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Whistleblower Group

This archive page contains posts by the Whistleblower Practice Group.  For all Whistleblower pages, please see: 

Page 732 of 942

September 1, 2015

Discount department store chain KMART Corp., which operates approximately 780 in-store pharmacies throughout the US, agreed to pay $1.4 million to resolve allegations it violated the False Claims Act by using drug manufacturer coupons and gasoline discounts as improper Medicare beneficiary inducements.  According to the government, Kmart improperly influenced the decisions of Medicare beneficiaries to bring their prescriptions to Kmart pharmacies by permitting them to use drug manufacturer coupons to reduce or eliminate prescription co-pays that they otherwise would be obligated to pay, and by also offering them varying levels of discounts on the purchase of gasoline at participating gas stations.  The allegations originated in a whistleblower lawsuit filed by former Kmart pharmacist Joshua Leighr under the qui tam provisions of the False Claims Act.  Leighr will receive a whistleblower award of approximately $248,500.  DOJ

August 31, 2015

Laran Lerner, a Detroit-area physician who prescribed unnecessary controlled substances and billed for unperformed office visits and diagnostic testing, pleaded guilty for his role in a $5.7 million health care fraud scheme.  DOJ

August 31, 2015

Vadim Mikerin, a Russian official residing in Maryland, pleaded guilty to conspiracy to commit money laundering in connection with his role in arranging over $2 million in corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation.  DOJ

August 28, 2015

EDF Resource Capital Inc. and its CEO, Frank Dinsmore, agreed to resolve allegations they violated the False Claims Act and otherwise failed to remit payments owed to the Small Business Administration under the 504 loan program.  Under the settlement agreement, EDF and Dinsmore agreed to make payments and turn over certain assets to the US for a total settlement of approximately $6 million.  DOJ

August 25, 2015

A federal jury in Miami convicted Roger Rousseau, former medical director of Health Care Solutions Network Inc. (HCSN), and three HCSN therapists for their roles in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.  HCSN is a now-defunct partial hospitalization program that purported to provide intensive treatment for mental illness.  According to the evidence presented at trial, HCSN billed Medicare and Medicaid for mental health services that were not medically necessary or never provided and paid kickbacks to assisted living facility owners and operators in Miami who, in exchange, referred beneficiaries to HCSN.  DOJ

August 24, 2015

Ayman Shahid, former president of Discovery Sales Inc., pleaded guilty to conspiracy to commit bank fraud.  DSI was the sales arm of affiliated residential construction companies, including Discovery Home Builders and Albert D. Seeno Construction Co.  Shahid admitted he conspired with others to fraudulently cause bank underwriters to approve mortgage loans for unqualified buyers during the height of the financial crisis.  DOJ

August 21, 2015

Wholly-owned Lockheed Martin Corporation subsidiary Sandia Corporation agreed to pay $4,790,042 to resolve allegations it violated the Byrd Amendment and the False Claims Act by using federal funds for activities related to lobbying Congress and federal agencies to obtain a renewal of its Management and Operating Contract with the Department of Energy’s National Nuclear Security Administration to operate the Sandia National Laboratories.  DOJ

August 19, 2015

Background check company US Investigations Services Inc. and its parent company Altegrity agreed to settle charges that USIS violated the False Claims Act by failing to provide proper background checks as required under its contract with the  Office of Personnel Management.  They agreed to forgo $30 million in payments they claim OPM owed them.  The allegations leading to the settlement were first raised in a whistleblower lawsuit filed by former USIS executive Blake Percival under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award.  Whistleblower Insider

August 19, 2015

Yaroslav (Steven) Proshak, former owner of Southern California ambulance company ProMed Medical Transportation, was convicted of health care fraud charges in connection with a Medicare fraud scheme of at least $2.4 million.  According to the evidence, Proshak and two of his managers conspired to bill Medicare for ambulance transportation services for individuals whom the defendants knew did not need such services.  They also instructed EMTs who worked at ProMed to conceal the true medical conditions of patients they were transporting by altering requisite paperwork and creating fraudulent documents to justify the transportation services.  DOJ

August 19, 2015

Arizona physician Dr. Bashir Azher agreed to pay $207,988 to resolve allegations he violated the False Claims Act by submitting false bills to Medicare for prostate laser ablation procedures, commonly known as Green Light prostatectomies.  Specifically, the government charged Dr. Azher with submitting false claims for reimbursement for prostate laser ablation procedures that were too short to generate a therapeutic benefit, failed to meet professionally recognized standards of care, were medically unnecessary, and/or violated applicable Medicare regulations.  The government’s allegations originated in a whistleblower lawsuit filed by Dr. Arnaldo Trabucco under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award.  DOJ
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