DOJ (DNJ)


June 29, 2016 - 

Minneapolis-based Cardiovascular Systems, Inc. (CSI) agreed to pay $8 million to resolve allegations that it violated the False Claims Act by paying illegal kickbacks to induce physicians to use the company’s medical devices.  According to the government, CSI developed and distributed marketing materials to promote physicians using CSI’s devices to referring physicians; coordinated meetings between these physicians and referring physicians; and developed and implemented business expansion plans for the physicians.  The government alleged that CSI engaged in these activities to induce doctors to begin to use or continue to use CSI’s devices.  The allegations originated in whistleblower lawsuit filed by former CSI employee Travis Thams under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award from a share of the government’s recovery.  DOJ (WDNC)


June 28, 2016 - 

German auto-maker Volkswagen AG agreed to spend up to $14.7 billion in two related settlements to settle charges of cheating emissions tests and deceiving customers.  One settlement is with the United States and the State of California and the other is with the Federal Trade Commission.  The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.  According to the government, Volkswagen used so-called “defeat devices” to cheat emissions tests and used deceptive and unfair advertising in the sale of its so-called “clean diesel” vehicles.  Whistleblower Insider


June 27, 2016 - 

Ten North Texas companies and individuals agreed to pay $1.125 million to resolve charges they violated the False Claims Act for failing to comply with rules and regulations governing Medicaid transportation services.  The companies include: Irving Holdings, Inc. (together with its predecessor companies Big Tex Taxi Corporation, Terminal Taxi Corporation, Choice Cab, Inc., Yellow Checker Cab of Dallas, Inc., and Yellow Checker Cab of Fort Worth, Inc.); JetTaxi, Inc.; Dallas Taxi, LLC; US Cab, LLC; Terminal Taxi Corporation of Irving; Classic Shuttle Acquisition Corporation, Inc.; and Dallas Car Leasing, LLC.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Robert Spence, Mike Jones, and Cheryl Jones.  They were employees of Irving Holdings, one of the largest taxicab companies in the US.  They will receive a whistleblower award of $202,500 from the proceeds of the government’s recovery.  DOJ (EDTX)


June 23, 2016 - 

New Jersey osteopathic physician Vincent Destasio pleaded guilty to accepting thousands of dollars in exchange for patient referrals to two lab companies that performed blood and DNA testing.  DOJ (DNJ)


June 21, 2016 - 

David Allen and William Timothy Rogers, former pharmacist-in-charge and former president of the now-defunct compounding pharmacy Advanced Specialty Pharmacy (doing business as Meds IV)were sentenced to 12 and 10 months in prison for their roles in the distribution of adulterated drugs.  DOJ


June 21, 2016 - 

Denmark-based ultrasound equipment maker BK Medical ApS, a subsidiary of Massachusetts technology company Analogic Corporation, agreed to pay $3.4 million to resolve allegations it violated the Foreign Corrupt Practices Act through making improper payments to doctors employed by Russian state-owned entities.  DOJ


June 16, 2016 - 

Ohio-based GEO Specialty Chemicals Inc. pleaded guilty for its role in a conspiracy to eliminate competition involving contracts to supply liquid aluminum sulfate to municipalities and pulp and paper manufacturers in the United States.  The company admitted to conspiring to fix prices, rig bids, and allocate customers involving contracts for liquid aluminum sulfate, a coagulant used by municipalities to treat drinking and waste water, and by pulp and paper manufacturers in their manufacturing processes.  GEO was sentenced to pay a fine of $5 million.  DOJ


June 14, 2016 - 

Erdal Kuyumcu, the CEO of New York-based Global Metallurgy LLC, pleaded guilty to one count of conspiring to violate the International Emergency Economic Powers Act, in connection with the export of specialty metals from the United States to Iran.  Kuyumcu and others conspired to obtain over 1,000 pounds of the metallic powder from a U.S.-based supplier for export to Iran.  To hide the true destination of the goods from the U.S. supplier, Kuyumcu and a co-conspirator arranged for the metallic powder to be shipped first to Turkey and then to Iran.  DOJ


June 13, 2016 - 

Ubert Guillermo Rodriguez, former owner of Florida-based durable medical equipment maker G.R. Services Equipment & Supplies Inc., was sentenced to 37 months in prison and to pay $918,402 in restitution for his role in a multimillion-dollar health care fraud scheme in the greater Tampa, Florida, area.  Rodriguez admitted that from May 2013 through July 2013, his company submitted approximately $2.6 million in fraudulent claims to Medicare seeking reimbursement for durable medical equipment not legitimately prescribed by doctors and not provided to beneficiaries.  DOJ


June 13, 2016 - 

Oklahoma-based FedCare, LLC and its related entity The Broadway Clinic of Tulsa, LLC, agreed to pay $2.5 million to settle charges of violating the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the Department of Labor.  According to the government, FedCare and Broadway submitted claims for medical services furnished to federal employees of fourteen federal agencies that were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.  DOJ (WDOK)


June 10, 2016 - 

Amin al-Baroudi was sentenced to 32 months in prison for conspiring to export U.S.-origin goods from the United States to Syria in violation of sanctions imposed on Syria by the U.S. government.  According to court documents, Baroudi admitted that from at least December 2011 through March 2013 he and his co-conspirators exported U.S. tactical equipment to Syria for the purpose of supplying and arming Ahrar al-Sham and other insurgent groups in Syria whose stated goal is to overthrow the Assad government and install an Islamic state.  DOJ


June 9, 2016 - 

Raleigh, North Carolina-based specialty pharmacy Salix Pharmaceuticals, Inc., which sells products used to treat various gastroenterology conditions, agreed to pay $54 million to settle charges it violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe Salix drugs and medical devices.  Specifically, the government alleged Salix held sham speaker programs, frequently at high-end restaurants, where doctors were paid substantial honoraria purportedly to educate other doctors about a Salix product, but in reality spent little or no time discussing the product.  The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a yet-to-be-determined award from the proceeds of the government’s recovery.  DOJ (SDNY)


June 9, 2016 - 

Ivan Dwight Brannan and David R. Nelson, a former agent and a former driver for a large national trucking company, were sentenced to prison for 48 months (and a $120,000 fine) and 24 months (and a $10,000 fine) for paying bribes to officials at the Marine Corps Logistics Base in Albany, Georgia, in order to obtain lucrative freight-hauling business.  The officials who they bribed, Mitchell Potts and Jeffrey Philpot, were previously sentenced to 10 years and 7 years in prison, respectively.  DOJ


June 9, 2016 - 

Wenxia Man was convicted of conspiring to export fighter jet engines, a drone and related technical data to China, in violation of the Arms Export Control Act.  DOJ


June 6, 2016 - 

Genentech Inc. and OSI Pharmaceuticals LLC agreed to pay $67 million to resolve charges they violated the False Claims Act by making misleading statements about the effectiveness of the cancer drug Tarceva.  According to the government, Genentech and OSI made misleading representations to physicians and other health care providers about the effectiveness of Tarceva when there was little evidence to show that Tarceva was effective to treat those patients unless they also (i) had never smoked or (ii) had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells.  The allegations originated in a whistleblower lawsuit filed by former Genentech employee Brian Shields under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of approximately $10 million out of the proceeds of the government’s recovery.  Whistleblower Insider


June 2, 2016 - 

Aquatic Sensor Network Technology (Aquasent)and several of its officials and employees, namely Dr. Jun-Hong Cui, Dr. Yong Ma, Dr. Shengli Zhou, Dr. Zhijie Shi, and Juanjuan Liao, agreed to pay $400,000 to resolve allegations they violated the False Claims Act in the management of federally-funded grants awarded to Aquasent by the National Science Foundation.  DOJ (DCT)


June 1, 2016 - 

Florence Bikundi and her husband Michael D. Bikundi Sr., owners of home care agency Global Healthcare Inc., were sentenced to prison for 10 years and 7 years, respectively, for health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.  They were also ordered to forfeit over $11 million seized from 76 bank accounts; their $1 million residence; $73,000 in cash seized from their residence and five luxury vehicles.  The court also imposed a forfeiture money judgment of roughly $40 million and ordered them to pay roughly $80 million in restitution to D.C. Medicaid.  The government’s evidence showed the Bikundis led a scheme to bill Medicaid for services that were not fully provided, recruiting others, including family members, into the scam and creating fraudulent paperwork to hide the illegal activity.  DOJ


June 1, 2016 - 

Dr. Jonathan Oppenheimer, former owner and CEO of Nashville drug testing laboratory Prost-Data, Inc. (d/b/a OURLab), OPKO Health, Inc., and OPKO Lab, have agreed to pay $9.35 million to resolve charges they violated the False Claims Act by providing illegal kickbacks in exchange for business.  According to the government, Dr. Oppenheimer and OURLab made donations toward electronic health records (EHR) systems purchased by their client physician practices that fell outside the restrictions set forth in the Anti-Kickback Statute EHR safe harbor and the Stark EHR exception.  The allegations originated in a whistleblower lawsuit filed by a former OURLab employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of $1.683 million from the proceeds of the government’s recovery.  DOJ (MDTE)


June 1, 2016 - 

San-Diego-based Harper Construction Company, Inc. paid $5.4 million to resolve allegations it violated the False Claims Act by fraudulently billing the government for work on multiple projects on military bases through the use of sham small disadvantaged businesses.  The settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune.  According to the government, Harper claimed it met the contract requirement that it subcontract a certain percentage of work to small disadvantaged businesses when in fact it subcontracted with sham small disadvantaged businesses.  Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation.  The allegations originated in a whistleblower lawsuit filed by Rickey Howard, a former employee of Harper subcontractor Frazier Masonry Corporation, under the qui tam provisions of the False Claims Act.  Mr. Howard will receive a whistleblower award of $1,485,000 from the proceeds of the government’s recovery.  DOJ (SDCA)


May 31, 2016 - 

Deloitte Consulting agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration contract.  In 2000, GSA awarded Deloitte a contract for the provision of information technology services.  According to the government, Deloitte failed to comply with price reduction clauses in the contract which required Deloitte to reduce the prices it charged the government if it offered lower prices to specific commercial customers and which resulted in the government paying more for Deloitte’s services than comparable commercial customers.  DOJ


May 31, 2016 - 

Newark, New Jersey-based Saint Michael’s Medical Center Inc. agreed to pay $450,000 to resolve allegations it violated the False Claims Act by falsely billing Medicare and Medicaid for medically unnecessary cardiac procedures.  The allegations originated in a whistleblower lawsuit under the qui tam provisions of the False Claims Act.  DOJ (DNJ)


May 27, 2016 - 

Medical device manufacturer Paradigm Spine agreed to pay $585,000 to resolve allegations it violated the False Claims Act by marketing the company’s coflex-F® device for surgical uses that were not approved by the FDA.  The settlement further resolves allegations that Paradigm caused false claims by giving false recommendations on how to code health claims for procedures involving the company’s coflex® device.  The allegations originated in a whistleblower lawsuit filed by Chris Coyle, a former Paradigm Spine sales representative, under the qui tam provisions of the False Claims Act.  Mr. Coyle will receive a whistleblower award of approximately $105,300 from the proceeds of the government’s recovery.  DOJ (DMD)


May 27, 2016 - 

Carlos Rodriguez Nerey, the owner and president of Miami-area consulting and staffing company Nerey Professional Services Inc., was sentenced to 60 months in prison (and ordered to pay roughly $2.4 million in restitution) for his role in a $2.3 million Medicare fraud scheme.  According to evidence presented at trial, Nerey was involved in a conspiracy to accept kickbacks in return for referring Medicare beneficiaries to Mercy Home Care Inc. and D&D&D Home Health Care Inc. to serve as patients, including those who did not qualify for home health care services.  DOJ


May 20, 2016 - 

Hospicio La Paz, Inc. agreed to pay $2.5 million to settle charges of violating the False Claims Act in connection with approximately $1.5 million in questionable billings it submitted for payment to the Medicare Part A program.  DOJ (D.PR)


May 18, 2016 - 

Missouri physician Randall E. Meyer pleaded guilty to (and agreed to pay roughly $75,000) violating the False Claims Act.  Meyer, a surgeon with Central Missouri Cardiology, P.C., admitted claiming the percentage of patients’ lesions and stenosis in their arteries was 70 percent or greater when it was substantially less.  The health care benefit programs would not have reimbursed claims if the programs had known Meyer was inflating the percentage of patient lesion and stenosis.  DOJ (W.D.MO)


May 16, 2016 - 

Tokyo-based Corning International Kabushiki Kaisha agreed to plead guilty and pay a $66.5 million criminal fine for conspiring to fix prices, rig bids and allocate the market for ceramic substrates sold in the United States and elsewhere.  The products were installed in automotive emissions control systems and supplied to automobile manufacturers including Ford, General Motors, and Honda.  DOJ


May 16, 2016 - 

Mountain States Contractors, an affiliated company of Jones Brothers, agreed to pay $2.25 million to settle charges of violating the False Claims Act by submitting false claims for payment in connection with the Department of Transportation’s Disadvantaged Business Enterprise Program.  The allegations originated in a whistleblower lawsuit by a former Mountain States employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of $500,000 from the proceeds of the government’s recovery.  Whistleblower Insider


May 13, 2016 - 

Buffalo, New York-based M&T Bank Corp agreed to pay $64 million to settle charges it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.  Specifically, the government alleged that M&T Bank failed to comply with certain FHA origination, underwriting and quality control requirements.  DOJ


May 13, 2016 - 

A permanent injunction was entered against Detroit-based Scotty’s Incorporated and its co-owner and manager Sandra J. Jackson to prevent the distribution of adulterated ready-to-eat sandwiches.  According to the government, Scotty’s, which does business as Bruce Enterprises and Bruce’s Fresh Products, distributes ready-to-eat sandwiches prepared, packed or held under insanitary conditions and in violation of the Federal Food, Drug and Cosmetic Act.  DOJ


May 12, 2016 - 

Kentucky anesthesiologist Jaime Guerrero was sentenced to 100 months in prison for his role in the unlawful distribution of controlled substances, including the prescription opioid hydrocodone without a legitimate medical purpose.  Guerrero also agreed to pay $827,000 in victim restitution to nine health care benefit programs.  He also pleaded guilty to multiple counts of unlawful distribution or dispensing of controlled substances, health care fraud, conspiracy and money laundering.  DOJ


May 9, 2016 - 

CA oncologist Dr. John F. Kiraly and his wife Rena Kiraly, who served as the doctor’s office administrator, have paid $300,000 to settle allegations that they violated the False Claims Act by improperly billing Medicare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor.  Specifically, the Kiralys purchased chemotherapy drugs from Warwick Healthcare Solutions Inc., also known as Richards Pharma, a former United Kingdom-based drug distributer that distributed non-FDA approved drugs throughout the United States.  DOJ (EDCA)


May 6, 2016 - 

Liberty Reserve founder Arthur Budovsky was sentenced to 20 years imprisonment and to pay a $500,000 fine for running a massive money laundering enterprise through his company’s virtual currency once used by cybercriminals around the world to launder the proceeds of their illegal activity.  According to the indictment, Liberty Reserve billed itself as the Internet’s “largest payment processor and money transfer system” and allowed people all over the world to send and receive payments using virtual currency.  But Liberty Reserve grew into a financial hub for cybercriminals around the world, trafficking the criminal proceeds of Ponzi schemes, credit card trafficking, stolen identity information and computer hacking.  DOJ


May 6, 2016 - 

England-based Hesco Bastion Limited agreed to pay $2.1 million to resolve allegations it violated the False Claims Act by overcharging the government on the international transportation of blast walls Hesco manufactured and sold to the U.S. government.  Hesco contracted with the Department of Defense to provide blast walls, also known as Concertainer Units, and to ship them from England to a U.S. military base in Germany.  According to the government, Hesco charged the government a fixed price of £650 per truckload, while paying its transportation subcontractor less than £650 per truckload, which the government contends violated the parties’ contracts.  The government further alleged that Hesco knowingly provided the government false information concerning the amount that Hesco had been paying to its transportation subcontractor and that Hesco misled the government by submitting 47 false invoices that were made to appear to be authentic invoices from the transportation subcontractor.  DOJ (EDPA)


May 6, 2016 - 

The Trustees of the University of Pennsylvania, on behalf of its operating divisions, including the University of Pennsylvania Health System (UPHS), agreed to pay roughly $76,000 to settle charge of violating the False Claims for the alleged submission of false home health care billings to the Medicare program.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  DOJ (EDPA)


May 5, 2016 - 

The City of New York agreed to pay $4.3 million to settle charges of violating the False Claims Act through the New York City Fire Department’s receipt of reimbursements for claims for emergency ambulance services that did not meet Medicare’s medical necessity requirement.  This matter was brought to the attention of the U.S. Attorney’s Office through a voluntary disclosure by the City.  DOJ (SDNY)


May 5, 2016 - 

Tennessee Valley Authority contractor Bartlett Holdings, Inc. (d.b.a. BHI Energy/Sun Technical Services) agreed to pay $2.8 million to settle charges of violating the False Claims Act by knowingly concealing or avoiding an obligation to refund overpayments received from TVA for work performed on the project to complete the construction of Watts Bar Nuclear Plant Unit 2.  According to the government, Bartlett received payments from TVA in excess of actual costs for payroll taxes and insurance and knowingly failed to timely identify, report and refund those overpayments to TVA as required under the subcontract.  DOJ (EDTN)


May 3, 2016 - 

Virginia-based Agape Health Management, Inc., which operates under the name Agape Adult Day Healthcare Center, agreed to pay $385,917 to settle charges of violating the False Claims Act by submitting false claims for transportation services purportedly provided to Virginia Medicaid recipients that were not present or transported to the Agape facility on the claimed dates of service.  DOJ (EDVA)


May 3, 2016 - 

Menlo Worldwide Services and Estes Forwarding Worldwide agreed to collectively pay $13 million to resolve allegations that they violated the False Claims Act by overcharging the government by billing for the cost of moving freight by air when it was actually shipped by ground.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a whistleblower award of $2.86 million from the proceeds of the government’s recovery.  Whistleblower Insider


April 29, 2016 - 

U.S. Navy Captain Select Michael Vannak Khem Misiewicz was sentenced to 78 months in prison and ordered to pay a fine of $100,000 (and forfeit $95,000 in illicit proceeds) for bribery charges, admitting that he accepted cash, gifts, travel expenses, entertainment and the services of prostitutes from foreign defense contractor Glenn Defense Marine Asia in exchange for classified U.S. Navy information.  The information included ship schedules that contained information related to the U.S. Navy’s ballistic missile defense operations in the Pacific.  To date, 10 individuals have been charged in connection with this scheme, nine of which have pleaded guilty.  DOJ


April 29, 2016 - 

Hollister Inc., a manufacturer of disposable health care products, and Byram Healthcare Centers Inc., a supplier of medical products, agreed to respectively pay roughly $11.4 million and $9.4 million to resolve allegations they violated the False Claims Act through an illegal kickback scheme.  According to the government, Hollister paid kickbacks to Byram in return for marketing promotions, conversion campaigns and other referrals of patients to Hollister’s ostomy and continence care products.  The government claimed that Byram also received kickbacks from three other manufacturers of ostomy and continence care products, namely Coloplast Corp., Montreal Ostomy and Safe N’ Simple.  The allegations originated in a whistleblower lawsuit filed by two former employees and one current employee of Coloplast under the qui tam provisions of the False Claims Act.  They will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ


April 28, 2016 - 

California doctor Gary J. Ordog pleaded guilty to submitting more than $2.4 million in fraudulent claims to Medicare.  Ordog, who purported to be a physician specializing in toxicology, admitted submitting false claims to Medicare for purported visits with Medicare beneficiaries, when in fact those visits never actually occurred, including on dates when Ordog was out of the country.  He also admitted to billing for services provided to beneficiaries who were deceased and for services totaling more than 24 hours in one day.  DOJ


April 27, 2016 - 

The DOJ announced that Hitachi Chemical Co. will plead guilty to conspiring with competitors between 2002 and 2010 to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere.  DOJ


April 27, 2016 - 

Los Angeles-based upscale furniture seller Z Gallerie LLC agreed to pay $15 million to resolve allegations it violated the False Claims Act through a scheme to evade customs duties on imports of wooden bedroom furniture from China.  According to the government, Z Gallerie evaded antidumping duties by misclassifying, or conspiring with others to misclassify, the imported furniture as pieces intended for non-bedroom use.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Kelly Wells, an e-commerce retailer of furniture.  She will receive a whistleblower award of $2.4 million from the proceeds of the government’s recovery.  DOJ


April 27, 2016 - 

Pharmaceutical giants Wyeth and Pfizer, Inc. agreed to pay $784.6 million to resolve allegations that Wyeth violated the False Claims Act by reporting to the government false prices on two of its proton pump inhibitor (PPI) drugs, Protonix Oral and Protonix IV.  Under the state Medicaid programs, drug companies must provide Medicaid rebates based on the best prices they offer other customers.  According to the government, Wyeth hid from Medicaid bundled discounts it provided to thousands of hospitals across the country on Protonix Oral and Protonix IV.  By failing to report these bundled discounts, Wyeth allegedly avoided paying hundreds of millions of dollars in rebates.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Lauren Kieff, a former hospital sales representative for AstraZeneca and William St. John LaCorte, a physician practicing in New Orleans.  They will collectively receive a whistleblower award of roughly $98 million from the proceeds of the federal and state settlements.  Whistleblower Insider


April 27, 2016 - 

Bering Straits Technical Services and its parent company Bering Straits Native Corporation agreed to pay $2 million to settle charges of violating the False Claims Act through their submission of false claims to the Department of Defense and/or the Defense Logistics Agency (DLA) for maintenance facility services provided at the Red River Army Depot located near Texarkana.  Specifically, the government charged the companies submitted false preventative maintenance reports for maintenance that was not performed and false repair work orders.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (SDNY)


April 22, 2016 - 

OXY USA Inc., a subsidiary of Occidental Petroleum Company, agreed to spend an estimated $40 million to clean up contaminated water and sediments in the Ocoee River and one of its watersheds at the Copper Basin Mining District Superfund Site in Polk County, Tennessee.  In addition, OXY USA will reimburse EPA approximately $10.8 million toward costs incurred in its past cleanup actions at the site.  The company will also reimburse EPA and the state of Tennessee for costs incurred by those agencies in overseeing the work required by the settlement.  DOJ


April 20, 2016 - 

A group of 66 companies agreed to spend an estimated $70 million to clean up contaminated groundwater at the Omega Chemical Corporation Superfund Site in Whittier, California.  In addition, the parties will reimburse EPA $8 million and the California Department of Toxic Substances Control $70,000 toward costs incurred in those agencies’ past cleanup actions at the site.  DOJ


April 20, 2016 - 

Dmitrij Harder, former owner and president of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. pleaded guilty to bribing an official at the European Bank for Reconstruction and Development in violation of the Foreign Corrupt Practices Act.  According to admissions made with Harder’s plea, the EBRD was a multilateral development bank headquartered in London that was owned by more than 60 sovereign nations and provided financing for development projects in emerging economies, primarily in Eastern Europe.  Harder admitted he engaged in a scheme to pay approximately $3.5 million in bribes to an EBRD official to corruptly influence the official’s actions on applications for EBRD financing submitted by the Chestnut Group’s clients and to influence the official to direct business to the Chestnut Group.  DOJ


April 20, 2016 - 

Keiji Kyomoto, a former executive of an automotive body sealing products supplier based in Hiroshima, Japan, and former president of its U.S. joint venture, pleaded guilty and was sentenced to serve 18 months in a U.S. prison for his role in a conspiracy to fix prices and rig bids for the sale of automotive body sealing products sold in the United States.  DOJ


April 19, 2016 - 

Michigan doctor Ali Elhorr pleaded guilty for his role in a $2.4 million health care fraud scheme.  Elhorr, who worked at House Calls Physicians P.L.L.C., admitted to conspiring with others, including his brother, Dr. Hicham Elhorr, to commit health care fraud by agreeing to serve as a “supervising” physician for unlicensed individuals purportedly providing in-home physician services.  The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries.  The visits were then billed as if performed by the licensed physicians.  DOJ


April 18, 2016 - 

Miami physician Henry Lora was sentenced to 108 months in prison for his role in a Medicare fraud scheme that caused approximately $30 million in losses.  Lora was the medical director of Miami-area clinic Merfi Corporation and admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided.  He also admitted falsifying patient records to make it appear as if the beneficiaries qualified for these services.  In March 2014, Merfi owner was sentenced to nine years in prison for conspiracy to commit health care fraud.  DOJ


April 18, 2016 - 

Maryland-based Bon Secours Health System and one of its surgical oncologists, Dr. Eugene Chang, agreed to pay $400,000 to settle charges of violating the False Claims Act by billing Medicare and other federal healthcare programs for non-covered breast examinations and ultrasounds.  The allegations originated in a whistleblower lawsuit filed by a former Bon Secours practice manager and a former colleague of Dr. Chang under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of $108,000 out of the proceeds of the government’s recovery.  Whistleblower Insider


April 18, 2016 - 

Georgia dermatologists Margaret Kopchick and Russell Burken and their practice group, Toccoa Clinic Medical Associates, agreed collectively to pay $1.9 million to settle claims that they violated the False Claims Act by billing Medicare for evaluation and management (E&M) services that were not permitted by Medicare rules.  According to the government, Drs. Burken and Kopchick’s improperly billed for E&M services along with procedures where no significant and separately identifiable service was performed, and upcoded E&M services to higher levels than were appropriate, leading to overpayments by Medicare.  DOJ (NDGA)


April 18, 2016 - 

Coloroda-based defense contractor IONU Security, Inc. agreed to pay $450,000 to settle charges of violating the False Claims Act in connection with an Army Contract for Bradley Fighting Vehicles (“Bradleys”) under which IONU provided Turret Control Drive Units (“TDCUs”) for the Bradleys under subcontracts with the Prime Contractor.  The TDCU is a control box that provides power to control the turret, including weapons systems, of a Bradley.  According to the government, the TDCUs did not meet the requirements of the contract and despite knowing that their failure could result in an electronic short and catastrophic failure, IONU did not notify the Prime Contractor or the government of the defective parts.  The allegations originated after a whistleblower notified the Department of Defense through its fraud hotline.  DOJ (WDTX)


April 18, 2016 - 

California-based sportswear importer Winds Enterprises, Inc. agreed to pay $1.5 million to resolve allegations it violated the False Claims Act by underpaying on import duties on shipments from 2010 to 2014.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former Winds Enterprises employee, who will receive whistleblower award of $300,000 from the proceeds of the government’s recovery.  DOJ (WDWA)


April 15, 2016 - 

New Jersey-based Freedom Mortgage Corporation agreed to pay $113 million to resolve allegations it violated the False Claims Act by knowingly originating and underwriting single family mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements for the FHA insurance program.  DOJ


April 14, 2016 - 

Boston Medical Center (BMC) and two of its physician practice organizations agreed to pay $1.1 million to resolve allegations they violated the False Claims Act by improperly billing Medicare and Medicaid.  Specifically, the government charged that (1) BMC billed Medicare for more units of Rituxan, an expensive cancer drug, than BMC actually infused in its patients; (2) BMC billed Medicare and Medicaid for services at its pre-surgical treatment center even though the global fee for the subsequent surgeries covered those same treatments; and (3) BMC submitted claims to Medicare for outpatient podiatry services where the clinical documentation did not support the reasonableness and necessity of the services.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by BMC’s former Chief Compliance Officer, Kathleen Heffernan.  She will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (DMA)


April 13, 2016 - 

Nery Cowan, a former health care clinic consultant and Medicare biller for partial hospitalization program Greater Miami Behavioral Healthcare Center Inc. was sentenced to 135 months in prison and ordered to pay a $100,000 fine for her role in laundering money in connection with a $63 million health care fraud scheme.  As part of her guilty plea, Cowan admitted to directing and authorizing the payment of kickbacks and bribes to patient brokers and others in exchange for Medicare beneficiary referrals.  Cowan also admitted that Greater Miami personnel routinely falsified medical records affiliated with these recruited Medicare beneficiaries to support false claims to Medicare.  Cowan also admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida.  Judge Bloom previously sentenced Butler and Mora to 16 years and nine years in prison, respectively, following their guilty pleas.  DOJ


April 13, 2016 - 

Florida Pain Medicine Associates, Inc. and its owners, Drs. Bart Gatz, Alexis Renta, and Albert Rodriguez, agreed to pay $1.1 million to resolve allegations they violated the False Claims Act by billing Medicare for medically unnecessary nerve conduction studies.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Rosa Gomez, who had worked in Florida Pain Medicine’s billing department.  She will receive a whistleblower award of $242,000 from the proceeds of the government’s recovery.  DOJ (SDFL)


April 12, 2016 - 

Cecil Alexander Kent Jr. pleaded guilty to fraud charges for his role in a scheme to defraud Medicare out of approximately $6.2 million while he acted as an unlicensed physician at a Detroit in-home physician services company.  Kent admitted that while he was employed at B&M Visiting Doctors PLC and while he was unlicensed, he saw patients and falsified related patient records, including medical documents and billing documents, all under the name of a licensed medical doctor.  He admitted that among those documents falsified were prescriptions for controlled substances.  DOJ


April 11, 2016 - 

Tennessee-based drug urine screening company PremierTox 2.0, Inc. (previously called Nexus) agreed to pay $2.5 million to resolve allegations it violated the False Claims Act by submitting false claims when billing Medicare, TennCare and Kentucky Medicaid for drug urine screening services.  According to the government, PremierTox had a swapping arrangement under which Nexus gave below cost discounts on its urine drug screen tests to patients in Tennessee without insurance, in exchange for physicians’ referring their patients with Medicare or TennCare coverage to Nexus. The government also contended that in Tennessee Nexus submitted excessive claims to Medicare and TennCare for laboratory testing that was beyond what was medically reasonable and necessary.  The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act by a former office manager of a pain clinic and the former CEO of PremierTox.  The office manager will receive a whistleblower award of $361,250, and the former CEO will receive a whistleblower award of $56,250.  DOJ (MDTN)


April 11, 2016 - 

Goldman Sachs agreed to pay $5.06 billion to settle charges relating to alleged misconduct in the sale of its residential mortgage-backed securities or what the government described as “serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail.”  Whistleblower Insider


April 11, 2016 - 

Naseem Minhas, the owner and operator of Detroit-area home health care agency TriCounty Home Care Services Inc. pleaded guilty today for his participation in a $4 million health care fraud scheme.  According to admissions made as part of his plea agreement, Minhas paid a physician and recruiters to refer Medicare beneficiaries to TriCounty and sign medical documents falsely certifying that they required home health care.  Minhas, a licensed physical therapist, also admitted that he assisted in creating fake patient files to make it appear as though the patients needed and received services that were unnecessary or not provided.  DOJ


April 8, 2016 - 

Wells Fargo agreed to pay $1.2 billion in connection with the bank’s improper mortgage lending practices.  As part of the settlement, Wells Fargo admitted that it certified loans ineligible for Federal Housing Administration Mortgage Insurance and that if failed to disclose thousands of faulty mortgage loans to HUD.  According to Manhattan US Attorney Preet Bharara, Wells Fargo “has been held responsible for years of reckless underwriting, while relying on government insurance to deal with the damage.”  DOJ


April 8, 2016 - 

Norwegian shipping company DSD Shipping was sentenced to pay a total corporate penalty of $2.5 million as a result of its convictions for obstructing justice, violating the Act to Prevent Pollution from Ships, and tampering with witnesses.  DOJ


April 6, 2016 - 

Former Massey Energy CEO Don Blankenship was sentenced to a year in prison and to pay $250,000 for violating mine health and safety standards after a jury returned a guilty verdict on the federal crime.  This follows the 2010 explosion at the Upper Big Branch mine and findings of unsafe working conditions, violations of U.S. Mine Safety and Health Administration (MSHA) regulations and organized efforts to obstruct and interfere with MSHA inspectors.  DOJ


April 5, 2016 - 

Mohammad Rafiq, owner of Detroit-area home health care agency Perfect Home Health Care, was sentenced to 57 months in prison and to pay roughly $3.5 million in restitution (and forfeit the same amount) for his role in a $3.4 million health care fraud scheme.  According to admissions made as part of his plea agreement, Rafiq paid physicians and recruiters to refer Medicare beneficiaries to Perfect and sign medical documents falsely certifying they required home health care.  Rafiq also directed patient recruiters and Perfect employees to pay cash kickbacks to Medicare beneficiaries in exchange for signing multiple blank physical therapy records.  DOJ


April 5, 2016 - 

California gastroenterologist Ali S. Vaziri agreed to pay $400,000 to settle charges he violated the False Claims Act by billing Medicare for patient office visits that reflected more time and services than he actually spent with patients and for patient office visits that were required to be billed together with routine colonoscopies as one charge.  DOJ (NDCA)


April 1, 2016 - 

Sharon Iglehart, a former attending psychiatrist at Riverside General Hospital in Houston, was sentenced to 144 months in prison and to pay roughly $6.4 million (and forfeit the same amount) for her role in a $158 million Medicare fraud scheme involving false claims for mental health treatment.  According to evidence presented at trial, Iglehart and others engaged in a scheme to defraud Medicare by submitting through Riverside fraudulent claims to Medicare for partial hospitalization program services, an intensive outpatient treatment for severe mental illness, when the patients for whom Riverside billed did not receive the services.  In fact, evidence proved that most of the Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment at all.  To date, 12 other individuals have been convicted based on their roles in this scheme, including former Riverside president Earnest Gibson III.  DOJ


April 1, 2016 - 

Carlos Rodriguez Nerey, a patient recruiter for several Miami-area home health agencies, was convicted for his role in a fraud and kickback scheme that resulted in the submission of millions of dollars in fraudulent claims to Medicare.  According to evidence presented at trial, Nerey claimed to work at a staffing company called Sweet Life Staffing Inc. but was in fact a patient recruiter for D&D&D Home Health Inc. and Mercy Home Care, Inc., two fraudulent home health care agencies in Miami.  Nerey created a shell company for the purpose of accepting kickbacks from Mercy and D&D&D and received approximately $250,000 as a result of his role in the scheme.  DOJ


March 30, 2016 - 

Chung Yu Yeung (aka Louis Yeung), former vice president of Eastern Tools and Equipment Inc., a California wholesale equipment company that sold portable generators to retailers across the country, pleaded guilty to fraud charges in connection with a bank fraud scheme.  Yeung admitted that he and his co-conspirators defrauded Pasadena-based East West Bank in connection with a line of credit for Eastern Tools by misrepresenting to the bank Eastern Tools’ accounts receivable and its financial statements.  Eastern Tools ultimately defaulted causing more than $9 million in losses to the bank.  DOJ


March 29, 2016 - 

The pest control corporation Terminix International Company agreed to pay $10 million in criminal fines, community service and restitution payments to settle charges of violating the Federal Insecticide, Fungicide and Rodenticide Act for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill last year after the unit below them was fumigated.  DOJ


March 29, 2016 - 

Former Navy noncommissioned officer Donald P. Bunch was sentenced to 24 months in prison for accepting cash bribes from vendors while he served in Afghanistan.  According to the plea agreement, Bunch worked as a U.S. Navy E8 senior chief at the Humanitarian Assistance Yard at Bagram Airfield in Afghanistan.  The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan.  Bunch admitted accepting roughly $25,000 in bribes from the vendors for securing for them more frequent and lucrative contracts.  Bunch sent greeting cards stuffed with proceeds of the bribes to his wife and used the money to pay for the construction of a new home.  DOJ


March 28, 2016 - 

Tennessee-based defense contractor Kilgore Flares Company and one of its subcontractors, New York-based ESM Group Inc., agreed to pay $8 million to resolve charges they violated the False Claims Act by selling defective and illegally imported infrared countermeasure flares to the U.S. Army and, for ESM, knowingly evading U.S. customs duties.  The allegations first arose in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Reade Manufacturing Company, a domestic manufacturer of magnesium powder which is used in the flares.  The company will receive a whistleblower award of $400,000 from the proceeds of the government’s recovery from ESM.  Whistleblower Insider


March 25, 2016 - 

Damian Mayol, the president of Miami-based transportation company Transportation Services Providers Inc. was sentenced to 60 months in prison and to pay $26.8 million in restitution (and forfeit the same amount) for his role in a health care fraud scheme involving three mental health centers that resulted in the submission of approximately $70 million in false Medicare claims.  According to evidence presented at trial, Mayol and his co-conspirators used his company to coordinate the payment of illegal kickbacks to recruiters, who in return referred patients to three now-defunct community mental health centers — R&S Community Mental Health Inc., St. Theresa Community Mental Health Center Inc. and New Day Community Mental Health Center LLC — for costly partial hospitalization program services that were not medically necessary or not actually provided.  DOJ


March 25, 2016 - 

U.S. Navy Capt. Daniel Dusek was sentenced to 46 months in prison for giving classified information to a foreign defense contractor in exchange for prostitutes, luxury travel and other gifts.  He is the highest-ranking official charged in a massive Navy bribery scandal.  Dusek admitted he used his influence as Deputy Director of Operations for the Seventh Fleet, headquartered in Yokosuka, Japan, and later as executive officer of the USS Essex and the commanding officer of the USS Bonhomme Richard, to benefit Leonard Glenn Francis and his company, Glenn Defense Marine AsiaDOJ


March 23, 2016 - 

Detroit-area doctor Laran Lerner was sentenced to 45 months in prison and to pay $2.8 million in restitution for his role in a $5.7 million Medicare fraud scheme in which he prescribed medically unnecessary controlled substances and billed for office visits and diagnostic testing that never took place.  DOJ


March 23, 2016 - 

Gilbert G. Lundstrom, the former CEO of TierOne Bank — a $3 billion publicly-traded commercial bank formerly headquartered in Lincoln, Nebraska — was sentenced to 132 months in prison and to pay a $1.2 million fine for orchestrating a scheme to defraud TierOne’s shareholders and to mislead regulators by concealing more than $100 million in losses on loans and declining real estate.  DOJ


March 23, 2016 - 

Abraham Jose Shiera Bastidas, the owner of multiple U.S.-based energy companies, pleaded guilty to violating the Foreign Corrupt Practices Act by paying bribes to secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A.  DOJ


March 23, 2016 - 

Pennsylvania-based Respironics Inc. agreed to pay $34.8 million to resolve charges it violated the False Claims Act and Anti-Kickback Statute by paying kickbacks in the form of free call center services to durable medical equipment (DME) suppliers that bought its masks for patients with sleep apnea.  Respironics allegedly provided DME companies with call center services to meet their patients’ resupply needs at no charge as long as the patients were using masks that Respironics manufactured; otherwise, the DME companies would have to pay a monthly fee based on the number of patients who used masks manufactured by a competitor of Respironics.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Dr. Gibran Ameer, who has worked for different DME companies.  He will receive a whistleblower award of $5.38 million from the proceeds of the government’s recovery.  DOJ


March 21, 2016 - 

Florida audiologist Terri L. Schneider was sentenced to 94 months in prison and to pay $2.5 million in restitution for her role in a multimillion-dollar health care fraud and money laundering scheme. According to evidence presented at trial, Schneider and her co-conspirators used three purported medical clinics in Florida — Cornerstone Health Specialists, Summit Health Specialists and Coastal Health Specialists — to submit approximately $12.3 million in false Medicare claims seeking reimbursement for radiology, audiology, cardiology and neurology services.  The evidence showed that Schneider and her co-conspirators used forged and falsified documents in the Medicare enrollment process for the medical clinics that they operated under false pretenses, and billed Medicare for services that had not been rendered by physicians.  They also paid illegal kickbacks in exchange for access to Medicare patients and Medicare patient information used in the fraud scheme.  DOJ


March 21, 2016 - 

Maryland-based Coastal International Security, Inc. agreed to pay a total of $1.65 million to resolve criminal and civil allegations that the company defrauded the State Department during performance of a security contract and later concealed the fraud from contracting officials, and civil allegations that the company improperly obtained and used competitors’ pricing information to underbid competitors on government task orders.  Coastal International simultaneously agreed to pay $1.5 million to resolve civil claims under the False Claims Act for this conduct, as well as claims under the Procurement Integrity Act.  DOJ (EDVA)


March 18, 2016 - 

A federal jury in New Orleans convicted Elaine Davis and Dr. Pramela Ganji for their roles in a $34 million Medicare fraud scheme.  The jury found that Davis, who owned Christian Home Health Care Inc., together with Ganji caused the healthcare company to bill Medicare for home health care services that were not needed and/or not actually provided.  Davis paid employees to recruit new patients and then sent their Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need.  DOJ


March 18, 2016 - 

Alex Wisidagama, the former global manager for government contracts of Singapore-based defense contracting firm Glenn Defense Marine Asia, was sentenced to 63 months in prison and to pay $34.8 million in restitution for his participation in a fraud scheme that over-billed the U.S. Navy by more than $34 million for ship husbanding services.  To date, 10 individuals have been charged in connection with this scheme with nine pleading guilty so far including Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, Naval Criminal Investigative Service Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug.  DOJ


March 17, 2016 - 

Carlos Medina, owner of Miami-area medical clinics Doral Community Clinic Inc. and Advanced Medical of Doral Inc. was sentenced to 82 months in prison for his role in a Medicare fraud scheme that caused more than $3 million in losses.  The clinics purportedly provided medically necessary services to Medicare beneficiaries, but in reality charged cash kickbacks in exchange for prescriptions for home health care services.  Some of the beneficiaries who frequented the clinics did not meet Medicare’s criteria for the prescribed services and some of the services prescribed by the medical professionals at Doral and Advanced Medical were never provided by the home health agencies to which the patients were referred.  DOJ


March 16, 2016 - 

John Bennett, the former founder and CEO of Canada-based Bennett Environmental Inc. was convicted of conspiring to pay kickbacks to guarantee the award of soil treatment contracts to his company for work at Federal Creosote, a Superfund site located in Manville, New Jersey.  Specifically, in exchange for gifts and cash payments, the project manager at Federal Creosote provided Bennett with “last looks” at confidential competitor bids, allowing Bennett to outbid its competitors without independently determining its price, thereby guaranteeing an award to the company and undermining the competitive bid process on this federally-funded project.  DOJ


March 15, 2016 - 

Tennessee-based Southern Tennessee Medical Center agreed to pay roughly $2.5 million to settle charges it violated the False Claims Act by submitting Medicare claims for medically unnecessary days of in-patient geriatric psychiatric services and in-patient geriatric psychiatric services for which a Physician Certification or Recertification was not obtained.  DOJ (MDTN)


March 15, 2016 - 

The German shipping companies Briese Schiffahrts GmbH & Co. KG and Briese Schiffahrts GmbH & Co. KG who owned and operated the cargo ship M/V BBC Magellan, pleaded guilty to failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships and tampering with witnesses by persuading them to provide false statements to the U.S. Coast Guard concerning a bypass hose on the vessel that was being used to discharge oil into the sea.  The companies were sentenced to pay a total of $1.25 million in fines and a $250,000 community service payment to the National Fish and Wildlife Foundation to fund projects that enhance coastal habitats of the Gulf of Mexico and bolster priority fish and wildlife populations.  In addition, the ship M/V BBC Magellan is banned from doing business in the United States for the next five years.  DOJ


March 15, 2016 - 

Geoffrey Alexander Ramer was sentenced to 108 months in prison and to pay $2.9 million in restitution and forfeit $1.9 million for his role in a sweepstakes fraud scheme that victimized hundreds of elderly U.S. residents.  According to his guilty plea, Ramer owned and operated call centers located in Costa Rica which called U.S. residents, many of whom were elderly, and falsely informed them they had won a substantial cash prize in a sweepstakes but needed to pay purportedly refundable insurance fees to obtain the money.  Ramer and his co-conspirators kept the victims’ funds, never provided any winnings to the victims and used the funds to continue the call centers’ operations.  DOJ


March 14, 2016 - 

Syracuse-based government contractor Hayner Hoyt Corporation agreed to pay $5 million to settle charges that its chairman and chief executive officer Gary Thurston, its president Jeremy Thurston, and its affiliate companies LeMoyne Interiors and Doyner Inc., violated the False Claims Act by exploiting contracting opportunities reserved for service-disabled veterans.  According to the government, “by diverting contracts and benefits intended for our nation’s service-disabled veterans . . . , the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.”

