Archive

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

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 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

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