Government Enforcement Actions

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

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

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

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

August 6, 2013

Larry Lehmann has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program. The E-rate Program subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