The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Hayner Hoyt subsidiary employee John Rubar.  He will receive a whistleblower award of $875,000 from the proceeds of the government’s recovery.  Whistleblower Insider


March 10, 2016 - 

Two former derivatives traders at Rabobank Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) were sentenced to prison for manipulating the London Interbank Offered Rates (LIBOR) for the U.S. Dollar (USD) and Japanese Yen (JPY), benchmark interest rates to which trillions of dollars in interest rate contracts were tied.  Anthony Allen, the bank’s former global head of liquidity and finance in London, was sentenced to 24 months and Anthony Conti, a former senior trader on the bank’s money markets desk in London, was sentenced to 12 months.  DOJ


March 9, 2016 - 

New York-based Bard College agreed to pay $4 million to resolve allegations it violated the False Claims Act by receiving funds under the Department of Education’s Teacher Quality Partnership Grant Program despite failing to comply with the conditions of the grant.  The settlement also resolves allegations that Bard awarded, disbursed, and received Title IV student loan funds at campus locations before such locations were accredited or before providing notice of such locations to the Department of Education in violation of applicable regulations and Bard’s Title IV Program Participation Agreements with the agency.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by two former students of Bard’s Master of Arts in Teaching Program at Paramount Bard Academy in Delano, California.  They will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery.  DOJ (EDCA)


March 8, 2016 - 

21st Century Oncology Inc., the nation’s largest physician led integrated cancer care provider, and its wholly owned subsidiary South Florida Radiation Oncology agreed to pay $34.7 million to settle charges they violated the False Claims Act by performing and billing for cancer care procedures that were not medically necessary or properly provided.

According to the government, the companies improperly billed for Gamma function procedures — which measure radiation doses — under circumstances where there was no medically appropriate purpose for the treatment.  The allegations leading to the settlement originated in a whistleblower lawsuit filed by Joseph Ting, a former physicist at South Florida Radiation Oncology, under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of more than $7 million from the proceeds of the government’s recovery.  This settlement follows on the heels of the $19.75 million settlement 21st Century Oncology Inc. subsidiary 21st Century Oncology LLC agreed to pay in December to settle charges of billing for medically unnecessary laboratory urine tests and for paying kickbacks to encourage physicians to order the tests.  Whistleblower Insider


March 7, 2016 - 

Ohio-based defense contractor ArmorSource, LLC agreed to pay $3 million to settle charges of violating the False Claims Act in connection with a contract to provide combat helmets to the U.S. Army.  According to the government, ArmorSource delivered helmets to the Army that were manufactured and tested using methods that did not conform to contract requirements, that failed to meet contract performance standards and that were eventually recalled after several lots failed ballistic safety tests.  ArmorSource had subcontracted the manufacturing of the helmets to Federal Prison Industries, Inc. (FPI), which operates under the trade name UNICOR.  The allegations originated in a whistleblower lawsuit filed by FPI employees Melessa Ponzio and Sharon Clubb under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of $450,000 from the proceeds of the government’s recovery.  DOJ


March 7, 2016 - 

Florida businessman David Brock Lovelace was sentenced to 174 months in prison and to pay $2,512,460 in restitution for his role in a multimillion-dollar health care fraud and money laundering scheme.  According to evidence presented at trial, Lovelace and co-conspirators used Cornerstone Health Specialists, Summit Health Specialists and Coastal Health Specialists, three purported medical clinics in Florida, to submit to Medicare more than $12 million in fraudulent claims for radiology, audiology, cardiology and neurology services not rendered by physicians, secured by kickbacks or the subject of forged or falsified documents.  DOJ


March 7, 2016 - 

Philip Joseph Rivkin (aka Felipe Poitan Arriaga) was sentenced to 121 months in prison and to pay more than $87 million in restitution and forfeit $51 million for generating and selling fraudulent biodiesel credits in the federal renewable fuel program through his companies Green Diesel LLC, Fuel Streamers Inc. and Petro Constructors LLCDOJ


March 2, 2016 - 

Louis Brothers, former president and CEO of Valley Forge Composite Technologies, was sentenced to 93 months in prison and to pay $1.1 million for illegally exporting sophisticated technology equipment to China.  DOJ


March 2, 2016 - 

Mark T. Conklin, the former owner and operator of Florida-based Recovery Home Care Inc. and Recovery Home Care Services Inc. (RHC) agreed to pay $1.75 million to resolve charges of violating the False Claims Act by paying illegal kickbacks to doctors who agreed to refer Medicare patients to RHC for home health care services.  Conklin sold RHC to National Home Care Holdings in October 2012.   According to the government, Conklin ran a scheme under which RHC paid dozens of physicians thousands of dollars per month to serve as sham medical directors who performed little or no work in exchange for referring their patients to RHC.  The allegations originated in a whistleblower lawsuit filed by former RHC employee Gregory Simony under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of up to $315,000 from the proceeds of the government’s recovery.  DOJ


March 1, 2016 - 

Ubert Guillermo Rodriguez, president and owner of Florida-based durable equipment provider G.R. Services Equipment & Supplies Inc., pleaded guilty to conspiracy to commit health care fraud.  According to the government, Rodriguez’s company submitted approximately $2.6 million worth of claims to Medicare seeking reimbursement for durable medical equipment, such as wound care supplies, that was not legitimately prescribed by doctors and was not provided to beneficiaries.  DOJ


March 1, 2016 - 

Olympus Corp. of America, the country’s largest distributor of endoscopes and related equipment, agreed to pay $623.2 million to resolve alleged violations of the False Claims Act and Anti-Kickback Statute through a scheme to pay kickbacks to doctors and hospitals.  It is the largest payout ever by a medical device company for violations of the Anti-Kickback Statute.  In addition, Olympus subsidiary Olympus Latin America Inc. also agreed to pay $22.8 million to resolve separate charges relating to violations of the Foreign Corrupt Practices Act.  The allegations originated in a whistleblower lawsuit filed by John Slowik, Olympus’ former chief compliance officer, under the qui tam provisions of the federal and various state False Claims Acts.  He will receive a whistleblower award of roughly $51 million from the proceeds of the government’s recovery.  Whistleblower Insider


March 1, 2016 - 

Connecticut-based construction company URS Corporation agreed to pay $580,000 to resolve allegations it violated the False Claims Act by overbilling the government on a bridge reconstruction project funded by the National Railroad Passenger Corporation (Amtrak).  It allegedly did so by charging the maximum labor rates listed on the contract rather than the actual labor rates.  DOJ (CT)


February 29, 2016 - 

Lockheed Martin Corporation (and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services) agreed to pay $5 million to resolve allegations they violated the Resource Conservation and Recovery Act (RCRA) and the False Claims Act by knowingly submitting false claims for payment under their contracts with the Department of Energy to operate the Paducah Gaseous Diffusion Plant in Kentucky.  According to the government, Lockheed Martin violated the RCRA, which establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste.  The government alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.  The allegations originated in two whistleblower lawsuits filed under the qui tam provision of the False Claims Act by the Natural Resources Defense Council and several former employees of Lockheed Martin who worked at the Paducah facility.  The whistleblowers will collectively receive a whistleblower award of $920,000 from the proceeds of the government’s recovery.  DOJ


February 26, 2016 - 

South Carolina resident William M. Worthy II was sentenced to 82 months in prison and to pay $6,524,889 in restitution and forfeiture for his role in a nationwide health care fraud scheme that defrauded more than 17,000 victims who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies.  The purported health care plans were marketed by Tennessee-based Smart Data Solutions LLC.  Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use.  DOJ


February 25, 2016 - 

Gary Patton Hall Jr., former president and CEO of Georgia-based Tifton Banking Company, was sentenced to 84 months in prison and to pay $3,931,018 in restitution for his role in a conspiracy to commit bank fraud.  Hall admitted he engaged in a scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses.  Hall hid past-due loans from the Federal Deposit Insurance Corporation (FDIC) and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking.  Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.  In November 2010, the Georgia Department of Banking and Finance closed TBC because of its poor financial condition.  DOJ


February 23, 2016 - 

Las Vegas resident Joseph Micelli was sentenced to 60 months in prison and to pay $5.65 million in restitution and to forfeit $505,220 in fraudulent proceeds for his role in an investment fraud scheme that promoted fraudulent investment opportunities and caused more than $5 million in losses to investors.  Micelli admitted he conspired with others in the U.S. and Switzerland to promote investments and loan instruments he knew to be fraudulent.  They did so through a Swiss company known as the Malom Group A.G.  Micelli further admitted he held himself out to investors as an attorney, when in fact he had lost his license to practice law.  DOJ


February 22, 2016 - 

Pennsylvania-based importers Ameri-Source International Inc., Ameri-Source Specialty Products Inc., Ameri-Source Holdings Inc., their owners, Ajay Goel and Thomas Diener, and the related importer, SMC Machining LLC agreed to pay $3 million to resolve charges they violated the False Claims Act by engaging in a scheme to evade customs duties on imports of small-diameter graphite electrodes from China.  According to the government, Ameri-Source evaded antidumping duties on 15 shipments of the electrodes by misclassifying the size of the electrodes to avoid paying the duties, which do not apply to larger diameter graphite electrodes.  The allegations originated in a whistleblower lawsuit filed by Graphite Electrode Sales Inc. under the qui tam provisions of the False Claims Act.  The company will receive a whistleblower award of approximately $480,000 from the proceeds of the government’s recovery.  Whistleblower Insider


February 22, 2016 - 

Government contractor Paige Industrial Services, Inc. agreed to pay between $450,000 and $675,000 to resolve allegations it violated the False Claims Act by submitting claims falsely certifying it had complied with the Davis-Bacon Act, which requires the payment of certain prevailing wages and fringe benefits to employees working under a government contract.  The work involved construction and maintenance services at the National Institute of Health campus in Bethesda, Maryland.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The unidentified whistleblower will receive a yet-to-be-determine whistleblower award from the proceeds of the government’s recovery.  In a related parallel criminal proceeding, Luis Alonso Valle, owner of the Paige subcontractor construction company Valle Services, LLC., pleaded guilty to an illegal pattern and practice of hiring unauthorized aliens.  DOJ(MD)


February 19, 2016 - 

Ohio resident Paul Toth was sentenced to 108 months in prison and to pay $307,702 in restitution and to forfeit the same amount for his role in laundering money for a Costa Rica-based “sweepstakes fraud” scheme.  The evidence at trial showed that telemarketers in Costa Rica, who were Roth’s co-conspirators, posed as federal agents and deceived the victims into believing they had won a large monetary prize in a sweepstakes contest and falsely told them in order to receive the “prize,” they had to wire thousands of dollars to Costa Rica for a “refundable insurance fee.”  DOJ


February 19, 2016 - 

Adventist Health System Sunbelt Healthcare Corporation agreed to pay $2.09 million to resolve allegations that patients were administered portions of single-dose vials of chemotherapy drugs that were left over from administrations to prior patients.  The settlement also resolves allegations that some platinum based drugs were administered inappropriately and that certain infusion services were upcoded.  The allegations originated in a whistleblower lawsuit filed by former Adventist employee Heather Huddleston under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of $376,452 from the proceeds of the government’s recovery.  DOJ (MDFL)


February 18, 2016 - 

Amsterdam-based telecommunications company VimpelCom Limited and its wholly owned Uzbek subsidiary, Unitel LLC, agreed to pay roughly $795 million under settlements with the DOJ, SEC and the Public Prosecution Service of the Netherlands to settle charges of violating the anti-bribery provisions of the Foreign Corrupt Practices Act.  Specifically, the companies admitted making more than $114 million in bribery payments to a government official in Uzbekistan to enable them to enter and continue operating in the Uzbek telecommunications market.  It is one of the largest global FCPA settlements ever and the largest case to date brought under the DOJ’s Kleptocracy Asset Recovery Initiative.  Whistleblower Insider


February 17, 2016 - 

Fifty-one hospitals in 15 states agreed to pay more than $23 million to settle charges of violating the False Claims Act by implanting cardiac devices in Medicare patients in violation of Medicare coverage requirements.  These settlements represent the final stage of a nationwide investigation into the practices of hundreds of hospitals improperly billing Medicare for these devices, which in total have yielded more than $280 million.  The allegations against most of the current settling hospitals originated in a whistleblower lawsuit brought under the qui tam provisions of the False Claims Act by Leatrice Ford Richards, a cardiac nurse and Thomas Schuhmann, a health care reimbursement consultant.  They will receive a whistleblower reward of more than $3.5 million from the proceeds of the government’s recovery from these current settlements.  The settling hospitals and health care companies included Arkansas Heart Hospital (AK); Aurora Health Care (WI); Cleveland Clinic Foundation (OH); Dignity Health (CA); MGH Wind Down (MI); Monongalia County General Hospital (WV); Mount Sinai Medical Center (FL); Nacogdoches Memorial Hospital (TX); Northwell Health (NY); Sentara Healthcare (VA); and Sisters of Charity of Leavenworth Health System (CO).  DOJ


February 17, 2016 - 

The U.S. District Court of South Carolina awarded a $9,283,123.00 default judgment against Lacy School of Cosmetology and its president Earnest “Jay” Lacy, for presenting false claims to the U.S. Department of Education for federal student loans and grants.  According to the government, the school failed to comply with numerous federal program regulatory requirements, making unauthorized disbursements of federal student aid funds, failing to refund student credit balances, and concealing its actions by submitting false statements of compliance.  The default judgment is based on a whistleblower lawsuit filed under the qui tam provision of the False Claims Act.  DOJ (SC)


February 16, 2016 - 

Two subsidiaries of Massachusetts software company PTC Inc. agreed to pay a $14.54 million penalty to resolve charges of violating the Foreign Corrupt Practices Act by improperly providing recreational travel to Chinese government officials.  According to company admissions, Parametric Technology (Shanghai) Software Company Ltd. and Parametric Technology (Hong Kong) Ltd., through local business partners, arranged and paid for employees of various Chinese state-owned enterprises to travel to the U.S., ostensibly for training at PTC Inc.’s headquarters, but primarily for recreational travel to other parts of the country, including New York, Los Angeles, Las Vegas and Hawaii.  PTC paid more than $1 million through its business partners to fund these trips, while during the same time period, it entered into more than $13 million in contracts with the Chinese state-owned entities.  PTC settled related charges with the SEC by agreeing to pay $11,858,000 in disgorgement plus $1.764 million in prejudgment interest, bringing the company’s total government payout to $28 million.  DOJ


February 12, 2016 - 

New Jersey Doctor Labib E. Riachi and two companies he owns, Riachi, Inc. and Center for Advanced Pelvic Surgery, agreed to pay $5.25 million to resolve allegations they violated the False Claims Act by billing Medicare and Medicaid for anorectal manometry and electromyography diagnostic tests, even though most of the tests were never performed.  The settlement also resolves charges that they submitted claims to Medicare for physical therapy services that should not have been paid because they were not performed by a qualified therapist.  DOJ (NJ)


February 11, 2016 - 

Morgan Stanley agreed to pay a $2.6 billion penalty “for misleading investors about the subprime mortgage loans underlying the securities it sold” in the period leading up to the financial crisis.  As part of the agreement, Morgan Stanley admitted that it failed to disclose critical information to prospective investors about the quality of the mortgage loans underlying its residential mortgage-backed securities (RMBS) which ultimately caused investors, including federally insured financial institutions, to lose billions of dollars from investing in Morgan Stanley in the 2006-07 timeframe.  The $2.6 billion civil penalty resolves claims under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).  In addition, the states of New York and Illinois announced their own settlements with Morgan Stanley for $550 million and $22.5 million, respectively.  When combined with prior settlements with other regulators — $225 million to the National Credit Union Administration; $1.25 billion to the Federal Housing Finance Agency; $86.95 million to the Federal Deposit Insurance Corporation; and $275 million to the SEC — this brings to almost $5 billion the total payout by Morgan Stanley in connection with its fraudulent sales of RMBS.  Whistleblower Insider


February 11, 2016 - 

Compounding pharmacies WELLHealth and Topical Specialists and four physicians, Manish Bansal, Mehul Parekh, Marisol Arcila, and Syed Asad, agreed to pay approximately $10 million to resolve allegations they violated the False Claims Act by submitting false claims to TRICARE, the military’s healthcare program.  According to the government, the physicians wrote hundreds of prescriptions for pain and scar creams never used by patients and billed to the government at a cost which yielded up to 90% in profits.  Bansal is a cardiologist at Baptist Hospital; Arcila is a pain management physician at Premier Spine & Pain Center; Asad is a neurologist at Universal Neurological Care; Parekh is a general practice physician at Baptist Hospital.  DOJ (M.D.Fla)


February 10, 2016 - 

An Oklahoma jury convicted Antonella Carpenter, former owner of purported cancer treatment clinic Lase Med Inc., of committing a fraudulent scheme claiming to cure patients’ cancer.  According to the evidence, Carpenter, who is a physicist and not a medical doctor, orchestrated a scheme to obtain money from cancer patients by means of false and fraudulent representations, including claiming to cure various kinds of cancers, when in fact, she would inject a patient’s tumor with a mixture consisting of saline solution and food coloring or walnut hull extract.  DOJ


February 9, 2016 - 

Miami physician Henry Lora, medical director of Miami-area clinic Merfi Corporation, pleaded guilty for his role in a Medicare fraud scheme that caused more than $20 million in losses.  Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided.  Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services.  In March 2014, Isabel Medina, the owner of Merfi, was sentenced to nine years in prison for conspiracy to commit health care fraud.  DOJ


February 9, 2016 - 

A federal jury convicted registered nurse Patricia McGill of four counts of health care fraud.  McGill was the director of professional services for Home Care Hospice, a for-profit business that provided hospice services for patients at nursing homes, hospitals and private residences.  According to the evidence, McGill authorized and supervised the admission of inappropriate and ineligible patients for hospice services, which contributed to HCH submitting millions of dollars in fraudulent claims to Medicare.  DOJ


February 5, 2016 - 

HSBC Bank USA agreed to pay $470 million settle charges of mortgage origination, servicing and foreclosure abuses.  According to the government, “the agreement is part of our ongoing effort to address root causes of the financial crisis.”  The settlement parallels the $25 billion National Mortgage Settlement reached in February 2012 between the federal government, 49 state attorneys general and the District of Columbia’s attorney general and the five largest national mortgage servicers, as well as the $968 million settlement reached in June 2014 between those same federal and state partners and SunTrust Mortgage.  DOJ


February 4, 2016 - 

Zurich-based Bank Julius Baer & Co. Ltd. agreed to pay $547 million to settle charges of conspiring with many of its U.S. taxpayer-clients and others to help U.S. taxpayers hide from the IRS billions of dollars in offshore accounts and evade U.S. taxes on the income earned in those accounts.  DOJ


February 3, 2016 - 

Upstate New York construction company ING Civil, Inc. and three individuals — ING owner Corey Ingerson; James Beaudoin, former president of Rexford Albany Municipal Supply Company, Inc. (RAMSCO); and former RAMSCO salesman John Leary — agreed to pay $1,012,000 to resolve claims that they defrauded a government program designed to benefit women- and minority-owned contractors.  DOJ (NDNY)


February 2, 2016 - 

Colorado-based construction management company MCC Construction Company agreed to pay $1,769,294 in criminal penalties and forfeiture for conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses.  According to court documents, MCC conspired with two companies that were eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that MCC would, illegally, perform all of the work.  In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011.  DOJ


February 2, 2016 - 

New Jersey industrial pipe supply company American Pipe Bending and Fabrication Co. Inc. and its owner Andrew Martingano were sentenced to 32 months in prison and to pay a $150,000 criminal fine and $1.6 million in restitution for conspiring to commit fraud and pay bribes to a purchasing manager at Consolidated Edison of New York in return for the manager’s efforts to steer contracts to the company.  According to court documents, Martingano and others agreed to pay approximately $510,000 in cash bribes to James M. Woodason, a department manager of the Con Ed purchasing department.  In exchange, Woodason steered Con Ed industrial pipe supply contracts to American Pipe by secretly providing Martingano with confidential competitor bid information, thereby causing Con Ed to pay higher, non-competitive prices for materials.  DOJ


February 1, 2016 - 

Florida-based military contractor Centerra Services International Inc. (formerly known as Wackenhut Services) agreed to pay $7.4 million to resolve allegations it violated the False Claims Act by double billing and inflating labor costs on its firefighting and fire protection services contract with the Army in Iraq.  According to the government, Wackenhut inflated its labor costs by billing the salaries of certain managers as direct costs when those salaries had already been charged as indirect costs.  The government further charged that Wackenhut artificially inflated its labor rate by counting its costs for holidays, vacation, sick leave, rest and recuperation and other variable labor costs twice in calculating the rate.  The allegations first arose in a whistleblower lawsuit filed by Gary W. Reno under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $1,332,000 as his share from the government’s recovery.  Whistleblower Insider


January 29, 2016 - 

Amalya Cherniavsky and her husband Vladislav Tcherniavsky, the former owner and former operator of California-based durable medical equipment supply company JC Medical Supply were sentenced  for their roles in a $1.5 million Medicare fraud scheme.  They were ordered to pay $614,418 in restitution and Tcherniavsky was ordered to serve 51 months in prison.  The evidence at trial demonstrated that they paid illegal kickbacks to patient recruiters in exchange for patient referrals and paid kickbacks to physicians for fraudulent prescriptions—primarily for expensive, medically unnecessary power wheelchairs—which the defendants then used to support fraudulent bills to Medicare.  DOJ


January 29, 2016 - 

Arthur Budovsky, founder of Liberty Reserve, which billed itself as the Internet’s “largest payment processor and money transfer system,” pleaded guilty to running a massive money laundering enterprise used by cybercriminals around the world to launder the proceeds of their illegal activity.  Budovsky specifically designed Liberty Reserve to help users conduct anonymous and untraceable illegal transactions and launder the proceeds of their crimes.  Before the government shut it down in May 2013, Liberty Reserve had more than 5 million user accounts worldwide and had processed millions of transactions.  Budovsky admitted to laundering more than $250 million in criminal proceeds.  DOJ


January 29, 2016 - 

U.S. Navy Lieutenant Commander Todd Dale Malaki was sentenced to 40 months in prison and pay a $15,000 fine and $15,000 in restitution for accepting bribes from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy ship and submarine schedules and other internal Navy information.  While he was working as a supply officer for the U.S. Navy’s Seventh Fleet, Malaki began a corrupt relationship with Leonard Glenn Francis, the former president and CEO of GDMA, a company that provided port services to U.S. Navy ships and submarines throughout the Pacific.  As part of the scheme, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors in exchange for luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute.  To date, 10 individuals have been charged in connection with this scheme.  DOJ  Just a day earlier, U.S. Navy Commander Michael Vannak Khem Misiewicz pleaded guilty to participating in the same scheme.  DOJ


January 27, 2016 - 

Mohammed Elsaleh, owner and operator of former Houston-area ambulance company National Care EMS agreed to settle allegations that he and the company provided kickbacks to various nursing facilities and hospitals in exchange for rights to the institutions’ more lucrative Medicare and Medicaid transport referrals.  The settlement calls for Elsaleh to pay $125,000 to resolve the “swapping” allegations made against him and the company.  Elsaleh’s brother, Husam Alsaleh, the owner and operator of a successor company also called National Care EMS agreed to pay $120,000 in furtherance of the settlement.  DOJ (SDTX)


January 27, 2016 - 

Milton Russ Barnhill was sentenced to 11 years in prison for conspiring with others to defraud the Federal Crop Insurance Corporation and the Farm Service Agency, both agencies of the United States, in connection with federal crop insurance claims and other federal taxpayer subsidies.  As charged, Barnhill produced crops which he sold in the names of others which he then reported on insurance claims that the crops were lost due to natural disasters.  He also placed crops and insurance policies into the names of conspirators to boost the amount of money he could collect on the insurance claims.  DOJ (EDNC)


January 27, 2016 - 

Arizona developer and attorney John Keith Hoover was sentenced to 10 years in prison for his role in a major investment and bankruptcy fraud in which he created nearly two dozen companies solicit money from Arizona and California investors for bogus real-estate developments.  Several investors were widows who gave Hoover control of the bulk of their estates based on his friendship with their families and because of the trust he developed as an attorney.  Hoover encouraged investors to liquidate retirement accounts, life-insurance policies, mutual funds and securities, and Social Security death benefits to fund their investments with him, and then used investor money to pay his living expenses.  When he ran out of money, he refinanced properties with false representations about salary, assets, liabilities, employment, and sources of down payments. Then, he and his wife filed bankruptcy while hiding assets.  DOJ (AZ)


January 15, 2016 - 

Oceanside, California-based hospital Tri-City Medical Centeragreed to pay $3,278,464 to resolve allegations it violated the Stark Law and False Claims Act by maintaining improper financial arrangements with community-based physicians and physician groups.  According to the government, Tri-City maintained 97 improper financial arrangements with physicians and physician groups, including with its former chief of staff.  DOJ


January 14, 2016 - 

Nery Cowan, a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc., pleaded guilty in connection with a $63 million health care fraud and money laundering scheme.  Behavioral Healthcare is a now-defunct Miami-area partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness.  Specifically, Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals and admitted concealing the kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida.  Cowan and her co-conspirators disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company.  DOJ


January 12, 2016 - 

Kentucky-based healthcare provider Kindred Healthcare, Inc. and its two RehabCare Groupsubsidiaries agreed to pay $125 million to resolve allegations of violating the False Claims Act by knowingly causing skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred at all.  According to the government, RehabCare’s policy has been to achieve the highest Medicare reimbursement level regardless of the clinical needs of its patients, resulting in the provision of unreasonable and unnecessary services to Medicare patients, and its skilled nursing facility customers submitting inflated bills to Medicare covering those services.  The allegations originated in a whistleblower lawsuit filed by Janet Halpin, a RehabCare physical therapist and former rehabilitation manager, and Shawn Fahey, a RehabCare occupational therapist, under the qui tamprovisions of the False Claims Act.  They will receive a whistleblower award of nearly $24 million from the government proceeds of the settlement.  Whistleblower Insider


January 12, 2016 - 

Connecticut-based J&L Medical Services agreed to pay $600,000 to resolve allegations it violated the federal and state False Claims Acts.  J&L Medical is a durable medical equipment company that provides Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) devices and accessories to Medicare and Medicaid beneficiaries who have been diagnosed with obstructive sleep apnea.  According to the government, the company regularly used the services of unlicensed technicians to provide respiratory therapy services to Medicare and Medicaid beneficiaries, including setting up CPAP and BiPAP machines, fitting the patients with the masks used with those machines, and educating the patients about the use of the machines.  The allegations originated in a whistleblower lawsuit filed by John Hart, a former employee of J&L Medical and a licensed respiratory therapist, under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $102,000 from the proceeds of the government’s recovery.  DOJ (CT)


January 8, 2015 - 

Dr. David G. Bostwick, owner of Virginia-based pathology lab Bostwick Laboratories Inc., agreed to pay up to $3.75 million to resolve charges of violating the False Claims Act for billing Medicare and Medicaid for medically unnecessary cancer detection tests and offering incentives to physicians to obtain Medicare and Medicaid business.  Specifically, Dr. Bostwick allegedly directed Bostwick Laboratories to bill Medicare and Medicaid for expensive cancer detection tests known as Fluorescent In Situ Hybridization (FISH) tests, as well as other tests, that were not medically necessary and were performed without the treating physicians’ consent or order.  FISH tests are used to detect bladder cancer.  Bostwick also allegedly offered various discounts and billing arrangements to treating physicians to induce them to refer business in violation of the Anti-Kickback Statute.  On Aug. 28, 2014, Bostwick Laboratories previously agreed to pay over $6.5 million to resolve the allegations in this lawsuit.  The allegations were originally raised in a whistleblower lawsuit brought by Michael Daugherty, who works in the industry, under the qui tam provisions of the False Claims Act.  Daugherty will receive a whistleblower award of over $2.5 million from the government’s settlements.  DOJ


January 8, 2015 - 

Damian Mayol, the president of Miami-based transportation company Transportation Services Providers Inc., was convicted for his role in a health care fraud scheme involving three mental health centers based in Miami that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.  According to evidence presented at trial, Mayol used his company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area:  R&S Community Mental Health Inc., St. Theresa Community Mental Health Center Inc. and New Day Community Mental Health Center LLC.  On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program services that were not medically necessary or not provided to patients.  DOJ


January 8, 2015 - 

Joseph Furando was sentenced to 20 years in prison and to pay more than $56 million in restitution for his role in a scheme to fraudulently sell biodiesel incentives.  Furando admitted he and his companies, New Jersey-basedCaravan Trading Company and CIMA Green, supplied Indiana-based E‑biofuels with biodiesel that was actually made by other companies and had already been used to claim government tax credits.  Furando realized his profits through the prices he charged E‑biofuels.  Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million.  The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.  DOJ


January 6, 2015 - 

URS E & C Holdings Inc., a successor in interest to the global design and construction companyWashington Group International Inc. (WGI), agreed to pay $9 million to settle allegations that WGI submitted false claims in connection with United States Agency for International Development (USAID) contracts.  Specifically, the settlement concerns USAID-funded contracts for the construction of water and wastewater infrastructure projects in Egypt in the 1990s.  The contracts were awarded to a joint venture partnership between WGI, Contrack International Inc. and Misr Sons Development S.A.E., an Egyptian company.  The government alleged the joint venture partners concealed from USAID that Contrack and Misr Sons were partners in the venture, thus preventing USAID from evaluating their qualifications and eligibility, which was a precondition to contract award.  The government previously settled with Contrack and is continuing to pursue its claims against Misr Sons.  DOJ


January 5, 2015 - 

Wisconsin-based Novum Structures LLC agreed to enter a guilty plea and pay $3 million to resolve its criminal and civil liability arising from its improper use of foreign materials in federally funded construction projects which had “Buy America” requirements.  Novum specializes in the design and construction of glass space frames often used in roofs and atrium enclosures.  The allegations originated in a whistleblower lawsuit filed by Brenda King under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of approximately $400,000 from the government’s recovery.  DOJ


January 5, 2015 - 

Nashville Pharmacy Services, LLC, and its majority owner Kevin Hartman, agreed to pay up to $7.8 million to settle charges they violated the False Claims Act by overbilling Medicare and TennCare for pharmacy services.  Specifically, the government claimed the Nashville-based pharmacy that specializes in dispensing HIV and AIDS-related medications automatically refilled medications without a request from the beneficiary or their physician; improperly waived TennCare and Medicare co-payments without an individualized assessment of ability to pay; improperly used pharmaceutical manufacturers’ co-payment cards to pay the co-payments of Medicare beneficiaries; billed for medications dispensed after the deaths of certain beneficiaries; and billed for medications that lacked a valid prescription.  The allegations originated in a whistleblower lawsuit filed by Marsha McCullough, a former Nashville Pharmacy order entry technician, under the qui tamprovisions of the False Claims Act.  She will receive a whistleblower award of 18 percent of the government’s recovery which could amount to $1.4 million.  Whistleblower Insider


January 4, 2015 - 

Hovik Simitian, the former owner and operator of three medical clinics located in Los Angeles — Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic — was sentenced to 78 months in prison for his role in submitting more than $4.5 million in fraudulent claims to Medicare.  Simitian admitted paying illegal cash kickbacks to patient recruiters who brought Medicare beneficiaries to the clinics and for billing Medicare for lab tests and other services that were not medically necessary or actually provided, which he supported with false documentation.  DOJ


December 23, 2015 - 

Memorial Health, Inc., Memorial Health University Medical Center, Inc., Provident Health Services, Inc., and MPPG, Inc. (d/b/a Memorial Health University Physicians) agreed to pay roughly $10 million to settle charges they violated the False Claims Act by submitting claims to the Government in violation of the Stark Law which prohibits hospitals from entering into improper financial relationships with referring physicians.  The settlement is the largest civil health care fraud recovery in the history of the United States Attorney’s Office for the Southern District of Georgia.  The allegations first arose in a whistleblower lawsuit filed by former Memorial Health CEO Phillip Schaengold under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-disclosed whistleblower reward from the proceeds of the government’s recovery. DOJ (SDGA)


December 23, 2015 - 

Pennsylvania-based Genesis HealthCare LLC agreed to pay $600,000 to resolve charges it violated the False Claims Act in connection with its operation of a skilled nursing facility known as the Potomac Center.  Specifically, the government alleged that employees of Potomac/Genesis failed to provide patient care activities as recorded in the resident medical record of a patient and failed to provide certain care activities consistent with standing physician orders. DOJ (EDVA)


December 23, 2015 - 

Aria Health Systems, Inc. agreed to pay more than $3 million to settle two False Claims Act matters which Aria self-disclosed.  Aria agreed to pay $564,700 to resolve claims that a cardiologist performed unnecessary invasive procedures at their Torresdale Campus between October 2012 and April 2013.  Aria also agreed to pay $2.5 million to resolve claims of compensation to physicians that were in excess of fair market value and in violation of the Stark Act. DOJ (EDPA)


December 23, 2015 - 

A $2.5 million settlement with long term care pharmacy Pharmerica, which services hundreds of nursing homes across the nation, completes the final leg of litigation involving the illegal promotion of Aranesp, an anemia drug manufactured by Amgen, Inc.  Including the 2013 settlement with Amgen ($24.9 million) and the 2014 settlement with Omnicare ($4.19 million), this settlement brings the government’s total recovery in this matter to just over $31.5 million.  The allegations were originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. DOJ (DSC)


December 22, 2015 - 

Coloplast Corp., a manufacturer of ostomy and continence care products, and Liberator Medical Supply, Inc., a medical products supplier, agreed to pay $3,160,000 and $500,000, respectively, to resolve allegations that Coloplast paid unlawful kickbacks to several medical suppliers, including Liberator, to induce them to conduct promotional campaigns designed to refer individual users to Coloplast products.  In addition to Liberator, the government alleged Coloplast also paid kickbacks to Byram Healthcare Centers, Inc.; CCS Medical, Inc.; Liberty Medical, Inc.; and Handi Medical, Inc. in return for marketing promotions and conversion campaigns.  The government alleged that in the case of Byram, Liberty, and Handi, Coloplast’s promotional campaigns allegedly included kickbacks in the form of funding for cash incentives – sometimes known as “spiffs” – paid to the suppliers’ sales personnel to induce them to refer patients to Coloplast products.  In other instances, Coloplast allegedly gave rebates or price concessions as inducements for the promotional campaigns.  The allegations first arose in a whistleblower lawsuit filed by two former employees and one current employee of Coloplast under the qui tam provisions of the False Claims Act.  They will receive a yet-to-be-determined whistleblower award from the proceeds of the government’s recovery. DOJ (DMA)


December 22, 2015 - 

Chem-Solv Inc. (formerly known as Chemicals & Solvents Inc.) pleaded guilty to illegally storing hazardous waste at its facility in Roanoke, Virginia, and to illegally transporting hazardous waste from that facility to another location.  As a part of the plea agreement, Chem-Solv has agreed to pay a $1 million criminal fine, an additional $250,000 to fund environmental community service projects and another $250,000 to the Environmental Protection Agency to settle related civil proceedings. DOJ


December 22, 2015 - 

A physician’s assistant was sentenced to prison, and a doctor admitted taking bribes in connection with a long-running test referral scheme operated by New Jersey-based Biodiagnostic Laboratory Services LLC, its president and numerous associates.  Leonard Marchetta was sentenced to 42 months in prison and Bret Ostrager pleaded guilty to conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes.  They are two of the 39 people – 26 of them doctors – who have pleaded guilty in connection with the bribery scheme, which have involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.  It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.  The investigation has to date recovered more than $12 million through forfeiture. DOJ (DNJ)


