Whistleblower News From The Inside — October 6, 2016

By the C|C Whistleblower Lawyer Team

Louisiana accountant sentenced to prison in $50M Medicare fraud – Louisiana accountant Christopher White, who pled guilty in Louisiana federal court to coordinating a kickback scheme on behalf of a clinic running a $51M Medicare fraud was sentenced to two years in prison and ordered to pay $2.3M in restitution. St. Charles Herald Guide

Novartis settles FCA case for $35M – Novartis settled allegations it encouraged the off-label prescription of Elidel skin cream for the treatment of eczema in children younger than two, despite the lack of FDA approval for such use. The case was brought by whistleblower Donna Galmines, a former Novartis sales representative. Corporate Crime Reporter

Orthopedic clinics settle FCA suit for $2.39M – Three clinics in California and Nevada settled allegations they defrauded Medicare and Medicaid by billing for the full domestic price of osteoarthritis medications the clinics had purchased abroad at deeply discounted prices. USAO Eastern District of California

New protections for VA whistleblowers included in budget deal – Provisions in the latest Congressional budget deal require imposition of a 12 day minimum suspension against any supervisor who retaliates against a whistleblower, and immediate dismissal if the same supervisor retaliates a second time. Military Times

Ambulance company owner gets 10 months in prison – Pennsylvania ambulance company owner Bassem Kuran was sentenced for falsely claiming to transport several patients who were not ever transported; Kuran was also ordered to pay Medicare $67K in restitution. USAO Eastern District of Pennsylvania

Theranos to close labs and lay off 340 workers – Embattled blood-testing company Theranos announced it would close laboratory operations, shutter wellness centers, and lay off approximately 40 percent of its work force. The New York Times