Archive

July 7, 2014

Vahe Tahmasian of Glendale, California was sentenced to 121 months in prison and ordered to pay roughly a million dollars for his role in a $1.5M Medicare fraud and identity theft scheme. Tahmasian and his co-conspirators purchased Orthomed Appliance Inc., a DME supply company, stole the personal identifying information of Medicare beneficiaries and doctors in the company’s patient files, and used that information to submit a large volume of fraudulent claims to Medicare. DOJ

Tagged in: Healthcare Fraud, Medical Devices and DME,

March 24, 2014

Vahe Tahmasian, owner and operator of the Hollywood, CA-based durable medical equipment supply company Orthomed Appliance, was found guilty by a federal jury in Los Angeles for his role in a $1.5M Medicare fraud scheme. DOJ

Tagged in: Medical Devices and DME,

February 19, 2014

Medical device manufacturer EndoGastric Solutions agreed to pay up to $5.25M to resolve allegations that it violated the False Claims Act by misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

Tagged in: FCA Federal, Medical Billing Fraud, Medical Devices and DME, Whistleblower Case,

January 9, 2014

CareFusion Corp agreed to pay $40.1 million to resolve False Claims Act allegations that the company paid kickbacks and promoted its ChloraPrep products for non-FDA approved uses. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

Tagged in: Anti-Kickback and Stark, FCA Federal, Medical Devices and DME, Off-Label and Unapproved Use, Whistleblower Case,

December 20, 2013

Genzyme Corp. agreed to pay $22.3M to resolve allegations that it marketed, and caused false claims to be submitted to federal and state health care programs for use of a “slurry” version of its Seprafilm adhesion barrier. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

Tagged in: FCA Federal, Medical Devices and DME, Off-Label and Unapproved Use, Whistleblower Case,

December 19, 2013

Dr. Elie Korban will pay $1.2M to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

Tagged in: FCA Federal, Lack of Medical Necessity, Medical Devices and DME, Provider Fraud,

October 17, 2013

Boston Scientific Corp. agreed to pay $30Mn to settle allegations that, between 2002 and 2005, its Guidant subsidiary knowingly sold defective heart devices to health care facilities that in turn implanted the devices into Medicare patients. The allegations were first raised in a qui tamlawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

Tagged in: Defective Products, Medical Devices and DME, Whistleblower Case, Whistleblower Rewards,

April 2, 2015

Medical device maker Medtronic plc and affiliated Medtronic companies,Medtronic Inc., Medtronic USA Inc., and Medtronic Sofamor Danek USA Inc., agreed to pay $4.41 million to resolve allegations they violated the False Claims Act by making false statements to the Department of Veterans Affairs and the Department of Defense regarding the country of origin of certain Medtronic products sold to the US. Specifically, the government charged Medtronic with selling to the VA and DoD products it certified would be made in the US or other designated countries when in fact they were manufactured in China and Malaysia, which are prohibited countries under the Trade Agreements Act of 1979. The allegations were first raised in a whistleblower lawsuit filed by three unidentified whistleblowers under the qui tam provisions of the False Claims Act. They will receive a whistleblower award of $749,700. Whistleblower Insider

Tagged in: FCA Federal, Medical Devices and DME, Other Government Health Programs, Trade Agreements, Whistleblower Case, Whistleblower Rewards,

February 6, 2015

Minnesota-based medical device manufacturer Medtronic Inc. agreed to pay $2.8M to resolve allegations it violated the False Claims Act by causing physicians to submit false claims to federal health care programs for investigational medical procedures known as “SubQ stimulations” that were not reimbursable. According to the government, Medtronic improperly promoted the procedure and the use of its spinal cord stimulation devices for the procedure even though its safety and efficacy had not been established by the FDA. The charges were first raised in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Medtronic sales representative Jason Nickell. He will receive a whistleblower award of $602,000. DOJ

Tagged in: FCA Federal, Healthcare Fraud, Medical Devices and DME, Off-Label and Unapproved Use, Whistleblower Case, Whistleblower Rewards,

September 18, 2014

New York Attorney General Eric T. Schneiderman announced that 46 states and the District of Columbia have reach a settlement agreement with Minnesota-based company Medtronic to resolve claims under the False Claims Act that Medtronic improperly induced physicians to recommend Medtronic devices to treat cardiac rhythmic disease. New York led a national team composed of members from Oregon, Texas and California to negotiate the settlement. The federal government settled its matter in May of this year. The agreement requires Medtronic to pay the settling states $362,362 which will go to those states’ Medicaid programs. The matter was brought by a whistleblower, Adolfo Schroeder. NYAG

Tagged in: Healthcare Fraud, Medicaid, Medical Devices and DME, Whistleblower Case, Whistleblower Rewards,

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