December 21, 2015 - 

Southwest Airlines Co. agreed to pay a $2.8 million to settle charges it violated Federal Aviation Administration (FAA) safety regulations in its maintenance of its Boeing 737s.  The settlement requires operational changes by Southwest designed to enhance its oversight of and control over third parties that perform maintenance on Southwest aircraft and for additional penalties of up to $5.5 million if it does not implement the changes set forth in the settlement agreement. DOJ


December 21, 2015 - 

Texas-based University Furnishings LP and its general partner, Freedom Furniture Group Inc., agreed to pay $15 million to settle charges they violated the False Claims Act by making false statements to avoid paying duties on wooden bedroom furniture imported from China.  According to the government, between 2009 and mid-2012, University Furnishings misclassified wooden bedroom furniture on documents presented to U.S. Customs and Border Protection (CBP) to avoid paying antidumping duties on imports of wooden bedroom furniture manufactured in China.  The companies allegedly classified the furniture as office and other types of furniture not subject to duties while selling the furniture in the student housing market for use in dormitory bedrooms.  The allegations originated in a whistleblower lawsuit brought by University Loft Company under the qui tam provisions of the False Claims Act.  University Loft will receive a whistleblower award of $2.25 million from the proceeds of the government’s recovery. DOJ


December 18, 2015 - 

Ohio cardiologist Dr. Harold Persaud, with hospital privileges at Fairview Hospital, St. John’s Medical Center and Southwest General Hospital, was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $29 million.  DOJ


December 18, 2015 - 

21st Century Oncology, a Florida-based provider of integrated cancer care services, agreed to pay $19.75 million to resolve allegations it violated the False Claims Act by billing federal health care programs for laboratory tests that were not medically necessary.  The tests involved were fluorescence in situ hybridization (or “FISH”) tests which are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer.  The government alleged that 21st Century submitted claims for unnecessary FISH tests that were ordered by four of its urologists, Dr. Meir Daller, Dr. Steven Paletsky, Dr. David Spellberg and Dr. Robert Scappa.  The government further alleged the company encouraged these physicians to order unnecessary FISH tests by offering bonuses that were based in part on the number of tests referred to 21st Century’s laboratory.  The allegations first arose in a whistleblower lawsuit filed by a former 21st Century medical assistant under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of $3.2 million from the proceeds of the government’s recovery.  DOJ


December 18, 2015 - 

Maryland-based splint supplier Dynasplint Systems Inc., and its founder and president, George Hepburn, agreed to pay roughly $10.3 million to resolve allegations they violated the False Claims Act by improperly billing Medicare for splints provided to patients in skilled nursing facilities.  According to the government, to circumvent Medicare rules which provide for bundled payment to these facilities that cover all of a patient’s needs, Hepburn and Dynasplint mispresented that patients were in their homes or other places that were not skilled nursing facilities.  The allegations first arose in a whistleblower lawsuit filed by former Dynasplint sales executive Meredith Deane under the qui tam provisions of the False Claims Act.  Ms. Deane will receive a whistleblower award of roughly $2 million from the proceeds of the government’s recovery.  DOJ


December 18, 2015 - 

Thirty-two hospitals in 15 states agreed to pay more than $28 million to settle charges they violated the False Claims Act by submitting false claims to Medicare for minimally-invasive kyphoplasty procedures used to treat certain spinal fractures often arising from osteoporosis.  According to the government, the settling hospitals billed Medicare for these procedures on a more costly inpatient basis when they should have been billed on a less costly outpatient basis.  The government has now reached settlements with more than 130 hospitals totaling approximately $105 million to resolve allegations of overcharging Medicare for kyphoplasty procedures.  The 15 current settling hospitals include: The Cleveland Clinic (Ohio); Citrus Memorial Health System (Florida); Cullman Regional Medical Center (Alabama); Martin Memorial Medical Center (Florida); MultiCare Tacoma General Hospital (Washington); Norwalk Hospital (Connecticut); Princeton Community Hospital Association (West Virginia); Sacred Heart Medical Center (Washington); Sarasota Memorial Hospital (Florida); Spartanburg Regional Health Services District Inc. (South Carolina); St. Cloud Hospital (Minnesota); Tampa General Hospital (Florida); 5 hospitals affiliated with Community Health Systems Inc. (Tennessee); 5 hospitals affiliated with Tenet Health Care Corporation (Texas); 5 hospitals formerly owned and operated by Health Management Associates (Florida); 3 hospitals affiliated with BayCare Health System (Florida); and 2 hospitals affiliated with Banner Health (Arizona).  In addition, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations the company caused false claims to be submitted to Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.  All but 3 of the current settlements originated in a whistleblower lawsuit filed by Craig Patrick, a former Kyphon reimbursement manager, and Charles Bates, a former Kyphon sales manager for Kyphon.  They will receive a whistleblower award of roughly $4.75 million from the proceeds of the government’s recovery.  DOJ


December 18, 2015 - 

Iowa Hospice, LLC agreed to pay roughly $1.1 million to settle charges it violated the False Claims Act by submitting false bills to Medicare for hospice services. The Medicare hospice benefit is only available to patients who elect palliative care for a terminal illness and who have a life expectancy of six months or less.  The government alleged that Iowa Hospice knowingly submitted false claims to the government for payment of these services for patients that did not have such a medical prognosis.  DOJ (N.D. OH)


December 16, 2015 - 

Amer Ehsan, the owner and operator of Detroit-area home health care agency Advance Home Health Care Services Inc., was sentenced to 80 months in prison for conspiring with physicians, physical therapists and patient recruiters to bill Medicare for unnecessary home health care and therapy services and paying kickbacks to physicians for referrals.  Ehsan also admitted that he owned and controlled Michigan Rehab and Management Services LLC, which he used to sell information about Medicare beneficiaries and corresponding fictitious patient files to other Detroit-area home health care agencies.  DOJ


December 16, 2015 - 

Louisiana doctors Barbara Smith and Roy Berkowitz and registered nurse Beverley Breaux were sentenced to 80 months, 64 months and 50 months in prison, and to pay $9,484,939, $4,952,816 and $2,057,179 in restitution, respectively, for their roles at the center of a $50 million health care fraud scheme.  Specifically, Smith and Berkowitz falsely certified that thousands of Medicare recipients were homebound and required nursing or therapy services to be provided in their homes, and Breaux falsely certified that these patients were homebound and falsely claimed to have treated patients she had not seen.  DOJ


December 16, 2015 - 

Qualitest Pharmaceuticals, the company’s corporate shell, Vintage Pharmaceuticals, its parent Endo Pharmaceuticals, and seven of their affiliates, agreed to pay $39 million to settle charges they violated the False Claims Act by selling understrength chewable fluoride tablets.  As part of the settlement, Qualitest admitted the drug labeling for its chewable fluoride tablets represented fluoride amounts in line with guidelines of the American Dental Association and the American Academy of Pediatrics when in reality it used less than half of these represented amounts.  The allegations were first raised in a whistleblower lawsuit brought Dr. Stephan Porter under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of roughly $4.71 million from the proceeds of the government’s recovery.  Whistleblower Insider


December 10, 2015 - 

Tishman Construction Corporation agreed to pay more than $20 million to settle charges of overbilling customers over a ten-year period.  Starting from at least 1999, Tishman Construction allegedly billed clients for large construction projects for hours never worked or for rates not agreed upon.  Tishman Construction carried out the scheme by, among other things, padding hours of unworked or unnecessary “guaranteed” overtime; and submitting time for certain foremen who were actually absent for sick days, major holidays and vacation days.  The government claims the company also billed clients at wage rates that exceeded those specified in the governing contracts.  Whistleblower Insider


December 9, 2015 - 

Louisiana-based Bollinger Shipyards agreed to pay $8.5 million and release the government from contract claims to settle False Claims Act charges it misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service.  Bollinger was the subcontractor that performed design and conversion work on the Coast Guard’s existing fleet of 110-foot patrol boats.  According to the government, Bollinger provided the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength. The government further alleged Bollinger failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.  DOJ


December 8, 2015 - 

Vermont-based dairy farm Correia Farm Limited Partnership (d/b/a Wynsum Holsteins) and its co-owners Anthony and Barbara Correia and their son and limited partner Stephen Correia, agreed to a permanent injunction to prevent violations of the federal Food, Drug and Cosmetic Act (FDCA).  According to the government, the farm and its owners violated the FDCA by unlawfully administering new animal drugs for uses not approved by the FDA and unlawfully selling livestock for slaughter and human consumption despite the presence of unsafe drug residues in the animals’ edible tissues. DOJ


December 8, 2015 - 

Three former civilian employees at the Marine Corps Logistics Base (MCLB) and one former employee of Georgia-based trucking company United Logistics were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment.  Mitchell Potts, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years; Jeffrey Philpot, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years; Shelby Janes, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years; and Kelli Durham, the former manager of United Logistics, was sentenced to six months.  In addition, they collectively were ordered to pay more than $2 million in forfeiture and restitution.  According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, United Logistics co-owner, to assure the company was awarded commercial trucking contracts from the base.  DOJ


December 8, 2015 - 

A federal jury in Las Vegas convicted Anthony Brandel and James Warras of conspiracy, wire fraud and securities fraud for their roles in an approximately $10 million international investment fraud scheme involving numerous victims.  According to evidence presented at trial, Brandel and Warras conspired with others in the US and Switzerland to promote investments and loan instruments they knew to be fraudulent.  Specifically, they misrepresented to victims using fabricated bank documents that, for an up-front payment, a Swiss company known as the Malom (Make A Lot of Money) Group AG would provide access to lucrative investment opportunities and substantial cash loans.  DOJ


December 7, 2015 - 

The former owner, operator and managers of Southern California ambulance company ProMed Medical Transportation were sentenced to prison for their role in a fraud scheme that resulted in more than $1.5 million in fraudulent claims to Medicare.  Yaroslav Proshak (aka Steven Proshak) was sentenced to serve 108 months in prison.  On December 2, Emilia Zverev and Sharetta Michelle Wallace were sentenced to serve 36 and 24 months, respectively.  In addition, Zverev and Wallace were ordered to pay restitution jointly and severally with Proshak in the amount of $804,755.  The evidence at trial showed that the defendants conspired to bill Medicare for ambulance transportation services for individuals that did not need such services.  The defendants also instructed ProMed EMTs to conceal the patients’ true medical conditions by altering paperwork and creating fraudulent documents to justify the services.  DOJ


December 7, 2015 - 

Electrolux and General Electric Company announced the termination of the agreement under which Electrolux was to purchase General Electric’s appliance business.  The DOJ sued to block the $3.3 billion acquisition because it would combine two of the leading manufacturers of ranges, cooktops and wall ovens sold in the US, eliminating competition that benefits American consumers and home builders through lower prices and more options.  DOJ


December 3, 2015 - 

The General Electric Company agreed to pay a $2.25 million civil penalty to resolve a complaint alleging violations of federal and state environmental laws in connection with GE’s use of an incinerator at a manufacturing facility it once owned and operated in Waterford, New York.  DOJ


December 2, 2015 - 

Franklin American Mortgage Company agreed to pay $70 million to resolve allegations it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.  Specifically, First American audits identified substantial percentages of seriously deficient loans but the company reported very few deficiencies to HUD, causing the FHA to insure hundreds of loans that were not eligible and, as a result, the FHA suffered substantial losses when it later paid insurance claims on those loans.  DOJ


December 1, 2015 - 

Wisconsin-based Pharmasan Labs, Inc., its related billing companyNeuroScience, Inc. and their founders, Gottfried and Mieke Kellermann, agreed to pay $8.5 million to resolve charges they violated the False Claims Act by (i) submitting false information for laboratory services, and (ii) violating Medicare rules for services referred by non-physician practitioners.  According to the government, and as admitted by Pharmasan under the settlement, Pharmasan falsely billed Medicare for ineligible food sensitivity testing; knew Medicare prohibited payment for such testing; and submitted false information to Medicare to disguise the type of test it was performing so Medicare would cover it.  Pharmasan also admitted violating Medicare billing rules which bar payment for lab services referred by non-physicians.  The government investigation leading to the settlement originated from a whistleblower action filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of roughly $1.1 million from the government’s recovery.  Whistleblower Insider


December 1, 2015 - 

DRS Technical Services, Inc. agreed to pay $1 million to settle charges it violated the False Claims Act by overcharging on three U.S. Army contracts for work in Kuwait, where 15 DRS TSI employees were directed to record more time for labor hours than was actually being worked.  DRS TSI made a voluntary disclosure to the government under the Contractor Business Ethics Compliance Program and Disclosure Rule (also known as the Federal Acquisition Regulations Mandatory Disclosure Rule) after the company discovered the improper conduct through its internal compliance program.  DOJ (EDVA)


November 30, 2015 - 

Piedmont Pathology Associates, Inc. and Piedmont Pathology, P.C., a North Carolina-based diagnostic anatomic pathology group agreed to pay $500,000 to settle allegations it violated the False Claims Act and Anti-Kickback Statute by engaging in improper financial relationships with referring physicians.  The allegations first arose in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former contract salesperson for the practice who witnessed a program where the practice would provide Electronic Medical Record software licenses to various physicians’ practices in exchange for referrals.  The whistleblower will receive a whistleblower award of $75,000 out of the proceeds of the government’s recovery.  DOJ(NC)


November 30, 2015 - 

Texas-based Regent Management Services L.P. agreed to pay roughly $3.2 million to settle charges it violated the False Claims Act and Anti-Kickback Statute by receiving kickbacks from various ambulance companies in exchange for rights to Regent’s more lucrative Medicare and Medicaid transport referrals.  The settlement is believed to be the first to hold accountable medical institutions (hospitals and skilled nursing facilities) rather than ambulance companies for these kind of ambulance “swapping” arrangements.  DOJ (SDTX)


November 25, 2015 - 

The US settled for more than $30 million allegations against several Florida compound pharmacies and their owners for violating the False Claims Act by fraudulently billing TRICARE, the military’s healthcare program.  The settling defendants and their respective settlements include: MedMatch Pharmacy (agreeing to pay more than $4.7 million to resolve concerns that it paid kickbacks to marketers, that it filled prescriptions it knew or should have known were not legitimate, and that it sent prescriptions to states in which it did not have a valid license); OHM Pharmacy (agreeing to pay $4.1 million to resolve allegations of filling prescriptions from a doctor who was writing them outside the ordinary course of practice); WELL Health Pharmacy and its owner (agreeing to pay more than $3 million, as well as 50% of its net profits for five years, for filling prescriptions written by referral sources that had a financial interest in the prescriptions); Topical Specialists (agreeing to pay more than $2.2 million for submitting prescriptions that were tainted by so-called “research fees,” which was an elaborate guise for paying physicians to write prescriptions); Durbin Pharmacy (agreeing to pay $2.1 million, plus 50% of its net profits for five years, for submitting prescriptions that were tainted by kickbacks); and North Beaches Pharmacy (agreeing to pay $10,000, plus 50% of its net profits for five years, for filling compound prescriptions that the government contends were tainted by illegal kickbacks).  DOJ (MDFL)


November 25, 2015 - 

Defense contractor L-3 Communications Eotech, Inc., its parent company, L-3 Communications Corporation, and Eotech president Paul Mangano, agreed to pay $25.6 million to settle charges they violated the False Claims Act by selling defective holographic weapon sights to the Department of Defense, Department of Homeland Security, and the Federal Bureau of Investigation.  Defendants knew the sights failed to perform as represented in cold temperatures and humid environments, but delayed disclosure of these defects for years. DOJ (SDNY)


November 24, 2015 - 

The former CFO of Long Beach, California-based Pacific Hospital, two orthopedic surgeons and two others have been charged in long-running health care fraud schemes that illegally referred thousands of patients for spinal surgeries and generated nearly $600 million in fraudulent billings.  The wide-ranging kickback scheme, which involved dozens of surgeons, orthopedic specialists, chiropractors, marketers and other medical professionals, involved improper referrals to Pacific Hospital and Hawaiian Hospital.  The most recent targets of the government’s investigation, all of whom have agreed to plead guilty, include: former Pacific Hospital CFO James L. Canedo; orthopedic surgeons Philip Sobol and Mitchell Cohen; chiropractor Alan Ivar; and health care marketer Paul Richard Randall, previously affiliated with Pacific Hospital and Tri-City Regional Medical Center in Hawaiian Gardens.  Under the terms of their plea agreements, Sobol faces a federal prison term of up to 10 years; Canedo, Ivar and Randall face up to five years in prison; and Cohen faces up to three years in prison.  All of them will be required to pay restitution to the victims of the scheme, which in Canedo’s case will be at least $20 million.  Whistleblower Insider


November 24, 2015 - 

Certified Environmental Services, Inc. was sentenced to 5 years of probation, and to make restitution in the amount of roughly $410,000 for negligently releasing asbestos into the ambient air, thereby placing other persons in imminent danger of death or serious bodily injury.  DOJ (NDNY)


November 20, 2015 - 

Novartis Pharmaceuticals Corp. agreed to pay $390 million to resolve charges it gave kickbacks to specialty pharmacies in return for recommending two of its drugs, Exjade and Myfortic.  The settlement follows the January 2014 and April 2015 settlements of specialty pharmacies Bioscrip, Inc. and Accredo Health Group under which the pharmacies agreed to pay a total of $75 million to resolve False Claims Act charges based on the same allegations.  That brings to $465 million the total government recovery from this alleged kickback scheme.  The allegations leading to the settlement were first brought to the attention of federal law enforcement by David Kester, who filed a whistleblower lawsuit under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be disclosed whistleblower award from the government’s recovery.  Whistleblower Insider


November 20, 2015 - 

The University of Florida agreed to pay $19.875 million to settle allegations the university improperly charged the U.S. Department of Health and Human Services for salary and administrative costs on hundreds of federal grants.  According to the government, the university overcharged hundreds of grants for the salary costs of its employees, where it did not have documentation to support the level of effort claimed on the grants for those employees.  The government also contended the university charged for impermissible administrative costs for equipment and supplies and inflated costs charged to the grants.  DOJ


November 20, 2015 - 

Huey P. Williams Jr., owner of Houston-area based durable medical equipment companies Hermann Medical Supplies Inc. and Hermann Medical Supplies II was sentenced to 63 months in prison and to pay $1.96 million in restitution for his role in a $3.4 million Medicare fraud scheme.  Specifically, Williams caused Hermann Medical to bill Medicare for components of an “arthritis kit,” which included expensive, rigid braces and orthotics with adjustable joints that required fitting and adjustment, when in reality, Williams purchased and provided to beneficiaries only inexpensive, flimsy neoprene braces and equipment, to the extent he provided any equipment at all.  DOJ


November 19, 2015 - 

Japanese-based auto parts supplier INOAC Corp. agreed to plead guilty and pay a $2.35 million criminal fine for its role in a conspiracy to fix prices and rig bids on certain plastic interior trim automotive parts installed in cars sold to U.S. consumers.  DOJ


November 19, 2015 - 

Detroit-area physician Dr. Hicham A. Elhorr was sentenced to 72 months in prison and to pay roughly $2 million in restitution for directing a multi-million dollar Medicare fraud scheme through his medical practice.  According to admissions in his plea agreement, Elhorr employed unlicensed individuals through his visiting physician practice, House Calls Physicians PLLC, who held themselves out as licensed physicians and purported to provide physician home visits and other services to Medicare beneficiaries in Michigan.  The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, no licensed physicians had treated the beneficiaries. DOJ


November 19, 2015 - 

Florida-based hospice company Hospice of Citrus County agreed to pay roughly $3 million to settle charges the company violated the False Claims Act by knowingly billing Medicare and Medicaid for medically unnecessary and undocumented hospice services.  The allegations resolved included liability under the False Claims Act.  Specifically, the government alleged the company treated at least 52 patients with lengths of stay in excess of 1,000 days and either knowingly or recklessly failed to document a valid basis for the initial start of hospice care and/or subsequent hospice coverage.  The failure in documentation included no support for the length of hospice services; patient files that failed to document basic patient characteristics; and patient records that were either unsigned or signed with inconsistent practitioner information.  In some cases, patients were admitted to HOCC simply because their spouse was in hospice care.  DOJ (MDFL)


November 18, 2015 - 

Joe Ann Murthil, the office manager of New Orleans-based home health company Memorial Home Health Inc., was sentenced to 48 months in prison and to pay roughly $14 million in restitution for her role in a Medicare fraud scheme in which she assisted with the payment of illegal kickbacks to patient recruiters and submitted claims to Medicare falsely stating that patients were homebound and had received services.  DOJ


November 18, 2015 - 

Deaconess Home Health, Inc. (formerly known as Outreach Home Health) and its owner, Lazarus Bonilla, agreed to pay $3,724,000 to resolve charges they violated the False Claims Act through the false billing of personal care worker services to the Wisconsin Medicaid Program.  Specifically, the defendants (1) intentionally recruited patients for personal care services without regards to whether the services were medically necessary; (2) instructed nurses employed by Deaconess to routinely inflate, without regard to medical necessity, the assessment of the patient that was provided to the Medicaid program; (3) failed to conduct required supervisory visits to ensure that services were in fact being provided, that services continued to be medically necessary, and that any services provided were appropriate for the needs of the patient; and (4) hired physicians to act as medical directors to sign plans of care for patients on whom they had not completed a physical examination.  The allegations first arose in three whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  Two of the whistleblowers are former employees of Deaconess.  The whistleblowers collectively will receive a whistleblower award of approximately $600,000.  (DOJ (EDWI)


November 16, 2015 - 

Pittsburgh-based for-profit education company Education Management Corp. agreed to pay $95.5 million to resolves allegations it violated the federal False Claims Act and several state False Claims Acts by falsely certifying it was in compliance with Title IV of the Higher Education Act and parallel state statutes.  The government alleged the company violated the statute’s Incentive Compensation Ban by running a high pressure boiler room where admissions personnel were paid based purely on the number of students they enrolled.  The allegations first arose in series of whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will collectively receive a whistleblower award of $11.3 million from the proceeds of the government’s recovery.  Whistleblower Insider


November 16, 2015 - 

HCA Holdings, Inc. (including affiliated entities Hospital Corporation of America; Parallon Business Solutions, LLC; West Florida Regional Medical Center, Inc.; HCA Health Services of Florida, Inc.; Regional Medical Center Bayonet Point; HCA Health Services of Florida, Inc.; New Port Richey Hospital, Inc.; and Medical Center of Trinity) agreed to pay $2 million to resolve charges of violating the False Claims Act through billing Medicare for unnecessary lab tests and double billing for fetal testing.  The allegations first arose in a whistleblower lawsuit by HCA employee Kelly Oxendine under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of roughly $400,000 from the government’s recovery.  DOJ(SC)


November 13, 2015 - 

French power and transportation company Alstom S.A. was sentenced to pay a $772 million fine for violating the Foreign Corrupt Practices Act (FCPA) through its payment of millions of dollars in secret bribes to government officials across the globe.  According to the company’s own admissions, Alstom paid bribes to government officials and falsified books and records in connection with power, grid and transportation projects for state-owned entities around the world, including in Indonesia, Egypt, Saudi Arabia, the Bahamas and Taiwan.  Alstom concealed the bribes by retaining consultants purportedly to provide consulting services but that actually served as conduits for the illegal payments.  In total, Alstom paid more than $75 million in bribes to secure more than $4 billion in projects around the world, with a profit to the company of approximately $300 million.  Whistleblower Insider


November 13, 2015 - 

Tamara Esponda, owner of Miami-area pharmacy Biomax Pharmacy Inc., was sentenced to 42 months in prison and to pay roughly $1.6 million in restitution for her role in the submission of more than $1.5 million in fraudulent claims to Medicare Part D.  According to admissions made in connection with Esponda’s guilty plea, Biomax Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries.  Esponda further admitted that in perpetrating this fraud she and her accomplices used the beneficiaries’ and doctors’ Medicare identification numbers without their consent.  DOJ


November 6, 2015 - 

Valery Bogomolny, owner of Royal Medical Supply, was convicted for his role in a $4 million Medicare fraud scheme.  According to evidence presented at trial, Bogomolny used his company to bill Medicare for power wheelchairs, back braces and knee braces that were medically unnecessary, not provided to beneficiaries or both.  The evidence further showed Bogomolny created false documentation to support his false billing claims, including creating fake reports of home assessments that never occurred.  DOJ


November 6, 2015 - 

Former CEO of TierOne Bank Gilbert G. Lundstrom was convicted for orchestrating a scheme to defraud TierOne’s shareholders and to mislead regulators by concealing more than $100 million in losses on loans and declining real estate.  In 2014, co-conspirators James Laphen, TierOne’s former president and chief operating officer, and Don Langford, TierOne’s former chief credit officer, pleaded guilty to multiple felonies in connection with their participation in the scheme.  DOJ


November 6, 2015 - 

Roger Rousseau, former medical director of defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced to 192 months in prison for his role in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.  Also sentenced to prison for their role in the scheme were therapists Liliana Marks for 72 months and Doris Crabtree and Angela Salafia, each for 60 months.  According to evidence presented at trial, HCSN purported to provide intensive mental health services to Medicare and Medicaid beneficiaries but these services were not medically necessary and were often never even provided.  HCSN also paid kickbacks to assisted living facility owners and operators who in exchange referred beneficiaries to HCSN.  In support of this scheme, Rousseau routinely signed what he knew to be fabricated and altered medical records.  And Crabtree, Salafia and Marks fabricated HCSN medical records to support the fraudulent claims.  In total, HCSN submitted roughly $63.7 million in false and fraudulent claims to Medicare.  DOJ


November 5, 2015 - 

The Department of Justice’s US Trustee Program entered into a national settlement with Wells Fargo Bank requiring the bank to pay $81.6 million for failing to provide homeowners with legally required notices and thus the opportunity to challenge the accuracy of mortgage payment increases.  Wells Fargo acknowledged failing to timely file more than 100,000 payment change notices and perform more than 18,000 escrow analyses in cases involving nearly 68,000 accounts of homeowners in bankruptcy between 2011 and 2015.  DOJ


November 5, 2015 - 

A federal jury convicted Anthony Allen and Anthony Conti, former Rabobank derivative traders, for manipulating the London InterBank Offered Rates (LIBOR) for the US Dollar and the Yen, benchmark interest rates to which trillions of dollars in interest rate contracts were tied.  DOJ


November 4, 2015 - 

AstraZeneca LP and Cephalon, Inc. agreed to pay $54 million to settle government charges they violated federal and state False Claims Acts by overcharging state Medicaid programs for their pharmaceutical products.  AstraZeneca will pay $46.5 million and Cephalon, the wholly-owned subsidiary of Teva Pharmaceutical Industries. Ltd., will pay $7.5 million.  According to the government, the two pharmaceutical companies underpaid drug rebates owed the states under the Medicaid Drug Rebate Program, which requires drug makers to periodically return to the government a portion of their Medicaid proceeds.  The allegations first arose in a whistleblower lawsuit filed by Virginia pharmacist and attorney Ronald Streck under thequit tam provisions of the Federal False Claims Act, New York False Claims Act and other state false claims statutes.  Mr. Streck will receive a yet-to-be-disclosed whistleblower award from a portion of the government’s recoveries.  Whistleblower Insider


November 4, 2015 - 

Tampa, Florida investment advisor and founder of OM Global Investment Fund LLC Gignesh Movalia was sentenced to 18 months in prison and to pay $5,394,419 in restitution for perpetrating a $9 million investment fraud scheme involving Facebook stock.  In connection with his guilty plea, Movalia admitted raising more than $9 million from 130 investors by falsely claiming to have access to pre-initial public offering shares of Facebook Inc.  DOJ


November 2, 2015 - 

Massachusetts-based telecom software company NetCracker Technology Corp. agreed to pay $11.4 million, and Virginia-based information technology companyComputer Sciences Corp. agreed to pay $1.35 million to settle charges they violated the False Claims Act by using individuals without security clearance on a government defense contract.  The allegations first arose in a whistleblower lawsuit filed by former NetCracker employee John Kingsley under the qui tam provisions of the False Claims Act.  Mr. Kingsley will receive a whistleblower award of $2,358,750 as his share from the government’s recovery in this case. Whistleblower Insider


October 30, 2015 - 

The Department of Justice reached 70 settlements involving 457 hospitals in 43 states for more than $250 million related to cardiac devices implanted in Medicare patients in violation of Medicare coverage requirements.  The devices, called implantable cardioverter defibrillators (ICDs), are electronic devices implanted near and connected to the heart to detect and treat chaotic, extremely fast, life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm.  Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.  According to the government, from 2003 to 2010 each of the settling hospitals implanted ICDs during periods prohibited by the Medicare’s National Coverage Determination.  Most of the settlements originated from allegations first raised in a whistleblower lawsuit brought under the qui tamprovisions of the False Claims Act by Leatrice Ford Richards, a cardiac nurse, and Thomas Schuhmann, a health care reimbursement consultant.  They have so far received a combined whistleblower award of more than $38 million from the settlements.  The Department of Justice is continuing to investigate additional hospitals and health systems.  DOJ


October 29, 2015 - 

Warner Chilcott US Sales LLC, a subsidiary of pharmaceutical manufacturer Warner Chilcott PLC, agreed to plead guilty to a felony charge of health care fraud as part of a global settlement in which Warner Chilcott agreed to pay $125 million to resolve its criminal and civil liability arising from illegally marketing the drugs Actonel, Asacol, Atelvia, Doryx, Enablex, Estrace and Loestrin in violation of the False Claims Act and Anti-Kickback Statute.  Specifically, the government charged that between 2009 and 2013, Warner Chilcott paid physicians to induce them to prescribe Warner Chilcott drugs.  The government also alleged that Warner Chilcott employees submitted false or misleading prior authorization requests and other coverage requests to federal health care programs for the osteoporosis medications Atelvia and Actonel.  The government further claimed that Warner Chilcott employees were instructed by members of the company’s management team to make unsubstantiated superiority claims when marketing the drug Actonel.  The allegations first arose in a whistleblower lawsuit by two former Warner Chilcott sales representatives filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a whistleblower award of approximately $22.9 million from the federal share of the civil recovery.  Whistleblower Insider


October 28, 2015 - 

Spokane, Washington resident Louis Daniel Smith was sentenced to 51 months in prison for selling industrial bleach as a miracle cure for numerous diseases and illnesses, including cancer, AIDS, malaria, hepatitis, Lyme disease, asthma and the common cold.  Evidence at trial showed that Smith operated a business called “Project GreenLife” through which he sold a product called “Miracle Mineral Supplement” over the Internet.  The product was really a mixture of sodium chlorite and water and sodium chlorite is an industrial chemical used as a pesticide, for hydraulic fracturing and for wastewater treatment, which cannot be sold for human consumption.  DOJ


October 28, 2015 - 

Tri-Marine Management Co., Tri-Marine Fishing Management and Cape Mendocino Fishing agreed to pay $1.05 million in civil penalties and to perform fleet-wide inspections and other corrective measures to resolve claims stemming from an October 2014 oil spill in American Samoa and related violations of spill prevention regulations.  According to the government, the Tri-Marine companies are liable for the October 2014 oil spill from their 230-foot commercial tuna fishing vessel, the Capt. Vincent Gann, into Pago Pago Harbor in American Samoa and related violations of the Coast Guard’s spill prevention regulations.  DOJ


October 27, 2015 - 

Arizona-based ocean carrier APL Limited, a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited, agreed to pay $9.8 million to resolve allegations it violated the False Claims Act in connection with a Department of Defense contract to provide GPS tracking of shipping containers in Afghanistan.  The government contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan to U.S. military bases in Afghanistan.  According to the government, APL billed the DOD for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to shipping containers.  DOJ


October 26, 2015 - 

Valentina Kovalienko, the owner of two Brooklyn medical clinics, pleaded guilty to, and agreed to forfeit almost $30 million for, her role in a $55 million health care fraud and money laundering conspiracy.  According to her admissions, from approximately February 2008 to February 2011, Kovalienko and others executed a scheme in which patients were paid cash kickbacks to subject themselves to medically unnecessary physical and occupational therapy, diagnostic tests and office visits that were not performed by licensed professionals, and for which the clinics billed Medicare and Medicaid.  Kovalienko also admitted that to support the fraudulent claims she paid occupational and physical therapists to falsify patient charts and billing records.  DOJ


October 22, 2015 - 

Virginia-based hardwood flooring retailer Lumber Liquidators Inc. pleaded guilty to violating the Lacey Act through its illegal importation of hardwood flooring manufactured in China from timber illegally logged in far eastern Russia, in the habitat of the last remaining Siberian tigers and Amur leopards in the world.  Under the plea agreement, Lumber Liquidators will pay $13.15 million, the largest financial penalty ever for timber trafficking under the Lacey Act and one of the largest Lacey Act penalties ever.  DOJ


October 20, 2015 - 

Paris-based Crédit Agricole Corporate and Investment Bank, owned by Crédit Agricole S.A. and which operates in over thirty countries, agreed to pay $787.3 million in criminal and civil penalties for violating the International Emergency Economic Powers Act and the Trading With the Enemy Act.  Between August 2003 and September 2008, Crédit Agricole subsidiaries in Geneva knowingly moved approximately $312 million through the US financial system on behalf of sanctioned entities located in Sudan, Burma, Iran and Cuba.  To facilitate these illegal transactions, these subsidiaries used deceptive practices which prevented the government, Crédit Agricole’s New York branch and other US financial institutions from filtering for, and consequently blocking or rejecting, the sanctioned payments.  Whistleblower Insider


October 19, 2015 - 

Millennium Health (formerly Millennium Laboratories) agreed to pay $256 million to resolve charges it billed Medicare for medically unnecessary urine drug and genetic testing.  According to the government, Millennium caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which instead of being tailored to individual patients were in effect standing orders that caused physicians to order large number of tests without an individualized assessment of each patient’s needs.  The government further alleged that Millennium’s provision of free point of care urine drug test cups to physicians — expressly conditioned on the physicians’ agreement to return the urine specimens to Millennium for hundreds of dollars’ worth of additional testing — violated the Stark Law and the Anti-Kickback Statute.  The case originated from several whistleblower lawsuits filed under thequi tam provisions of the False Claims Act.  The whistleblowers will collectively receive whistleblower awards amounting to roughly $32 million.  Whistleblower Insider


October 16, 2015 - 

The US resolved for $4 million a False Claims Act action against the estate and trusts of the late Layton P. Stuart, former owner and president of One Financial Corporation, and its subsidiary, One Bank & Trust N.A., both based in Little Rock, Arkansas.  According to the government, Stuart and One Financial violated the False Claims Act by making false statements about the financial condition of One Financial and One Bank to induce the Department of the Treasury to invest Troubled Asset Relief Program (TARP) funds in One Financial.  Stuart allegedly diverted One Bank funds for personal use, including his purchase of luxury vehicles for his wife and children.  He was terminated from One Bank in September 2012. DOJ


October 16, 2015 - 

South Carolina-based Tuomey Healthcare System agreed to pay $72.4 million to settle charges of violating the False Claims Act by billing Medicare for services referred by physicians with whom the hospital had improper financial relationships.  Under the settlement, Tuomey also will be sold to Palmetto Health, a multi-hospital healthcare system based in Columbia, South Carolina.  According to the government, Tuomey violated the Stark law by entering into contracts with 19 specialist physicians that required them to refer their outpatient procedures to Tuomey in exchange for compensation that far exceeded fair market value and included part of the money Tuomey received from Medicare for the referred procedures.  The settlement follows a jury trial where the court entered judgement against Tuomey for more than $237 million.  The case arose from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Dr. Michael K. Drakeford, an orthopedic surgeon who was offered, but refused to sign, one of the illegal contracts.  Dr. Drakeford will receive a whistleblower award of roughly $18.1 million from the settlement.  Whistleblower Insider


October 16, 2015 - 

Jonathan Leland Moore, former chief financial officer of Arrow Trucking Company, was sentenced to serve 35 months in prison for conspiring with James Douglas Pielsticker, former CEO and president of Arrow, to defraud the US by failing to account for and pay federal withholding taxes on behalf of Arrow and by making payments to Pielsticker outside the payroll system.  DOJ


October 16, 2015 - 

A federal jury in Los Angeles convicted Amalya Cherniavsky and her husband, Vladislav Tcherniavsky, for conspiracy to commit health care fraud in connection with a $1.5 million Medicare fraud scheme.  The evidence at trial demonstrated that Cherniavsky ownedJC Medical Supply, a purported durable medical equipment supply company, and that she co-operated the company with her husband, Tcherniavsky, and that they paid illegal kickbacks to patient recruiters in exchange for patient referrals.  The evidence further showed that the defendants paid kickbacks to physicians for fraudulent prescriptions – primarily for expensive, medically unnecessary power wheelchairs – which the defendants then used to support fraudulent bills to Medicare.  DOJ


October 15, 2015 - 

Houston-based military contractor Kellogg Brown & Root, Inc. (KBR) was ordered to pay roughly $108,000 for violating the Anti-Kickback Act by accepting gifts and gratuities, including expensive dinners, golf outings and event tickets, from various sub-contractors while KBR was providing logistic services to the United States Army Operations Support Command contract known as LOGCAP III.  LOGCAP III was awarded to KBR for the provision of logistical support to the Army in Iraq and Afghanistan.  FBI


October 15, 2015 - 

Shreveport, Louisiana community mental health center Westwood Mental Health LLC, and its parent company MedSouth LLC, agreed to pay $3.5 million to settle False Claims Act and Anti-Kickback Statute allegations that Westwood falsified patient records, billed for services not medically necessary, billed for services that were not rendered, provided bribes to Medicare beneficiaries who did not qualify for partial hospitalization services and provided bribes and/or kickbacks to employees to further or conceal the fraud.  DOJ (WDLA)


October 14, 2015 - 

Santiago Borges, Erik Alonso and Cristina Alonso, all of Miami, pleaded guilty to federal healthcare fraud charges.  Borges owned the now-defunct mental health centersR&S Community Mental Health Inc. and St. Theresa Community Mental Health Center Inc., and was an investor in New Day Community Mental Health Center LLC .  Erik Alonso was the clinical director of all three centers.  Cristina Alonso was a therapist at R&S.  They admitted the clinics billed Medicare for costly partial hospitalization program services that were not medically necessary or not provided to patients.  Borges also admitted he paid kickbacks to patient recruiters who, in exchange, referred beneficiaries to the centers.  DOJ


October 14, 2015 - 

Michael J. Mitrow Jr., former CEO and president of pharmaceutical marketing company Access Communications, was sentenced to three and one half years in prison and to pay $83,219 in restitution to the IRS and $1,468,259.43 to his former company for participating in a scheme in which he obtained more than $2 million in fraud and kickback proceeds.  DOJ


October 14, 2015 - 

Chicago-based aerospace and defense industry giant Boeing Companyagreed to pay $18 million to settle charges it violated the False Claims Act by submitting false claims for labor charges on maintenance contracts with the US Air Force.  The allegations originated in a whistleblower lawsuit brought by former Boeing employee James Thomas Webb under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of roughly $3 million from the government’s recovery.  Whistleblower Insider


October 13, 2015 - 

Pitney Bowes Presort Services Inc. agreed to pay $9.4 million to settle charges it underpaid postage for mail processed at its Reading, Pennsylvania, facility by claiming discounts to which it was not entitled.  DOJ


October 9, 2015 - 

Cincinnati-based West Chester Hospital and its parent company, UC Health, agreed to pay $4.1 million to settle allegations that West Chester Hospital violated the False Claims Act by billing federal health care programs for medically unnecessary spine surgeries.  The challenged surgeries were performed between 2009 and 2013 by Dr. Abubakar Atiq Durrani, a surgeon from Mason, Ohio, who had admitting privileges at West Chester Hospital and who was arrested in July 2013 but allegedly fled the country and remains a fugitive.  The allegations first arose in a whistleblower lawsuit filed by former patients of Durrani under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of approximately $800,000 from the federal share of the settlement.  DOJ


October 8, 2015 - 

Evelio Fernandez Penaranda, owner of Miami-based Naranja Pharmacy Inc., was sentenced to 46 months in prison and to pay $1,876,241 in restitution for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.  According to his guilty plea, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. DOJ


October 7, 2015 - 

Kentucky-based nursing home pharmacy PharMerica Corp. agreed to pay $9.25 million to resolve allegations it violated the False Claims Act by soliciting and receiving kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the anti-epileptic prescription drug Depakote for nursing home patients.  The settlement is part of the continuing fallout of the $1.5 billion settlement Abbott entered into with the government in May 2012 to resolve Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including PharMerica.  The settlement partially resolves allegations raised in two whistleblower lawsuits brought by former Abbott employees Richard Spetter and Meredith McCoyd under the qui tam provisions of the False Claims Act.  Ms. McCoyd will receive a whistleblower award of $1 million from the federal share of the settlement amount. Whistleblower Insider


October 7, 2015 - 

Phoenix-based Serenity Hospice and Palliative Care agreed to pay $2.2 million to resolve allegations it violated the False Claims Act by submitting false bills to Medicare for hospice services.  In addition, Ruth Siegel, a former nurse and the founder and former president of Serenity, agreed to be excluded from Medicare, Medicaid, and all other federal health care programs for five years.  The allegations originated in a whistleblower lawsuit filed by Cheryl Sifford under the qui tam provisions of the False Claims Act.  She will receive a yet-to-be-determined whistleblower award from the government’s recovery.  DOJ (AZ)


October 6, 2015 - 

Fifth Third Bank agreed to pay $85 million to resolve civil fraud claims arising from the bank’s origination of residential mortgage loans insured by the Federal Housing Administration.  FTB made a voluntary disclosure of approximately 1,400 mortgage loans it had certified as eligible for FHA insurance, later determined were materially defective and thus ineligible for FHA insurance, but never self-reported to HUD, resulting in millions of dollars in HUD losses.  This matter arose, in part, from the filing of a whistleblower complaint under the qui tam provisions of the False Claims Act.  DOJ (NY)


October 5, 2015 - 

BP agreed to a settlement with the US and the five Gulf states worth $20.8 billion to resolve civil claims arising from the April 2010 Macondo well blowout and the massive oil spill that followed in the Gulf of Mexico.  The global settlement resolves the governments’ civil claims under the Clean Water Act and natural resources damage claims under the Oil Pollution Act, as well as economic damage claims of the five Gulf states and local governments.  It is the largest settlement with a single entity in the DOJ’s history.  The destruction of the Deepwater Horizon drilling rig sent more than three million barrels of oil into the Gulf of Mexico over a 3 month period, resulting in oil slicks that extended across more than 43,000 square miles, affecting water quality and exposing aquatic plants and wildlife to harmful chemicals.  Oil was deposited onto at least 400 square miles of the sea floor and washed up onto more than 1,300 miles of shoreline from Texas to Florida.  DOJ


October 2, 2015 - 

Guardian Hospice of Georgia LLC, Guardian Home Care Holdings Inc.and AccentCare Inc. agreed to pay $3 million to resolve allegations they knowingly submitted false claims to Medicare for hospice patients who were not terminally ill.  The allegations originated in a whistleblower lawsuit filed by former Guardian employees Rose Betts and Jennifer Williams under the qui tam provisions of the False Claims Act.  Ms. Betts and Ms. Williams will receive a whistleblower award of approximately $510,000.  DOJ


October 1, 2015 - 

Nurses’ Registry and Home Health Corporation and the Estate of its former owner, the deceased Lennie House, agreed to pay $16 million to resolve allegations that Nurses’ Registry, at the direction of Lennie House, violated the False Claims Act by fraudulently billing Medicare for medically unnecessary home health services and for services tainted by kickbacks provided by the company and House to local physicians and others who referred patients to Nurses’ Registry.  According to the government, Nurses’ Registry falsified medical records to make it appear as if patients had a medical need for skilled nursing or therapy services, or appear as if the patients were homebound.  In addition to billing Medicare for unnecessary or non-reimbursable home health services, Nurses’ Registry and House provided tickets to athletic events and concerts, and provided other things of value, to doctors and referral sources in order to induce or reward patient referrals.  The allegations originated in a whistleblower lawsuit filed by former employees Alisia Robinson-Hill and David Price under thequi tam provisions of the False Claims Act.  They will receive a yet-to-be-determined whistleblower award from the settlement proceeds.  DOJ (KY)


October 1, 2015 - 

Strata Pathology Laboratory, Inc. (known as StrataDx) agreed to pay $558,793 to resolve allegations it violated the False Claims Act by inducing physicians to refer Medicare and Medicaid patients to Strata by paying kickbacks in the form of sham consulting fees and providing unlawful discounts to physicians.  According to the settlement agreement, Strata acknowledged paying consulting fees to two referring physician practices that did not provide consulting services in exchange.  Strata also acknowledged entering into “account billing” arrangements with seven referring physician practices that facilitated fee-splitting between the parties.  The allegations originated in a whistleblower lawsuit filed by a former Strata employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from a portion of the government’s recovery.  DOJ (MA)


September 30, 2015 - 

Former chief financial officer of Siemens S.A. – Argentina Andres Truppel pleaded guilty to conspiring to pay tens of millions of dollars in bribes to Argentine government officials to secure, implement and enforce a $1 billion contract to create national identity cards.  In connection with his guilty plea, Truppel admitted he engaged in the decade-long scheme which involved concealing the illicit payments through various means, including using shell companies associated with intermediaries to disguise and launder the funds and by paying $7.4 million as part of a hedging contract with a foreign currency company incorporated in the Bahamas.  Truppel also admitted he used a $27 million contract between a Siemens entity and a company called MFast Consulting AG that purported to be for consulting services to conceal bribes to Argentine officials.  DOJ.


