Whistleblower News From The Inside -- December 29, 2016
By the C|C Whistleblower Lawyer Team
Michigan Financial Services company settles FCA case for $48M – Michigan-based United Shore Financial Services agreed to pay $48M to settle False Claims Act allegations it issued and underwrote HUD-insured mortgages that did not meet applicable requirements. EDMI USAO
First Circuit rejects whistleblower’s fraud-on-FDA theory – A unanimous three-judge panel of the First Circuit Court of Appeals determined a former Medtronic sales representative could not base his whistleblower suit on allegedly fraudulent representations made to the FDA because he failed to establish a causal link between the alleged misrepresentations and any bills later paid by CMS or other federal agencies. Reuters
California sleep clinic owners settle fraud allegations for $2.6M – Anooshiravan Mostowfipour and Tara Nader, owners and operators of California’s Bay Sleep Clinic chain, agreed to pay $2.6M to settle allegations they fraudulently billed Medicare for sleep tests performed by unqualified technicians, tests done at unapproved locations, and durable medical devices prohibited by Medicare rules; the case was brought by whistleblower and Constantine Cannon client Elma F. Dresser, who will receive $545,000 of the settlement. Mercury News
Mississippi man arrested for Medicaid fraud – Hattiesburg, Mississippi pharmacy employee Austin Grant O’Dom was arrested on charges he billed Medicaid for prescriptions that were neither ordered nor dispensed, and for generic drugs at name-brand prices. Hattiesburg American
Six plead guilty to FCPA-related charges — Six individuals pled guilty to FCPA-related charges for their involvement in a scheme to bribe Mexican government officials to secure aircraft maintenance and repair contracts. SDTX USAO
U.K. Defense Ministry makes dozens of bribery and corruption allegations – The U.K.’s Ministry of Defence has made dozens of allegations of bribery and corruption involving Britain’s multibillion-pound defense budget, prompting warnings that more should be done to tackle the problem. Belfast Telegraph