FCA Federal

April 20, 2017

Illinois-based drugstore giant Walgreen Co. agreed to pay $9.86 million to resolve allegations it violated the False Claims Act by submitting claims for reimbursement to California’s Medi-Cal program that were not supported by applicable diagnosis and documentation requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former Walgreens pharmacist and a former pharmacy technician. They will receive a whistleblower award of roughly $2.3 million from the proceeds of the government's recovery. DOJ (EDCA)

April 20, 2017

Dr. Norman A. Brooks, a dermatologist and surgeon and owner of Skin Cancer Medical Center in Encino, agreed to pay roughly $2.7 million to resolve allegations he submitted bills to Medicare for Mohs micrographic surgeries for skin cancers that were medically unnecessary. The government alleged that Brooks falsely diagnosed skin cancer in some of his patients so that he could perform, and bill for, Mohs surgeries. The allegations originated in a whistleblower lawsuit by former employee Janet Burke. She will receive a whistleblower award of roughly $483,000 from the proceeds of the government's recovery. DOJ (CDCA)

April 18, 2017

International Tutoring Services, LLC (d/b/a Hospice Plus; Goodwin Hospice, LLC; Phoenix Hospice, LP; Hospice Plus, L.P.; and Curo Health Services, LLC) agreed to pay $12.21 million to resolve allegations they violated the False Claims Act by paying kickbacks in exchange for patient referrals. The alleged kickbacks took the form of cash, gift cards, sham loans, a free equity interest in another entity, stock dividends, and free rental space. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblowers will receive a whistleblower award from the proceeds of the government's recovery. DOJ (NDTX)

April 14, 2017

HSBC Bank agreed to pay roughly $2.1 million to resolve charges it violated the False Claims Act for misconduct in connection with HSBC’s participation in the Small Business Administration (SBA) Express loan program.  According to the government, HSBC sought reimbursement from the SBA without revealing facts suggesting that borrowers submitted false information to HSBC to obtain many of the loans, or the fact that HSBC had included the loans on an internal list of fraudulent or potentially fraudulent loans.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ (SDNY)