September 30, 2015 - 

Tractor Supply Company Inc. and Tractor Supply Company of Texas L.P. agreed to pay a $775,000 penalty and implement a compliance program to resolves EPA allegations they imported and sold more than 28,000 all-terrain vehicles, off-highway motorcycles and engines that did not comply with federal  Clean Air Act certification and emission information labeling requirements.  DOJ


September 29, 2015 - 

Juan Carlos Delgado and Nereyda Infante, who owned and operated several Orlando-based health care clinics under variations of the name Prestige Medical, were sentenced to five years in prison and to pay $1,520,850 in restitution and forfeit $1,520,850 for their role in a $2.4 million health care fraud scheme.  According to admissions made in connection with their guilty pleas, between February 2012 and September 2014, the defendants fraudulently billed Medicare on behalf of the Prestige clinics for services never provided and for medications not prescribed or administered.  In particular, Delgado and Infante admitted to billing Medicare for pentostatin, an expensive anticancer chemotherapeutic medication used to treat Leukemia, despite never administering the drug.  DOJ


September 29, 2015 - 

Delaware-based St. Francis Hospital agreed to pay roughly $4 million to the US and $200,000 to the State of Delaware to resolve charges it violated the False Claims Act by improperly billing Medicare and Medicaid for patients admitted into its inpatient rehabilitation unit in Wilmington, Delaware between 2007 and 2010, when admission was not medically necessary and/or the services provided did not fully qualify for reimbursement.  The settlement agreement also resolves separate allegations that St. Francis employed an individual who was excluded from participating in any Federal health care programs.  DOJ (DE)


September 29, 2015 - 

One current and three former US Army soldiers were sentenced for their involvement in a bribery scheme in Afghanistan that resulted in the theft of fuel valued at more than $10 million.  Jeffery B. Edmondson was the senior enlisted member of the unit who supervised all his co-conspirators and was sentenced to eight years in prison.  Christopher Ciampa was sentenced to 10 years in prison.  Enmanual Lugo was sentenced to four years in prison.  And Geoffrey Montague was a senior enlisted member of the unit who reported to Edmondson and was sentenced to five years in prison.  In connection with their guilty pleas, the defendants admitted to submitting fake Transportation Movement Requests (TMRs) for thousands of gallons of fuel that were neither necessary nor used by military units.  The defendants admitted that, in return for cash bribe payments, they awarded all the TMRs to the same Afghan trucking company, which used the fake TMRs to download fuel from depots on Kandahar Air Field and then sold the fuel on the black market.  DOJ


September 29, 2015 - 

Guardian Industries Corp. agreed to settle alleged violations of the Clean Air Act at Guardian’s flat glass manufacturing facilities throughout the US.  Under the proposed settlement, Guardian will invest more than $70 million to control hazardous emissions from all its flat glass manufacturing facilities and fund an environmental mitigation project valued at $150,000 to reduce particulate matter pollution in the San Joaquin Valley in California.  It also agreed to pay a civil penalty of $312,000.  DOJ


September 29, 2015 - 

Wyeth Holdings LLC, a subsidiary of the Pfizer Corporation, agreed to perform nearly $194 million worth of cleanup work at the American Cyanamid Superfund Site in Bridgewater Township, New Jersey.  The cleanup work the company has agreed to perform includes work to address six disposal areas at the site where chemicals were manufactured for nearly 100 years.  In addition, the company will pay $1 million for EPA’s past costs of overseeing cleanup work at the site.  The American Cyanamid Superfund Site has a history of industrial pollution dating back to 1915.  DOJ


September 28, 2015 - 

L-3 Communications Corporation and its affiliated entities Vertex Aerospace LLC and L-3 Communications Integrated Systems LP agreed to pay $4.63 million to resolve allegations they violated the False Claims Act by inflating labor hours for time spent by independent contractors at the military’s Continental US Replacement Centers (CRCs) in Fort Benning, Georgia and Fort Bliss, Texas.  According to the government, L-3 knowingly overcharged the government for time their independent contractors spent at the CRCs by billing for each individual not based on the actual time that individual spent at the CRC, but based instead on the earliest arrival or latest departure time of any other individual who also processed through the center that same day.  The allegations first arose in a whistleblower lawsuit filed by former L-3 independent contractor Robert A. Martin under the qui tam provisions of the False Claims Act.  Mr. Martin will receive a whistleblower award of $798,675.  Whistleblower Insider


September 28, 2015 - 

American Access Care Holdings, LLC agreed to pay $3,594,791 to resolve allegations it violated the False Claims Act by improperly billing Medicare and Medicaid for multiple percutaneous transluminal angioplasties performed during the same patient encounter and improperly submitting claims to Medicare and Medicaid for procedures performed during follow-up visits that were not medically necessary.  The conduct addressed by the settlement occurred prior to AAC’s merger with Fresenius Vascular Care, Inc. in October 2011. DOJ (CT)


September 24, 2015 - 

Hector Hernandez, owner and operator of Miami mortgage lender Great Country Mortgage Bankers was sentenced today to serve 135 months in prison and pay $64,508,141 in restitution and forfeit $8,000,000 in illicit profits for his role in orchestrating a $64 million mortgage fraud scheme.  Also sentenced was real estate developer Aleida Fontao (41 months in prison, $7,131,952 in restitution and $400,000 in forfeiture); and underwriter Olga Hernandez (51 months in prison and $24,512,755 in restitution).  Hector Hernandez admitted that his company employed loan officers, loan processors and underwriters, including Olga Hernandez and Fontao, whom he knew approved and submitted false and fraudulent Federal Housing Administration mortgage loan applications and accompanying documents to HUD on behalf of unqualified borrowers.  These documents included false pay stubs, false verification of employment forms, and fictitious letters from the borrowers.  DOJ


September 24, 2015 - 

Elizabeth Kressin agreed to pay $62,349 to resolve allegations she violated the False Claims Act by improperly billing the Medicaid system for medically unnecessary chiropractic procedures and for the treatment of conditions for which payment is not allowed, including bed wetting, colic and ear infections.  DOJ (Iowa)


September 22, 2015 - 

Douglas G. Williams, a former Oklahoma City law enforcement officer and the owner of Polygraph.com, was sentenced to two years in prison for training customers to lie and conceal crimes and other misconduct during polygraph examinations.  According to admissions made in connection with his plea, Williams trained people how to conceal misconduct and other disqualifying information when submitting to polygraph examinations in connection with federal employment suitability assessments, background investigations, internal agency investigations and other proceedings.  DOJ


September 22, 2015 - 

Leucadia National Corporation agreed to pay a $240,000 civil penalty to settle charges of violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino Act when it acquired voting securities of KCG Holdings Inc. in July 2013.  DOJ


September 21, 2015 - 

Stewart Parnell, former owner and president of Peanut Corporation of America, was sentenced to 28 years in prison for his role in shipping salmonella-positive peanut products before the results of microbiological testing were received and falsifying microbiological test results.  It is the largest criminal sentence ever in a food safety case.  Also sentenced to 20 years and 5 years respectively for their role in the misconduct was Mr. Parnell’s brother Michael, who worked on behalf of PCA as a food broker, and Mary Wilkerson, who held various PCA positions including receptionist, office manager and quality assurance manager.  Whistleblower Insider


September 21, 2015 - 

Non-profit healthcare organization Adventist Health System agreed to pay $115 million to settle allegations it violated the False Claims Act by maintaining improper compensation arrangements with referring physicians and by miscoding claims.  The allegations originated in two whistleblower lawsuits filed by former Adventist hospital employees Michael Payne, Melissa Church and Gloria Pryor under the qui tam provisions of the False Claims Act.  The will receive a yet-to-be-determined whistleblower award from the government’s recovery. DOJ


September 21, 2015 - 

Bayer CropScience LP agreed to resolve violations of federal chemical accident prevention laws at its facility in Institute, West Virginia, where an explosion killed two people in 2008.  Under the settlement, the company committed to spending $4.23 million to improve emergency preparedness and response in Institute and protect the Kanawha River, paying a $975,000 penalty, and spending approximately $452,000 to implement a series of measures to improve safety at chemical storage facilities across the US.  DOJ


September 18, 2015 - 

Mary Talaga, the primary medical biller at Medicall Physicians Group Ltd., a Chicago-area visiting physician practice, was sentenced to 45 months in prison and to pay $1 million in restitution for her role in a $4 million health care fraud scheme.  The evidence at trial showed that Talaga and her co-conspirators routinely billed Medicare for overseeing patient care plans when in fact the doctors at Medicall rarely provided the service.  DOJ


September 17, 2015 - 

Detroit-based auto maker General Motors entered into a deferred prosecution agreement with a host of federal regulators to settle criminal and civil charges of failing to disclose a deadly safety defect in its cars relating to the ignition switch.  Under the agreement, GM will pay $900 million and have an independent monitor appointed to oversee GM’s reporting of safety Issues and public statements.  Whistleblower Insider


September 16, 2015 - 

Kayaba Industry Co. Ltd. (dba KYB Corporation) agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to US consumers.  Specifically, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co., Kawasaki Heavy Industries, Nissan Motor Company, Suzuki Motor Corporation and Toyota Motor Company.  DOJ


September 15, 2015 - 

North Broward Hospital District, operator of hospitals and other health care facilities in the Broward County, Florida area, agreed to pay $69.5 million to settle allegations it violated the False Claims Act by engaging in improper financial relationships with referring physicians.  According to the government, the hospital district provided compensation to nine employed physicians that exceeded the fair market value of their services violating both the Stark Statute and False Claims Act.  The allegations first arose from a whistleblower lawsuit filed by Dr. Michael Reilly under the qui tam provisions of the False Claims Act.  Dr. Reilly will receive a whistleblower award of roughly $12 million.  DOJ


September 11, 2015 - 

PAE Government Services Inc. and RM Asia (HK) Limited agreed to pay $1.45 million to resolve allegations they engaged in a bid-rigging scheme that resulted in false claims for payment under a US Army contract for services in Afghanistan.  In 2007, the Army awarded PAE a contract to provide vehicle maintenance capabilities and training services for the Afghanistan National Army at multiple sites across Afghanistan.  PAE partnered with RM Asia to supply and warehouse vehicle parts.  According to the government, former managers of PAE and RM Asia funneled subcontracts paid for by the government to companies owned by the former managers and their relatives by using confidential bid information to ensure that their companies would beat out other, honest competitors.  DOJ


September 11, 2015 - 

A federal jury convicted Houston psychiatrist Sharon Iglehart of participating in a $158 million Medicare fraud scheme involving false claims for mental health treatment.  According to evidence presented at trial, from 2006 until June 2012, Iglehart and others engaged in a scheme to defraud Medicare by submitting, through Riverside General Hospital, approximately $158 million in false and fraudulent claims for partial hospitalization program services to Medicare beneficiaries who did not actually receive the services.  DOJ


September 10, 2015 - 

Tennessee-based non-profit hospice care provider Alive Hospice, Inc.paid roughly $1.5 million to reimburse the government for alleged violations of the False Claims Act through overbilling of Medicare and TennCare for hospice services.  According to the government, Alive submitted claims to Medicare and TennCare for general inpatient hospice care for patients who did not qualify for that care.  The allegations originated in a whistleblower lawsuit filed by Linda Anderson, a triage nurse who previously worked for Alive, under the qui tam provisions of the False Claims Act. She will receive a whistleblower award of $263,197. Whistleblower Insider


September 4, 2015 - 

Rick Brown, former president of Home Care America Inc., which managed the daily business operations of Medicall Physicians Group Ltd., was sentenced to 87 months in prison and to pay $1.3  million in restitution for his role in a $4 million health care fraud scheme.  Medicall is a physician practice that visited patients in their homes and prescribed home health care.  The evidence at trial showed that Brown and his co-conspirators routinely billed Medicare for overseeing patient care plans when in fact the doctors at Medicall rarely did so.  The evidence also showed that Brown and his co-conspirators billed Medicare for services never provided, including services rendered to patients who were deceased, services purportedly provided by medical professionals no longer employed by Medicall, and services purportedly provided by medical professionals who, based on billing records, worked over 24 hours per day. DOJ


September 4, 2015 - 

Columbus Regional Healthcare System and Dr. Andrew Pippas agreed to pay more than $25 million to resolve allegations they violated the False Claims Act by submitting claims in violation of the Stark Law.  The settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided.  According to the government, between 2003 and 2013, Columbus Regional provided excessive salary and directorship payments to Pippas that violated the Stark Law.  The government further alleged Columbus Regional submitted claims to federal health care programs for services at higher levels than supported by the documentation.  The allegations first arose in two whistleblower lawsuits filed former Columbus Regional executive Richard Barker under the qui tam provisions of the False Claims Act and the Georgia False Medicaid Claims Act.  Barker will receive a yet-to-be-determined whistleblower award.  DOJ


September 4, 2015 - 

Robert Wingfield and Bill Ma agreed to pay $385,000 and $50,000, respectively, to resolve allegations they violated the False Claims Act by engaging in a scheme to evade customs duties on imports of aluminum extrusions from China.  Wingfield was the US sales representative for Tai Shan Golden Gain Aluminum Products Ltd., the Chinese company that exported the aluminum extrusions in this case.  According to the government, Wingfield conspired with domestic importers to submit false information to the government to evade duties, and Ma later formed a company, Northeastern Aluminum Corp., to act as the importer of record for the goods in an attempt to shield the real importers from liability.  The allegations originated in a whistleblower lawsuit filed by James F. Valenti Jr. under the qui tam provisions of the False Claims Act.  Valenti will receive a whistleblower award of approximately $79,000.  DOJ


September 4, 2015 - 

Walter Investment Management Corp. agreed to pay $29.63 million to resolve allegations that, through its subsidiaries, Reverse Mortgage Solution Inc., REO Management Solutions LLC and RMS Asset Management Solutions LLC, it violated the False Claims Act in connection with the subsidiaries’ participation in the Department of Housing and Urban Development’s Home Equity Conversion Mortgages program, which insures “reverse” mortgage loans.  The allegations originated in a whistleblower lawsuit filed former RMS executive Matthew McDonald under the qui tam provisions of the False Claims Act.  McDonald will receive a whistleblower award of $5.15 million.  DOJ


September 3, 2015 - 

Genzyme Corporation, a wholly-owned biotechnology subsidiary of French pharmaceutical company Sanofi, agreed to resolve criminal charges it violated the Food, Drug and Cosmetic Act with regard to the unlawful distribution of the surgical device Seprafilm.  As part of the agreement, Genzyme agreed to admit to the facts underlying the charges and pay a monetary penalty of $32,587,439.  Whistleblower Insider


September 3, 2015 - 

Japanese automotive parts supplier NGK Insulators Ltd. agreed to plead guilty and pay a $65.3 million criminal fine for its role in a conspiracy to fix prices and rig bids for ceramic substrates for automotive catalytic converters supplied to automobile manufacturers.  According to the felony charges, NGK conspired to rig bids for and fix the prices of catalytic converter substrates supplied to automobile manufacturers such as General Motors, Toyota, Nissan and certain of their subsidiaries and suppliers in the US and elsewhere.  NGK is also charged with obstructing justice by altering, destroying, mutilating and concealing documents with the intent of impeding the investigation into criminal antitrust violations in the automotive parts industry.  DOJ


September 3, 2015 - 

Japan-based NEC TOKIN Corp. agreed to plead guilty and pay a $13.8 million criminal fine for conspiring with competitors between 2002 and 2013 to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere.  DOJ


September 3, 2015 - 

California-based Parsons Government Services Inc. agreed to pay $3.8 million to settle allegations it knowingly mischarged the Department of Energy for ineligible or inflated short-term and long-term employee relocation costs in connection with its contract on the DOE Salt Waste Processing Facility Project at the DOE Savannah River Site in Aiken, South Carolina.  DOJ


September 3, 2015 - 

St. Joseph Hospice Entities, which consists of 13 hospice facilities in Mississippi, Louisiana, Texas and Alabama, and Patrick T. Mitchell, its majority owner and manager, agreed to pay $5,867,518 to resolve allegations they violated the False Claims Act by submitting false claims for delivery of continuous home care hospice services to patients who were not entitled to receive them.  The allegations originated in a whistleblower lawsuit filed by 3 former employees of the company under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of roughly $1 million.  DOJ


September 1, 2015 - 

Discount department store chain KMART Corp., which operates approximately 780 in-store pharmacies throughout the US, agreed to pay $1.4 million to resolve allegations it violated the False Claims Act by using drug manufacturer coupons and gasoline discounts as improper Medicare beneficiary inducements.  According to the government, Kmart improperly influenced the decisions of Medicare beneficiaries to bring their prescriptions to Kmart pharmacies by permitting them to use drug manufacturer coupons to reduce or eliminate prescription co-pays that they otherwise would be obligated to pay, and by also offering them varying levels of discounts on the purchase of gasoline at participating gas stations.  The allegations originated in a whistleblower lawsuit filed by former Kmart pharmacist Joshua Leighr under the qui tam provisions of the False Claims Act.  Leighr will receive a whistleblower award of approximately $248,500.  DOJ


August 31, 2015 - 

Laran Lerner, a Detroit-area physician who prescribed unnecessary controlled substances and billed for unperformed office visits and diagnostic testing, pleaded guilty for his role in a $5.7 million health care fraud scheme.  DOJ


August 31, 2015 - 

Vadim Mikerin, a Russian official residing in Maryland, pleaded guilty to conspiracy to commit money laundering in connection with his role in arranging over $2 million in corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation.  DOJ


August 28, 2015 - 

EDF Resource Capital Inc. and its CEO, Frank Dinsmore, agreed to resolve allegations they violated the False Claims Act and otherwise failed to remit payments owed to the Small Business Administration under the 504 loan program.  Under the settlement agreement, EDF and Dinsmore agreed to make payments and turn over certain assets to the US for a total settlement of approximately $6 million.  DOJ


August 25, 2015 - 

A federal jury in Miami convicted Roger Rousseau, former medical director ofHealth Care Solutions Network Inc. (HCSN), and three HCSN therapists for their roles in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.  HCSN is a now-defunct partial hospitalization program that purported to provide intensive treatment for mental illness.  According to the evidence presented at trial, HCSN billed Medicare and Medicaid for mental health services that were not medically necessary or never provided and paid kickbacks to assisted living facility owners and operators in Miami who, in exchange, referred beneficiaries to HCSN.  DOJ


August 24, 2015 - 

Ayman Shahid, former president of Discovery Sales Inc., pleaded guilty to conspiracy to commit bank fraud.  DSI was the sales arm of affiliated residential construction companies, including Discovery Home Builders and Albert D. Seeno Construction Co.  Shahid admitted he conspired with others to fraudulently cause bank underwriters to approve mortgage loans for unqualified buyers during the height of the financial crisis.  DOJ


August 21, 2015 - 

Wholly-owned Lockheed Martin Corporation subsidiary Sandia Corporation agreed to pay $4,790,042 to resolve allegations it violated the Byrd Amendment and the False Claims Act by using federal funds for activities related to lobbying Congress and federal agencies to obtain a renewal of its Management and Operating Contract with the Department of Energy’s National Nuclear Security Administration to operate the Sandia National Laboratories.  DOJ


August 19, 2015 - 

Background check company US Investigations Services Inc. and its parent company Altegrity agreed to settle charges that USIS violated the False Claims Act by failing to provide proper background checks as required under its contract with the  Office of Personnel Management.  They agreed to forgo $30 million in payments they claim OPM owed them.  The allegations leading to the settlement were first raised in a whistleblower lawsuit filed by former USIS executive Blake Percival under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award.  Whistleblower Insider


August 19, 2015 - 

Yaroslav (Steven) Proshak, former owner of Southern California ambulance company ProMed Medical Transportation, was convicted of health care fraud charges in connection with a Medicare fraud scheme of at least $2.4 million.  According to the evidence, Proshak and two of his managers conspired to bill Medicare for ambulance transportation services for individuals whom the defendants knew did not need such services.  They also instructed EMTs who worked at ProMed to conceal the true medical conditions of patients they were transporting by altering requisite paperwork and creating fraudulent documents to justify the transportation services.  DOJ


August 19, 2015 - 

Arizona physician Dr. Bashir Azher agreed to pay $207,988 to resolve allegations he violated the False Claims Act by submitting false bills to Medicare for prostate laser ablation procedures, commonly known as Green Light prostatectomies.  Specifically, the government charged Dr. Azher with submitting false claims for reimbursement for prostate laser ablation procedures that were too short to generate a therapeutic benefit, failed to meet professionally recognized standards of care, were medically unnecessary, and/or violated applicable Medicare regulations.  The government’s allegations originated in a whistleblower lawsuit filed by Dr. Arnaldo Trabucco under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award.  DOJ


August 18, 2015 - 

Hovik Simitian, owner and operator of three medical clinics located in Los Angeles, pleaded guilty to submitting more than $4.5 million in fraudulent claims to Medicare.  Simitian admitted he and his co-conspirators paid cash kickbacks to patient recruiters who brought Medicare beneficiaries to his clinics, Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic.  Simitian also admitted they billed Medicare for lab tests and other services that were not medically necessary or not actually provided and created false documentation reflecting the services had been provided.  DOJ


August 14, 2015 - 

Oklahoma-based East Central Family Health Center agreed to pay $825,000 to settle charges it violated the False Claims Act by submitting false Medicaid claims.  Specifically, the government charged East Central, which is a designated federally qualified health center (FQHC), with submitting claims to the Oklahoma Medicaid Program for reimbursement for patients of non-FQHC health care providers and who were not East Central patients.  DOJ


August 14, 2015 - 

Connecticut doctor Okon Umana was sentenced to two years in prison, to pay $6,429,330 in restitution and to forfeit $6,550,036 for his role in a $13 million health care fraud scheme.  From 2009 to 2012, as the medical director of Cropsey Medical Care, Umana admitted submitting more than $13 million in claims to Medicare and Medicaid for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.  DOJ


August 13, 2015 - 

Two Southwest Missouri health care providers agreed to pay $5.5 million to settle allegations they violated the False Claims Act by engaging in improper financial relationships with referring physicians.  The two providers are Mercy Health Springfield Communities (formerly known as St. John’s Health System Inc.) and its affiliate, Mercy Clinic Springfield Communities (formerly known as St. John’s Clinic).  Specifically, the government charged the hospitals with submitting false claims to Medicare for services rendered to patients referred by physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals of patients to the clinic.  The allegations first arose in a whistleblower lawsuit filed by Dr. Jean Moore, a physician who is employed by one of the defendants, under the qui tam provisions of the False Claims Act.  Dr. Moore will receive a whistleblower award of $825,000.  DOJ


August 13, 2015 - 

Florida investment advisor Gignesh Movalia pleaded guilty to perpetrating a $9 million investment fraud scheme involving Facebook stock.  Specifically, Movalia, who was the founder and manager of OM Global Investment Fund LLC, solicited investments by falsely touting access to pre-IPO shares of Facebook which he then used for and lost in other investments that he concealed from investors.  DOJ


August 12, 2015 - 

Oswego Hospital will pay $1,456,457.33 to resolve False Claims Act charges stemming from healthcare billing improprieties the hospital self disclosed to the federal government.  Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego, paid $204,365.97 to resolve False Claims Act liability in connection with a related investigation.  Specifically, Oswego identified claims that were paid by federal and state payors where the supporting medical record documentation: (1) was not created or could not be located; (2) contained incorrect service dates; (3) were simply verbatim treatment notes from prior appointments with patients; and/or (4) failed to include time-related information required for certain time-based billing codes.  DOJ


August 11, 2015 - 

Computer Supply company PC Specialists Inc. (d/b/a Technology Integration Group) agreed to pay $5.9 million to settle charges it inflated the price of computers sold through another company to the National Nuclear Security Administration for use at Sandia National Laboratories in Albuquerque, New Mexico.  Specifically, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA.  According to the government, TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract.  The government’s allegations arose from a whistleblower lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be determined whistleblower award.  Whistleblower Insider


August 11, 2015 - 

California resident Patricia Diane Clark was sentenced to 130 months in prison and to pay $642,032 in restitution and to forfeit the same amount for her role in a half-million dollar Costa Rica-based “sweepstakes fraud” scheme that victimized hundreds of U.S. residents, many of whom were elderly.  DOJ


August 7, 2015 - 

Tamara Esponda, owner of Miami-based Biomax Pharmacy, pleaded guilty to submitting almost $1.6 million in fraudulent claims to Medicare.  Specifically, Esponda admitted that Biomax Pharmacy submitted fraudulent claims to Medicare for prescription drugs not prescribed by physicians, not medically necessary, not purchased by Biomax Pharmacy and not provided to Medicare beneficiaries.  DOJ


August 6, 2015 - 

Leon Benzer, a former construction boss from Las Vegas, was sentenced to 188 months in prison and to pay roughly $13 million in restitution for his role in a $58 million scheme to fraudulently gain control of condominium homeowners’ associations in the Las Vegas area to secure construction and other contracts for himself and others.  DOJ


August 3, 2015 - 

Rouzbeh Javaherian, owner of Los Angeles-based Westaid Pharmacy and Medical Supply, was sentenced to 18 months in prison and to pay $644,060 in restitution for his role in a fraud scheme involving the Medicare Part D prescription drug program.  Specifically, Javaherian paid illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid.  Javaherian then filled some of those prescriptions, but also submitted false claims to Medicare Part D plan sponsors for prescriptions that he did not actually fill.  DOJ


July 30, 2015 - 

California-based medical device manufacturer NuVasive Inc. agreed to pay $13.5 million to resolve charges it violated the False Claims Act by improperly promoting the company’s CoRoent System for spine surgeries for uses not approved by the Food and Drug Administration.  The settlement also resolves allegations NuVasive paid illegal kickbacks to induce physicians to use the company’s CoRoent System.  The government’s allegations originated in a whistleblower lawsuit filed by former NuVasive sales representative Kevin Ryan under the qui tam provisions of the False Claims Act.  He will receive a whistleblower reward of approximately $2.2 million.  Whistleblower Insider


July 27, 2015 - 

Zafar Mehmood and Badar Ahmadani, owners of two home health care agencies, were convicted of various offenses based on their roles in a $33 million Medicare fraud scheme.  According to evidence presented at trial, Mehmood and Ahmadani paid cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with Mehmood’s companies:  Access Care Home Care Inc., Patient Care Home Care Inc., Hands On Healing Home Care Inc. and All State Home Care Inc.  The evidence also showed that the defendants paid kickbacks to physicians to refer patients to the defendants’ companies for unnecessary home health care services.  DOJ


July 24, 2015 - 

California oncologist Dr. Neelesh Bangalore has paid $736,000 to settle allegations that he improperly billed Medicare, Medicaid, and Tricare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, Warwick Healthcare Solutions Inc., also known as Richards Pharma, a former United Kingdom-based drug distributer that did not have a license to distribute drugs in the United States.  DOJ


July 24, 2015 - 

Mohammed Sadiq was sentenced to 80 months in prison and to pay $14.1 million in restitution for his leading role in a $12.6 million Medicare and tax fraud scheme.  Sadiq, who owned and directed operations at two home health care companies in Detroit, admitted billing Medicare for home health services not medically necessary or provided and paying kickbacks to patient recruiters to obtain Medicare beneficiary information used in his scheme.  DOJ


July 23, 2015 - 

Evelio Fernandez Penaranda, owner of Miami-area pharmacy Naranja Pharmacy Inc., pleaded guilty for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.  Specifically, Penaranda admitted submitting fraudulent claims to Medicare for prescription drugs not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries.  DOJ


July 17, 2015 - 

New Jersey-based construction management company Louis Berger International Inc. admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts.  Specifically, from 1998 through 2010, the company and its employees orchestrated $3.9 million in bribe payments concealed as “commitment fees,” “counterpart per diems,” and other payments to third-party vendors.  DOJ


July 16, 2015 - 

Neil Godfrey, owner and operator of payment processing company Check Site Inc., pleaded guilty to fraud in connection with the unauthorized withdrawal of millions of dollars from consumers’ bank accounts.  Specifically, Godfrey admitted he used Check Site Inc. to assist at least two merchants that operated websites purportedly offering payday loans but that instead simply stole money from the consumers’ bank accounts.  DOJ


July 15, 2015 - 

Interstate Power and Light, a subsidiary of Alliant Energy, agreed to install pollution control technology and meet stringent emission rates to reduce harmful air pollution from the company’s seven coal-fired power plants in Iowa.  The settlement also requires the company to spend $6 million on environmental mitigation projects and pay a civil penalty of $1.1 million to resolve alleged violations of the Clean Air Act.  DOJ


July 14, 2015 - 

Hector Hernandez, a Miami-area real estate developer and owner of the mortgage company Great Country Mortgage Bankers, pleaded guilty to a mortgage fraud scheme involving federally insured mortgages that caused losses of $64 million to the Federal Housing Administration (FHA).  Specifically, while most of Great Country’s potential borrowers did not qualify for the FHA-insured loans, Hector Hernandez and his business partner, Aleida Fontao, directed Great Country employees to falsify important documents in the potential borrowers’ loan applications to make them appear qualified.  DOJ


July 10, 2015 - 

Detroit area doctor Farid Fata was sentenced to 45 years in prison and to forfeit $17.6 million for his role in a health care fraud scheme that included administering medically unnecessary infusions or injections to 553 individual patients and submitting to Medicare and private insurance companies approximately $34 million in fraudulent claims.  DOJ


July 10, 2015 - 

Army National Guard Sergeant First Class Jason Rappoccio was sentenced to 42 months in prison and to forfeit $31,328 for accepting a $30,000 bribe in exchange for steering a $3.6 million contract to Timothy Bebus, a retired sergeant major of the Minnesota Army National Guard, and his consulting company Mil-Team ConsultingDOJ


July 8, 2015 - 

George H. Lee, president and CEO of American Logistics Services, a Kuwaiti company providing supplies to the U.S. military during the Iraq War, was sentenced to 54 months in prison for paying a $15,000 bribe to former Army National Guard Lieutenant Markus E. McClain in exchange for the award of a contract.  DOJ


July 8, 2015 - 

Maria Elizabeth Townsend, president of Washington-based Townsend Controls Inc., was sentenced to serve more than three years in prison and pay $3,327,124.49 in restitution following her February 2015 conviction of 10 counts of failing to pay federal employment taxes. DOJ


July 8, 2015 - 

New Jersey doctor Frank Santangelo was sentenced to 63 months in prison and to forfeit more than $1.8 million for accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC.  Including Santangelo, 38 people, 26 of them doctors, have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.  DOJ


July 6, 2015 - 

LB&B Associates Inc. and its principals, Lily A. Brandon and F. Edward Brandon, agreed to pay $7.8 million to resolve allegations they made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program for Small Disadvantaged Businesses.  The allegations first arose in a whistleblower lawsuit filed by Steven O. Sansbury and James T. Buechler, former employees of LB&B, under the qui tamprovisions of the False Claims Act.  They will receive a whistleblower award of $1.5 million.  DOJ


July 6, 2015 - 

AstraZeneca LP and Cephalon Inc. agreed to pay $46.5 million and $7.5 million, respectively, to settle charges they violated the False Claims Act by knowingly underpaying rebates they owed under the Medicaid Drug Rebate Program.  The allegations first arose in a whistleblower lawsuit filed by pharmacist Ronald J. Streck under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award.  Whistleblower Insider


July 2, 2015 - 

BP disclosed it has reached agreements in principle with the United States, state, and local governments for a settlement of civil claims arising from the April 20, 2010, Deepwater Horizon oil spill in the Gulf of Mexico.  The total value of the settlement would top $18.7 billion and be the largest settlement with a single company in American history.  DOJ


July 1, 2015 - 

The U.S. District Court for the District of New Jersey entered a consent decree of permanent injunction against Acino Products LLC and its president, Ravi Deshpande, to prevent the distribution of unapproved and misbranded drugs.  Specifically, the injunction involves hydrocortisone acetate suppositories under the brand names Rectacort-HC and GRx HiCort 25 and government charges these suppositories are not approved by the FDA and are misbranded because they do not bear adequate directions for use as required by law.  DOJ


June 30, 2015 - 

VMware Inc. and Carahsoft Technology Corporation agreed to pay $75.5 million to settle charges they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services.  The allegations originated in a whistleblower lawsuit filed by Dane Smith, a former vice president of the Americas at VMware Inc., under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award from a portion of the government’s recovery.  Whistleblower Insider


June 30, 2015 - 

Community Health Network agreed to pay $20,324,902.22 to resolve allegations it violated the False Claims Act by submitting false claims to the Medicare and Medicaid programs.  According to the government, since the late 1990s through October 2009, CHN had contracts with free-standing ambulatory surgery centers under which they  would provide out-patient surgical services to CHN patients.  CHN would then bill Medicare and Medicaid for the surgical services through the billing departments of its hospitals so it could improperly receive higher reimbursement rates.  DOJ


June 30, 2015 - 

Sylvia Walter-Eze, the former owner of medical equipment supply companyEzcor Medical Supply, was sentenced to 97 months in prison for her role in a fraud scheme that resulted in $3.5 million in fraudulent claims to Medicare and Medi-Cal.  She was also ordered to pay restitution in the amounts of $1,866,260 to Medicare and $73,268 to Medi-Cal.  The evidence presented at trial showed that Walter-Eze fraudulently billed more than $3.5 million to Medicare and Medi-Cal for products not medically necessary and paid illegal kickbacks to patient recruiters in exchange for patient referrals.  DOJ


June 29, 2015 - 

John Muir Health agreed to pay $550,000 to resolve allegations it submitted false claims for Medicare reimbursement by failing to have physicians adequately supervise the delivery of radiation therapy services.  The allegations originated in a whistleblower lawsuit filed by a former John Muir Health employee under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of $110,000 as her share of the government’s recovery.  DOJ


June 26, 2015 - 

Charlie Chi, the former president and CEO of OtisMed Corporation, was sentenced to two years in prison and to pay a $75,000 fine for intentionally distributing a medical device used in knee replacement surgery after its application for marketing clearance had been rejected by the Food and Drug Administration.  In September 2014, OtisMed, now a subsidiary of Stryker Corporation, was sentenced to a criminal fine of $34.4 million and ordered to pay $5.16 million in criminal forfeiture for this conduct.  In a related civil settlement, OtisMed agreed to pay approximately $41.2 million to resolve its civil liability for submitting false claims to the Medicare, TRICARE, Federal Employees Health Benefits and Medicaid programs.  DOJ


