FCA Federal

Radiology Practice - Healthcare Fraud/Unnecessary Testing ($10.5M)

Constantine Cannon represented two whistleblowers in a False Claims Act case alleging New York-based Zwanger-Pesiri Radiology improperly billed Medicare for testing that was medically unnecessary or never performed.  In November 2016, the company agreed to pay $10.5 million to settle both criminal and civil charges.  Our clients received a whistleblower award of more than $1 million.  Read more -- Newsday, DOJ, PR Newswire, CC.

November 22, 2016

Zwanger-Pesiri Radiology forced to pay a multi-million dollar settlement.  Click here to see our whistleblower's interview with CBS2.

November 21, 2016

Partner Eric Havian in the news regarding United States of America et al v. J-M Manufacturing Company . Click here to read the Law 360 article.

November 17, 2016

Constantine Cannon is pleased to announce that its qui tam clients Linda Gibb and Donna Geraci aided the U.S. government and the State of New York in recovering more than $10 million over allegations of systemic Medicare and Medicaid fraud by Zwanger-Pesiri Radiology.  Click here for the press release in PR Newswire.

November 16, 2016

New York announced that Zwanger & Pesiri Radiology Group, LLP, Zwanger Radiology P.C. and Dr. Steven Mendelson (collectively, “Zwanger”) will pay $8,153,727 to resolve allegations that the defendants knowingly submitted false claims to Medicare and Medicaid. The settlement resolved allegations that from January 1, 2003 through October 26, 2015, Zwanger submitted claims for services provided or supervised by physicians, or at a Zwanger location, that were not enrolled in Medicare and/or Medicaid and therefore ineligible for payment. Zwanger falsely claimed that Dr. Mendelson, who was a Medicare and Medicaid enrolled provider, had in fact performed the procedures. The settlement also resolved allegations that from January 1, 2008 through February 28, 2014, Zwanger submitted false claims to Medicare and Medicaid for certain radiology procedures that were not ordered by a treating physician. These procedures included the automatic performance of certain types of x-rays, and the automatic performance of ultrasounds in female patients, even these both procedures were not ordered by a treating physician. NY

November 7, 2016

Pennsylvania-based medical device manufacturer Biocompatibles Inc., a subsidiary of British-based BTG plc, pleaded guilty and agreed to pay more than $36 million for violating the False Claims Act and Food, Drug and Cosmetic Act by misbranding its embolic device LC Bead, which is used to treat liver cancer, among other diseases, and by marketing and selling the product for uses not approved by the FDA.  The matter originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Ryan Bliss who oversaw Bicompatibles’ North American marketing.  He will receive a whistleblower award of approximately $5.1 million from the proceeds of the government’s False Claims Act recovery.  Whistleblower Insider

November 4, 2016

California-based aerospace parts company Air Industries Corporation agreed to pay $2.7 million to resolve allegations it violated the False Claims Act by falsely certifying it had performed required inspections on aerospace parts used in military aircraft, spacecraft and missiles used by the Department of Defense.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by an AIC employee.  The employee will receive a whistleblower award of $621,000 from the proceeds of the government's recovery.  DOJ (CDCA)