This archive includes posts from our “Catch of the Week” series, in which the Whistleblower Insider blog highlights particular government enforcement actions. Return to:
On July 26, 2018, DOJ announced that Saint Paul, Minnesota-based 3M Company would pay $9.1 million to settle allegations that it knowingly sold defective dual-ended “Combat Arms” earplugs to the United States military without disclosing defects that made the devices ineffective and may have caused thousands of soldiers to suffer significant hearing loss and tinnitus (or ringing in the ears). Caught for its...
This week's Department of Justice "Catch of the Week" goes to New York-based medical device maker AngioDynamics, Inc. On Wednesday, the company agreed to pay $12.5 million to resolve allegations it violated the False Claims Act by making false and misleading promotional claims about the LC Bead and Perforator Vein Ablation Kit (PVAK) medical devices. Angio served as the U.S. distributor for Biocompatibles plc, the...
This week, DOJ announced a $14.7 million settlement with NY-based Health Quest Systems, Inc. (Health Quest), and its subsidiary hospital Putnam Health Center (Putnam) based on their submission of inflated and otherwise impermissible claims for payment to Medicare and Medicaid, making Health Quest and Putnam our Catch of the Week.
The settlement resolves allegations stemming from three separate lawsuits bought by...
This week's Department of Justice "Catch of the Week" goes to the hundreds of medical professionals charged in "the largest healthcare fraud takedown operation in American history." The DOJ brought charges against 601 defendants for their alleged participation in schemes to bill Medicare, Medicaid, TRICARE, and private insurers for medications and treatments that were unnecessary and often never provided. Over a...
This week's Department of Justice "Catch of the Week" goes to Healogics, Inc. On Wednesday, the Florida-based operator of hundreds of wound care centers agreed to pay up to $22.5 million to settle claims it violated the False Claims Act by billing Medicare for medically unnecessary and unreasonable hyperbaric oxygen therapy. See DOJ Press Release.
Hyperbaric therapy involves breathing oxygen inside a pressurized...
In a major victory for patients and taxpayers alike, DOJ announced an over $30 million settlement with Signature HealthCARE, LLC, a Kentucky-based company accused of overbilling federal healthcare programs for rehabilitation and skilled-nursing services. As a prime example of how valuing profits over patients can lead to fraudulent behavior, Signature HealthCARE wins the title of Catch of the Week.
The settlement...
In a joint effort by the DOJ, CFTC, and French authorities, Société Générale agreed on June 4th to pay penalties and disgorgement in excess of $1 billion arising out of two separate wrongful schemes, making them our Catch of the Week.
First, in connection with alleged violations arising from manipulation of the London InterBank Offered Rate (LIBOR), Société Générale agreed to pay $275 million in a...
By the C|C Whistleblower Lawyer Team
Earlier this week, South Florida resident Emilio Ismael Vázquez pleaded guilty to one count of wire fraud in connection with a scheme to ship emergency relief supplies to Puerto Rico in the aftermath of Hurricane Maria. He faces up to twenty years in prison.
According to prosecutors, Vázquez posed as a member of the wealthy Serrallés family, owners of the Destilerías...
By the C|C Whistleblower Lawyer Team
On Wednesday, the Securities and Exchange Commission filed a lawsuit against Jon E. Montroll and his former company, BitFunder, alleging violations of the anti-fraud and registration provisions of the federal securities laws. In parallel criminal proceedings, the U.S. Attorney’s Office for the Southern District of New York charged Montroll with perjury and obstruction of...
By the C|C Whistleblower Lawyer Team
On Wednesday, former pharmaceutical sales representative Steven Butcher admitted to running a $45 million scheme to swindle both federally-funded and private health care benefit programs. Butcher was charged with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the Anti-Kickback Statute, a law designed to remove financial incentives...