June 26, 2015 - 

Calumite Company LLC, a manufacturer of an additive used in the production of glass, was sentenced in connection with its September 2014 guilty plea to two Clean Air Act false statement violations.  The company was sentenced to pay a $325,000 fine, serve a two year term of probation and implement an environmental compliance plan that includes an annual environmental compliance training program.  DOJ


June 26, 2015 - 

Jim Wang, the former Executive Vice President and President of Global Business Operations for Qualcomm Inc. was sentenced today to 18 months in prison and fined $500,000 for his role in a three-year insider trading scheme.  DOJ


June 25, 2015 - 

Espar Inc. has been sentenced to pay a $14.9 million criminal fine after pleading guilty to participating in a scheme to fix prices for parking heaters used in commercial vehicles. DOJ


June 24, 2015 - 

Juan Carlos Delgado and Nereyda Infante, husband and wife owners of an Orlando health care clinic pleaded guilty to engaging in a $2.5 million health care fraud scheme.  They owned and operated several health care clinics under variations of the name Prestige Medical and from February 2012 to September 2014 they fraudulently billed Medicare on behalf of the Prestige clinics for services that never were administered.  DOJ


June 24, 2015 - 

For-profit education company Education Affiliates agreed to pay $13 million to settle charges it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid.  The Maryland-based company operates 50 campuses under various trade names, including All State Career, Fortis Institute, Fortis College, Tri-State Business Institute Inc., Technical Career Institute Inc., Capps College Inc., Driveco CDL Learning Center, Denver School of Nursing and Saint Paul’s School of Nursing.  According to the government, the company engaged in a variety of fraudulent acts to increase admissions including admitting unqualified students, creating false high school diplomas, falsifying students’ federal aid applications, and referring prospective students to “diploma mills” to obtain invalid online high school diplomas.  The allegations first arose in five whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  As part of this resolution, the five whistleblowers will receive whistleblower award payments totaling approximately $1.8 million.  Whistleblower Insider


June 19, 2015 - 

Karen L. Finley, the former chief executive officer of a red light camera vendor, pleaded guilty to participating in an eight-year bribery and fraud scheme.  As part of her plea agreement, Finley admitted that, between 2005 and 2013, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus and Cincinnati through a consultant retained by the company.  DOJ


June 18, 2015 - 

Edward Berman, a physician with a practice in Ridgefield, Connecticut, agreed to pay $218,633 to resolve allegations he violated the False Claims Act by submitting claims to Medicare for skilled nursing facility services that were not performed in accordance with Medicare requirements.  Specifically, the government alleges that Berman “upcoded” certain services, submitting claims to Medicare by using a higher-paying billing code when services with lower-paying billing codes were actually provided.  DOJ


June 18, 2015 - 

Non-profit hospice care provider Covenant Hospice Inc. agreed to pay $10,149,374 to reimburse the government for alleged overbilling of Medicare, Tricare and Medicaid for hospice services.  According to the government, Covenant Hospice improperly submitted hospice claims for general inpatient care that should have been billed at the routine home care level.  The government further alleged that Covenant Hospice’s medical records did not support the medical necessity of the general inpatient care.  DOJ


June 17, 2015 - 

Norbulk Shipping UK Ltd, operator of the M/V Murcia Carrier, pleaded guilty to failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships and providing false statements to the US Coast Guard concerning the vessel’s garbage record book.  The company was sentenced to pay a criminal penalty of $750,000 and placed on three years of probation.  DOJ


June 16, 2015 - 

Florida defense and government contracting company IAP Worldwide Services Inc. agreed to pay a $7.1 million penalty to resolve charges it violated the Foreign Corrupt Practices Act by conspiring to bribe Kuwaiti officials in order to secure a government contract there.  DOJ


June 16, 2015 - 

Hebrew Homes Health Network Inc., a Florida-based operator of rehabilitation and skilled nursing facilities, along with its former president and executive director William Zubkoff, agreed to pay $17 million to resolve allegations it violated the False Claims Act by improperly paying doctors for referrals of Medicare patients requiring skilled nursing care.  It is the largest settlement involving alleged violations of the Anti-Kickback Statute by skilled nursing facilities in the US.  The allegations against Hebrew Homes first arose in a whistleblower lawsuit filed by Stephen Beaujon, a former CFO of Hebrew Homes, under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $4.25 million.  Whistleblower Insider


June 16, 2015 - 

Jacksonville, Florida-based home health company Advanced Homecare, Inc.agreed to pay $1,293,169 to settle charges it violated the False Claims Act by billing the government for millions of dollars of medically unnecessary services.  According to the government, Advanced Homecare accepted and treated patients who were not actually homebound and did not have a valid physician certification of home health need, as required by Medicare.  The allegations first arose in a whistleblower lawsuit filed by Advanced Homecare former employee Marsha Yandell under the qui tam provisions of the False Claims Act.  Ms. Yandell will receive a whistleblower award of more than $200,000.  DOJ


June 15, 2015 - 

Joseph Sigelman, the former co-chief executive officer of BVI oil and gas company PetroTiger Ltd., pleaded guilty to conspiring to pay bribes to a foreign government official in violation of the Foreign Corrupt Practices Act (FCPA).  At his plea hearing, Sigelman admitted to conspiring with co-CEO Knut Hammarskjold, PetroTiger’s former general counsel Gregory Weisman, and others to make illegal payments of $333,500 to David Duran, an employee of the Colombian national oil company, Ecopetrol.  Sigelman admitted to making the payments in exchange for Duran’s assistance in securing a $45 million oil services contract for PetroTiger. DOJ


June 15, 2015 - 

Children’s Hospital, Children’s National Medical Center Inc. and its affiliated entities agreed to pay $12.9 million to resolve allegations they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services, as well as to Virginia and District of Columbia Medicaid programs.  The allegations first arose in a whistleblower lawsuit filed by former Children’s National Medical Center employee James A. Roark Sr. under the qui tam provisions of the False Claims Act.  Mr. Roark will receive a whistleblower award of $1,890,649.98.  DOJ


June 9, 2015 - 

Earnest Gibson III, the former president of Riverside General Hospital, Earnest Gibson IV, the operator of Devotions Care Solutions, a Riverside satellite psychiatric facility, and Regina Askew, the owner of Safe and Sound group home, were sentenced to 45 years, 20 years and 12 years in prison, respectively, for their roles in a $158 million Medicare fraud scheme.  They were also ordered to pay restitution in the amount of $46,753,180, $7,518,480 and $46,255,893 respectively.  According to the evidence, the defendants had patients sit around the facility watching movies while they received no treatment, ultimately billing Medicare more than $158 million for care that was never provided.  DOJ


June 5, 2015 - 

Atlanta-based dental practice Dennis B. Jaffe D.M.D., P.C. and its principal Dennis Jaffe agreed to pay $324,327.05 to settle charges they violated the False Claims Act by fraudulently billing Medicaid for tooth extraction procedures and for fraudulently billing for services rendered by a dental assistant when Jaffe was not present in the office. According to the government, Jaffe fraudulently sought payment from Medicaid for higher and more expensive levels of service than were actually performed, a practice commonly referred to as “upcoding.”  The allegations first arose in a whistleblower lawsuit filed by Michelle Smith under the qui tamprovisions of the False Claims Act.  DOJ


June 4, 2015 - 

Hospital operator Health Management Associates (HMA) and Georgia-based hospital Clearview Regional Medical Center agreed to pay $595,155 to settle charges they violated the False Claims Act through an illegal kickback scheme.  Clearview was previously named Walton Regional Medical Center and owned by HMA during the time period relevant to the lawsuit.  Clearview is now owned by Community Health Systems which purchased HMA in January 2014.  According to the government, HMA’s Walton Regional Medical Center paid kickbacks to Hispanic Medical Management (d/b/a Clinica de la Mama), in return for Clinica’s agreement to send pregnant women to Walton Regional for deliveries paid for by Medicaid, in violation of the federal Anti-Kickback Statute.  As part of the settlement, HMA and Clearview will pay the State of Georgia an additional $396,770 to settle Georgia’s claims under the Georgia False Medicaid Claims Act.  The allegations originated in a whistleblower lawsuit filed by former Walton Regional CFO Ralph D. Williams under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $119,031.  DOJ


June 2, 2015 - 

Millard Refrigerated Services agreed to pay a $3 million penalty to settle charges it violated the Clean Air Act, Emergency Planning and Community Right-to-Know Act and Comprehensive Environmental Response, Compensation, and Liability Act for an airborne release of ammonia from Millard’s Theodore, Alabama, facility in 2010 that sickened 152 people responding to the BP oil spill.  DOJ


June 1, 2015 - 

Memphis-based First Tennessee Bank agreed to pay $212.5 million to resolve allegations it — through its subsidiary First Horizon Home Loans Corporation — violated the False Claims Act by originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.  Whistleblower Insider


June 1, 2015 - 

A group of home health care companies collectively known as “Friendship” and the companies’ owner Theophilus Egbujor agreed to pay $6.5 million to resolve allegations they improperly billed TennCare, Medicare and TRICARE for home health services.  Specifically, the government claimed Friendship billed TennCare for private duty nursing services that were furnished or supervised by a woman who was excluded from billing federal and state health care programs and that Friendship submitted required forms to TennCare that contained the forged signature of Friendship’s Director of Nursing.  The specific entities included in the settlement agreement are Friendship Home Healthcare, Inc., which has also done business as Friendship HealthCare System; Friendship Home Health, Inc., and Angel Private Duty and Home Health, which have also done business as Friendship Private Duty; and Friendship Home Health Agency, LLC.  The allegations first arose in a whistleblower lawsuit filed by Kay Flippo, a licensed practical nurse who previously worked for Friendship Home Healthcare, under the qui tamprovisions of the False Claims Act.  She will receive a yet-to-be determined whistleblower award. DOJ


May 28, 2015 - 

Garden State Cardiovascular Specialists P.C., a New Jersey-based cardiology practice which owns and operates several facilities in New Jersey under the name NJ MedCare/NJ Heart, agreed to pay more than $3.6 million to resolve allegations the company and its principals, Dr. Jasjit Walia and Dr. Preet Randhawa, submitted claims to Medicare for various cardiology diagnostic tests and procedures, including stress tests, cardiac catheterizations and external counterpulsation, which were not medically necessary. The allegations were first raised in a whistleblower lawsuit filed by Cheryl Mazurek under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of more than $648,000.  DOJ


May 27, 2015 - 

Durable medical equipment suppliers Orbit Medical Inc. and its partial successor, Rehab Medical Inc., agreed to pay $7.5 million to settle False Claims Act charges that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories.  According to the government, Orbit sales representatives knowingly altered physician prescriptions and supporting documentation to get Orbit’s power wheelchair and accessory claims paid by Medicare, the Federal Employees Health Benefits Plan and the Defense Health Agency.  The allegations were first raised in a whistleblower lawsuit filed by former Orbit employees Dustin Clyde and Tyler Jackson under the qui tam provisions of the False Claims Act.  They collectively will receive a whistleblower award of approximately $1.5 million.  Whistleblower Insider


May 22, 2015 - 

Detroit-area neurosurgeon Aria O. Sabit, owner and operator of the Michigan Brain and Spine Physicians Group, pleaded guilty to causing serious bodily injury to his patients in an $11 million Medicare fraud scheme.  According to court documents, Sabit admitted he derived significant profits by convincing patients to undergo spinal fusion surgeries with instrumentation (meaning specific medical devices designed to stabilize and strengthen the spine) which he never rendered.  DOJ


May 21, 2015 - 

Mohammad Khan, the former assistant administrator of Riverside General Hospital, was sentenced to 40 years in prison and to pay restitution in the amount of $31,321,200 for his role in a $116 million Medicare fraud scheme.  He previously pled guilty to his role in the scheme.  According to admissions made in connection with his guilty plea, from January 2008 through February 2012, Khan and others at Riverside General Hospital operated a scheme to defraud Medicare by submitting claims for partial hospitalization program (PHP) services that were not medically necessary and, in some cases, never provided.  Khan also admitted he and his co-conspirators paid kickbacks to patient recruiters and to owners and operators of group care homes in exchange for which those individuals delivered ineligible Medicare beneficiaries to the hospital’s PHPs.  To date, 10 individuals have pleaded guilty or been convicted for their involvement in the scheme.  DOJ


May 20, 2015 - 

Pharmacy benefits manager Medco Health Solutions Inc., a wholly-owned subsidiary of the pharmacy benefit manager Express Scripts Holding Company, agreed to pay $7.9 million to settle allegations it engaged in a kickback scheme in violation of the False Claims Act.  According to the government, Medco solicited remuneration from AstraZeneca in exchange for identifying Nexium as the “sole and exclusive” proton pump inhibitor on certain of Medco’s prescription drug lists known as formularies.  AstraZeneca allegedly compensated Medco in the form of reduced prices on the following AstraZeneca drugs: Prilosec, Toprol XL and Plendil.  In January 2015, the government reached a $7.9 million settlement with AstraZeneca to resolve kickback allegations arising out of the same conduct.  The allegations first arose in a whistleblower lawsuit filed by former AstraZeneca employees Paul DiMattia and F. Folger Tuggle under the qui tam provisions of the False Claims Act.  They will receive a whistleblower reward from the recovery that has yet to be determined.  DOJ


May 20, 2015 - 

Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc agreed to plead guilty to conspiring to manipulate the price of US dollars and euros exchanged in the foreign currency exchange (FX) spot market and the banks have agreed to pay criminal fines totaling more than $2.5 billion.  A fifth bank, UBS AG, agreed to plead guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates and pay a $203 million criminal penalty.  DOJ


May 20, 2015 - 

Florida-based neurologist Dr. Sean Orr agreed to pay $150,000 to settle allegations he violated the False Claims Act by providing medically unnecessary services and drugs to federal health care program beneficiaries.  According to the government, from September 2009 to April 2012 Orr knowingly misdiagnosed certain patients with various neurological disorders, such as multiple sclerosis, which caused federal health care programs to be billed for medically unnecessary services and drugs.  In 2014, the government settled related allegations against Baptist Health System Inc. – Orr’s former employer and the parent company for Baptist Neurology Inc. and Baptist Medical Center-Jacksonville – for $2.5 million.  The allegations first arose in a whistleblower lawsuit filed by former Baptist Neurology employee Verchetta Wells under the qui tam provisions of the False Claims Act.. employee.  She will receive a whistleblower award of $26,250.  DOJ


May 19, 2015 - 

Atlanta-based world-wide package delivery service United Parcel Serviceagreed to pay $25 million to resolve allegations it violated the False Claims Act by submitting false claims to the federal government in connection with its delivery of Next Day Air overnight packages.  According to the government, UPS engaged in multiple practices to conceal its failure to comply with its delivery guarantees, thereby depriving federal customers of the ability to request refunds for late deliveries.  The government’s allegations arose out of whistleblower lawsuit filed by former UPS employee Robert K. Fulk under the qui tam provisions of the False Claims Act.  Mr. Fulk will receive a whistleblower award of $3.75 million.  Whistleblower Insider


May 18, 2015 - 

A federal jury in Chicago convicted Rick E. Brown, the president of the in-home visiting physicians group Home Care America Inc., and Mary C. Talaga, the group’s biller, for their participation in a $4.5 million health care fraud scheme that included billing Medicare for services rendered to patients who were dead and services rendered by medical professionals who worked over 24 hours in a day.  DOJ


May 14, 2015 - 

Westchester County Health Care Corporation (d/b/a Westchester Medical Center) agreed to pay $18.8 million to settle charges it violated the False Claims Act, the Anti-Kickback Statute and the Stark Law.  According to the government, from approximately 2000 through 2007, WMC maintained a financial relationship with Cardiology Consultants of Westchester, P.C., a cardiology practice formerly operating on WMC’s Valhalla campus.  WMC allegedly advanced monies to CCW to open a practice for the express purpose of generating referrals to the hospital.  When CCW began making payments to WMC purportedly repaying the advances, WMC entered into retroactive, no-work consulting agreements under which it paid CCW tens of thousands of dollars.  WMC also allegedly allowed CCW to use WMC’s fellows in CCW’s private office free of charge, contrary to WMC’s historic practice.  DOJ


May 14, 2015 - 

Three subsidiaries of North Carolina-based Duke Energy Corporation, the largest utility in the United States, pleaded guilty to nine criminal violations of the Clean Water Act at several of its North Carolina facilities and agreed to pay a $68 million criminal fine and spend $34 million on environmental projects and land conservation to benefit rivers and wetlands in North Carolina and Virginia.  Four of the charges are the direct result of the massive coal ash spill from the Dan River steam station into the Dan River near Eden, North Carolina, in February 2014.  DOJ


May 14, 2015 - 

PharMerica Corporation, an organization of long-term care pharmacies that dispense medications to residents of nursing homes and skilled nursing facilities across the country, agreed to pay $31.5 million to settle charges it violated the Controlled Substances Act by dispensing Schedule II controlled drugs without a valid prescription and violated the False Claims Act by submitting false claims to Medicare for these improperly dispensed drugs.  The government’s allegations against PharMerica arose out of whistleblower lawsuit brought by Jennifer Denk, a pharmacist formerly employed by PharMerica, under the qui tam provisions of the False Claims Act.  Ms. Denk will receive a whistleblower award of $4.3 million.  Whistleblower Insider


May 13, 2015 - 

Olufunke Ibiyemi Fadojutimi, a registered nurse and former owner of Lutemi Medical Supply, was sentenced to four years in prison and ordered to pay restitution in the amount of $4,372,466 for her role in an $8.3 million Medicare fraud scheme.  The evidence at trial showed that Fadojutimi and her co-conspirators paid cash kickbacks to patient recruiters in exchange for patient referrals, and additional kickbacks to physicians for fraudulent prescriptions for medically unnecessary durable medical equipment, such as power wheelchairs.  DOJ


May 13, 2015 - 

Healthcare technology company Siemens Medical Solutions USA, Inc. agreed to pay $5.9 million to resolve False Claims Act charges of overcharging the Department of Defense for purchases of medical imaging equipment.  DOJ


May 12, 2015 - 

Alexander Lara,  an owner of Miami home health care company Longcare Home Health Corporation was sentenced to 10 years in prison and ordered to pay $13,771,528.94 in restitution and to forfeit $13,771,528.94 for his leading role in a $13 million Medicare fraud scheme that involved paying kickbacks and bribes to patient recruiters, Medicare beneficiaries and others in South Florida doctors’ offices and medical clinics.  Lara admitted his company fraudulently billed the Medicare program for expensive physical therapy and home health care services that were not medically necessary or not provided at all.  DOJ


May 12, 2015 - 

Garfield M. Taylor was sentenced to 13 years in prison and ordered to pay over $28.6 million in restitution for operating a Ponzi scheme that resulted in investors losing money they invested with Taylor and companies he controlled.  In a parallel action, the SEC obtained a civil judgment against Taylor for his fraudulent conduct.  DOJ


May 11, 2015 - 

Former CIA officer Jeffrey A. Sterling was sentenced to 42 months in prison for disclosing national defense information and obstructing justice.  Sterling disclosed classified information about a clandestine operational program concerning Iran’s nuclear weapons program to a New York Times reporter in 2003.  Sterling was found guilty by a federal jury on January 26, 2015.  DOJ


May 11, 2015 - 

Tonawanda Coke Corp. agreed to pay $2.75 million in civil penalties, $7.9 million to reduce air pollution and enhance air and water quality and $1.3 million for environmental projects in the area of Tonawanda, New York.  The settlement stems from the company’s violations of the Clean Air Act which resulted in releases of coke oven gas, which contains benzene and other harmful chemicals.  Tonawanda failed to install air pollution controls on its coke ovens, failed to properly monitor equipment for coke oven gas leaks, failed to conduct required annual maintenance inspections of emission controls and proper operations and maintenance and failed to complete multiple required reports among other violations.  DOJ


May 7, 2015 - 

Health Management Associates Inc. (and 14 hospitals it previously owned), along with Community Health Systems and North Texas Medical Center, agreed to collectively pay $15.69 million to settle whistleblower charges they violated the False Claims Act by seeking and receiving Medicare reimbursement for Intensive Outpatient Psychotherapy (IOP) services that were not medically reasonable or necessary.  The IOP services in question were typically performed on the providers’ behalf by Louisiana-based Allegiance Health Management.  The allegations were first raised in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The unidentified whistleblower will receive a whistleblower award of $2,667,300.  Whistleblower Insider


May 7, 2015 - 

Tennessee-based Jackson-Madison County General Hospital agreed to pay $1,328,465 to resolve allegations it improperly billed Medicare and Medicaid for the placement of unnecessary cardiac stents and other unnecessary cardiac procedures including angioplasty, catheterization, and ultrasound imaging.  The allegations were first raised in a whistleblower lawsuit filed by Dr. Wood D. Deming under the qui tam provisions of the False Claims Act.  Mr. Deming will receive an undisclosed portion of the settlement as a whistleblower award.  DOJ


May 1, 2015 - 

Paris-based BNP Paribas S.A. was ordered to forfeit $8,833,600,000 and pay a $140,000,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the US financial system on behalf of Sudanese, Iranian and Cuban entities subject to U.S. economic sanctions.  It is the largest financial penalty ever imposed in a criminal case and the first time a financial institution has been convicted and sentenced for violations of US economic sanctions.  DOJ

May


May 1, 2015 - 

Accredo Health Group, a unit of Express Scripts Holding Co., agreed to pay $60 million to settle False Claims Act and Anti-Kickback Statute charges that the company participated in a kickback scheme with Novartis Pharmaceuticals Corp. involving the prescription drug Exjade.  According to the government, Novartis provided kickbacks, in the form of patient referrals and related benefits, to Accredo in exchange for Accredo recommending refills to Exjade patients.  The government also intervened in a whistleblower lawsuit against Novartis for the same alleged scheme.  The government claims defendants allegedly understated the serious and potentially life-threatening side effects of Exjade when promoting the drug’s benefits to patients. FBI


April 30, 2015 - 

South Korean industrial company Kolon Industries Inc. pleaded guilty to conspiracy to steal trade secrets involving E.I. DuPont de Nemours & Co.’s Kevlar technology and was sentenced to pay $85 million in criminal fines and $275 million in restitution.  DOJ


April 30, 2015 - 

Miami-area doctor Barry Kaplowitz was sentenced to 60 months in prison and ordered to pay more than $2.9 million in restitution for his role in a $5.5 million Medicare fraud scheme involving fraudulent billings by Hollywood Pavilion, a psychiatric hospital in Hollywood, Florida.  According to evidence, Kaplowitz signed fraudulent medical records in order to make it appear that the hospital’s patients qualified for and received intensive outpatient services, even though they did not.  DOJ


April 29, 2015 - 

Black & Decker agreed to pay a $1.575 million penalty to settle allegations it knowingly violated the reporting requirements of the Consumer Product Safety Act with respect to cordless electric lawnmowers that started spontaneously and that continued to operate after consumers released the lawnmower handles and removed the safety keys.  Black & Decker has previously paid four civil penalties relating to Black & Decker’s untimely reporting of defects and risks presented by other Black & Decker products.  DOJ


April 29, 2015 - 

The Hospital Authority of Irwin County (ICH) and several doctors agreed to pay $520,000 to settle charges they violated the False Claims Act, the Anti-Kickback Statute, the Stark Law and related Georgia Medicaid policies in connection with the amount of compensation paid by ICH to one of the doctors, ICH’s leases with the doctors, and the supervision of certain diagnostic imaging services at ICH.  The allegations first arose in a whistleblower lawsuit filed by Connie Brogdon and Summer Holland under the qui tam provisions of the False Claims Act and the Georgia False Medicaid Claims Act.  They will receive an undisclosed portion of the settlement payment.  DOJ


April 29, 2015 - 

Chad, Chris and Craig Ducey pleaded guilty for their role in a multi-state scheme to defraud biodiesel buyers by fraudulently selling biodiesel incentives.  The Ducey brothers operated E-biofuels LLC and they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming the fuel was eligible for federal renewable energy incentives, when they knew it was not.  In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, the publicly-traded parent company of E-biofuels.  DOJ


April 28, 2015 - 

Japan-based Yamada Manufacturing Co. Ltd. agreed to plead guilty and pay a $2.5 million criminal fine for its role in a conspiracy to fix prices and rig bids for manual (non-electric or non-hydraulic-powered) steering columns installed in cars sold in the US and elsewhere.  DOJ


April 27, 2015 - 

The Medical Center of Central Georgia agreed to pay $20 million to settle allegations it violated the False Claims Act by billing Medicare for more expensive inpatient services that should have been billed as less costly outpatient or observation services.  DOJ


April 23, 2015 - 

German-based Deutsche Bank AG and its UK-based subsidiary DB Group Services (UK) Limited agreed to pay more than $2.5 billion to settle US and UK charges relating to their role in manipulating the London Interbank Offered Rate (LIBOR).  In addition to the monetary payout, DB Group Services agreed to plead guilty to wire fraud and Deutsche Bank entered into a deferred prosecution agreement to resolve wire fraud and price-fixing charges. Whistleblower Insider


April 23, 2015 - 

Louisiana doctor Winston Murray pleaded guilty to federal health care fraud charges, admitting (i) he wrote home health care referrals for Medicare beneficiaries he knew were not confined to their homes, and (ii) his referrals were used by home health companies Interlink Health Care Services Inc. and Lakeland Health Care Services Inc., among others, to fraudulently bill Medicare for home health services not medically needed or not provided.  From 2007 through 2014, these companies and other companies involved in this scheme submitted more than $56 million in claims to Medicare, a vast majority of which were fraudulent.  DOJ


April 23, 2014 - 

Wholesome Soy Products Inc. was permanently enjoined from distributing adulterated mung bean and soybean sprouts.  This follows the government’s complaint alleging the company’s food was prepared, packed and/or held under insanitary conditions.  DOJ


April 22, 2015 - 

ExxonMobil Pipeline Company and Mobil Pipe Line Company agreed to pay $5 million in penalties, including the funding of an environmental project, and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas.  DOJ


April 21, 2015 - 

Family Dermatology P.C., which owns and operates a dermatopathology lab in Georgia and several dermatology practices throughout the Eastern United States, agreed to pay $3,247,835 to settle allegations it violated the False Claims Act and the Stark Statute by engaging in improper financial relationships with a number of its employed physicians.  According to the government, Family Dermatology routinely required its dermatologists to use Family Dermatology’s in-house pathology lab, which operated under the name Nelson Dermatopathology, for their pathology services.  The allegations first arose in three whistleblower lawsuits filed under the qui tam provisions of the False Claims Act by Scott M. Ross MD, Mark F. Baucom and Harold Milstein MD.  They will collectively receive a whistleblower award of more than $584,000.  DOJ


April 21, 2015 - 

Texas-based Citizens Medical Center agreed to pay $21,750,000 to settle allegations it violated the False Claims Act and Stark Statute by engaging in improper financial relationships with referring physicians.  According to the government, the hospital provided compensation to several cardiologists that exceeded the fair market value of their services and paid bonuses to emergency room physicians that improperly took into account the value of their cardiology referrals.  The allegations first arose in a whistleblower lawsuit filed under the qui tamprovisions of the False Claims Act by Dakshesh “Kumar” Parikh, Harish Chandna and Ajay Gaalla.  They will collectively receive a whistleblower award of $5,981,250.  DOJ


April 21, 2015 - 

R.J. Zavoral & Sons, Inc., John Zavoral, Peter Zavoral and Craig Pietruszewski agreed to pay $1.85 million to resolve allegations they violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act by making false statements to the Small Business Administration (SBA) and the US Army Corps of Engineers relating to the Heartsville Coulee Diversion construction contract they were awarded for flood control work in and around East Grand Forks, Minnesota.  DOJ


April 16, 2015 - 

Felix Gonzalez, owner of Miami home health care company AA Advanced Care Inc. was ordered to pay $21,423,160 in restitution and sentenced to 113 months in prison in connection with a $32 million Medicare fraud scheme.  Gonzalez admitted operating his company for the purpose of billing the Medicare program for expensive physical therapy and home health care services that were not medically necessary or provided at all.  He further admitted he negotiated and paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services.  DOJ


April 15, 2015 - 

Joseph Furando, together with his two New Jersey companies Caravan Trading Company and CIMA Green, pleaded guilty for their parts in an Indiana-centered scheme to defraud biodiesel buyers and US taxpayers by fraudulently selling biodiesel incentives in connection with tax credits offered under the Energy Independence and Security Act designed to encourage use of renewable fuel sources.  DOJ


April 15, 2015 - 

Rahmat Begum, owner of Detroit-area home health care agency Empirical Home Health Care Inc. pleaded guilty to fraud and money laundering charges in connection with her role in a $2.6 million home health care scheme.  According to her guilty plea, Begum conspired to submit falsified claims to Medicare based upon referrals obtained through illegal kickbacks to patient recruiters and physicians.  DOJ


April 15, 2015 - 

Mehran Zamani pleaded guilty to a multimillion Medicaid fraud scheme relating to his work for Landmark Dental, Dental Group of Stamford and Dental Group of Connecticutwhere he served as the front for Gary Anusavice, the real owner of the businesses, who was a convicted felon, former dentist, and excluded Medicaid provider.  FBI


April 9, 2015 - 

Sprint Communications, Inc. (formerly Sprint Nextel Corporation) agreed to pay $15.5 million to resolve allegations it defrauded federal law enforcement agencies when recovering its costs of carrying out court-ordered wiretaps, pen registers, and trap devices.  DOJ


April 9, 2015 - 

Virginia-based cardiovascular testing disease laboratory Health Diagnostics Laboratory Inc. agreed to pay $47 million to resolve allegations it violated the False Claims Act by paying kickbacks to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing.  A second cardio testing lab, California-basedSingulex Inc., agreed to pay $1.5 million to settle similar charges.  The allegations first arose in a whistleblower lawsuit filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster and Chris Reidel under the qui tam provisions of the False Claims Act.  The whistleblower award they will receive has yet to be determined.  Whistleblower Insider


April 8, 2015 - 

Orlando-based Air Ideal Inc. and its majority owner, Kim Amkraut, agreed to pay $250,000 to resolve allegations they made false statements to the Small Business Administration to improperly obtain certification as a Historically Underutilized Business Zone (HUBZone) company.  They must also pay five percent of Air Ideal’s gross revenues over the next five years.  Specifically, the government alleged Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the US Coast Guard, US Army, US Army Corps of Engineers and the US Department of the Interior.  The allegations first arose in a whistleblower complaint filed under thequi tam provisions of the False Claims Act by Patricia Hopson.  She will receive a whistleblower award of $42,500.  DOJ


April 3, 2015 - 

Massachusetts-based dairy farm Michael P. Ferry Inc. and its owner Michael P. Ferry agreed to enter into a consent decree to settle charges of violating the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food.  DOJ


April 2, 2015 - 

Medical device maker Medtronic plc and affiliated Medtronic companies,Medtronic Inc., Medtronic USA Inc., and Medtronic Sofamor Danek USA Inc., agreed to pay $4.41 million to resolve allegations they violated the False Claims Act by making false statements to the Department of Veterans Affairs and the Department of Defense regarding the country of origin of certain Medtronic products sold to the US.  Specifically, the government charged Medtronic with selling to the VA and DoD products it certified would be made in the US or other designated countries when in fact they were manufactured in China and Malaysia, which are prohibited countries under the Trade Agreements Act of 1979.  The allegations were first raised in a whistleblower lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act. They will receive a whistleblower award of $749,700.  Whistleblower Insider


March 31, 2015 - 

Germany-based Robert Bosch GmbH, the world’s largest independent auto parts supplier, agreed to plead guilty and pay a $57.8 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, oxygen sensors and starter motors sold to automobile and internal combustion engine manufacturers in the US and elsewhere.  DOJ


March 31, 2015 - 

Ohio-based Robinson Health System Inc. agreed to pay $10 million to settle claims it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians.  DOJ


March 26, 2015 - 

Ebrahim Shabudin, former Chief Operating Officer and Chief Credit Officer ofUnited Commercial Bank, was convicted of securities fraud and other corporate fraud offenses stemming from the failure of the bank.  DOJ


March 25, 2015 - 

Thomas E. Jackson and Preston J. Harrison, operators of Ohio-based Imperial Integrated Health Research and Development LLC, were convicted of defrauding their company’s investors and diverting investors’ funds for their own personal use in connection with their sale of the sports energy drink OXYwater.  DOJ


March 25, 2015 - 

Schlumberger Oilfield Holdings Ltd., a wholly-owned subsidiary of Schlumberger Ltd., agreed to enter a guilty plea and pay a $232,708,356 penalty for violating the International Emergency Economic Powers Act by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.  Whistleblower Insider


March 24, 2015 - 

MTU America Inc., a subsidiary of Rolls-Royce Power Systems AG, agreed to pay a $1.2 million penalty to settle charges it violated the Clean Air Act by failing to ensure its compliance with federal emission standards for its heavy-duty diesel non-road engines used in mining, marine and power generation vehicles and equipment.  DOJ


March 23, 2015 - 

California-based Fireman’s Fund Insurance Company, a subsidiary of Allianz SE, agreed to pay $44 million to settle allegations it violated the False Claims Act by issuing insurance policies that were ineligible under the US Department of Agriculture’s federal crop insurance program and falsifying documents in support of the improper issuances.  DOJ


March 23, 2015 - 

Former principal vice president of Bechtel Corporation Asem Elgawhary was sentenced to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt.  One of the power companies who supplied the bribes, Alstom S.A., pleaded guilty in December to violations of the Foreign Corrupt Practices Act.  DOJ


March 23, 2015 - 

Michigan-based Portage Hospital, LLC agreed to pay $4,446,392 to settle allegations its hospital-owned home health care agency, Portage Health Home Care & Hospice, violated the False Claims Act by submitting false claims to Medicare for unnecessary or unwarranted physical therapy services.  DOJ


March 20, 2015 - 

A federal jury in Los Angeles convicted Hakop Gambaryan, owner of Colonial Medical Supply, of four counts of health care fraud in connection with a $3.3 million Medicare fraud scheme.  According to evidence presented at trial, Gambaryan paid cash kickbacks to medical clinics for fraudulent prescriptions for durable medical equipment, such as expensive power wheelchairs, which the patients did not need, and then used these fraudulent prescriptions to bill Medicare.  DOJ


March 20, 2015 - 

A federal jury in Los Angeles convicted Sylvia Walter-Eze, former owner ofEzcor Medical Supply, in connection with a $3.5 million Medicare and Medi-Cal fraud scheme.  The evidence at trial demonstrated that Walter-Eze paid illegal kickbacks to patient recruiters in exchange for patient referrals, and to physicians for fraudulent prescriptions for power wheelchairs and other medically unnecessary equipment.  DOJ


March 19, 2014 - 

Pennsylvania-based heart monitoring company BioTelemetry Inc. agreed to pay $6.4 million to resolve allegations its subsidiary CardioNet violated the False Claims Act by overbilling Medicare and other federal health programs for Mobile Cardiac Outpatient Telemetry services when those services were not reasonable or medically necessary.  DOJ


March 19, 2015 - 

Bank of New York Mellon agreed to pay $714 million to settle charges the bank engaged in fraud and other misconduct when providing foreign exchange (“FX”) services to its customers.  As part of the settlements with the US and New York, BNYM admitted that contrary to representations to clients that it provided “best rates” and “best execution” for FX transactions, the Bank actually gave clients the worst reported interbank rates of the trading day.  The charges originated in a lawsuit brought by a whistleblower under the New York False Claims Act.  Whistleblower Insider


March 19, 2014 - 

Adventist Health System Sunbelt Healthcare Corporation agreed to pay $5,412,502 to resolve claims it violated the False Claims Act by providing radiation oncology services to Medicare and TRICARE beneficiaries that were not directly supervised by radiation oncologists or similarly qualified persons.  The allegations arose in a whistleblower lawsuit filed by Dr. Michael Montejo, a radiation oncologist and former employee of Florida Oncology Network P.A., under the qui tam provisions of the False Claims Act.  Dr. Montejo will receive a whistleblower award of $1,082,500.  DOJ


March 18, 2015 - 

Gilbane Building Company agreed to pay $1.1 million to resolve allegations that W.G. Mills Incorporated (which Gilbane merged with in November 2010) violated the False Claims Act by creating a front company, Veterans Constructors Incorporated (VCI), in order to be awarded a Coast Guard contract that was designated for Service Disabled Veteran Owned Small Businesses.  VCI agreed to pay $50,000 plus five annual contingency payments equal to one percent of VCI’s total annual revenues to resolve the same allegations.  DOJ


March 18, 2015 - 

Paige Okpalobi, the owner and operator of a New Orleans-based medical clinic and her accountant Christopher White pleaded guilty for their roles in a $50 million Medicare fraud scheme, which involved fraudulently billing Medicare for home health care services not needed or provided.  DOJ


March 16, 2015 - 

The DOJ and New York State announced a settlement with Coach USA Inc.,City Sights LLC and their joint venture, Twin America LLC, to remedy competitive concerns in the New York City hop-on, hop-off bus tour market.  The settlement requires the defendants to relinquish all of City Sights’ Manhattan bus stop authorizations and disgorge $7.5 million in ill-gotten profits that the defendants obtained by operating Twin America in violation of the antitrust laws.  DOJ

March


March 16, 2015 - 

Los Angeles pharmacist Rouzbeh Javaherian pleaded guilty to defrauding the Medicare Part D program through his pharmacy called Emoonah Inc. (d/b/a Westaid Pharmacy and Medical Supply).  Specifically, he paid illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid and he submitted fraudulent claims to Medicare Part D plan sponsors for prescriptions he did not actually fill.  DOJ


March 13, 2015 - 

Mohammed Sadiq, the owner of two Detroit home health care companies, pleaded guilty to his role in a scheme to fraudulently bill Medicare for $12.6 million in home health services that were not provided or were obtained through illegal kickbacks.  DOJ


March 12, 2105 - 

California-based Plaza Bank agreed to pay $1.225 million for knowingly facilitating consumer fraud by permitting a third-party payment processor to make millions of dollars of unauthorized withdrawals from consumer bank accounts on behalf of fraudulent merchants.  DOJ


March 12, 2015 - 

Germany-based Commerzbank AG and its US branch Commerzbank AG New York agreed to forfeit $563 million and pay a $79 million fine for violations of the International Emergency Economic Powers Act and the Bank Secrecy Act relating to its funneling of millions of dollars through the US financial system on behalf of Iranian and Sudanese entities subject to US economic sanctions.  The bank also entered into settlement agreements with the Treasury Department’s Office of Foreign Assets Control, the Board of Governors of the Federal Reserve System, and the New York State Department of Financial Services for a combined regulatory payout of $1.45 billion.  Whistleblower Insider


March 12, 2015 - 

Espar Inc., a seller of parking heaters for commercial vehicles, pleaded guilty to price-fixing charges.  DOJ


March 12, 2015 - 

Miami-based lender Hencorp Becstone Capital L.C. agreed to pay $3.8 million to resolve allegations under the False Claims Act that it made false statements and claims to the Export-Import Bank of the United States in order to obtain loan guarantees.  According to the government, Ricardo Maza, a Peruvian-based former Hencorp business agent, created false documentation to obtain Ex-Im Bank guarantees on fictitious transactions on which no products were sold or exported, and that Maza then diverted the proceeds of the loans to himself and to his friends and business associates in Peru.  The allegations arose in a whistleblower lawsuit filed by Genaro Benites Caballero, the former owner of one of the purported purchasers, and Patricia Doris Lee Dominguez, a former attorney for the purported purchaser, under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of $608,000.  DOJ


March 12, 2015 - 

Huey P. Williams Jr., owner of Texas-based Hermann Medical Supply, was convicted for his role in a $3.4 million Medicare fraud scheme.  According to the evidence submitted at trial, Williams submitted claims to Medicare for durable medical equipment, including orthotic devices, which were medically unnecessary or never provided to the patients.  DOJ


March 10, 2015 - 

CommerceWest Bank agreed to pay $4.9 million to settle civil and criminal charges it violated the Bank Secrecy Act by facilitating consumer fraud by permitting third-party payment processor V Internet Corp LLC to make millions of dollars of unauthorized withdrawals from consumer bank accounts on behalf of fraudulent merchants.  DOJ


