Archive

March 9, 2015

Two former employees of the Mental Health Association of Rockland County, Inc. will receive an undisclosed whistleblower award from the $304,000 settlement resolving allegations MHAR violated the New York False Claims Act through its managers and employees altering records in advance of a Medicaid audit so the records would appear to support claims MHAR submitted to New York State's Medicaid program. NY

Tagged in: FCA State, Healthcare Fraud, Medicaid, Provider Fraud, 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,

December 8, 2014

Supreme Foodservice pleaded guilty and paid $288 million for overcharging the government on a contract to provide food and water to the U.S. troops in Afghanistan. In addition, Supreme Group B.V. and several of its subsidiaries agreed to pay an additional $146 million to resolve a related civil lawsuit alleging false billings to the Department of Defense for fuel and transporting cargo to American soldiers in Afghanistan. Michael Epp, former Director, Commercial Division and Supply Chain for Supreme Group, will receive a whistleblower award of $16.2 million. DOJ

Tagged in: Defense Contract Fraud, FCA Federal, Whistleblower Case, Whistleblower Rewards,

October 22, 2014

DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, agreed to pay $400 million to resolve claims it violated the False Claims Act by paying kickbacks for patient referrals to its dialysis clinics through its use of a sophisticated three-part joint venture business model to induce patient referrals to its clinics.. David Barbetta, former Senior Financial Analyst for DaVita, will receive an undisclosed whistleblower award. DOJ

Tagged in: Anti-Kickback and Stark, FCA Federal, Provider Fraud, Whistleblower Case, Whistleblower Rewards,

October 10, 2014

Boeing entered in to a settlement that resolved allegations the aircraft maker improperly charged for labor costs under contracts with the U.S. Air Force for the maintenance and repair of C-17 Globemaster aircraft, one of the military’s major systems for transporting troops and cargo throughout the world. Specifically, the government charged Boeing with intentionally billing the Air Force for a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts. Boeing agreed to pay $23 million to resolve the matter. The settlement resolves allegations originally brought in a whistleblower lawsuit brought by present and former Boeing employees Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza. They will receive a combined whistleblower award of $3.9 million. DOJ

Tagged in: Defense Contract Fraud, Falsifying Invoices, FCA Federal, Whistleblower Case, Whistleblower Rewards,

September 26, 2014

Pharmacy benefit management (PBM) company Caremark LLC agreed to pay $6 million to settle charges of failing to reimburse Medicaid for prescription drug costs that should have been paid for by Caremark-administered private health plans. Caremark is operated by CVS Caremark Corporation, one of the largest PBMs and retail pharmacies in the country. Donald Well, former employee of Caremark, will receive a whistleblower award of $1 million from the $6 million False Claims Act settlement. DOJ

Tagged in: FCA Federal, Medicaid, Medicare, Pharma Fraud, Whistleblower Case, Whistleblower Rewards,

September 24, 2014

Shire Pharmaceuticals LLC agreed to pay $56.5 million to settle charges it violated the False Claims Act through improper marketing and promotion of several drugs used to treat attention deficit hyperactivity disorder (ADHD) and ulcerative colitis Several former employees will receive a whistleblower award in an undisclosed amount. DOJ

Tagged in: FCA Federal, Off-Label and Unapproved Use, Pharma Fraud, 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,

July 28, 2014

Vascular Solutions Inc (VSI), a Minneapolis-based medical device maker, agreed to pay $520,000 to resolve allegations that it violated the False Claims Act by marketing a product for sealing veins without FDA approval. Specifically, the government charged that VSI marketed and sold its "Vari-Lase Short Kit" for treating perforator veins (which run deep in the leg muscle) even though the FDA approved the device only for treating surface (or superficial) veins. DeSalle Bui, a former sales representative of VSI, will receive a whistleblower award in an undisclosed amount. DOJ

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

June 25, 2014

Ohio-based Omnicare Inc., the country’s largest provider of pharmaceuticals and pharmacy services to nursing homes, agreed to pay $124 million to settle government charges of offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to their elderly Medicare and Medicaid patients. Donald Gale, former employee of Omnicare Inc., will receive a whistleblower award of roughly $17M from the settlement. DOJ

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

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