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Testing Lab and Owner/CEO Settle False Claims Act Case for $13.25 Million

Posted 01/12/24

Laboratory Analysis. Scientist Measuring Sample

RDx Bioscience Inc. (“RDx”), a clinical laboratory that operated in New Jersey, and its owner and CEO agreed to pay $13.25 million to settle a False Claims Act case alleging kickbacks and unnecessary testing schemes, according to a recent DOJ press release. The press release also notes that RDx and its owner/CEO agreed to cooperate with the DOJ’s “investigations of, and litigation against, other participants...

Tagged in: Anti-Kickback and Stark, FCA Federal, Healthcare Fraud, Laboratory and IDTF, Lack of Medical Necessity,

Top Ten False Claims Act Recoveries in 2023

Posted 01/11/24

It was another big year for DOJ enforcement under the False Claims Act, the government's primary fraud-fighting tool. As usual, most of the recoveries were in the healthcare space with seven of the Top-10 involving various schemes to defraud Medicare and Medicaid. Several of these Top-10 recoveries involved enforcement actions targeting violations of the Anti-Kickback Statute and Stark Law, which prohibit medical...

Tagged in: Anti-Kickback and Stark, Electronic Health Records, FCA Federal, Government Programs Fraud, Healthcare Fraud, Medicaid, Medical Billing Fraud, Medicare, Top 10, Whistleblower Case,

Catch of the Week: Moffitt Cancer Center

Posted 01/5/24

This week's Department of Justice (DOJ) Catch of the Week goes to Tampa-based H. Lee Moffitt Cancer Center & Research Institute Hospital. Yesterday (January 4), the non-profit cancer treatment and research center agreed to pay roughly $19.6 million to settle DOJ charges of violating the False Claims Act by billing Medicare for patient care services provided during research studies not eligible for...

Tagged in: Catch of the Week, FCA Federal, Healthcare Fraud, Improper Medical Facility, Medical Billing Fraud, Medicare,

Community Health Network Pays $345 Million to Settle Stark Law Case

Posted 12/21/23

Handshake in room with dark window blinds

Community Health Network Inc., based in Indianapolis, recently settled with the U.S. government for $345 million, addressing allegations under the False Claims Act related to the Stark Law. This landmark case emphasizes the importance of whistleblowers to combat Medicare fraud. The Stark Law prevents hospitals from billing Medicare for services referred by physicians who have a financial relationship with the...

Tagged in: Anti-Kickback and Stark, FCA Federal, Healthcare Fraud, Medicare, Whistleblower Case,

Catch of the Week: King Kong Tools

Posted 11/30/23

Typewriter with Made in China Letters Typed Out

This week's Department of Justice (DOJ) Catch of the Week goes to King Kong Tools GmbH & Co KG. On Wednesday (November 29), the German-based supplier of recycling, forestry, construction, and agricultural equipment, along with its American subsidiary, agreed to pay $1.9 million to settle DOJ charges of violating the False Claims Act through customs fraud. More specifically, the government alleged King Kong...

Tagged in: Catch of the Week, Customs Fraud, FCA Federal, Misrepresentations, Whistleblower Case,

Alabama Court Reaffirms Constitutionality of False Claims Act

Posted 11/29/23

The False Claims Act is the government's primary tool to go after those committing fraud against the government. One of the key features of the statute is the qui tam provisions, which allow private parties (whistleblowers) to bring suit on the government's behalf and in return, receive a hefty share of any government recovery. The Constitutional muster of this feature has long been settled, with the statute...

Tagged in: Court Decision, FCA Federal, FCA Materiality,

Tactical Gear Company Settles $2.1 Million False Claims Act Allegations

Posted 11/22/23

The U.S Attorney’s Office in the Southern District of Ohio has announced that London Bridge Trading Company, Ltd. (LBT), a Virginia headquartered manufacturer of tactical gear for military, law enforcement, and other organizations, has agreed to pay nearly $2.1 million to settle False Claims Act allegations. The case, initiated by qui tam relator Ann Keating, involves accusations that LBT failed to comply with the...

Tagged in: FCA Federal, Government Procurement Fraud, Trade Agreements, Whistleblower Case,

$45.6 Million Settlement in False Claims Act Case Against Nursing Facility Defendants

Posted 11/17/23

Nurse Holding Clipboard in Front of Nursing Patient

The DOJ recently announced another settlement of a False Claims Act case against skilled nursing facilities (SNFs). This time, it was a $45.6 million settlement of a False Claims Act case that the government brought against six SNFs; a management company called Paksn Inc.; and Prema Thekkek, the owner. The six SNFs do business as (i) Bay Point Healthcare Center (Kayal Inc.); (ii) Gateway Care & Rehabilitation...

Tagged in: Anti-Kickback and Stark, FCA Federal, Healthcare Fraud, SNF, Whistleblower Case,

Catch of the Week: AECOM

Posted 10/30/23

Last week's Department of Justice (DOJ) Catch of the Week goes to Dallas-based architecture and engineering firm AECOM. Last Tuesday (October 24), the company agreed to pay $11.8 million to settle charges it violated the False Claims Act by improperly billing the Federal Emergency Management Agency (FEMA) for disaster assistance funding in the wake of Hurricane Katrina. Under the Robert T. Stafford Disaster...

Tagged in: Catch of the Week, FCA Federal, Flood Insurance, Government Programs Fraud, Whistleblower Case, Whistleblower Rewards,

DOJ Issues Elder Justice Report To Congress

Posted 10/26/23

A key focus of the Justice Department is prosecuting and deterring elder fraud and abuse. In the words of Attorney General Merrick Garland, “Every year, millions of older adults experience some form of elder abuse, neglect, financial exploitation, or fraud. … Holding to account those individuals and organizations that engage in elder fraud or abuse is the cornerstone of the Department’s elder justice...

Tagged in: FCA Federal, Healthcare Fraud,

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Testing Lab and Owner/CEO Settle False Claims Act Case for $13.25 Million

Top Ten False Claims Act Recoveries in 2023

Catch of the Week: Moffitt Cancer Center

Community Health Network Pays $345 Million to Settle Stark Law Case

Catch of the Week: King Kong Tools

Alabama Court Reaffirms Constitutionality of False Claims Act

Tactical Gear Company Settles $2.1 Million False Claims Act Allegations

$45.6 Million Settlement in False Claims Act Case Against Nursing Facility Defendants

Catch of the Week: AECOM

DOJ Issues Elder Justice Report To Congress

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