Government Enforcement Actions Archives - Page 533 of 534

April 3, 2014

Following a consent Order the CFTC obtained against MF Global, the company will begin making final distributions to its customers to satisfy its obligation of full restitution for $1.2 billion in losses sustained by customers of MF Global when the company failed in 2011. In addition to full restitution, the consent Order imposed a $100 million civil penalty on MF Global, to be paid after MF Global has fully paid customers. The consent Order arose out of the CFTC’s June 2013 complaint charging MF Global with unlawful use of customer funds. Specifically, the Complaint charged MF Global with unlawfully using customer segregated funds to support its own proprietary operations and the operations of its affiliates. CFTC

Tagged in: Fraud in CFTC-Regulated Markets,

March 21, 2014

Utah-based Okland Construction Co. agreed to pay $928,000 to resolve allegations it made false statements and submitted false claims under the Small Business Administration’s Section 8(a) Program for Small and Disadvantaged Businesses. The allegations were first raised in a qui tam lawsuit filed by Section 8(a) participant Saiz Construction Co. and its owner Abel Saiz under the whistleblower provisions of the False Claims Act. They will receive a whistleblower award of $148,480. DOJ

Tagged in: FCA Federal, Financial and Investment Fraud, Set-Asides and Preferences, Whistleblower Case, Whistleblower Rewards,

March 18, 2014

American Family Care Inc., a network of walk-in medical clinics with offices in Alabama, Tennessee and Georgia, agreed to pay $1.2M to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate. The settlement resolves a qui tam lawsuit filed by Anita C. Salters, a former employee of American Family Care under the whistleblower provision of the False Claims Act. DOJ

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

March 11, 2014

Florida-based hospital system Halifax Hospital Medical Center agreed to pay $85M to resolve allegations that they violated the False Claims Act and Stark Law by executing contracts with six medical oncologists that provided an incentive bonus that improperly included the value of prescription drugs and tests that the oncologists ordered and Halifax billed to Medicare. The allegations were first raised in a qui tam lawsuit filed by Halifax Hospital employee Elin Baklid-Kunz under the whistleblower provisions of the False Claims Act. She will receive a whistleblower award of $20.8 million. DOJ

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

March 10, 2014

The FTC has sent more than $2.4 million in refund checks to just over a hundred consumers harmed by the Premier Precious Metals scheme, which bilked millions of dollars from investors, including many senior citizens. The scheme worked by conning consumers into buying precious metals on credit without clearly disclosing significant costs and risks, including the likelihood that consumers would subsequently have to pay more money or lose their investments. FTC

March 7, 2014

Ocean shipping companies Sea Star Line and Horizon Lines agreed to pay $1.9M and $1.5M, respectively, to resolve allegations that they violated the False Claims Act by fixing the price of government cargo transportation contracts between the continental US and Puerto Rico, the Department of Justice announced today. The allegations were first raised in a qui tam lawsuit filed by former Sea Star Line executive William B. Stallings under the whistleblower provisions of the False Claims Act. He will receive a whistleblower award of $512,719. DOJ

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

January 8, 2014

Acting New Jersey Attorney General John J. Hoffman announced HIKO Energy, LLC agreed to pay $2.1 million and to significantly revise its business practices to resolve allegations it aggressively solicited consumers with written guarantees and verbal representations about its monthly prices for electric and/or natural gas service which it failed to fulfill, resulting in significant financial losses for New Jersey consumers. NJ

January 5, 2014

New York Attorney General Eric T. Schneiderman announced that Apple Transportation of New York, Inc. will pay $300,000 to settle claims it overbilled Medicaid for transportation services. As part of a settlement agreement, Apple Transportation admitted that between January 1, 2004 and October 30, 2008, it frequently billed Medicaid for ambulette services even though no personal assistance was provided to Medicaid recipients. As a result, Apple was paid by Medicaid for ambulette services at rates that were higher than the applicable livery rates. NY

Tagged in: Lack of Medical Necessity, Medicaid, Provider Fraud,

August 21, 2013

Richard S. Obedian, orthopedic surgeon, agreed to pay the government $388,000 to settle allegations that he violated the False Claims Act by submitting false claims to Medicare for minimally invasive spine procedures. DOJ

Tagged in: Healthcare Fraud,

August 19, 2013

Shands Teaching Hospital & Clinics agreed to pay $26M to settle allegations that six of its health care facilities submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

Tagged in: FCA Federal, Hospital Fraud, Lack of Medical Necessity, Medical Billing Fraud,

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