March 10, 2015 - 

Johnson & Johnson subsidiary McNeil-PPC Inc. pleaded guilty to selling adulterated infants’ and children’s over-the-counter liquid medicines, including Infants’ and Children’s Tylenol Motrin.  As part of the criminal resolution, McNeil agreed to pay a criminal fine of $20 million and forfeit $5 million.  DOJ


March 9, 2015 - 

Florida home health care companies Recovery Home Care Inc., Recovery Home Care Services Inc. and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that Recovery Home Care violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients.  According to the government, the physicians were over-compensated for any actual work they performed and, in reality, they were paid to induce them to refer their patients to Recovery Home Care in violation of the Anti-Kickback Statute and the Stark Law.  The allegations originated in a whistleblower lawsuit filed by former Recovery Home Care employee Gregory Simony under the qui tam provisions of the False Claims Act.  Simony will receive a whistleblower award of $198,000.  DOJ


March 6, 2015 - 

New York physician Roman Johnson pleaded guilty for his involvement in a scheme to fraudulently bill Medicare for $14.2 million in claims for medically unnecessary treatments.  Johnson admitted that he and other medical providers at his clinic submitted claims to Medicare for medically unnecessary vitamin infusions, physical therapy, and occupational therapy that did not qualify for reimbursement by Medicare.  Johnson agreed to pay $5,386,363 in restitution which represents the total amount of money Medicare paid as the result of the fraudulent claims.  DOJ


March 6, 2015 - 

Italian shipping company Carbofin S.p.A. (which owns and operates the M/T Marigola) was sentenced to pay an overall criminal penalty of $2.75 million for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS).  During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment.  US Coast Guard inspectors learned of the violations from two junior engineering crew members of the ship.  DOJ

March


March 3, 2015 - 

The DOJ US Trustee Program entered into a national settlement agreement withJPMorgan Chase Bank N.A. requiring Chase to pay more than $50 million (including cash payments, mortgage loan credits and loan forgiveness) to over 25,000 homeowners who are or were in bankruptcy.  As part of the settlement, Chase acknowledges it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed by persons who had not reviewed the accuracy of the notices.  DOJ


March 2, 2015 - 

Patient safety consultant Dr. Charles Denham and his consulting companyHealth Care Concepts Inc. and his research organization Texas Medical Institute of Technology agreed to pay $1 million to settle allegations they violated the False Claims Act by soliciting and accepting kickbacks.  According to the government, Denham received monthly payments from CareFusion Corporation while serving as the co-chair of the Safe Practices Committee of the National Quality Forum which reviews, endorses and recommends standardized healthcare performance measures and practices, and Denham received these payments in exchange for recommending, promoting and/or arranging for the purchase of CareFusion’s product, ChloraPrep, in violation of the Federal Anti-Kickback Statute.  DOJ


March 1, 2015 - 

Mark Bryan, owner of Delaware-based seafood wholesale business Harbor House Seafood, was sentenced to serve 26 months in prison pay more than $200,000 in fines for trafficking in illegally possessed oysters, and creating false health and safety records.  Harbor House was also ordered to pay a $250,000 fine.  DOJ


February 27, 2015 - 

Miami residents Blanca Ruiz and Alina Fonts were sentenced to serve 72 months in prison for their roles in a $63M Medicare fraud scheme involving intensive mental health treatment programs.  According to the evidence, Ruiz and Fonts were employed at Health Care Solutions Network Inc. which purported to provide intensive treatment for severe mental illness but instead billed Medicare and Medicaid for treatment not medically necessary and often not provided at all.  DOJ


February 27, 2015 - 

Gerald R. Funderburg Jr., owner of Funderburg Clinical & Community Services, was sentenced to 87 months in prison and to pay $1.45M in restitution for violating the False Claims Act through his submission of false claims to Medicare for purported psychotherapy services.  Specifically, Funderburg admitted he used the Medicare information and identities of hundreds of Medicare beneficiaries without their consent to submit claims for psychotherapy services not actually provided.  DOJ


February 25, 2015 - 

A federal jury in Detroit convicted Michigan patient recruiter Reginald Smith and Michigan physical therapist Rajan Patel for their roles in a $1.6M Medicare fraud scheme.  According to the evidence, Smith worked as a patient recruiter for Angle’s Touch Home Health Care LLC where he solicited patients for foot care services at adult foster care homes and then referred them to Angle’s Touch for medically unnecessary home health care services in exchange for kickbacks.  The kickbacks were disguised as payments to Smith’s nonprofit Medicare providerPeople Helping People of Detroit.  Patel worked as a physical therapist at Angle’s Touch where he fabricated patient medical records to make it appear that the recruited patients qualified for and received the home health care services, when they did not.  DOJ


February 25, 2015 - 

Texas-based mortgage finance company MetLife Home Loans LLC, a wholly-owned subsidiary of MetLife Inc., agreed to pay $123.5M to resolve allegations it violated the False Claims Act by originating and underwriting (through MetLife Bank) mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable FHA requirements.  Whistleblower Insider


February 25, 2015 - 

Motor Vehicle lender Santander Consumer USA Inc. agreed to pay at least $9.35M to resolve allegations it violated the Servicemembers Civil Relief Act (SCRA) from its improper repossessions of 1,112 motor vehicles between January 2008 and February 2013.  According to the government, Santander completed 760 repossessions without required court orders of motor vehicles owned by SCRA-protected service members.  It is the largest settlement for illegal automobile repossessions ever obtained by the US under the SCRA.  DOJ


February 24, 2015 - 

Acadiana Cardiology LLC, Acadiana Cardiovascular Center and convicted doctor Mehmood Patel agreed to pay $650,000 to settle charges they violated the False Claims Act through unnecessary cardiovascular, endovascular and related procedures that Patel performed at Our Lady of Lourdes Hospital, Lafayette General Medical Center, Acadiana Cardiology and Acadiana Cardiovascular Center.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Dr. Christopher Mallavarapu, a cardiologist who formerly practiced with Patel.  DOJ


February 24, 2015 - 

Louisiana oncologist Prabhjit S. Purewal agreed to pay $550,000 to settle allegations he defrauded Medicare, Tricare and Medicaid in violation of the False Claims Act by billing for chemotherapy drugs not approved by the FDA.  Dr. Purewal purchased the drugs from UK-based drug distributor Warwick Healthcare Solutions, Inc. (also known as Richard’s Pharma), which did not have a license to distribute drugs in the US.  DOJ


February 24, 2015 - 

Angel M. Mirabal, owner of Houston-based medical equipment supplierQuick Solutions Medical Supplies Inc., pleaded guilty to a $5M scheme to defraud Medicare.  Mirabel admitted he and his co-conspirators operated Quick Solutions for the purpose of billing Medicare for medical equipment not medically necessary or not provided.  DOJ


February 23, 2015 - 

Two South Florida medical doctors and their wives, Dr. Alan and Lynn Buhler and Dr. Craig and Cynthia Prokos agreed to pay $1M and $90,000, respectively, to settle allegations they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc.  The US previously settled with A Plus and its owner Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.  DOJ


February 20, 2015 - 

George H. Lee, president and CEO of Kuwaiti-based American Logistics Services, pleaded guilty to paying a $15,000 bribe to an Army National Guard officer in exchange for the award of a contract to provide buses to the US Army in Iraq.  DOJ


February 19, 2015 - 

Eastern District New York Judge Nicholas G. Garaufis ruled in favor of the DOJ in its lawsuit claiming American Express’ “swipe fee” rules for merchants violate the antitrust laws.  DOJ


February 18, 2015 - 

Hospice services provider Compassionate Care Hospice Group agreed to pay $6.7M to settle charges it violated the federal and New York False Claims Acts by submitting claims to Medicare and Medicaid for hospice nursing services not actually or adequately provided.  Specifically, the government alleged CCH nurses routinely missed their required visits and then falsified nursing notes in patients’ files to make it appear as though the visits had been performed.  The charges originated in a whistleblower lawsuit filed by a former employee under the qui tamprovisions of the False Claims Act.  Whistleblower Insider


February 17, 2015 - 

Alexander Lara, owner of Miami-based home health care companyLongcare Home Health Corporation, pleaded guilty in connection with a $13M Medicare fraud scheme involving kickbacks and bribes to Medicare beneficiaries, doctors’ offices, medical clinics and others in exchange for patient referrals and fraudulent prescriptions to support fraudulent billings to Medicare.  DOJ


February 13, 2015 - 

Illinois physician Dr. Michael J. Reinstein pleaded guilty to the crime of receiving illegal kickbacks and benefits totaling nearly $600,000 from pharmaceutical manufacturerTeva Pharmaceuticals USA Inc. and its subsidiary IVAX LLC in exchange for regularly prescribing the anti-psychotic drug clozapine to his patients.  Reinstein also agreed to pay $3.79M to settle a parallel civil lawsuit alleging he violated the False Claims Act for causing the submission of false claims to Medicare and Medicaid for the clozapine he prescribed for thousands of elderly and indigent patients in at least 30 Chicago-area nursing homes and other facilities.  In March 2014, Teva Pharmaceuticals and IVAX paid $27.6M million for their role in the kickback scheme. DOJ


February 12, 2015 - 

Three importers agreed to pay more than $3M to resolve allegations they violated the False Claims Act by lying to US Customs and Border Protection agents to evade customs duties on imports of aluminum extrusions from China.  The companies, which included California-based C.R. Laurence Co. Inc., Florida-based Southeastern Aluminum Products Inc.and Texas-based Waterfall Group LLC, sell shower doors and shower enclosures made with the aluminum extrusions.  The charges were first raised in a whistleblower lawsuit brought by James F. Valenti Jr. under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $555,000.  DOJ


February 11, 2015 - 

Two US Army sergeants, James Edward Norris of Fort Irwin, California, and Seneca Darnell Hampton of Fort Benning, Georgia, pleaded guilty for accepting bribes from Afghan truck drivers at Forward Operating Base Gardez, Afghanistan in exchange for allowing the drivers to take thousands of gallons of fuel from the base for resale on the black market.  DOJ


February 11, 2015 - 

Delaware-based pharmaceutical manufacturer AstraZeneca LP agreed to pay $7.9M to settle charges it violated the False Claims Act by engaging in an illegal kickback scheme with pharmacy benefit manager Medco Health Solutions.  The government alleged, among other things, that AstraZeneca agreed to provide remuneration to Medco in exchange for Medco maintaining for AstraZeneca’s Nexium drug “sole and exclusive” status on certain Medco formularies and through other marketing activities.  The charges originated with a whistleblower lawsuit filed by former AstraZeneca employees Paul DiMattia and F. Folger Tuggle under the qui tam provisions of the False Claims Act.  They will collectively receive a whistleblower award of $1,422,000.  Whistleblower Insider


February 10, 2015 - 

The DOJ succeeded in entering a permanent injunction against San Francisco-based soy and tofu company Fong Kee Tofu Co. Inc., along with the firm’s co-owner and CEO, to prevent their  distribution of adulterated tofu and other soy food products.  DOJ


February 10, 2015 - 

Iowa-based home healthcare company ResCare Iowa Inc. agreed to pay $5.63M to resolve allegations it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs.  DOJ


February 10, 2015 - 

Orelvis Olivera, the owner of Miami home health care agency Acclaim Home Healthcare Inc., pleaded guilty for his role in a $6.9M Medicare fraud scheme.  Olivera admitted he and his co-conspirators billed Medicare for expensive physical therapy and home health care services not medically necessary and paid kickbacks and bribes to patient recruiters in exchange for patient referrals.  DOJ


February 9, 2015 - 

The DOJ announced that under its settlements with 5 of the nation’s largest mortgage servicers, 952 service members are eligible to receive over $123M for mortgage foreclosures that violated the Servicemembers Civil Relief Act.  The statute generally prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period.  The five mortgage servicers are JPMorgan Chase; Wells Fargo Bank and Wells Fargo & Co.; Citi Residential Lending Inc., Citibank and CitiMortgage Inc.;GMAC Mortgage, Ally Financial Inc. and Residential Capital LLC; and BAC Home Loans Servicing LP (formerly known as Countrywide Home Loans Servicing LP).  DOJ


February 9, 2015 - 

Wesley Harlan Kingsbury, general manager of California-based Alpha Ambulance Inc., was sentenced to 78 months in prison for his role in a $5.5M Medicare fraud scheme under which his company billed Medicare for ambulance transportation services for individuals that did not need them.  DOJ


February 6, 2015 - 

Oklahoma-based Hospice care provider Good Shepherd Hospice Inc.agreed to pay $4M to resolve allegations it submitted false claims for hospice patients who were not terminally ill. Specifically, the government contended Good Shepherd pressured staff to meet admissions and census targets and paid bonuses to staff, including hospice marketers, admissions nurses and executive directors, based on the number of patients enrolled even if they were not eligible for hospice care. The settlement resolves allegations first raised by former Good Shepherd employees Kathi Cordingley and Tracy Jones in a whistleblower lawsuit they filed under the qui tam provisions of the False Claims Act. They will receive a whistleblower award of approximately $680,000. DOJ


February 6, 2015 - 

Oregon-based drug maker James G. Cole Inc., and its president James G. Cole and former general manager Julie D. Graves, have been permanently enjoined from selling their products which are distributed under the name “Maxam Nutraceutics.” According to the government, the company’s products are unapproved, misbranded and manufactured under conditions that are inadequate to ensure their quality. The court based its decision in part on the company’s claims the products could treat autism, Alzheimer’s, HIV and Fibromyalgia, among other diseases. DOJ


February 6, 2015 - 

A federal jury in Detroit convicted unlicensed Detroit physician Wilfred Griffith for his participation in a nearly $4.7M fraud scheme. According to evidence presented at trial, Griffith worked as an unlicensed physician at Phoenix Visiting Physicians in 2010 and 2011 where he treated Medicare beneficiaries and used prescription pads pre-signed by Dr. Dwight Smith to prescribe medicine. He also referred Medicare beneficiaries to Detroit-area home health company Cherish Home Health Services Inc. in exchange for kickbacks. Griffith used the names and signatures of Dr. Smith and two other Detroit-area physicians to certify the beneficiaries were homebound and needed home health services when they did not. DOJ


February 6, 2015 - 

Minnesota-based medical device manufacturer Medtronic Inc. agreed to pay $2.8M to resolve allegations it violated the False Claims Act by causing physicians to submit false claims to federal health care programs for investigational medical procedures known as “SubQ stimulations” that were not reimbursable. According to the government, Medtronic improperly promoted the procedure and the use of its spinal cord stimulation devices for the procedure even though its safety and efficacy had not been established by the FDA. The charges were first raised in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Medtronic sales representative Jason Nickell. He will receive a whistleblower award of $602,000.DOJ


February 5, 2015 - 

Minnesota-based medical device manufacturer ev3 Inc. (formerly known as Fox Hollow Technologies Inc.) agreed to pay $1.25M to resolve allegations it violated the False Claims Act by causing certain hospitals to submit false claims to Medicare for unnecessary inpatient admissions related to minimally-invasive atherectomy procedures for removing hardening of the arteries. According to the government, Fox Hollow sold the Silver Hawk Plaque Excision System for these procedures and advised hospitals to bill them as more expensive inpatient procedures, as opposed to less costly outpatient procedures, to artificially increase their Medicare reimbursement claims. The charges originated with a whistleblower lawsuit was filed under the qui tam provisions of the False Claims Act by former Fox Hollow sales representative Amanda Cashi. She will receive a whistleblower award of $250,000. DOJ


February 3, 2015 - 

Medical device maker Atrium Medical Corporation, Maquet Holding B.V. & Co. KG, Maquet Cardiovascular LLC, and Maquet Cardiopulmonary AG were permanently enjoined from distributing adulterated and misbranded medical devices. According to the government, Atrium — which manufactures medical devices for cardiovascular-related uses, including chest drains, surgical meshes, vascular grafts and stent systems — was not complying with the FDA’s current good manufacturing practice requirements for medical devices which are designed to ensure the devices are safe and effective and otherwise in compliance with the federal Food, Drug and Cosmetic Act. DOJ


February 3, 2015 - 

Ratings Agency giant Standard & Poor’s Financial Services (S&P), along with its parent corporation McGraw Hill Financial Inc., agreed to pay $1.375B to settle charges it schemed to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). According to the government, S&P falsely represented that its ratings of RMBS and CDOs were objective, independent and uninfluenced by S&P’s business relationships with the investment banks that issued the securities. Instead, S&P issued inflated ratings that misrepresented the securities’ true credit risks causing RMBS and CDO investors to incur substantial losses. Whistleblower Insider


February 3, 2015 - 

Ernesto Fernandez pleaded guilty and was sentenced to 10 years in prison in connection with a long-running $6.2M Medicare fraud scheme involving Miami-based home health care agency Professional Medical Home Health LLC. Fernandez was an owner and operator of Professional Home Heath and also the owner and operator of two other South Florida home health agencies where he caused patient documentation to be falsified, and planned, organized and oversaw the submission of fraudulent claims to the Medicare program. Juan Valdes also pleaded guilty to the same scheme and was sentenced to 2 years in prison. He was a patient recruiter for Professional Home Health and solicited kickbacks and bribes from the owners and operators of Professional Home Health in exchange for providing beneficiaries to allow Professional Home Health to bill Medicare for home health services that were not medically necessary or not provided. Fernandez and Valdes are the seventh and eighth defendants to be sentenced in connection with the fraudulent schemes at Professional Home Health. DOJ


February 2, 2015 - 

Japanese-based small sized bearings manufacturer Minebea Co. Ltd.agreed to plead guilty and pay a $13.5M criminal fine for its role in a conspiracy to fix prices for small sized ball bearings sold to customers in the US and elsewhere. DOJ


February 2, 2015 - 

Tennessee-based Community Health Systems Professional Services Corporation and three affiliated New Mexico hospitals agreed to pay $75M to settle allegations they violated the False Claims Act by making illegal donations to county governments which were used to fund the state share of Medicaid payments to the hospitals. The allegations were first raised in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Community Health revenue manager Robert Baker. He will receive a whistleblower reward of $18,671,561 as his share of the government’s recovery. DOJ


January 30, 2015 - 

The Hachiuma Steamship Co. pleaded guilty to violating the Act to Prevent Pollution from Ships arising from the illegal disposal of oil residue and bilge water overboard the cargo vessel M/V Selene Leader. The company was ordered to pay $1.8M and placed on probation for three years during which it is to develop an environmental compliance program. $250,000 of the payment was awarded to a whistleblower on board the M/V Selene Leader who alerted the Coast Guard about the illegal activities. DOJ


January 30, 2015 - 

Maxim Chukharev, former information technology manager for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services, was sentenced to 36 months in prison for conspiring to operate an unlicensed money transmitting business. According to the government, Liberty Reserve billed itself as the Internet’s “largest payment processor and money transfer system” but instead was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. According to court records, before being shut down by the government in May 2013, Liberty Reserve conducted approximately 55 million transactions through its system totaling more than $6B in funds which encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking and other crimes.DOJ


January 30, 2015 - 

Pharmaceutical company Laclede Inc. and its president Michael A. Pellico entered into a consent decree of permanent injunction concerning the distribution of unapproved over-the-counter vaginal drug products sold under the name Luvena Prebiotic. According to the government, Laclede’s sale and distribution of the Luvena Prebiotic products violated various provisions of the Federal Food, Drug, and Cosmetic Act because they did not have the required FDA approval. DOJ


January 29, 2015 - 

Four South Florida residents were sentenced in connection with a long-running $6.2M Medicare fraud scheme involving Professional Medical Home Health LLC, a Miami home health care agency operated for the purpose of billing the Medicare program for expensive physical therapy and home health services that were not medically necessary or actually provided. Dennis Hernandez was sentenced to 120 months in prison and to pay $1,438,186; Jose Alvarez was sentenced to 120 months in prison and to pay $2,972,570; Joel San Pedro was sentenced to 97 months in prison and to pay $4,938,432; Alina Hernandez was sentenced to 24 months in prison and to pay $204,526.05. DOJ


January 28, 2015 - 

Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory, was sentenced to 60 months in prison for violating the Atomic Energy Act by communicating classified nuclear weapons data to a person he believed to be a Venezuelan government official. DOJ


January 27, 2015 - 

Japanese-based auto parts manufacturer Sanden Corp. agreed to plead guilty and pay a $3.2M criminal fine for its role in a conspiracy to suppress and eliminate competition for the purchase of compressors used in air conditioning systems sold to Nissan North America Inc. for installation in vehicles manufactured and sold in the US and elsewhere. Including Sanden, 33 companies have pleaded guilty for a total of more than $2.4B in fines. DOJ


January 26, 2015 - 

Former CIA officer Jeffrey Sterling was convicted under the Espionage Act for illegally disclosing national defense information and obstructing justice in connection with his role in the CIA’s classified clandestine operational program designed to undermine the Iranian nuclear weapons program. Whistleblower Insider


January 26, 2015 - 

Ramon Regueira, the owner and operator of a Miami home health care agency Nation’s Best Care Home Health Corp. was sentenced to 106 months in prison and to pay $21M for his participation in a $30M Medicare fraud scheme. Regueira admitted he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided. He further admitted he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services.DOJ


January 26, 2015 - 

Composite Engineering Inc., a Sacramento-based subsidiary of Kratos Defense & Security Solutions that manufactures remote-controlled subscale aircraft for the US. military, agreed to pay $2M to resolve allegations it violated the False Claims Act by submitting inflated costs in connection with a 2007 Air Force contract. DOJ


January 26, 2015 - 

Kentucky-based ambulance services company Lafferty Enterprises, LLC(d/b/a Trans-Star Ambulance Services) agreed to pay $948,000 to settle charges it violated the False Claims Act by billing federal health care programs for medically unnecessary services over the course of several years. According to the government, from February 2006 until December 2012, the company transported Medicare patients to and from dialysis clinics by ambulance when an ambulance transport was not medically necessary. The charges originated from a whistleblower lawsuit filed by Kevin Fairlie under the qui tam provisions of the False Claims Act. He will receive a whistleblower award of $189,600. DOJ


January 23, 2015 - 

A historic $5.15B settlement reached with Anadarko Petroleum Corp. andKerr McGee went into effect, allowing funds to be disbursed for cleanups across the country. It is the largest payment for the clean-up of environmental contamination ever obtained by the DOJ. According to Assistant Attorney General John C. Cruden for the DOJ’s Environment and Natural Resources Division, the recovery “will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses.”DOJ


January 16, 2015 - 

A federal court in California issued an injunction shutting down Health One Pharmaceuticals Inc., a manufacturer of dietary supplements and unapproved new drugs. The firm and its president, Richard S. Yeh, agreed to shut down and resolve the lawsuit as part of a consent decree. The government alleged, among other things, the defendants failed to meet current good manufacturing practices for dietary supplements by failing to conduct appropriate testing and misbranding the supplements because their labels did not include all the information required by federal law. DOJ


January 15, 2015 - 

US Navy contractor Glenn Defense Marine Asia and its owner and CEO Leonard Glenn Francis pleaded guilty to bribery and fraud charges, admitting to a decade-long conspiracy involving “scores” of US Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts. As part of his guilty plea, Francis admitted to defrauding the Navy of tens of millions of dollars by routinely overbilling for various goods and services, including fuel, tugboat services and sewage disposal. Francis and GDMA agreed to forfeit $35M and pay full restitution to the Navy. DOJ


January 15, 2015 - 

Mary Mooney, former Executive Director of adoption agency International Adoption Guides Inc., pleaded guilty to making false statements to the Council on Accreditation with respect to IAG’s accreditation. DOJ


January 14, 2015 - 

Michigan physician Paula Williamson was sentenced to 15 months in prison and to pay more than $1M in restitution for her role in a $2.1M home health care fraud scheme involving Michigan-based home health care agency AMB Healthcare Inc. According to her plea agreement, Williamson conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care services that were medically unnecessary and never provided. She also falsified documents used to support the false Medicare claims. DOJ


January 14, 2015 - 

Florida-based auction house Elite Estate Buyers Inc. (doing business as Elite Decorative Arts) and the company’s president and owner, Christopher Hayes, pleaded guilty to an illegal wildlife trafficking and smuggling conspiracy in which the auction house sold rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the US to China. Hayes and Elite admitted to helping smugglers traffic in endangered and protected species and falsifying records and shipping documents to avoid the scrutiny of the US Fish and Wildlife Service and US Customs and Border Protection. DOJ


January 13, 2015 - 

The DOJ and EPA announced a proposed settlement with Pechiney Plastic Packaging Inc. (Pechiney), Albéa Americas Inc., Bristol-Myers Squibb Company, Citigroup Inc., and Rexam Beverage Can Company regarding the cleanup of the Pohatcong Valley Groundwater Contamination Superfund Site in New Jersey. Under the proposed settlement, Pechiney will have primary responsibility for cleaning up contaminated soil and groundwater at the site. In addition, EPA will receive approximately $29.5M for certain past costs. Pechiney will also perform current and future cleanup work estimated to cost $62.5M. DOJ


January 9, 2015 - 

Felix Gonzalez, owner of Miami-based home health care company AA Advanced Care Inc. pleaded guilty in connection with a $32 million Medicare fraud scheme. Specifically, Gonzalez admitted he and his co-conspirators operated AA Advanced for the purpose of billing Medicare for, among other things, expensive physical therapy and home health care services not medically necessary or not provided at all. He also admitted he paid kickbacks and bribes to patient recruiters in exchange for patient referrals, prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. DOJ


January 9, 2015 - 

Global pharmaceutical company Daiichi Sankyo Inc. agreed to pay $39 million to resolve allegations it violated the False Claims Act by paying kickbacks to induce physicians to prescribe Daiichi drugs, including Azor, Benicar, Tribenzor and Welchol. According to the government, Daiichi paid physicians improper kickbacks in the form of speaker fees as part of Daiichi’s Physician Organization and Discussion programs which were often just lavish dinners with the speaking physicians’ own medical group or staff. The charges originated with a whistleblower lawsuit filed by former Daiichi sales representative Kathy Fragoules under the whistleblower provisions of the False Claims Act. She will receive a whistleblower award of $6.1 million. DOJ


January 8, 2015 - 

Former International Program Director of adoption agency International Adoption Guides Inc. James Harding pleaded guilty to conspiring to defraud the US by submitting fraudulent documents to the State Department for adoptions from Ethiopia and paying bribes to foreign officials. Harding admitted he and others submitted false documentation, including contracts of adoption signed by orphanages that could not properly give the children up for adoption because, for example, the child in question was never cared for or never resided at the orphanage. He also admitted to bribing two Ethiopian officials to help with the fraudulent adoptions. DOJ


January 7, 2015 - 

Randy Jones, a former corrosion coordinator for Shell Pipeline Company L.P.pleaded guilty to failing to conduct bi-monthly voltage readings and an annual survey of a pipeline used to transport jet fuel in violation of the Pipeline Safety Act (PSA) and making a false statement to the Pipeline and Hazardous Material Safety Administration (PHMSA). The violations were in connection with a pipeline owned by Shell that delivered commercial aviation jet fuel to General Mitchell International Airport in Milwaukee, Wisconsin. In January 2012 a hole was discovered in the pipeline at Mitchell Airport releasing approximately 9,000 gallons of jet fuel and costing approximately $19.3 million in cleanup costs. DOJ


January 6, 2015 - 

US Navy Officer Jose Luis Sanchez pleaded guilty to federal bribery charges admitting he provided a government contractor with classified ship schedules and other internal US Navy information in exchange for cash, travel and entertainment expenses, as well as the services of prostitutes. He is the fifth to plead guilty in the corruption probe involving Glenn Defense Marine Asia (GDMA), a defense contractor based in Singapore that serviced US Navy ships and submarines throughout the Pacific. DOJ


January 6, 2015 - 

Former Virginia Governor Robert F. McDonnell was sentenced to two years in prison for soliciting and obtaining payments, loans, gifts and other items from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., Star Scientific’s then CEO, in violation of federal public corruption laws. According to the evidence presented at trial, from April 2011 through March 2013, McDonnell and his wife participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr. The McDonnells obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc. DOJ


December 31, 2014 - 

Gerber Legendary Blades, a division of Fiskars Brands Inc., agreed to pay $2.6 million to settle allegations it knowingly failed to immediately report to the US Consumer Product Safety Commission (CPSC) a safety hazard associated with Fiskars’ Gator Combo Axe. According to the government, beginning as early as 2005 and continuing over the next several years, Fiskars received but failed to report consumer complaints and warranty claims indicating the knife fell out of the Axe handle while the Axe was being used to chop, pound or hammer, causing serious injury to users.DOJ


December 29, 2014 - 

Japanese shipping company Nippon Yusen Kabushiki Kaisha agreed to plead guilty and pay a $59.4 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the US and elsewhere. NYK is the third company to plead guilty in the government’s investigation, bringing the total agreed-upon fines to over $135 million. DOJ


December 23, 2014 - 

Kentucky businessman Wilbur Anthony Huff pleaded guilty to various tax crimes that caused more than $50M in losses to the Internal Revenue Service (IRS), and a massive fraud that involved the bribery of bank officials, the fraudulent purchase of an insurance company, and the defrauding of insurance regulators. DOJ


December 23, 2014 - 

US Congressman Michael Grimm pleaded guilty to aiding and assisting the preparation of a false tax return by fraudulently underreporting $900,000 in restaurant gross receipts and lowering payroll taxes through ‘off-the-book’ payments in connection with the Manhattan restaurant he owned called Healthalicious. DOJ


December 23, 2014 - 

Former FBI special agent Robert Lustyik pleaded guilty to bribery charges, admitting that he provided internal law enforcement documents and other confidential information about a prominent citizen of Bangladesh for use by a political rival in exchange for cash. DOJ


December 22, 2014 - 

Bank Leumi, a major Israeli international bank, admitted that it conspired to assist US taxpayers to prepare and present false tax returns to the Internal Revenue Service (IRS) by hiding income and assets in offshore bank accounts in Israel and elsewhere around the world. The criminal conduct spanned over a 10 year period and included an array of services and products designed to keep US taxpayer accounts concealed at Bank Leumi Group’s locations in Israel, Switzerland, Luxembourg and the US. The bank agreed to pay a total of $270 million in fines and penalties and to cease to provide banking and investment services for all accounts held by US taxpayers. DOJ


December 22, 2014 - 

French power and transportation company Alstom S.A. pleaded guilty today and agreed to pay $772M to resolve charges of violating the Foreign Corrupt Practices Act through a widespread scheme involving tens of millions of dollars in bribes in countries around the world, including Indonesia, Saudi Arabia, Egypt and the Bahamas. Whistleblower Insider


December 19, 2014 - 

Lockheed Martin subsidiary Lockheed Martin Integrated Systems agreed to pay $27.5M to resolve allegations it violated the False Claims Act by overbilling the government on US Army contracts for work in Iraq and Afghanistan. DOJ


December 19, 2014 - 

Boston-based records storage company Iron Mountain agreed to pay $44.5M to resolve allegations it violated the False Claims Act by overcharging federal agencies for record storage services under General Services Administration (GSA) contracts. The charges originated with a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Brent Stanley, a former Iron Mountain employee, and Patrick McKillop, who worked in the records management industry. Collectively, they will receive a whistleblower reward of $8M. DOJ


December 18, 2014 - 

Former Department of Defense civilian employee Jonathan M. Hargett was sentenced today to serve 40 months in prison and to pay $2.2M in restitution for his participation in a health care fraud scheme in which he collected over $2.2M from fraudulent claims for federal health care benefits. DOJ


December 18, 2014 - 

Robert L. Holloway, former CEO of US Ventures LC, was sentenced to 225 months in prison and to pay $15.2M in restitution for orchestrating a $33M Ponzi scheme resulting in $15.2M in losses to investors.DOJ


December 18, 2014 - 

Houston investment manager Robert Andres was sentenced to 56 months in prison and to pay more than $3.2M in restitution for orchestrating a $72M investment fraud scheme resulting in approximately $40M in losses to investors. According to his guilty plea, between October 2005 and 2011, Andres recruited investors for Winsome Investment Trust, where he served as the sole manager, attorney and trustee, by misrepresenting Winsome’s assets, asset allocation and the manner in which investor funds were invested. Andres also misappropriated approximately $2.2M in investor money for personal use, including to pay his hotel bills and living expenses. DOJ


December 17, 2014 - 

New York-based cosmetics giant Avon Products Inc.and its wholly owned subsidiary Avon Products (China) Co. Ltd. pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA) by making and concealing illicit payments to Chinese government officials to secure business there. The company agreed to pay more than $135M in criminal and regulatory penalties to resolve the charges. According to the government, from at least 2004 through 2008, Avon and Avon China conspired to falsify Avon’s books and records by falsely describing the nature and purpose of certain Avon China transactions. Specifically, the companies sought to disguise more than $8 million worth of gifts, travel, meals and entertainment that Avon China executives gave to Chinese officials. The Avon entities will pay $68M in criminal penalties and another $67M in related FCPA matter it settled with the SEC. Whistleblower Insider


December 17, 2014 - 

Former CEO Benito Chinea and former managing director Joseph De Meneses of a US broker-dealer which established a group called Global Markets Group pleaded guilty to violating the Foreign Corrupt Practices Act (FPCA) and the Travel Act by bribing senior official in Venezuela’s state economic development bank in return for trading business that generated more than $60M. Chinea and De Meneses also agreed to pay $3.6M and $2.7M, respectively. DOJ


December 17, 2014 - 

Mark Morad and Dr. Divini Luccioni, both of Louisiana, pleaded guilty to their role in a $56M Medicare fraud scheme. According to court documents, Morad directed the scheme through multiple New Orleans-area companies he owned, including Interlink Health Care Services Inc.,Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, and Med Rite Pharmacy Inc. Morad paid kickbacks to recruiters who canvassed New Orleans neighborhoods for Medicare beneficiary numbers, which Morad then used to bill Medicare for services that were not medically necessary or not provided. Dr. Luccioni admitted that he signed home health referrals and wrote DME prescriptions that were used to support these fraudulent billings. DOJ


December 17, 2014 - 

Barry Steinlight, the owner and president of dietary supplement manufacturing company Raw Deal, Inc., pleaded guilty to a scheme in which he directed the sale of diluted and adulterated dietary ingredients and supplements. From at least 2009 through November 2013, Steinlight instructed Raw Deal employees to add “fillers” to the dietary ingredients and supplements sold to Raw Deal’s customers. DOJ


December 15, 2001 - 

Alaska and Virginia-based technology contractorsEyak Technology LLC and Eyak Services LLC agreed to pay $2.5M to settle charges of alleged False Claims Act and Anti-Kickback Act violations. According to the government, from 2005 to 2011 EyakTek held a $1 billion prime contract with the U.S. Army Corps of Engineers and EyakTek’s then-director of contracts, Harold Babb, accepted kickbacks from several subcontractors of EyakTek and ESL in return for using his position to direct subcontracts to them. In March 2012, Babb pleaded guilty to bribery and kickback charges and was sentenced to 87 months in prison and to pay more than $9M. DOJ


December 10, 2014 - 

Dallas Airmotive Inc., a provider of aircraft engine maintenance, repair and overhaul services, admitted to violating the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $14M criminal penalty to resolve charges it bribed Latin American government officials in order to secure lucrative government contracts there. According to Dallas Airmotive’s admissions, between 2008 and 2012, the company bribed officials of the Brazilian Air Force, the Peruvian Air Force, the Office of the Governor of the Brazilian State of Roraima, and the Office of the Governor of the San Juan Province in Argentina. DOJ


December 8, 2014 - 

Medical products manufacturer OtisMed Corp and its former CEO Charlie Chi admitted to intentionally distributing knee replacement surgery cutting guides (called the OtisKnee) after the Food and Drug Administration (FDA) had rejected their application for marketing clearance. OtisMed agreed to pay more than $80M to resolve its related criminal and civil liability for distributing an adulterated medical device in violation of the Food, Drug, and Cosmetic Act (FDCA), and submitting fraudulent claims in violation of the False Claims Act. Whistleblower Insider


December 8, 2014 - 

Supreme Foodservice pleaded guilty to violating the False Claims Act by overcharging the government on a contract to provide food and water to the US troops in Afghanistan. The company paid $288M in the criminal case. In addition, Supreme Group B.V. and several of its subsidiaries agreed to pay an additional $146M million to resolve a related civil lawsuit alleging false billings to the Department of Defense (DoD) for fuel and transporting cargo to American soldiers in Afghanistan. Some of the charges originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Michael Epp, Supreme’s former Director, Commercial Division and Supply Chain. Epp will receive a whistleblower award of $16.2M. DOJ


December 4, 2014 - 

Asem Elgawhary, former Principal Vice President ofBechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo), pleaded guilty in connection with a $5.2M kickback scheme intended to manipulate the competitive bidding process for state-run power contracts in Egypt. In his plea agreement, Elgawhary admitted that, from 1996 to 2011, he was assigned by Bechtel to be the general manager at PGESCo, a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company (EEHC) and that he accepted a total of $5.2M from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. DOJ


December 4, 2014 - 

The U.S. District Court for the Central District of California entered a permanent injunction against Neptune Manufacturing Inc. to prevent the distribution of adulterated seafood products. This follows a complaint DOJ filed at the request of the U.S. Food and Drug Administration (FDA) alleging the company’s seafood products are produced under conditions that are inadequate to ensure the safety of its products. DOJ


December 3, 2014 - 

Rite Aid Corporation agreed to pay $3M to resolve allegations it violated the False Claims Act by offering illegal inducements to Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies. The government alleged that from 2008 to 2010, Rite Aid had improperly influenced the decisions of Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies by offering them gift cards in exchange for their business. The charges originated in a whistleblower complaint filed by Jack Chin under the qui tam provisions of the False Claims Act. Chin will receive a whistleblower award of approximately $500,000. DOJ


December 2, 2014 - 

Luis Duluc, a Florida owner and operator of multiple physical therapy rehabilitation facilities, was sentenced to serve 11 years in prison for his role in organizing a $28.3M Medicare fraud scheme involving physical and occupational therapy services. Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc. which was used to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Florida; Rehab Dynamics Inc. in Venice, Florida;Polk Rehabilitation Inc. in Lake Wales, Florida; and Renew Therapy Centerof Port St. Lucie LLC in Port St. Lucie, Florida. Duluc admitted that he and his co-conspirators paid kickbacks to obtain, and stole, the personal identifying information of Medicare beneficiaries and used this information to create and submit false claims to Medicare through the clinics owned by Ulysses Acquisitions. DOJ


December 1, 2014 - 

Ohio’s former deputy treasurer Amer Ahmad and Chicago businessman Joseph Chiavaroli were sentenced to serve 15 years and 18 months in prison, respectively, for their roles in a bribery and money laundering scheme involving the Ohio Treasurer’s Office. DOJ


December 1, 2014 - 

Kosei Tamura, a general manager for Japan-based auto radiator manufacturer T.RAD Co. Ltd., agreed to plead guilty and to serve one year in a U.S. prison for participating in a conspiracy to fix prices of radiators installed in cars sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the US and elsewhere. In addition to the prison sentence, Tamura agreed to pay a $20,000 criminal fine and to cooperate with DOJ’s ongoing investigation. In November 2013, T.RAD pleaded guilty and was sentenced to pay a $13.75M criminal fine for its role in the conspiracy. Including today’s charges, 48 individuals have been charged in the ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines. DOJ


December 1, 2014 - 

Kazumi Umahashi, former General Manager of Japanese auto parts maker Mitsuba Corporation, agreed to plead guilty and serve 13 months in prison for conspiring to fix the prices and allocate the supply of windshield wiper systems and starter motors sold to Honda Motor Co. Ltd. and its subsidiaries and affiliates in the U.S. and elsewhere. He also agreed to pay a $20,000 criminal fine. In November 2013 Mitsuba pleaded guilty for its involvement in the conspiracy and agreed to pay $135M in criminal fines. Including today’s charges, 48 individuals have been charged in DOJ’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines. DOJ


