Whistleblower News From The Inside -- October 13, 2016
By the C|C Whistleblower Lawyer Team
Former nursing home chain executives indicted over $16M of fraud – Four individual employees of Indiana nursing home chain American Senior Communities, including the former CEO and COO, were indicted for their role in a fraud, kickback, and money laundering scheme. The suspects allegedly spent their ill-gotten gains on vacation cottages, golf, Rolexes, gold, and gambling. USAO Southern District of Indiana
Vermont lab settles state FCA suit for $6.75M – Independent toxicology lab Burlington Labs settled allegations brought under Vermont’s False Claims Act that the company violated numerous Medicaid drug testing rules; the company agreed to pay $6.75M and entered a corporate integrity agreement. Vermont Attorney General’s Office
Montana hospital accused of kickback scheme in FCA suit – Two former radiologists brought suit alleging Bozeman Health Deaconess entered into a sham joint venture with a radiology group and traded patient referrals for compensation to maintain a radiology monopoly in the area. Bozeman Daily Chronicle
Wells Fargo CEO resigns over recent scandal – Wells Fargo Chairman and CEO John Stumpf—recently under fire for his handling of a scandal involving bank employees opening millions of unauthorized accounts—resigned from both roles and will not receive a severance package. Wall Street Journal
New Jersey chiropractor arrested for illegal kickback scheme — Kesnold Baptiste is accused of healthcare fraud for his role in a kickback conspiracy that included dozens of doctors, lawyers, and medical facility operators. This is the latest arrest by New Jersey’s 10-month old Commercial Bribery Task Force. New Jersey Attorney General
Autoplant whistleblower reinstated at Hyundai supplier – Whistleblower Kim King, who claimed a chemical utilized at Hyundai plants sickened workers, will reclaim her job as part of a settlement between Renasol Seating and OSHA. Under the settlement, OSHA will conduct annual protected rights training for the company’s employees. Montgomery Advertiser