Archive

August 14, 2017

Maryland-based Midasco, LLC agreed to pay $450,000 to settle charges it violated the False Claims Act failing to comply with the Davis-Bacon Act for not paying workers who performed electrical work on the Virginia I-495 HOV/HOT Lanes Project the prevailing wage required by federal labor standards. The government alleged Midasco instead improperly classified workers as supervisors and paid them a salary in order to avoid paying the higher wages they were entitled to as electricians. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by David Ridley. He will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ (EDVA)

Tagged in: FCA Federal, Government Procurement Fraud, Prevailing Wage, Whistleblower Case, Whistleblower Rewards,

August 11, 2017

West Palm Beach-based government contractor Academy Medical, LLC and its owners, Edward D. Desser and Daniel M. Shaw, agreed to pay $335,000 to resolve allegations they violated the False Claims Act by improperly usurping federal contracting opportunities reserved for certified service-disabled veteran-owned small businesses. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblower will receive an award of $67,000 from the proceeds of the government's recovery. DOJ (NDNY)

Tagged in: FCA Federal, Government Procurement Fraud, Set-Asides and Preferences, Whistleblower Case, Whistleblower Rewards,

August 10, 2017

Virginia Beach-based contractor ADS Inc. and its subsidiaries agreed to pay $16 million to settle allegations that they violated the False Claims Act by conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts. The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement ranks as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility. The purported small businesses affiliated with ADS include Mythics Inc., London Bridge Trading Co. Ltd., and MJL Enterprises LLC, which falsely claimed to be an eligible service-disabled veteran-owned company, and SEK Solutions LLC and Karda Systems LLC, both of which falsely claimed to qualify as socially or economically disadvantaged businesses under the Small Business Administration’s 8(a) Business Development Program. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Ameliorate Partners LLP. It will receive a whistleblower award of roughly $2.9 million. DOJ

Tagged in: Bribery and Bid-Rigging, FCA Federal, Government Procurement Fraud, Set-Asides and Preferences, Whistleblower Case, Whistleblower Rewards,

August 8, 2017

PHH Corp., PHH Mortgage Corp. and PHH Home Loans agreed to pay roughly $75 million to resolve charges they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), guaranteed by the United States Department of Veterans Affairs (VA), and purchased by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) that did not meet applicable requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former PHH employee Mary Bozzelli. She will receive a whistleblower award of roughly $9 million from the proceeds of the government's recovery. DOJ

Tagged in: FCA Federal, Financial and Investment Fraud, Financial Institution Fraud, Housing and Mortgage Fraud, Whistleblower Case, Whistleblower Rewards,

August 3, 2017

The Medical Center of Central Georgia, Inc. (d/b/a The Medical Center, Navicent Health) agreed to pay roughly $2.6 million to resolve allegations it violated the False Claims Act by submitting bills for ambulance transports that were either inflated or medically unnecessary. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Navicent paramedic Andre Valentine. He will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ (MDGA)

Tagged in: FCA Federal, Lack of Medical Necessity, Provider Fraud, Whistleblower Case, Whistleblower Rewards,

September 5, 2017

Novo Nordisk, Inc. has agreed to $1.1 million to resolve claims that its diabetes drug Victoza was unlawfully promoted for off-label use in violation of the California Insurance Frauds Prevention Act. The claims were brought in a whistleblower action under that act filed by former Novo Nordisk researcher Peter Dastous, who will receive a share of the settlement. CA

Tagged in: Off-Label and Unapproved Use, Pharma Fraud, Private Insurance Whistleblower Reward Programs, Whistleblower Case, Whistleblower Rewards,

July 24, 2017

Dr. James Norman, the owner and operator of Norman Parathyroid Center, agreed to pay $4 million to resolve allegations he violated the False Claims Act by billing Medicare for pre-operative examination services for which he had already received payment from the government. These extra fees ranged from $150 to $750 for Florida residents, to $1,750 or more for patients who lived out-of-state, adding up to hundreds of thousands of dollars in illicit billing. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former patient of Dr. Norman, Myra Gross, and her husband, Dr. David Gross. They will receive a whistleblower award of roughly $600,000 from the proceeds of the government's recovery. DOJ (MDFL)

Tagged in: FCA Federal, Medicare, Provider Fraud, Whistleblower Case, Whistleblower Rewards,

July 17, 2017

Ohio-based nursing home operators Foundations Health Solutions Inc., Olympia Therapy Inc. and Tridia Hospice Care Inc., and their executives Brian Colleran and Daniel Parker, agreed to pay roughly $19.5 million to resolve allegations they violated the False Claims Act by submitting to Medicare claims for medically unnecessary rehabilitation therapy services and for hospice services to patients not eligible for the Medicare benefit, and by soliciting and receiving kickbacks to refer patients from their skilled nursing facilities to home health care provider Amber Home Care LLC. The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act by former Olympia employee Vladimir Trakhter and former Tridia employees Paula Bourne and La’Tasha Goodwin. Mr. Trahkter will receive a whistleblower award of roughly $2.9 million and Ms. Bourne and Ms. Goodwin collectively will receive an award of roughly $740,000, all from the proceeds of the government’s recovery. Whistleblower Insider

Tagged in: Anti-Kickback and Stark, Home Health and Hospice, Lack of Medical Necessity, Multiple Whistleblowers and First-to-File, SNF, Whistleblower Case, Whistleblower Rewards,

July 14, 2017

Narco Freedom, Inc., a former operator of outpatient chemical dependency clinics, Joining Hands Management Inc., an operator of short-term residences known as “three-quarter houses,” and Joining Hands co-owner Devorah Haigler, settled claims of violating the False Claims Act. The government will receive a $50.5 million allowed claim in the Narco Freedom bankruptcy proceeding, and Joining Hands and Haigler will pay $300,000. The government alleged the defendants engaged in a kickback scheme whereby Narco made monthly cash payments to Joining Hands in exchange for Haigler and others referring residents of Joining Hands three-quarter houses to NARCO outpatient programs. The allegations originated in a whistleblower lawsuit under the qui tam provisions of the False Claims Act. An unidentified whistleblower will receive an undisclosed whistleblower award from the proceeds of the government's recovery. DOJ (SDNY)

Tagged in: FCA Federal, Healthcare Fraud, Medicare, Provider Fraud, Whistleblower Case, Whistleblower Rewards,

July 7, 2017

Wal-Mart Stores Inc. agreed to pay $1.65 million to resolve allegations it violated the False Claims Act by submitting pharmacy claims to California’s Medi‑Cal program not supported by applicable diagnosis and documentation requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a Wal-Mart pharmacist. The whistleblower will receive a whistleblower award of roughly $264,000 from the proceeds of the government's recovery. DOJ (EDCA)

Tagged in: Medicaid, Pharma Fraud, Whistleblower Case, Whistleblower Rewards,

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