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Page 19 of 33

July 24, 2018

Attorney General Pam Bondi announced the arrest of a doctor, Armando Falcon, and two office managers, Claudia Centeno and Reveka Karagiann, in relation to charges for illegal sale of prescription drugs. Dr. Falcon owned and operated Pain Center of Cutler Bay in South Florida. Dr. Falcon allegedly met with patients for less than two minutes before writing prescriptions for oxycodone. The two office managers allegedly printed prescriptions for large quantities of oxycodone before Dr. Falcon arrived in the office to expedite the process of selling the drugs. FL AG

July 20, 2018

Attorney General Barbara Underwood announced a six month jail sentence and $1.5 million in restitution payments for Arkady Goldin owner of Value Pharmacy, Inc. for defrauding the New York State Medicaid program. Mr. Goldin had pleaded guilty to second degree health care fraud in June for entering into a kickback arrangement with a former hospital employee to steer prescriptions to Value Pharmacy. Value then submitted false claims to Medicaid for medications it never dispensed to patients. NY AG

June 7, 2018

Mississippi physician Albert Diaz was sentenced to 42 months in prison for prescribing medically unnecessary compounded medications to TRICARE patients he had not examined and falsifying medical records to make it appear he had treated the patients. The fraud cost TRICARE and other insurers more than $3 million. DOJ

May 31, 2018

Irina Minkovich and Yelena Babchinetskya, owners of Philadelphia-based I&L Express Pharmacy, entered into an integrity agreement and will pay $3.2 million to the federal government to resolve allegations that they violated the False Claims Act over a six-year period by billing Medicare for prescription drugs never dispensed to patients. USAO EDPA

May 29, 2018

Wal-Mart and Sam’s Club will collectively pay $825,000 to resolve federal and state False Claims Act allegations the company’s automatic prescription refills for Minnesota Medicaid patients violated Minnesota law and wasted taxpayer dollars on unnecessary and unused medications. USAO DMN

May 24, 2018

Pharmaceutical giant Pfizer agreed to pay $23.85 million and enter in to a corporate integrity agreement to resolve claims under the False Claims Act that it induced Medicare patients to use three Pfizer drugs, Sutent, Ilyta, and Tikosyn, by unlawfully covering patients copays in violation of the AKS; in doing so, Pfizer increased its profits and masked the effect of drug price increases. DOJ

April 26, 2018

Nicholas A. Borgesano Jr., owner of Florida pharmacy A to Z Pharmacy was sentenced to 180 months in prison and ordered to pay $54 million in restitution for his role in a massive compounding pharmacy fraud scheme. DOJ

March 30, 2018

Larry B. Howard, the owner of an Orlando-based Fertility Pharmacy, was sentenced to serve 160 months in prison and forfeit over $4.3 million for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. DOJ

March 23, 2018

Massachusetts-based medical device manufacturer Alere Inc. agreed to pay $33.2 million to resolve allegations that Alere violated the False Claims Act by causing hospitals to submit false claims to Medicare, Medicaid, and other federal healthcare programs by knowingly selling unreliable point-of-care diagnostic testing devices marketed under the trade name Triage. According to the government, Alere received customer complaints that put it on notice that certain devices it sold produced erroneous results that had the potential to create false positives and false negatives that adversely affected clinical decision-making. Nonetheless, the company failed to take appropriate corrective actions until FDA inspections prompted a nationwide product recall in 2012. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Amanda Wu, who formerly worked for Alere as a senior quality control analyst. She will receive a whistleblower award of roughly $5.6 million from the proceeds of the government's recovery. DOJ
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