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Whistleblower News From The Inside — July 25, 2016

Posted  July 25, 2016

By the C|C Whistleblower Lawyer Team

Johnson & Johnson Subsidiary Acclarent Inc. Pays Government $18 Million to Settle False Claims Act Allegations – The company has agreed to pay $18 million to resolve allegations that it caused health care providers to submit false claims to Medicare and other federal health care programs by marketing and distributing its sinus spacer product for use as a drug delivery device without U.S. Food and Drug Administration (FDA) approval of that use.  DOJ

South Carolina Hospital Settles False Claims Act Case for $17 Million – The suit was brought as a whistleblower case by a neurologist at the hospital, alleged that the hospital required doctors to make referrals to specific facilities; when the doctor objected, he was fired.  The State

Diagnostic Imaging Company to Pay $3,510,000 to Resolve False Claims Act Allegations – The settlement with Preferred Imaging, LLC, will resolve allegations that it improperly billed Medicare and Medicaid for services performed without proper medical supervision in violation of the False Claims Act and the Texas Medicaid Fraud Prevention Act.  A whistleblower began the case, and will receive nearly $600,000 of the settlement.  USAO ND Tex

Former Owner of Rooftop Building Across from Wrigley Field Convicted of Defrauding Chicago Cubs and Municipal Taxing Agencies – Rooftop venues surrounding Wrigley Field have agreements with the Cubs that required, among other things, that each rooftop pay the Cubs a royalty of 17% of their gross annual revenues.  In addition, Cook County and the city of Chicago and State of Illinois required certain tax payments and reporting.  Evidence at trial revealed that the defendant had submitted false annual royalty statements to the Cubs and false revenue statements to the taxing authorities.  USAO ND IL

International Olympic Committee Declines to Ban Russia – The IOC said it would leave it up to individual sports’ governing bodies to decide if Russian competitors are clean and should be allowed to compete at the Olympics.  The IOC also “express[ed] its appreciation for whistleblowing Russian athlete Yulia Stepanova, but declined to permit her to compete in Rio as a neutral athlete.  BBC

Chilean Airline Resolves Foreign Corrupt Practices Act Investigation and SEC Charges for Total of $22.2 million – LATAM Airlines Group S.A. was alleged to have implemented 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), and agreed to a $12.75 million criminal penalty.  In a related matter, LATAM reached a settlement with the SEC under which it agreed to pay $6.74 million in disgorgement and $2.7 million in prejudgment interest.  DOJ