December 1, 2014 - 

Maricopa County Community College District(MCCCD) agreed to pay $4M to resolve allegations under the False Claims Act that it submitted false claims to the Corporation for National and Community Service concerning AmeriCorps state and national grants. The allegations first arose from a whistleblower lawsuit filed by MCCCD employee Christine Hunt under the qui tam provisions of the False Claims Act. She will receive a whistleblower award of $775,827. DOJ


December 1, 2014 - 

North Atlantic Medical Services Inc., doing business as Regional Home Care Inc., agreed to pay $852,378 to resolve allegations it violated the False Claims Act by submitting claims to Medicare and Medicaid for respiratory therapy services provided by unlicensed personnel. NAMS is a medical device company based in Massachusetts that provides equipment and services for the treatment of respiratory ailments, such as oxygen deficiency and sleep apnea. According to the government, from September 2010 to January 2013, NAMS used unlicensed employees to set up sleep apnea masks and oxygen therapy equipment for patients in Massachusetts. The charges were initiated by former NAMS employees Konstantinos Gakis and Demetri Papageorgiou who filed a whistleblower action under the qui tamprovisions of the False Claims Act. They will receive a whistleblower award of $153,428. DOJ


November 25, 2014 - 

Danish citizen Hammad Akbar pleaded guilty and was ordered to pay a fine of $500,000 for advertising and selling StealthGenie, a spyware application that could remotely monitor calls, texts, videos and other communications on mobile phones without detection. This marks the first-ever criminal conviction concerning the advertisement and sale of a mobile device spyware app. Akbar is the chief executive officer of InvoCode Pvt. Limitedand Cubitium Limited, the companies that advertised and sold StealthGenie online. StealthGenie could be installed on a variety of different brands of mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry. Once installed, it could intercept all conversations and text messages sent using the phone. The app was undetectable by most users and was advertised as being untraceable. DOJ


November 24, 2014 - 

Two Northern California real estate investors, Su Chu Chou “Terry” Cheng and Chung Li “George” Cheng, agreed to plead guilty for their role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California. According to the government, between May 2008 and January 2011, George and Terry Cheng conspired with others not to bid against one another, and instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda and Contra Costa counties. To date, as a result of DOJ’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California, 49 individuals have agreed to plead or have pleaded guilty. DOJ


November 24, 2014 - 

Continental Automotive Electronics LLC andContinental Automotive Korea Ltd. have agreed to plead guilty and pay a single criminal fine of $4M for their roles in a conspiracy to rig bids of instrument panel clusters installed in vehicles sold to Hyundai Motor Co., Kia Motors Corp. and Kia Motors Manufacturing Georgia in the US and elsewhere. Instrument panel clusters are a set of instruments located on the dashboard of a vehicle that contain gauges such as a speedometer, tachometer, odometer, and fuel gauge, as well as warning indicators. 32 companies and 46 executives now have been charged in DOJ’s ongoing investigation into the automotive parts industry. Each of the charged companies have pleaded guilty and agreed to pay more than $2.4B in criminal fines. Of the 46 individuals, 26 have been sentenced to serve time in U.S. prisons. DOJ


November 21, 2014 - 

Three Miami real estate developers, Stavroula Mendez, Lazaro Mendez and Marie Mendez, were convicted for their roles in a $20M mortgage fraud scheme involving the sale of condominium units in the Miami area. DOJ


November 21, 2014 - 

A California man, Shahin Abdollahi, aka Sean Holdt, was sentenced to serve 18 months in prison and ordered to pay $34,712 in restitution, for remotely hacking into the computerized cash registers of Subway restaurants and fraudulently obtaining more than $40,000 in gift cards. Abdollahi admitted he owned Subway franchises in Southern California, and later operated a California company called “POS Doctor,” which sold and installed point-of-sale (POS) computer systems to Subway franchises around the country. Abdollahi further acknowledged he and Jeffrey Wilkinson conspired to remotely hack into the POS systems he installed in Subway franchises around the country. DOJ


November 21, 2014 - 

Credit Suisse AG was sentenced today for conspiring to assist US taxpayers file false income tax returns the IRS. Credit Suisse pleaded guilty to conspiracy on May 19. The plea agreement, along with agreements made with state and federal agencies, provides that Credit Suisse will pay a total of approximately $2.6B: approximately $1.8B in a criminal fine and restitution, $100M to the Federal Reserve and $715M to the New York State Department of Financial Services. As part of the plea agreement, Credit Suisse acknowledged that, for decades prior to and through 2009, it operated an illegal cross-border banking business that knowingly and willfully aided and assisted thousands of U.S. clients in opening and maintaining undeclared accounts and concealing their offshore assets and income from the IRS. DOJ


November 19, 2014 - 

President and founder of Happy’s Pizza, Happy Asker, was convicted of tax fraud. From June 2004 through April 2011, Asker, along with certain franchise owners and employees, executed a tax fraud scheme in which they substantially underreported gross sales and payroll amounts to the IRS for nearly all 60 Happy’s Pizza franchise restaurants located in Michigan, Ohio and Illinois. The IRS is owed more than $6.2 million in taxes as a result of this fraud scheme. DOJ


November 19, 2014 - 

ConvergEx Global Markets Limited (CGM Limited), a brokerage subsidiary of ConvergEx Group LLC, was sentenced and ordered to pay a criminal penalty and restitution of $26M for wire fraud and conspiracy to commit securities and wire fraud in connection with a scheme to charge clients millions of dollars in unwarranted and hidden fees. The company pleaded guilty on Dec. 18, 2013. In total, CGM Limited and ConvergEx Group will pay $43.8M in criminal penalties and restitution. DOJ


November 19, 2014 - 

Washington Gas Energy Systems agreed to pay more than $2.5M for conspiring to commit fraud by illegally obtaining contracts that were meant for small, disadvantaged businesses. It is a wholly owned subsidiary of WGL Holdings Inc., the parent company for all of the corporations within the Washington Gas family. According to the government, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth almost $18M that should have gone to an eligible company. DOJ


November 18, 2014 - 

Christopher Gabel, former chief operating officer of a Miami-area hospital Hollywood Pavilion LLC, pleaded guilty for his role in a mental health care fraud scheme that resulted in the submission of more than $67M in fraudulent claims to Medicare. According to Gabel’s admissions, between April 2003 and September 2012, the hospital submitted fraudulent claims to Medicare for mental health treatment that was not medically necessary or not provided. DOJ


November 17, 2014 - 

New York environmental remediation firm Sevenson Environmental Services Inc. agreed to pay more than $2.7M to resolve allegations it violated the False Claims Act and the Anti-Kickback Act by accepting kickbacks, rigging bids and passing inflated charges to the US Environmental Protection Agency (EPA) in connection with work performed at the Federal Creosote Superfund Site in Manville, New Jersey. According to the government, Sevenson solicited and accepted more than $1.6M in kickbacks from six companies in exchange for the award of subcontracts for work at the Federal Creosote Site. DOJ


November 14, 2014 - 

Detroit-area physician Dr. Rajesh Doshi pleaded guilty for orchestrating — through his medical practice Home Physicians Services— the submission of fraudulent claims for physician home visits as part of a $19M home health care fraud scheme. According to his plea agreement, Dr. Doshi admitted that between October 2005 and September 2012, he conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care that was not medically necessary, and then submitting false and fraudulent claims for the purported care to Medicare for reimbursement. Dr. Doshi also admitted he solicited and received kickbacks from home health agency owners in exchange for the referral of beneficiaries to those agencies, regardless of whether the beneficiaries qualified for or needed home health care. DOJ


November 13, 2014 - 

A California federal court entered a permanent injunction against Scilabs Nutraceuticals Inc., and its board chairman and CEO Paul P. Edalat, to prevent the distribution of adulterated dietary supplements. SciLabs Nutraceuticals Inc. is a manufacturer of dietary supplements distributed under the brand name All Pro Science. DOJ


November 13, 2014 - 

Five South Florida residents, Dennis Hernandez, Juan Valdes, Jose Alvarez, Joel San Pedro and Alina Hernandez, pleaded guilty to a long-running $6.2M Medicare fraud scheme involving Miami home health care agency Professional Medical Home Health LLC that purported to provide home health and therapy services. According to admissions in their plea agreements, the defendants through Professional Home Health billed Medicare for expensive physical therapy and home health services that were not medically necessary or were not provided. They also acted as patient recruiters for Professional Home Health soliciting and receiving kickbacks and bribes from other co-conspirators at Professional Home Health in exchange for recruiting beneficiaries who neither needed, nor in some cases received services. DOJ


November 13, 2014 - 

Japanese auto parts maker Seiki Co. Ltd. agreed to plead guilty and pay a $35.8M million criminal fine for its role in a conspiracy to allocate customers of variable valve timing (VVT) devices sold to automobile manufacturers including General Motors Company, Nissan Motor Company Ltd., Volvo Car Corporation and BMW AG in the US and elsewhere.DOJ


November 13, 2014 - 

Ramon Regueira, owner of Miami home health care company Nation’s Best Care Home Health Corp., pleaded guilty for his role in a $30M home health Medicare fraud scheme. Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for expensive physical therapy and home health care services not medically necessary or provided. Specifically, Regueira admitted he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. From January 2007 through November 2012, Nation’s Best submitted approximately $35M in false claims and Medicare paid approximately $21M for these fraudulent claims. DOJ


November 12, 2014 - 

Home healthcare agency CareAll Management LLCagreed to pay $25M to settle charges it violated the False Claims Act by submitting false and upcoded home healthcare billings to Medicare and Medicaid. According to the government, between 2006 and 2013, CareAll overstated the severity of patients’ conditions to increase billings and billed for services that were not medically necessary and rendered to patients who were not homebound. The current allegations first arose in a whistleblower lawsuit filed by Toney Gonzales under the qui tam provisions of the False Claims Act.Whistleblower Insider


November 7, 2014 - 

Flakeboard America Limited (and its parent companies Celulosa Arauco y Constitución S.A. and Inversiones Angelini y Compañía Limitada) and SierraPine agreed to pay a combined $3.8M in civil penalties and disgorge an additional $1.15M in illegally obtained profits for violating the Hart–Scott–Rodino (HSR) Act by engaging in illegal premerger coordination while Flakeboard’s proposed acquisition of three SierraPine mills was under DOJ antitrust review. Flakeboard and SierraPine abandoned the proposed acquisition after the DOJ expressed concerns about the transaction’s likely anticompetitive effects in the production of medium-density fiberboard, a wood product widely used in furniture, kitchen cabinets, and decorative mouldings. According to the government, SierraPine operated particleboard mills that competed directly with one of Flakeboard’s particleboard mills and before the expiration of the HSR Act’s mandatory premerger waiting period, Flakeboard, Arauco, and SierraPine illegally coordinated to close one of SierraPine’s mills and move the customers to Flakeboard. DOJ


November 6, 2014 - 

Medical device maker Biotronik Inc. agreed to pay $4.9M to resolve allegations it violated the False Claims Act by paying kickbacks to induce physicians to use its products. Specifically, the government charged that Biotronik induced electrophysiologists and cardiologists practicing in Nevada and Arizona to use Biotronik pacemakers, defibrillators and cardiac resynchronization therapy devices by paying them in the form of repeated meals at expensive restaurants and inflated payments for membership on a physician advisory board. The allegations first arose in a whistleblower lawsuit filed by a former Biotronik employee, Brian Sant, under the qui tam provisions of the False Claims Act. Sant will receive a whistleblower award of $840,000. DOJ


November 5, 2014 - 

Elsa Ruiz, the owner and administrator of the Miami home health care companies Professional Home Care Solutions Inc. andLTC Professional Consultants Inc., was sentenced to serve 80 months in prison and pay $45M in restitution for her participation in a $74M Medicare fraud scheme. According to admissions during her plea hearing, Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for expensive physical therapy and home health care services that were not medically necessary or were not provided. Ruiz’s primary role in the scheme was to negotiate and pay kickbacks to patient recruiters and to otherwise oversee the schemes. DOJ


November 3, 2014 - 

California-based medical diagnostics and life sciences manufacturing company Bio-Rad Laboratories Inc. agreed to pay $55M million to settle allegations it violated the Foreign Corrupt Practices Act (FCPA) by falsifying its books and records and failing to implement adequate internal controls in connection with sales it made in Russia and for making illegal bribes in connection with sales it made in Russia, Thailand and Vietnam. The company will pay $14.35M to the DOJ and $40.7M to the SEC.Whistleblower Insider


November 3, 2014 - 

South Korea’s top two automakers Hyundai Motor Company and Kia Motors Corporation agreed to pay a $100 million civil penalty to settle charges they violated the Clean Air Act by selling more than one million vehicles that will emit roughly 4.75 million metric tons of greenhouse gases in excess of what they certified to the Environmental Protection Agency (EPA). It is the largest civil penalty in Clean Air Act history.Whistleblower Insider


October 31, 2014 - 

Tokyo-based automotive parts manufacturer Hitachi Metals Ltd. pleaded guilty and agreed to pay a $1.25M criminal fine for its role in a conspiracy to fix prices and rig bids for automotive brake hoses sold to Toyota Motor Corporation and certain of its affiliates and suppliers in the US and elsewhere. The charges against Hitachi are the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry. To date, 44 individuals have been charged and including Hitachi, 30 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4B in fines. DOJ


October 30, 2014 - 

San Francisco based hospital system Dignity Health(formerly known as Catholic Healthcare West) agreed to pay $37M to settle False Claim Act charges that 13 of its hospitals in California, Nevada and Arizona submitted false claims to Medicare and TRICARE by admitting patients for inpatient services who could have been treated on a less costly, outpatient basis. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Kathleen Hawkins, a former employee of Dignity. She will receive a whistleblower award of $6.25M.DOJ


October 29, 2010 - 

Jigar Patel, a physical therapist assistant was sentenced to serve 50 months in prison and pay $1.9M in restitution for his role in a $14.9M scheme through which he and others billed Medicare for home health services they never provided, and provided beneficiaries with prescriptions for unnecessary painkillers and other narcotics to induce them to sign false medical documents to support the fraudulent billings. Patel and his co-conspirators carried out their scheme using five home health care companies – Physicians Choice Home Health Care LLC, Quantum Home Care Inc., First Care Home Health Care LLC, Moonlite Home Care Inc., and Phoenix Visiting Physicians. DOJ


October 29, 2014 - 

North Florida Shipyards and its president, Matt Self, agreed to pay $1M to resolve allegations they violated the False Claims Act by creating a front company, Ind-Mar Services Inc., to improperly secure Coast Guard contracts that were designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs). The allegations originated in a whistleblower lawsuit filed by Robert Hallstein and Earle Yerger under the qui tam provisions of the False Claims Act. They will receive a whistleblower award of $180,000.DOJ


October 29, 2014 - 

Medical device maker EBI LLC, doing business asBiomet Spine and Bone Healing Technologies and Biomet Inc., agreed to pay $6M to resolve allegations it violated the False Claims Act by paying kickbacks to induce use of its bone growth stimulators, which are used to repair fractures that are slow to heal. Specifically, the government alleged that from 2001 to 2008 EBI paid staff at doctors’ offices (through personal service agreements) to influence doctors to order its bone growth stimulators. The allegations originated in a whistleblower lawsuit filed by former EBI product manager Yu Yue under the qui tam provisions of the False Claims Act. DOJ


October 28, 2013 - 

Columbia University agreed to pay $9M to settle allegations it defrauded the government of grant funding for AIDS and HIV related work. Specifically, the government charged that as the grant administrator for ICAP (formerly known as International Center for AIDS Care and Treatment Programs), Columbia was required but failed to verify for nearly 200 ICAP employees that they performed the work for which they received grant funding. This resulted in Columbia obtaining grants for work that was not actually performed on the project being funded. Whistleblower Insider


October 27, 2014 - 

Laura Leyva, the former president and owner of rehabilitation therapy services clinic American Rehab of Kissimmee Inc., pleaded guilty to health care fraud and money laundering. Specifically, from June 2007 through November 2009, American Rehab submitted approximately $2.5M in false and fraudulent claims for reimbursement to Medicare seeking payment for rehabilitation therapy services that were not legitimately prescribed and not provided. Co-conspirators falsified and forged medical records used to give the appearance that therapy services were rendered when, in fact, they were not. DOJ


October 24, 2010 - 

Boulder, Colorado-based antenna and radio system company First RF Corporation agreed to pay $10M to settle allegations it violated the False Claims Act by submitting inflated claims for electronic warfare antennas sold to the US Army to combat Improvised Explosive Devices. Specifically, the government alleged that First RF knowingly submitted false data to the Army that misrepresented First RF’s cost to manufacture the antennas, and thereby inflated the price for the antennas and the payments First RF received for them. DOJ


October 22, 2014 - 

Tayyab Aziz, founder of three Detroit-area home health agencies Prestige Home Health Services Inc., Royal Home Health Care Inc., and Platinum Home Health Services Inc. pleaded guilty for his role in a $22M home health care fraud scheme. Specifically, Aziz admitted he and his co-conspirators submitted fraudulent claims to Medicare for services that were medically unnecessary or never performed. They also submitted claims for services purportedly provided to Medicare beneficiaries who were recruited through illegal kickbacks paid to the patients and recruiters. DOJ


October 22, 2014 - 

DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the US, agreed to pay $400M to resolve claims it violated the False Claims Act by paying kickbacks for patient referrals to its dialysis clinics. According to the government, for the past decade DaVita used a sophisticated three-part joint venture business model to induce patient referrals to its clinics. The allegations in this case originated from a whistleblower lawsuit brought by former DaVita Senior Financial Analyst David Barbetta under the qui tam provisions of the False Claims Act. Whistleblower Insider


October 21, 2014 - 

Kentucky-based cardiologists Satyabrata Chatterjee and Ashwini Anand, who jointly owned cardiologist physician group Cumberland Clinic, agreed to pay $380,000 to resolve allegations they violated the False Claims Act by entering into sham management agreements with Saint Joseph Hospital in exchange for the referral of cardiology procedures and other healthcare services to Saint Joseph. The government alleged that St. Joseph Hospital entered into sham agreements with Chatterjee and Anand, under which the physicians were paid to provide management services but did not in fact do so and that in exchange Chatterjee and Anand agreed to enter into an exclusive agreement with Saint Joseph to refer Cumberland Clinic patients to the hospital for cardiology and other services in violation of the Stark Law and the Anti-Kickback Statute. The government previously entered into a $16.5M settlement with Saint Joseph for the allegedly sham management contracts for unnecessary and excessive cardiology procedures. The allegations originated from a whistleblower lawsuit filed by three Lexington, Kentucky cardiologists under the qui tam provisions of the False Claims Act. The three whistleblowers, Drs. Michael Jones, Paula Hollingsworth and Michael Rukavina, will collectively receive a whistleblower award of $68,400. DOJ


October 21, 2014 - 

Science Applications International Corporation(SAIC), now known as Leidos Holdings Inc., agreed to pay $1.5M to resolve False Claims Act allegations that it knowingly engaged in prohibited conflicts of interest as a contractor for the U.S. Nuclear Regulatory Commission (NRC) between 1992 and 2000. SAIC provides scientific, engineering and other technical services for government and commercial customers. Between 1992 and 2000, SAIC held two contracts with the NRC to provide scientific and technical services, including assisting the NRC in its consideration of a rule that could have permitted the release or recycling of certain types and quantities of material with very low levels of radioactivity below regulatory safety limits. According to the government, SAIC repeatedly and falsely certified it had no conflicting business relationships when in fact it actually engaged in multiple business relationships with entities that had a financial interest in the outcome of the NRC’s rulemaking effort. DOJ


October 20, 2014 - 

A federal jury in Houston convicted Earnest Gibson III, the president of Riverside General Hospital, his son, and two others for their participation in a $158M Medicare fraud scheme involving false claims for mental health treatment. Ten defendants have now been convicted in connection with the Riverside fraud scheme. DOJ


October 17, 2014 - 

Two groups of Houston-based diagnostic centers agreed to pay more than $2.6M to settle allegations they violated the False Claims Act by engaging in improper financial relationships with referring physicians in violation of the Stark Statute. One group of centers, which operates under the name One Step Diagnostic, agreed to pay $1.2M. The other group of centers, consisting of Complete Imaging Solutions LLC doing business asHouston Diagnostics, Deerbrook Diagnostics & Imaging Center LLC,Elite Diagnostic Inc., Galleria MRI & Diagnostic LLC, Spring Imaging Center Inc. and West Houston MRI & Diagnostics LLC agreed to pay about $1.5M. The allegations originated from a whistleblower lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act. DOJ


October 14, 2014 - 

Gregory J. Sylvestri, a managing member of the shell company BONB LLC, aka BioScan, pleaded guilty to two charges related to money laundering of health care fraud proceeds. According to his plea agreement, from June 2010 through April 2014, Sylvestri’s co-conspirators submitted over $12M in fraudulent claims to Medicare through three purported Florida health clinics, Cornerstone Health Specialists, Summit Health Specialists P.L. and Coastal Health Specialists LLC. These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology and cardiology services that were never rendered. DOJ


October 10, 2014 - 

Aerospace and defense industry giant the Boeing Company agreed to pay $23 million to resolve allegations it submitted false claims for labor charges on maintenance contracts with the US Air Force for the C-17 Globemaster aircraft. The C-17 Globemaster is one of the military’s major systems for transporting troops and cargo throughout the world. The government alleged Boeing billed a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts. The charges originated in a whistleblower lawsuit brought by present and former Boeing employees Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza under the qui tam provisions of the False Claims Act. They will collectively receive a whistleblower award of $3.9 million. DOJ


October 10, 2014 - 

Extendicare Health Services Inc., an operator of a chain of skilled nursing facilities, and its subsidiary Progressive Step Corporation (ProStep), agreed to pay $38 million that Extendicare billed Medicare and Medicaid for materially substandard nursing services that were so deficient they were effectively worthless and billed Medicare for medically unreasonable and unnecessary rehabilitation therapy services. It is the largest failure of care settlement with a chain-wide skilled nursing facility in the Justice Department’s history. The government’s charges originated from two whistleblower lawsuits filed by Tracy Lovvron and Donald Gallick under the qui tam provisions of the False Claim Act. They will receive whistleblower awards of more than $1.8 million and $250,000, respectively. DOJ


October 8, 2014 - 

Usman Butt, a former owner and manager of two Detroit-area home health care agencies, Home Health Services Inc. and Royal Home Health Care Inc., pleaded guilty for his role in a $22 million Medicare fraud conspiracy. Specifically, Butt admitted that beginning in 2008 and continuing through January 2013, he conspired with others to bill Medicare for home health care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks. He also admitted that he fabricated patient files to give the false appearance that the services were medically necessary and actually provided. DOJ


October 7, 2014 - 

Virginia based telecommunications services provider DRS Technical Services Inc. agreed to pay $13.7 million to settle charges it violated the False Claims Act by overbilling the government for work performed by DRS personnel who lacked the job qualifications required by the company’s government contract. The charges related to services and supplies DRS provided to the US Army’s Communication and Electronics Command (CECOM) in Iraq and Afghanistan, and to the US Coast Guard for aircraft maintenance. Whistleblower Insider


October 2, 2014 - 

Steven B. Jones, former deputy director of the Arkansas Department of Human Services pleaded guilty for providing official assistance in exchange for bribes from the owner of two mental health companies. DOJ


October 2, 2014 - 

Robbins & Myers Belgium S.A., a wholly-owned subsidiary of Robbins & Myers Inc., agreed to pay $1 million for violating the International Emergency Economic Powers Act and the Export Administration Regulations. Specifically, the company caused four illegal exports relating to oil extraction equipment to a customer operating oil fields in Syria. DOJ


October 2, 2014 - 

Leonard Austin pleaded guilty for his role in a multi-million dollar health care fraud and money laundering scheme. According to his plea agreement, Austin and his co-conspirators submitted $12 million in fraudulent claims to Medicare through three purported health clinics, Cornerstone Health Specialists, Summit Health Specialists P.L. and Coastal Health Specialists LLC, all located in Florida. These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology, and cardiology services that were never rendered. Austin admitted that he and his co-conspirators attempted to conceal the funds by transferring funds through bank accounts for the clinics and Austin’s shell company, BONB LLC, aka BioScan, and other entities. DOJ


October 1, 2014 - 

Robert Lustyik, a 24-year veteran of the FBI, and his childhood friend Johannes Thaler, pleaded guilty to participating in a bribery scheme to obstruct a grand jury investigation in exchange for the promise of cash and multimillion dollar business contracts offered by a businessman under investigation. Specifically, Lustyik and Thaler admitted that from October 2011 to September 2012, Lustyik, while employed as an FBI counterintelligence special agent, and Thaler conspired to use Lustyik’s official position to obstruct a criminal investigation into Michael Taylor, a businessman who owned and operated American International Security Corporation and was under investigation for paying kickbacks to obtain a series of contracts from the Department of Defense worth approximately $54 million. Taylor promised Lustyik and Thaler that in exchange for their help, he would provide them cash and multimillion dollar business contracts. DOJ


October 1, 2014 - 

A federal jury in Detroit convicted Felicar Williams, the operator of Haven Adult Day Care Center LLC, and Abdul Malik Al-Jumail and his daughter Jamella Al-Jumail, owners of a network of home health care companies, for their participation in a $29 million Medicare fraud scheme. According to evidence presented at trial, at Williams’s direction, Haven billed Medicare for sophisticated mental health services purportedly provided by other, unlicensed staff members. And the Jumails’ companies — including ABC Home Care Inc., Associates in Home Care Inc., Accessible Home Care Inc., Swift Home Care LLC, and Be Well Home Care LLC — billed Medicare for home health services that were not needed or not provided. Abdul Malik Al-Jumail also paid kickbacks to Williams to obtain billing information about patients at Haven. He then used the information to bill Medicare for home health care services that were never provided. DOJ


September 29, 2014 - 

Japanese auto parts maker Toyoda Gosei Co. Ltd.agreed to plead guilty and to pay a $26 million criminal fine for its role in conspiracies to fix prices and rig bids for automotive hoses, airbags and steering wheels sold to automobile manufacturers. Specifically, Toyoda Gosei conspired to fix the prices of certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries, affiliates and suppliers in the US; and conspired to fix the prices of automotive airbags and steering wheels sold to Toyota and Fuji Heavy Industries Ltd. and certain of its subsidiaries, affiliates and suppliers in the US. To date, 43 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Twenty-nine companies, including Toyoda Gosei, have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines. DOJ


September 26, 2014 - 

Detroit-area physician Dr. Vicha Janviriya pleaded guilty for making fraudulent referrals for home health care in a $1.3 million Medicare fraud scheme. He admitted that he falsified medical documentation which would be used to support false claims to Medicare for services that were never rendered or not medically necessary, or where the Medicare beneficiary referrals were obtained through the payment of kickbacks. DOJ


September 26, 2014 - 

Caremark, the pharmacy benefit management company (PBM) owned by CVS, agreed to pay $6 million to settle allegations that it failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plans. According to the government, Caremark caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid. The allegations arose from a lawsuit filed by Donald Well, a former Caremark employee, under the qui tam, or whistleblower, provisions of the False Claims Act. Well will receive a whistleblower award of $1 million. DOJ


September 26, 2014 - 

Japanese ocean shipping company Kawasaki Kisen Kaisha Ltd. (K-Line) agreed to plead guilty and pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the US. DOJ


September 25, 2014 - 

Felix Maduka, owner of a home health services company Joystar Home Health Services, was sentenced to serve five years in prison for his leading role in a conspiracy to structure over $1.8 million in bank withdrawals to conceal a $4.5 million healthcare fraud scheme. On April 16, 2014, Maduka pleaded guilty to the charges along with his wife, Joystar’s Director of Nursing Stella Maduka. They engaged in this structuring scheme to conceal the monies used to pay illegal kickbacks to recruiters in exchange for referring Medicare beneficiaries to Joystar and to doctors for authorizing home health services that were not medically necessary nor provided. They also fabricated patient records to support the fraudulent Medicare billing. DOJ


September 24, 2014 - 

Pennsylvania-based drug maker Shire Pharmaceuticals agreed to pay $56.5 million to settle charges it violated the False Claims Act through improper marketing and promotion of several drugs used to treat attention deficit hyperactivity disorder (ADHD) and ulcerative colitis. The government’s allegations arose from two whistleblower lawsuit filed by several former Shire employees under the qui tam provisions of the False Claims Act. Whistleblower Insider


September 22, 2014 - 

Akinola Afolabi, former owner of Long Beach, California medical supply company Emmanuel Medical Supply was sentenced to serve 30 months in prison and ordered to pay $1.5 million in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients, resulting in $2.6 million in fraudulent claims to Medicare.DOJ


September 19, 2014 - 

Stewart and Michael Parnell , two former officials of the Peanut Corporation of America (PCA), were convicted of conspiracy, mail and wire fraud, and the introduction of misbranded food into interstate commerce in connection with the unlawful sale of salmonella-tainted peanuts and peanut products. Expert evidence at trial showed that tainted food led to an outbreak in 2009 with more than 700 reported cases of salmonella poisoning which translates into more than 22,000 total cases. The government presented evidence the Parnells defrauded PCA customers and jeopardized the quality and purity of their peanut products. Specifically, the government presented evidence that defendants misled customers and the FDA about the presence of salmonella in their products. DOJ


September 18, 2014 - 

Three patient recruiters were sentenced to prison for their participation in a $20 million health care fraud scheme involving defunct home health care company Trust Care Health Services. Estrella Perez was sentenced to 37 months and ordered to pay $1.2 million; Solchys Perez was sentenced to 30 months and ordered to pay $746,000; and Abigail Aguila was sentenced to 30 months and ordered to pay $491,000. According to court documents, Estrella Perez, Solchys Perez, and Aguila recruited patients for Trust Care, a Miami home health care agency, in exchange for kickbacks paid in cash or by check to the defendants or their shell companies. In turn, Trust Care billed the Medicare program for home health care and therapy services that were not medically necessary or were not provided. DOJ


September 17, 2014 - 

Fort Lauderdale based home health care company A Plus Home Health Care, and its owners Tracy and Stephen Nemerofsky, agreed to pay $1.65 million to settle charges A Plus violated the False Claims Act by paying spouses of referring physicians for sham marketing positions to induce patient referrals. According to the government, the company allegedly hired at least seven spouses and one boyfriend of physicians to perform marketing duties but required them to do little if any real work. Their salaries instead were allegedly for the purpose of inducing and rewarding the physicians’ referrals of Medicare patients to A Plus. Whistleblower Insider


September 16, 2014 - 

Wesley Harlan Kingsbury, general manager of the Southern California ambulance company Alpha Ambulance Inc., pleaded guilty to conspiracy to commit Medicare fraud. According to court documents, Kingsbury conspired with Alex Kapri and Aleksey (Russ) Muratov, the owners of Alpha Ambulance, as well as the training supervisor Danielle Medina, to bill Medicare for ambulance transportation services for individuals that Kingsbury knew did not need to be transported by ambulance. In addition, he instructed emergency medical technicians that worked at Alpha Ambulance to conceal the true medical condition of patients they were transporting by altering requisite paperwork and creating false reasons to justify the transportation services. DOJ


September 15, 2014 - 

Episcopal Ministries to the Aging, a Maryland not-for-profit corporation that owns skilled nursing facilities, agreed to pay $1.3 million for submitting false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc. DOJ


September 11, 2014 - 

Hewlett-Packard subsidiary Hewlett-Packard Russia pleaded guilty to felony violations of the Foreign Corrupt Practices Act (FCPA) for bribing Russian government officials to secure a large technology contract with the Office of the Prosecutor General of the Russian Federation. According to the plea agreement, HP Russia executives created a multimillion dollar secret slush fund, at least part of which was used to bribe Russian government officials who awarded the company a contract valued at more than 35 million euros. HP Russia will pay a $58.8 million fine. DOJ


September 9, 2014 - 

Don Langford, former chief credit officer and senior vice president of Nebraska-based TierOne Bank, pleaded guilty for his role in a scheme to defraud TierOne’s shareholders and regulators. Specifically, Langford conspired with others to hide losses at the bank by cooking the bank’s books and reporting falsified information to stakeholders, regulators, external auditors, and the investing public. The bank even made an unsuccessful attempt to get taxpayer TARP funds in November 2008. TierOne filed for bankruptcy shortly after the Office of Thrift Supervision shut the bank down in June 2010. DOJ


September 8, 2014 - 

Cruz Sonia Collado, the owner and operator of now defunct home health care company Nestor’s Health Services was sentenced to 75 months in prison and ordered to pay $6.5 million in restitution for her participation in a $6.5 million Medicare fraud scheme under which she paid kickbacks and bribes to patient recruiters in return for their providing patients to Nestor’s for home health care and therapy services that were medically unnecessary and, in many instances, not provided. DOJ


September 5, 2014 - 

Life Care Services LLC, a manager of skilled nursing facilities based in Des Moines, Iowa, and CoreCare V LLP, doing business as ParkVista, a skilled nursing facility in Fullerton, California, agreed to pay a total of $3.75 million for causing the submission of false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc. DOJ


September 4, 2014 - 

A federal jury returned guilty verdicts against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws. According to the government, McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans, including luxury items, designer clothes, free vacations and an offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. DOJ


August 29, 2014 - 

Former CEO of ArthroCare Corporation Michael Baker and former ArthroCare CFO Michael Gluk were sentenced to serve 20 years and 10 years in prison, respectively, for their leading roles in a $750 million securities fraud scheme. On June 2, 2014, they were convicted by a jury of wire fraud, securities fraud, and conspiracy to commit wire and securities fraud in connection with their scheme to artificially inflate the share price of ArthroCare stock through sham transactions. DOJ


August 29, 2014 - 

Austin, Texas-based Omni Surgical L.P. (doing business as Spine 360), a manufacturer of devices used in spinal surgery, and Dr. Jamie Gottlieb, an Indiana spinal surgeon, agreed to pay $2.6 million to settle allegations that Spine 360 paid illegal kickbacks to Gottlieb to induce him to use the company’s products in violation of the False Claims Act and Anti-Kickback Statute. According to the government, Spine 360 made payments to an entity controlled by Gottlieb which were purportedly made pursuant to a series of intellectual property agreements but in reality were sham payments to compensate Gottlieb for using Spine 360 products in his surgeries. DOJ


August 27, 2014 - 

E.I. du Pont de Nemours and Company (DuPont) agreed to pay $1.3 million and take corrective actions to settle government charges of releasing harmful levels of hazardous substances in the Kanawha River in West Virginia in violation of the Clean Air Act, the Comprehensive Environmental Response, Compensation and Liability Act, and the Emergency Planning and Community Right-to-Know Act. DOJ

August


August 26, 2014 - 

ExxonMobil Pipeline Company (ExxonMobil) agreed to pay $1.4 million to settle charges it violated the Clean Water Act stemming from a 2012 crude oil spill from ExxonMobil’s “North Line” pipeline near Torbert, Louisiana. DOJ


August 26, 2014 - 

Annarella Garcia, a co-owner of Professional Medical Home Health LLC, a Miami home health agency, was sentenced to 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company. According to the government, Garcia and others engaged in a scheme to bill Medicare for expensive physical therapy and home health care services that were not medically necessary or were not provided. DOJ


August 25, 2014 - 

Former Hanover Corporation CFO Robert Haley and former Hanover salesman Daryl Bornstein were sentenced to serve 60 months and 70 months in prison, respectively, and ordered to pay $14.5 million in restitution for their roles in an $18 million Ponzi scheme. Hanover’s former CEO was previously sentenced to 14 years in prison and ordered to pay $14.7 million in restitution in this case. DOJ


August 25, 2014 - 

Zahid Imran, a Louisiana psychiatrist, was sentenced in federal court in Baton Rouge, Louisiana to serve 86 months in prison and to pay $43.5 million in restitution for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services. According to court documents, Dr. Imran served as the medical director of Shifa Community Mental Health Center of Baton Rouge, and co-owned Serenity Center of Baton Rouge and Shifa Community Mental Health Center of Texas. As part of the scheme, Imran admitted mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization, and then re-certified the patients’ appropriateness for the program in an effort to continue to bill Medicare for services. Imran pleaded guilty on May 13, 2014, to conspiracy to commit health care fraud. DOJ


August 21, 2014 - 

Bank of America agreed to pay $16.65 billion to resolve federal and state mortgage fraud claims against the bank and its former and current subsidiaries, including Countrywide Financial Corporation andMerrill Lynch. It is the largest civil settlement with a single entity in American history. And it includes a $5 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), the largest FIRREA penalty ever. As part of the settlement, BofA acknowledged misrepresenting the quality of billions of dollars worth of risky mortgage loans. Whistleblower Insider


August 20, 2014 - 

Muhammad Aamir, owner of the three Michigan home health agencies Prestige Home Health Services, Platinum Home Health Services, and Empirical Home Health Care, pleaded guilty for his role in a $22 million home health care fraud scheme. Specifically, Aamir and his co-conspirators billed Medicare for home health care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks. DOJ


August 20, 2014 - 

Berkshire Hathaway agreed to pay $896,000 to settle charges that it violated premerger reporting and waiting requirements under the Hart-Scott-Rodino Act when it acquired voting securities of USG Corp.DOJ


August 19, 2014 - 

NGK Spark Plug Co., an automotive parts manufacturer based in Nagoya, Japan, agreed to plead guilty and pay a $52.1 million criminal fine for conspiring to fix prices and rig bids for spark plugs, standard oxygen sensors, and air fuel ratio sensors sold to auto makers in the US and elsewhere such as DaimlerChrysler, Honda and Toyota. DOJ


August 19, 2014 - 

Samsung Electronics America agreed to pay $2.3 million to resolve allegations it caused the submission of false claims for products sold on General Service Administration (GSA) Multiple Award Schedule contracts in violation of the Trade Agreements Act of 1979. DOJ


August 15, 2014 - 

Former Hanover Corporation CEO Terry Kretz was sentenced to 14 years in prison and ordered to pay $14.8M in restitution for orchestrating an $18 million Ponzi scheme. According to court documents, Kretz offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates, however, more than half of the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead and to fund personal luxuries. Daryl Bornstein, a Hanover salesman, and Robert Haley, Hanover’s chief financial officer, previously pleaded guilty to similar charges. DOJ


August 15, 2014 - 

Luis Michael Mendez, owner of Kinetic Mortgage Group, Inc., a mortgage brokerage company in Miami, and Wilkie Perez, pleaded guilty to participating in a mortgage fraud scheme involving the sale of condominium units in the Miami area. In their pleas, both defendants admitted they participated in a scheme to place straw buyers in condominium units owned by real estate developers who are members of Mendez’s immediate family in return for a share of the profits. In total, Perez admitted to obtaining more than $2.5 million in fraudulent loans. DOJ


August 15, 2014 - 

Mihran “Mike” Meguerian, former owner of Los Angeles medical clinic management company Med Serve Management pleaded guilty in connection with his role in a scheme to defraud Medicare. Meguerian admitted overseeing medical clinics that wrote prescriptions for medically unnecessary power wheelchairs and other durable medical equipment (DME). Meguerian and his co-conspirators then sold the prescriptions to DME supply companies, knowing that the prescriptions were fraudulent. The DME supply companies then submitted the fraudulent prescriptions to Medicare in close to $3.4M in fraudulent claims. DOJ


August 14, 2014 - 

Azzeddine El Amine of Costa Rica pleaded guilty to money laundering and operating an unlicensed money transmitting business in connection with his role in running Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. Liberty Reserve was created to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. El Amine served as a principal deputy to Liberty Reserve founder Arthur Budovsky. Before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system and laundered more than $6 billion in suspected proceeds of crimes, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking. DOJ


August 8, 2014 - 

San Francisco-based pharmaceutical distributor McKesson Corporation agreed to pay $18 million to resolve allegations it improperly set temperature monitors used in shipping vaccines in violation of its contract with the Centers for Disease Control and Prevention. DOJ


