This week's Department of Justice (DOJ) Catch of the Week goes to electronic health record (EHR) technology vendor NextGen Healthcare Inc. Today, DOJ announced the company has agreed to pay $31 million to settle charges it violated the False Claims Act by misrepresenting to the government the capabilities of its EHR software and providing kickbacks to its users to induce them to recommend NextGen’s software. The...
After 12 Years of Litigation, Constantine Cannon Settles the Largest Iraq War Fraud Case Ever
Posted 07/6/23
In the largest settlement of a case alleging fraud during the Iraq War, KBR Services has agreed to pay $108.75 million to resolve a whistleblower case brought by two Constantine Cannon clients under the qui tam provisions of the False Claims Act. The settlement followed 12 years of litigation, during which KBR and its lawyers fought every step of the way.
While the size and scope alone make the settlement...
Catch of the Week: National Health Care Fraud Sweep
Posted 06/30/23
This week's Department of Justice (DOJ) Catch of the Week goes to the 78 individuals criminally charged with participating in health care fraud and opioid abuse schemes across the country. On Wednesday, DOJ announced the "strategically coordinated, two-week nationwide law enforcement action" it brought with federal and state law enforcement partners, which targeted misconduct resulting in over $2.5 billion in...
Supreme Court Clarifies Government's Right to Dismiss False Claims Act Cases Brought by Whistleblowers
Posted 06/20/23
The Supreme Court last Friday (June 16) in United States ex rel. Polansky v. Executive Health Resources, Inc. clarified the scope of the Government's authority to dismiss False Claims Act cases brought by whistleblowers. In an 8 to 1 decision (with Justice Thomas dissenting), the Court held the Government may move to dismiss both during the seal period when it is investigating the case and after the seal when a...
This week's Department of Justice (DOJ) Catch of the Week goes to Florida-based compounding pharmacies Smart Pharmacy, Inc. and SP2, and their owner Gregory Balotin. Yesterday, they agreed to pay at least $7.4 million to settle charges they violated the False Claims Act by adding an antipsychotic drug to topical pain creams solely to boost Medicare reimbursement. Not because of any medical purpose the drug...
It's Medicare Fraud Prevention Week - What Can You Do?
Posted 06/9/23
This week is Medicare Fraud Prevention Week. You probably did not even know it because of the relative lack of attention this important week has received. All the more surprising because Medicare fraud and abuse costs the government an estimated $60 billion per year. But according to Senior Medicare Patrol (SMP), the government-sponsored public education organization, there is a lot we can do to attack this...
Supreme Court Unanimously Rejects After the Fact Excuses
Posted 06/2/23
In a major victory for honest citizens, on June 1, 2023, the Supreme Court unanimously reversed the Seventh Circuit’s decision in United States ex rel. Schutte v. SuperValu Inc. Constantine Cannon whistleblower attorneys Eric Havian, Michael Ronickher, Ari Yampolsky, and Noah Brecker-Redd had filed an amicus brief on behalf of Senator Charles Grassley, the champion of the FCA, urging the Court to reverse this...
This week's Department of Justice (DOJ) "Catch of the Week" goes to Detroit Medical Center, Vanguard Health Systems, and Tenet Healthcare. On Wednesday, they agreed to pay roughly $30 million to settle government and whistleblower charges of violating the False Claims Act by providing kickbacks to certain referring physicians. It is just the latest in a string of False Claims Act settlements concerning kickbacks...
Catch of the Week: Vascular Surgeon Pays Over $60 Million for Defrauding Health Care Programs
Posted 05/26/23
This week's Department of Justice (DOJ) "Catch of the Week" goes to Michigan vascular surgeon Vasso Godiali. Yesterday, DOJ announced he was sentenced to 80 months in prison "for orchestrating a multimillion-dollar scheme to defraud health care programs by submitting claims for the placement of vascular stents and for thrombectomies that he did not perform."
In addition to the jail time, Dr. Godiali also has to...
Healthcare Fraud Jury Verdict Demonstrates DOJ’s Commitment to Prosecuting Kickbacks
Posted 03/13/23
Very few cases ever filed reach jury trial. The vast majority are dismissed or settle long before that stage. This trend is particularly true for cases filed under the False Claims Act (FCA), where defendants face treble damages and penalties if they are found liable at trial. In FCA trials where the Government and/or whistleblower prevails, the judge, unbeknownst to the jury, is required to triple the amount of...