Whistleblowers Needed to Stop Secret Kickbacks, Bribes, Overcharging, and False Costs in E-Rate, Lifeline, Connect America, and Rural Healthcare programs

The FCC disburses billions of dollars every year for its massive Universal Service Fund (USF) and its laudable mission to promote telephone and internet access to all U.S. persons regardless of income and location. This massive pot of government money attracts a commensurate measure of opportunists seeking to defraud these well-meaning programs. What is the Universal Service Fund? The Universal Service Fund comprises four main programs. Telecommunications companies fund the...

Question of the Week — Are device manufacturer's services valuable education or unlawful kickbacks?

Earlier this week, medical-device manufacturer Medtronic's Covidien business unit agreed to pay approximately $20 million to resolve kickback allegations related to the sale of its ClosureFast radiofrequency ablation catheters.  ClosureFAST catheters are used in procedures to treat venous-reflux disease, whose symptoms include varicose veins. The settlement resolves claims that Covidien improperly provided doctors free or discounted marketing services and practice-development support to sway them to buy ClosureFAST catheters. The support...

Sharp HealthCare - Healthcare Fraud/Kickbacks (Undisclosed)

Constantine Cannon represented a whistleblower in a False Claims Act case alleging Sharp HealthCare Center for Research, Sharp’s clinical-trial research arm, paid kickbacks to entice prospective trial sponsors to host clinical trials at Sharp.  In November 2019, the company agreed to pay an undisclosed amount to settle the matter.  Our client received a whistleblower award of an undisclosed portion of the government's recovery.  Read more -- CC.

Catch of the Week — Ambulance Company and Clients Busted for Illegal Kickbacks and Cozy Financial Relationships

Here’s a question you shouldn’t have to ask when you’re in an ambulance: Did a bribe put me here? Our Catch of the Week goes to a $21 million settlement of a case against several ambulance-industry companies for allegedly paying kickbacks to secure lucrative exclusive contracts. Paramedics Plus, the East Texas Medical Center, the Emergency Medical Services Authority (EMSA), and EMSA’s president and CEO Herbert Stephen Williamson were accused in...

US Obtains $114M FCA Judgement in Kickbacks Case

On May 23, the US District Court in South Carolina issued judgment for the US for roughly $114M against three individuals, LaTonya Mallory, Floyd Dent III, and Robert Johnson, for violating the FCA by paying kickbacks to doctors in exchange for patient referrals. The defendants also caused two labs to bill Medicare, TRICARE, and Medicaid for medically unnecessary tests. The judgment follows a January jury verdict that determined liability. Broadly...

Pfizer Agrees to Pay $23.85 Million to Resolve False Claims Act Liability for Paying Kickbacks

The Department of Justice today announced that Pfizer agreed to pay $23.85 million to resolve allegations that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs. Medicare Part B or D beneficiaries typically make a partial payment when obtaining prescription drugs in the form of a copay, coinsurance, or deductible. Under the Anti-Kickback Statute, pharmaceutical companies are prohibited from paying patients’...

Radiation Therapy Company Agrees to Pay Up to $11.5 Million to Settle Allegations of False Claims and Kickbacks

By the C|C Whistleblower Lawyer Team The DOJ announced a settlement with Texas-based radiation therapy center SightLine Health LLC (“SightLine”) and Oncology Network Holdings LLC, which acquired SightLine in 2011, for $11.5 million to settle allegations in a False Claims Act complaint that Sightline submitted Medicare claims that violated the Anti-Kickback Statute.  According to DOJ, the allegations centered on SightLine paying physicians a share of profits in exchange for referrals...

Rehab Clinics Allegedly Paying Kickbacks to “Body Brokers”

By the C|C Whistleblower Lawyer Team With the rise of the nation’s opioid crises, more opportunities for corruption and fraud have developed. An industry of patient brokering or “body brokering” has been born. Body brokers are paid kickbacks by rehab clinics in exchange for their recruiting of patients. Patients with good insurance are the most appealing recruits. Kickbacks are also being paid between healthcare entities. For example, one common scheme...

Lawsuit Alleges Support Group for Victims of Sexual Abuse by Priests Took "Kickbacks" From Lawyers

By the C|C Whistleblower Lawyer Team Gretchen Hammond, the former development director at the Survivors Network of those Abused by Priests (SNAP), has filed a retaliatory discharge suit against her former employer in Chicago, where SNAP maintains its national headquarters.  SNAP has been instrumental in exposing sexual abuse committed by Catholic priests, as well as the role played by the Church in covering up and, ultimately, perpetuating the abuse.  The...

Bay Sleep Clinic - Healthcare Fraud/Kickbacks ($2.6 million)

Constantine Cannon represented a whistleblower under the False Claims Act case alleging Bay Sleep Clinic billed Medicare for sleep studies by unlicensed technicians and paid kickbacks to doctors for patient referrals.  In December 2016, the company agreed to pay $2.6 million to settle the matter.  Our client received a whistleblower award of roughly 21% of the government’s recovery.  Read more -- SF Gate, DOJ, PR Newswire, CC.