August 7, 2014 - 

Gary Lang, a CEO of an Atlanta-area hospital and Tracey Cota, the co-owner and chief operating officer of the Atlanta-based medical clinic chain Hispanic Medical Management, pleaded guilty for paying illegal kickbacks to clinics in exchange for Medicaid patient referrals. According to the government, Cota conspired with Lang and other executives from Atlanta-area hospitals and from a hospital on Hilton Head Island to pay kickbacks to Hispanic Medical Management for the referral of its patients, primarily undocumented Hispanic women seeking prenatal care services. These referrals ultimately resulted in Medicaid reimbursements of over $100 million to the hospitals. DOJ


August 7, 2014 - 

Margarita Grishkoff, a disbarred Florida attorney, was sentenced to serve 70 months in prison and to pay $14.4 millioin for her role in a $28.3 million Medicare fraud scheme involving false claims for physical and occupational therapy services. Grishkoff admitted as part of her guilty plea that she and her co-conspirators submitted approximately $28.3 million in fraudulent reimbursement claims to Medicare through physical therapy clinics throughout Florida from 2005 through 2009. Medicare paid approximately $14.4 million on those claims. DOJ


August 4, 2014 - 

Community Health Systems (CHS), the nation’s largest operator of acute care hospitals, agreed to pay $98 million to resolve multiple whistleblower lawsuits alleging the company billed government health care programs for inpatient services that should have been billed as outpatient or observation services. According to the government, CHS engaged in a corporate-driven scheme to increase inpatient admissions of Medicare, Medicaid and TRICARE (military) beneficiaries over the age of 65 who originally presented to the emergency departments at 119 CHS hospitals.Whistleblower Insider


August 4, 2014 - 

A North Carolina couple, Jessica Anne Brown and Jason Dean Brown, pleaded guilty for leading a Costa Rican sweepstakes fraud scheme that defrauded hundreds of elderly Americans. DOJ


August 1, 2014 - 

Olufunke Ibiyemi Fadojutimi, a registered nurse and former owner of Lutemi Medical Supply, a durable medical equipment (DME) supply company, was found guilty of health care fraud relating to a 10-year scheme in which Medicare was fraudulently billed more than $8 million for DME that was not medically necessary. The trial evidence showed that between September 2003 and January 2013, Fadojutimi and others paid cash kickbacks to patient recruiters and physicians for fraudulent prescriptions for DME, such as power wheelchairs, that the Medicare patients did not actually need. DOJ


August 1, 2014 - 

Hewlett-Packard Co. agreed to pay $32.5 million to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. According to the government, HP overcharged USPS by failing to comply with pricing terms of its USPS contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts. DOJ


July 31, 2014 - 

Shingo Okuda, the former Engineering and Sales Division Manager for Japanese auto parts maker G.S. Electech, pleaded guilty and was sentenced to serve 13 months in a U.S. prison for his role in an international conspiracy to rig bids and fix prices on auto parts used on antilock brake systems installed in U.S. cars. DOJ


July 29, 2014 - 

Armando Buchillon, former director of nursing for now defunct home health care company Anna Nursing Services Corp., pleaded guilty to participating in a $7M health care fraud scheme. According to court documents, Buchillon and his co-conspirators regularly falsified patient documents to make it appear they qualified for and received home health care services when in fact they did not. He also paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or not provided. DOJ


July 28, 2014 - 

A federal jury in Miami convicted physician assistant Roger Bergman and certified nursing assistant Rodolfo Santaya for their participation in a Medicare fraud scheme involving approximately $200M in fraudulent billings by Miami-based mental health care company American Therapeutic Corporation (ATC). According to evidence presented at trial, Bergman, Santaya and their co-conspirators caused the submission of fraudulent claims to Medicare through ATC seeking reimbursement for mental health services that were not provided or were provided to patients who were not eligible to receive the services. DOJ


July 28, 2014 - 

Minneapolis-based medical device maker Vascular Solutions Inc. (VSI) agreed to pay $520,000 to resolve allegations it violated the False Claims Act by marketing a medical device for the ablation (or sealing) of perforator veins without FDA approval. The government alleged VSI knowingly promoted the device even though it had attempted to and failed to get FDA marketing clearance for ablation of this particular type of vein, and VSI had conducted a clinical trial that failed to meet both safety and efficacy benchmarks. The allegations originated from a whistleblower lawsuit filed by DeSalle Bui, a former sales representative at VSI, under the qui tamprovisions of the False Claims Act. DOJ


July 28, 2014 - 

Lloyds Banking Group agreed to pay $86M for manipulating submissions for the London InterBank Offered Rate (LIBOR), a leading global benchmark interest rate. DOJ


July 24, 2014 - 

An $80M False Claims Act judgment was entered against BNP Paribas for submitting false claims for payment guarantees issued by the U.S. Department of Agriculture. The judgment resolves government charges that from 1998 to 2005 the French bank participated in a scheme to defraud the USDA’s Supplier Credit Guarantee Program under which American agricultural companies are encouraged to sell their products abroad. DOJ


July 24, 2014 - 

Bernd Kowalewski, the former President and CEO of BizJet International, pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA) for bribing officials in Mexico and Panama to get contracts for aircraft services. BizJet is a U.S. subsidiary of Lufthansa Technik that provides aircraft maintenance, repair and overhaul services. He is the third and most senior Bizjet executive to plead guilty to these violations. DOJ


July 23, 2014 - 

Elsa Ruiz, the owner and administrator of the Miami-based home health care agencies Professional Home Care Solutions and LTC Professional Consultants, pleaded guilty for her participation in a $74M Medicare fraud scheme. According to court documents, Ruiz and her co-conspirators operated the two companies for the purpose of billing Medicare for expensive physical therapy and home health care services that were either never provided or not medically necessary. DOJ


July 21, 2014 - 

Jing Wang, the former Executive Vice President and President of Global Business Operations for Qualcomm Inc., pleaded guilty to insider trading in shares of Qualcomm and Atheros Communications. He also pleaded guilty to laundering the proceeds of his insider trading using an offshore shell company. DOJ


July 21, 2014 - 

Alabama-based hospital system Infirmary Health System Inc., along with two affiliated clinics and Diagnostic Physicians Group, agreed to pay $24.5M to resolve government allegations they violated the False Claims Act, the Anti-Kickback Statute and the Stark Law by paying or receiving financial inducements for medical referrals covered by Medicare.Whistleblower Insider


July 17, 2014 - 

William Pomponi, a former vice president of regional sales at Alstom Power Inc., the Connecticut-based power subsidiary of Alstom SA, the French power and transportation company, pleaded guilty for his participation in a scheme to pay bribes to foreign government officials in violation of the Foreign Corrupt Practices Act (FCPA). Three Alstom corporate executives and Marubeni, a major Japanese corporation, have now pleaded guilty to a seven-year scheme to pay bribes to Indonesian officials to secure the $118M Tarahan power contract there. DOJ


July 16, 2014 - 

North Carolina based recycling business, P&W Waste Oil Services, was ordered to pay restitution of more than $21M for clean-up costs associated with the environmental contamination caused by the company’s unlawful handling and dilution of used oil contaminated with polychlorinated biphenyls (PCBs). DOJ


July 14, 2014 - 

Citigroup agreed to pay $7B to resolve government claims related to the bank’s packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) which, according to the government, “contributed mightily to the financial crisis that devastated our economy in 2008.” The settlement includes a $4B civil penalty — the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Whistleblower Insider


July 11, 2014 - 

Luis Alberto Garcia Perojo of Florida was sentenced to serve 4 years in prison and ordered to pay $6.2M in connection with a $10.5M Medicare fraud scheme involving physical and occupational therapy services. From November 2007 through August 2009, Garcia submitted on behalf of Renew Therapy Center, an outpatient rehabilitation facility he helped operate, roughly $10.5M in fraudulent claims for reimbursement to Medicare for therapy services not legitimately prescribed or provided. DOJ


July 10, 2014 - 

Four patient recruiters pleaded guilty in connection with a $20M health care fraud scheme involving the now defunct Miami-based home health care agency Trust Care Health Services. The defendants recruited patients for Trust Care and solicited and received kickbacks and bribes from the owners and operators of Trust Care in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients for home health care and therapy services that were not medically necessary and/or not provided. DOJ


July 8, 2014 - 

Virginia-based move management company RE/MAX Allegiance Relocation Services agreed to pay roughly half a million dollars to resolve allegations it violated the False Claims Act by overbilling the government for transportation services. The government alleged RE/MAX charged the government for federal employee relocation services it never provided and charged inflated rates for relocation services it did provide by charging inapplicable tariff rates. The allegations originated from a whistleblower lawsuit filed by former RE/MAX employee Michael Angel under the qui tam provisions of the False Claims Act. Whistleblower Insider


July 7, 2014 - 

Vahe Tahmasian of Glendale, California was sentenced to 121 months in prison and ordered to pay roughly a million dollars for his role in a $1.5M Medicare fraud and identity theft scheme. Tahmasian and his co-conspirators purchased Orthomed Appliance Inc., a DME supply company, stole the personal identifying information of Medicare beneficiaries and doctors in the company’s patient files, and used that information to submit a large volume of fraudulent claims to Medicare. DOJ


July 3, 2014 - 

SunTrust Mortgage Inc. agreed to pay $320M to resolve a criminal investigation of SunTrust’s administration of the Home Affordable Modification Program (HAMP). According to the government, SunTrust misled numerous customers who sought mortgage relief through HAMP by making material misrepresentations and omissions to borrowers in HAMP solicitations, and failing to process HAMP applications in a timely fashion. As a result of SunTrust’s mismanagement of HAMP, thousands of homeowners who applied for a HAMP modification with SunTrust suffered serious financial harms. DOJ


July 1, 2014 - 

Detroit-area physician, Walayat Khan, pleaded guilty for his role in a $7M health care fraud scheme. According to court documents, beginning in January 2009, Dr. Khan and others agreed that he would refer Medicare beneficiaries to Advance Home Health Care Services, Inc., Perfect Home Health Care Services, LLP and other Detroit-area home health care agencies for medically unnecessary home health services. Dr. Khan signed medical documents for these beneficiaries, falsely certifying they required home health care and they were under his care. The complicit home health care agencies then used Dr. Khan’s false documents to support their claims to Medicare for home health services that were never rendered or not medically necessary. DOJ


July 1, 2014 - 

Dietary supplement maker Mira Health Ltd. agreed to settle government charges it violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. The government’s actions resulted from a series of inspections of Mira’s manufacturing facility, which revealed Mira’s failure to ensure that components, dietary supplements, packaging and labels were not mixed-up, contaminated or deteriorated. As part of the settlement, Mira agreed to a permanent injunction that requires it to cease all operations and to seek FDA approval before resuming operations. DOJ


June 30, 2014 - 

Paris-based BNP Paribas S.A. agreed to enter a guilty plea and pay $8.9B for conspiring to violate the International Emergency Economic Powers Act and the Trading with the Enemy Act by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions. The agreement by the French bank to plead guilty is the first time a global bank has agreed to plead guilty to large-scale, systematic violations of U.S. economic sanctions. DOJ


June 30, 2014 - 

US Bank agreed to pay the $200M to resolve allegations it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements. DOJ


June 27, 2014 - 

Riverside Seat Co., Woodbridge Foam Fabricating Inc. and SW Foam LLC, manufacturers of polyurethane foam used to create interior components for automobiles, pleaded guilty to participating in a scheme to fix prices to customers. The companies have agreed to pay a total of $6.1M in criminal fines and to cooperate with the DOJ’s ongoing investigation. DOJ


June 27, 2014 - 

Euridice Borroto, a patient recruiter for a Miami home health care agency pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Nestor’s Health Services Inc. The owner and operator of Nestor pleaded guilty to charges related to the scheme earlier this month. According to court documents, Borroto solicited and received kickbacks and bribes from Nestor in return for recruiting and providing patients to Nestor for home health care and therapy services that were medically unnecessary or never provided. Borroto acknowledged her involvement in similar fraudulent schemes at other Miami health care agencies. DOJ


June 25, 2014 - 

Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, agreed to pay $124M to resolve charges it violated the Anti-Kickback Statute and the False Claims Act by providing improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid patients. The government’s action against Omnicare originated with two lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act. The first whistleblower, former Omnicare employee Donald Gale, will receive roughly $17M out of the government’s recovery. Whistleblower Insider


June 23, 2014 - 

Cruz Sonia Collado, the owner and operator of Nestor’s Health Services, a now-defunct Miami home health care agency, pleaded guilty to a $6.5M million health care fraud scheme. According to the government, Collado and her co-conspirators operated Nestor for the purpose of billing Medicare for expensive physical therapy and home health care services that were not medically necessary or never provided. As part of the scheme, Collado allegedly also paid kickbacks and bribes to patient recruiters, in return for those recruiters providing patients to Nestor for these unnecessary or phantom home health care and therapy services. DOJ


June 20, 2014 - 

Valnita Turner and Valdie Jackson, respective owners of the home health agencies Houston Compassionate Care and Jackson Home Healthcare, were sentenced for their roles in a $3M Medicare fraud scheme relating to the purchase of stolen patient information used to submit fraudulent claims to Medicare. Turner and Jackson also were charged with billing Medicare for medically unnecessary home health services never ordered by a doctor. Turner was sentenced to serve 151 months in prison and pay $3M in restitution. Jackson was sentenced to serve 12 months in prison and pay $1.5M in restitution. DOJ


June 19, 2014 - 

Michael Mendoza, president of patient recruiting firm Network Resource Consultant Inc., pleaded guilty for his role in a $205M Medicare fraud scheme. According to court documents, Mendoza made an agreement with Lawrence Duran, owner of American Therapeutic Corporation, a now defunct partial hospitalization program located in Miami, under which Mendoza would refer residents living in assisted living facilities to ATC for medically unnecessary services in exchange for illegal kickbacks. Duran previously pleaded guilty and was sentenced to serve 50 years in prison for his role in orchestrating the fraud scheme. DOJ


June 19, 2014 - 

GE Capital Retail Bank, now known as Synchrony Bank, agreed to a $169M settlement to resolve allegations it engaged in a nationwide scheme to discriminate against Hispanic borrowers by excluding them from two of its credit card debt-repayment programs. The settlement provides $169M in relief to roughly 108,000 borrowers in the form of monetary payments and the reduction, or complete waiver, of borrowers’ credit card balances. DOJ


June 18, 2014 - 

Lizette Garcia, a former office worker at Anna Nursing Services Corp., a now defunct Miami home health care company, pleaded guilty in connection with a $7M health care fraud scheme under which Anna Nursing paid kickbacks and bribes to patient recruiters in return for providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary or never provided. DOJ


June 17, 2014 - 

The Justice Department, Department of Housing and Urban Development (HUD), the Consumer Financial Protection Bureau, and virtually every state attorney general in the country, reached a $968M settlement with SunTrust Mortgage Inc., the mortgage lending arm of SunTrust Bank, to resolve charges of mortgage origination, servicing, and foreclosure abuses.Whistleblower Insider


June 13, 2014 - 

Gwendolyn Climmons-Johnson, the owner and operator of Urgent Response EMS, a Houston area ambulance company, was sentenced to 97 months in prison and to pay roughly $1M for her role in a $2.4M Medicare fraud scheme. In October she had been convicted by a federal jury in Houston of four counts of health care fraud. According to evidence presented at trial, from January 2010 through December 2011, Climmons-Johnson and others conspired to enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and/or not provided. DOJ


June 3, 2014 - 

Iowa-based egg producer Quality Egg pleaded guilty to, and agreed to a $6.8M fine for, bribing USDA food safety inspectors and violating food safety rules which ultimately led to a nationwide salmonella outbreak in 2010. If accepted by the court, it will be one of the largest payments ever made related to food safety. Quality Egg’s owner, Jack DeCoster, and his son Peter, also pleaded guilty to one count of introducing adulterated food into interstate commerce. Whistleblower Insider


June 2, 2014 - 

A federal jury convicted Michael Baker and Michael Gluk, the former CEO and former CFO of Texas-based medical device manufacturers ArthroCare Corp., for orchestrating a fraud scheme that resulted in shareholder losses of over $400M. Evidence at trial demonstrated that Baker and Gluk masterminded a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors beginning in 2005 and continuing until 2009. Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. ArthroCare then reported these shipments as sales enabling the company to meet or exceed internal and external earnings forecasts. DOJ


May 28, 2014 - 

Medical device manufacturer Medtronic Inc. agreed to pay $9.9M to resolve allegations under the False Claims Act that the company used various types of illegal kickbacks to induce physicians to use pacemakers and defibrillators made and sold by Medtronic. Among the the illegal inducements the government charged Medtronic with using were: 1) paying implanting physicians to speak at events intended to increase the flow of referral business; 2) developing marketing/business development plans for physicians at no cost; and 3) providing tickets to sporting events. The settlement stems from a whistleblower complaint filed by former Medtronic employee Adolfo Schroeder under the qui tam provisions of the False Claims Act. He will receive a whistleblower reward of approximately $1.73M. DOJ


May 28, 2014 - 

Kentucky-based hospital King’s Daughters Medical Center agreed to pay $40.9M to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare and Kentucky Medicaid programs for medically unnecessary coronary stents and diagnostic catheterizations. The government also alleged that several King’s Daughters physicians falsified medical records to justify these unnecessary cardiac procedures. Whistleblower Insider


May 22, 2014 - 

An owner and operator of community mental health centers in Baton Rouge as well as a patient recruiter for a related facility in Houston were convicted for their roles in a $258M Medicare fraud scheme involving three facilities that filed fraudulent claims for psychiatric services that were unnecessary or never actually provided. The ongoing investigation into these three community mental health centers — Shifa Community Mental Health Center, Serenity Center and Shifa Community Mental Health Center — has so far resulted in the convictions of 17 employees of these facilities, including therapists, marketers, administrators, owners and the medical director. DOJ


May 22, 2014 - 

Zahir Yousafzai, the co-owner or operator of four Detroit-area home health agencies involved in a $13.8M Medicare fraud scheme was sentenced to serve 72 months in prison and pay $4.1M in restitution. According to court records, Yousafzai and his co-conspirators paid and directed the payment of various medical professionals, including doctors, nurses, physical therapists and physical therapist assistants, to create fictitious patient files to document purported home health services that were never provided. The healthcare companies involved included First Care Home Health Care, Moonlite Home Care, Physicians Choice Home Health Care and Quantum Home Care. DOJ


May 20, 2014 - 

The DOJ announced it will require ConAgra Foods, Cargill, CHS Inc., and Horizon Milling to divest four competitively significant flour mills in order to proceed with the formation of Ardent Mills, a flour milling joint venture. The government said the divestitures are necessary to preserve flour milling competition in four regions of the country encompassing large cities such as Los Angeles, Dallas, Minneapolis and the San Francisco/Oakland Bay Area, resulting in more competitive prices for wheat flour purchasers and ultimately lower prices for consumers who purchase wheat flour-based products, such as bread, cookies and crackers. DOJ


May 19, 2014 - 

Credit Suisse pled guilty to criminal charges of conspiring to help thousands of US taxpayers evade taxes and agreed to pay fines and restitution amounting to $2.6 billion. It is the first big bank to plead guilty to illegal activity since Drexel Burnham Lambert in 1989. Whistleblower Insider


May 19, 2014 - 

Todd Farha, former CEO of WellCare, an operator of health maintenance organizations (HMOs) in several states, was sentenced to serve 36 months in prison for defrauding the Florida Medicaid program. According to court records and evidence at trial, Farha and others orchestrated a scheme to defraud the Florida Medicaid program from the summer of 2003 through the fall of 2007 by making fraudulent statements relating to expenditures for behavioral health care services. Under a prior settlement with the government, WellCare was required to pay $80M in restitution and forfeitures. In a related civil qui tam case filed under the whistleblower provisions of the False Claims Act, Wellcare also paid $137.5M in civil fines and penalties. DOJ


May 15, 2014 - 

Marubeni Corporation, a Japanese trading company involved in products and services in a broad range of sectors around the world, including power generation, was sentenced today for violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to high-ranking government officials in Indonesia to secure a lucrative power project. The company signed a plea agreement admitting its criminal conduct and agreeing to pay an $88M fine. DOJ


May 14, 2014 - 

Richard Shannon, a patient recruiter for All American and Patient Choice, two home health care companies that provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area, was sentenced to 86 months in prison for his role in a $14.5M Medicare fraud scheme. The evidence showed that Shannon paid Medicare beneficiaries to sign blank documents for physical therapy services that were never provided and/or medically unnecessary. Shannon recruited destitute beneficiaries from housing projects and soup kitchens in the Detroit area, obtaining their patient information in exchange for cash and promises of prescription narcotics prescribed by co-conspirator physicians. DOJ


May 14, 2014 - 

Electrolux Home Products agreed to pay a civil penalty of $750,000 to settle allegations that it knowingly failed to report immediately to the U.S. Consumer Product Safety Commission (CPSC) a safety hazard associated with certain wall ovens sold to consumers. DOJ


May 13, 2014 - 

Student loan company Sallie Mae, and its former student loan servicing arm, Navient Solutions, agreed to pay $100M to settle charges that they violated the Servicemembers Civil Relief Act (SCRA) by overcharging military members for student loans. Whistleblower Insider


May 6, 2014 - 

Baptist Health System, the parent company for a network of affiliated hospitals and medical providers in the Jacksonville, Florida area, agreed to pay $2.5M to settle allegations that its subsidiaries violated the False Claims Act by submitting claims to Medicare and Medicaid for medically unnecessary services and drugs. Specifically, the government charged that two neurologists in the Baptist Health network intentionally misdiagnosed patients with various neurological disorders so they could bill the government health care programs for services and drugs they did not actually need. The allegations were first raised in a qui tam lawsuit filed by former Baptist Health employee, Verchetta Wells, under the whistleblower provisions of the False Claims Act. DOJ


May 6, 2014 - 

The owners of Alpha Ambulance Inc. , a now-defunct Los Angeles-area ambulance transportation company, were sentenced for committing Medicare fraud by providing non-emergency ambulance transportation to Medicare beneficiaries whose medical condition at that time did not require ambulance transportation and then altering required documentation to conceal the scheme. DOJ


April 30, 2014 - 

A federal jury in Detroit convicted a physical therapist, physical therapy assistant and unlicensed doctor for their participation in a $15M Medicare fraud scheme at Detroit area companies Physicians Choice Home Health Care, Quantum Home Care, First Care Home Health Care, Moonlite Home Care and Phoenix Visiting Physicians. According to evidence presented at trial, these companies operated a fraudulent scheme to bill Medicare for home health care services that were never provided and paid kickbacks to recruiters who in turn paid Medicare beneficiaries cash and promised them access to narcotic prescriptions. DOJ


April 24, 2014 - 

Monica Patrice Carter, owner of the Baton Rouge pharmacy Community Pharmacy 1, pleaded guilty for directing a $2.2M Medicare fraud scheme where she paid employees of nursing homes and mental health facilities to collect and return unused prescription drugs which her pharmacy then repackaged and redistributed and billed Medicare as if they were being distributed for the first time – effectively billing Medicare twice for the same medications. DOJ


April 23, 2014 - 

Amedisys home health companies agreed to pay $150M resolve allegations they violated the False Claims Act by allegedly billing Medicare for nursing and therapy services not medically necessary or provided to patients who were not homebound, and by otherwise misrepresenting patients’ conditions to increase its Medicare payments. The allegations were first raised in several qui tam lawsuit filed by former Amedisys employees under the whistleblower provisions of the False Claims Act. DOJ


April 23, 2014 - 

Showa Corp., a Japanese automotive parts manufacturer, agreed to plead guilty and pay a $19.9M criminal fine for its role in a conspiracy to fix prices and rig bids for pinion-assist type electric powered steering assemblies installed in cars sold in the US and elsewhere. DOJ


April 16, 2014 - 

CRC Health Corp., a nationwide provider of substance abuse and mental health treatment services, agreed to pay $9.25M to settle allegations that CRC violated the False Claims Act by providing substandard treatment in its Tennessee facility to adult and adolescent Medicaid patients suffering from alcohol and drug addiction. The allegations were first raised in aqui tam lawsuit filed by a former billing clerk in the CRC facility under the whistleblower provisions of the False Claims Act. DOJ


April 16, 2014 - 

Drug manufacturer Astellas Pharma US agreed to pay $7.3M to resolve allegations that it violated the False Claims Act in connection with its marketing and promotion of the drug Mycamine for pediatric use when the drug did not have FDA approval for such use. The allegations were first raised in a qui tam lawsuit filed by Frank Smith, a former Astellas sales representative, under the whistleblower provisions of the False Claims Act.DOJ


April 14, 2014 - 

Hope Cancer Institute, a cancer treatment facility in Kansas, and its owner Dr. Raj Sadasivan, agreed to pay $2.9M to resolve allegations they violated the False Claims Act by submitting claims to Medicare, Medicaid and the Federal Employee Health Benefits Program for chemotherapy drugs and services not actually provided. The allegations were first raised in a qui tam lawsuit filed by former employees of the facility under the whistleblower provisions of the False Claims Act. DOJ


April 9, 2014 - 

Hewlett-Packard Russia agreed to plead guilty to felony violations of the Foreign Corrupt Practices Act for bribing Russian government officials to secure a large technology contract with the Office of the Prosecutor General of the Russian Federation. In addition, the US entered into criminal resolutions with HP subsidiaries in Poland and Mexico relating to FCPA violations for contracts with Poland’s national police agency and Mexico’s state-owned petroleum company. In total, the three HP entities will pay more than $108M in criminal and regulatory penalties. DOJ


April 9, 2014 - 

Five California-based masonry subcontractors, Frazier Masonry, F-Y Inc., CTI Concrete & Masonry, Masonry Technology, and Masonry Works, agreed to pay nearly $1.9M to resolve allegations they violated the False Claims Act by misrepresenting their disadvantaged small business status in connection with military construction contracts. The allegations were first raised in a qui tam lawsuit filed by Rickey Howard, a former employee of Frazier Masonry, under the whistleblower provisions of the False Claims Act. DOJ


April 3, 2014 - 

Kerr-McGee Corp. and its parent Anadarko Petroleum agreed to pay $5.15B to settle charges that Kerr-McGee fraudulently conveyed assets to evade liability for environmental clean-up at contaminated sites around the country. It is the DOJ’s largest environmental enforcement recovery on record.DOJ


March 24, 2014 - 

Vahe Tahmasian, owner and operator of the Hollywood, CA-based durable medical equipment supply company Orthomed Appliance, was found guilty by a federal jury in Los Angeles for his role in a $1.5M Medicare fraud scheme. DOJ


March 21, 2014 - 

Utah-based Okland Construction Co. agreed to pay $928,000 to resolve allegations that it made false statements and submitted false claims under the Small Business Administration’s Section 8(a) Program for Small and Disadvantaged Businesses. The allegations were first raised in a qui tam lawsuit filed by Section 8(a) participant Saiz Construction Co. and its owner Abel Saiz under the whistleblower provisions of the False Claims Act.DOJ


March 19, 2014 - 

Marubeni Corp., a Japanese trading company involved in power generation, pled guilty to violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a criminal fine of $88M for its participation in a scheme to bribe high-ranking government officials in Indonesia to secure a lucrative power project. DOJ


March 19, 2014 - 

Toyota agreed to pay $1.2B to resolve allegations of criminal wire fraud for misleading consumers by concealing and making deceptive statements about two safety issues affecting its vehicles which caused a type of unintended acceleration. It is the largest penalty of its kind ever imposed on an automotive company. DOJ


March 18, 2014 - 

California attorney Christopher Rusch was sentenced to serve 10 months in prison for helping his clients Stephen M. Kerr and Michael Quiel, both businessmen from Phoenix, hide millions of dollars in secret offshore bank accounts at UBS and Pictet & Cie in Switzerland. DOJ


March 18, 2014 - 

Alex Wisidagama, formerly employed by Glenn Defense Marine Asia, pleaded guilty to conspiracy to defraud the US for his role in a scheme to overbill the US Navy for ship husbanding services. His plea is the second in an expanding investigation into acts of alleged fraud and bribery committed by GDMA and several US Navy officers and personnel. DOJ


March 18, 2014 - 

American Family Care Inc., a network of walk-in medical clinics with offices in Alabama, Tennessee and Georgia, agreed to pay $1.2M to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate. The settlement resolves a qui tam lawsuit filed by a former employee of American Family Care under the whistleblower provision of the False Claims Act. DOJ


March 14, 2014 - 

Isabel Medina, the owner and operator of the Miami medical clinic Merfi Corp., was sentenced to serve 108 months in prison and pay $8.5M for her participation in multiple health care fraud schemes totaling $20M. DOJ


March 13, 2014 - 

Memorial Hospital, the operator of an acute care hospital facility in Ohio, agreed to pay $8.5M to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians. DOJ


March 12, 2014 - 

A federal jury in Houston convicted two owners of a former Houston mental health care company, Spectrum Care, several of its employees and the owners of certain Houston group care homes for their participation in a $97M Medicare fraud scheme. DOJ


March 11, 2014 - 

Florida-based hospital system Halifax Hospital Medical Center agreed to pay $85M to resolve allegations that they violated the False Claims Act and Stark Law by executing contracts with six medical oncologists that provided an incentive bonus that improperly included the value of prescription drugs and tests that the oncologists ordered and Halifax billed to Medicare. The government also alleged that Halifax knowingly violated the Stark Law by paying three neurosurgeons more than the fair market value of their work. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


March 11, 2014 - 

Generic pharmaceutical giant Teva Pharmaceuticals and its IVAX subsidiary have agreed to pay $27.6M for allegedly violating the False Claims Act by making payments to induce prescriptions of an anti-psychotic drug for Medicare and Medicaid beneficiaries. DOJ


March 7, 2014 - 

Ocean shipping companies Sea Star Line and Horizon Lines agreed to pay $1.9M and $1.5M, respectively, to resolve allegations that they violated the False Claims Act by fixing the price of government cargo transportation contracts between the continental US and Puerto Rico, the Department of Justice announced today. The allegations were first raised in aqui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


February 27, 2014 - 

Omnicare Inc., an Ohio-based long-term care pharmacy, agreed to pay $4.2M to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act.DOJ


February 27, 2014 - 

CSAV, a Chilean corporation, agreed to plead guilty pay an $8.9M criminal fine for its involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere. DOJ


February 25, 2014 - 

Diagnostic Imaging Group agreed to pay $15.5M to resolve allegations that its diagnostic testing facility falsely billed federal and state health care programs for tests that were not performed or not medically necessary and by paying kickbacks to physicians. The allegations were first raised in three qui tam lawsuits filed under the whistleblower provisions of the False Claims Act. DOJ


February 21, 2014 - 

Endo Pharmaceuticals and its parent Endo Health Solutions agreed to pay $192.7M to resolve criminal and civil liability arising from Endo’s marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the FDA. The allegations were first raised in three qui tam lawsuits filed under the whistleblower provisions of the False Claims Act. DOJ


February 19, 2014 - 

Medical device manufacturer EndoGastric Solutions agreed to pay up to $5.25M to resolve allegations that it violated the False Claims Act by misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


February 18, 2014 - 

Vector Planning and Services, an IT and systems engineering consulting firm agreed to pay $6.5M to settle False Claims Act allegations that it inflated claims for payment under several Navy service contracts. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


February 13, 2014 - 

Japanese based Bridgestone Corp. agreed to plead guilty and pay a $425M criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts installed in cars sold in the US and elsewhere. DOJ


February 12, 2014 - 

Government contractor MPRI Inc. agreed to pay $3.2M to resolve allegations that it submitted false labor charges on a contract to support the Army in Afghanistan. The allegations were first raised in a qui tamlawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


February 10, 2014 - 

SelfRefind, a chain of addiction treatment clinics in Kentucky, and related entities and individuals, agreed to pay $15.75M to resolve allegations they violated the False Claims Act by submitting claims to Medicare and Kentucky’s Medicaid program for tests that were medically unnecessary, more expensive than those performed or billed in violation of the Stark Law. DOJ


February 10, 2014 - 

Phillip Murphy, former managing director of Bank of America’s municipal derivatives products desk, pleaded guilty for his participation in a conspiracy related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts. DOJ


February 7, 2014 - 

Sanborn Map Company agreed to pay $2.1M to resolve allegations that it submitted false claims in connection with U. S. Army Corps of Engineers contracts for photogrammetric mapping and geographic information system services. The allegations were first raised in a qui tamlawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


February 4, 2014 - 

JPMorgan Chase agreed to pay $614M for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration and the Department of Veterans Affairs (VA). The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


February 3, 2014 - 

Las Vegas attorney Barry Levinson pleaded guilty for conspiracy to commit mail and wire fraud for his role in multiple schemes to defraud his clients and the IRS and to fraudulently gain control of condominium homeowners’ associations in the Las Vegas area to ensure they would steer business to a certain law firm and construction company. He is the 30th person to plead guilty in connection with the scheme to defraud HOAs in the Las Vegas area. DOJ


February 3, 2014 - 

Louis Duluc, former owner and operator of multiple physical therapy rehabilitation facilities, pleaded guilty for conspiracy to commit healthcare fraud for his role in organizing and leading a $28M Medicare fraud scheme involving physical and occupational therapy services.DOJ


January 29, 2014 - 

Saint Joseph Health System agreed to pay $16.5 million to resolve allegations that Saint Joseph Hospital violated the False Claims Act by submitting false claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary cardiac procedures. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


January 24, 2014 - 

Tennessee Orthopedic Clinics and Appalachian Orthopedic Clinics agreed to pay a combined $1.85M to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


January 23, 2014 - 

GE Hitachi agreed to pay $2.7 million to resolve allegations under the False Claims Act that it made false statements and claims to the Department of Energy and the Nuclear Regulatory Commission concerning an advanced nuclear reactor design. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


January 17, 2014 - 

RehabCare Group and other contract therapy providers agreed to pay $30 million to resolve claims that they violated the False Claims Act by engaging in a kickback scheme related to the illegal referral of nursing home business. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


January 10, 2014 - 

Two former executives of HealthEssentials Solutions agreed to pay more than $1 million to resolve False Claims Act allegations that they knowingly caused the company to submit false Medicare claims between 1999 and 2004 by billing for services that were inflated or not medically necessary and by pressuring employees to do the same. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


January 9, 2014 - 

Cadillac Asphalt and Michigan Paving and Materials agreed to pay $3.8 million to resolve allegations that they falsely claimed Disadvantaged Business Enterprise credits on a number of federally funded transportation projects. DOJ


January 9, 2014 - 

CareFusion Corp agreed to pay $40.1 million to resolve False Claims Act allegations that the company paid kickbacks and promoted its ChloraPrep products for non-FDA approved uses. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


January 7, 2014 - 

Dr. Ravi Sharma, owner and operator of Premier Vein Centers, agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


December 31, 2013 - 

St. James Healthcare and its parent company, Sisters of Charity of Leavenworth Health System, agreed to pay $3.85M to resolve allegations that they violated the Anti-Kickback Statute, the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital. DOJ


December 27, 2013 - 

Abbott Labs agreed to pay $5.5M to resolve allegations that it violated the False Claims Act by paying kickbacks to induce doctors to use the company’s vascular products. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act.DOJ


December 20, 2013 - 

Genzyme Corp. agreed to pay $22.3M to resolve allegations that it marketed, and caused false claims to be submitted to federal and state health care programs for use of a “slurry” version of its Seprafilm adhesion barrier. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


December 19, 2013 - 

Dr. Elie Korban will pay $1.2M to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements. The allegations were first raised in aqui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


December 9, 2013 - 

Northrop Grumman paid $11.4M to resolve False Claims Act allegations stemming from its failure to abide by a 2002 settlement agreement with the Defense Contract Management Agency. The government alleged that Northrop charged to its federal contracts certain costs for deferred compensation awards to key employees, even though it had promised not to do so as part of the earlier 2002 settlement. DOJ


December 2, 2013 - 

Caremark agreed to pay $4.25M to settle allegations that it knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries, who also were eligible for drug benefits under Caremark-administered private health plans. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


November 21, 2013 - 

Vantage Oncology agreed to pay $2M to settle allegations that it submitted false claims to Medicare for radiation oncology services performed at its Illinois centers from 2007 through June 2012. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


November 19, 2013 - 

The Ensign Group agreed to pay $48M to resolve allegations that it knowingly submitted to Medicare false claims for medically unnecessary rehabilitation therapy services. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


November 19, 2013 - 

FreshPoint Inc. agreed to pay $4M to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


November 14, 2013 - 

Basco Manufacturing agreed to pay $1M to resolve allegations that it violated the False Claims Act by making false customs declarations to avoid paying duties on products imported from a Chinese manufacturer, and that it has filed a complaint against four other companies and two individuals based on similar allegations. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


November 7, 2013 - 

Iraqi Consultants and Construction Bureau paid $2.7M to resolve allegations that it violated the False Claims Act by bribing a U.S. government official to obtain U.S. government contracts in Iraq. DOJ


November 5, 2013 - 

Hospice of the Comforter agreed to pay $3M to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit. The allegations were first raised in aqui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


November 4, 2013 - 

Johnson & Johnson agreed to pay more than $2.2B to resolve criminal and civil liability arising from allegations relating to the prescription drugs Risperdal, Invega and Natrecor, including promotion for uses not approved as safe and effective by the FDA and payment of kickbacks to physicians and to the nation’s largest long-term care pharmacy provider. The global resolution is one of the largest health care fraud settlements in U.S. history, including criminal fines and forfeiture totaling $485M and civil settlements with the federal government and states totaling $1.72B. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


October 17, 2013 - 

Boston Scientific Corp. agreed to pay $30Mn to settle allegations that, between 2002 and 2005, its Guidant subsidiary knowingly sold defective heart devices to health care facilities that in turn implanted the devices into Medicare patients. The allegations were first raised in a qui tamlawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


September 25, 2013 - 

Kan-Di-Ki LLC, d/b/a Diagnostic Laboratories and Radiology agreed to pay $17.5M to settle allegations that the California-based company violated the federal and California False Claims Acts by paying kickbacks for referral of mobile lab and radiology services subsequently billed to Medicare and Medi-Cal (the state of California’s Medicaid program). The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


September 16, 2013 - 

The Macalan Group Inc., f/k/a NEK Advanced Securities Inc. agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization. NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices. DOJ


September 13, 2013 - 

Gulf Region Radiation Oncology Centers, Sacred Heart Health System, West Florida Medical Center Clinic and others agreed to pay $3.5M to resolve allegations that they billed Medicare, Medicaid and TRICARE – the health care program for uniformed service members, retirees and their families worldwide – for radiation oncology services that were not eligible for payment. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


August 29, 2013 - 

Conax Florida Corp. agreed to resolve allegations under the False Claims Act that the company submitted false claims to the government for improperly tested inertia reels and non-conforming voltage references. Inertia reels are part of a system designed to secure aircrew members in the event of a crash. Voltage references are electronic parts used in water-activated parachute releases. Both devices are used by the U.S. military and NASA. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


August 28, 2013 - 

RPM International Inc. and its subsidiary, Tremco Inc. paid $61M to resolve allegations that Tremco filed false claims in connection with two multiple award schedule contracts with the General Services Administration for roofing supplies and services. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


August 27, 2013 - 

Imagimed LLC and the company’s former owners and chief radiologist agreed to pay $3.57M to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


August 22, 2013 - 

ATI Enterprises Inc. will pay the government $3.7M to resolve False Claims Act allegations that it falsely certified compliance with federal student aid programs’ eligibility requirements and submitted claims for ineligible students. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


August 21, 2013 - 

Richard S. Obedian, orthopedic surgeon, agreed to pay the government $388,000 to settle allegations that he violated the False Claims Act by submitting false claims to Medicare for minimally invasive spine procedures. DOJ


August 19, 2013 - 

Shands Teaching Hospital & Clinics agreed to pay $26M to settle allegations that six of its health care facilities submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ


August 6, 2013 - 

Larry Lehmann has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program. The E-rate Program subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