FCA Federal
This archive displays posts tagged as relevant to the federal False Claims Act. You may also be interested in the following pages:
March 11, 2019
Medical device manufacturer Covidien LP will pay $20 million to resolve False Claims Act cases initiated by three whistleblowers alleging that Covidien violated the Anti-Kickback Statute by providing remuneration to healthcare providers in California and Florida. Covidien markets radiofrequency ablation catheters to providers including vein surgery practices for use in procedures for the treatment of varicose veins and underlying conditions, and allegedly provided its customers with substantial assistance in connection with marketing vein screening and related services in order to increase demand for such services and therefore induce purchases of Covidien's vein ablation products. Covidien will pay $17.5 million to the United States; $1.5 million to California; and $1 million to Florida. Two whistleblowers who were sales managers for Covidien, Erin Hayes and Richard Ponder, will share a $3.1 million whistleblower reward. The settlement also resolves claims by whistleblower Shawnea Howerton, a former employee of one of Covidien's customers. DOJ; USAO NDCal; FLMarch 7, 2019
A landlord participating in a federally funded rent subsidy program for low-income tenants has agreed to settle allegations of violating the False Claims Act. In order to receive housing assistance funds from the Department of Housing and Urban Development (HUD), Harold Joseph Tyler of Tyler Realty Group had certified that he would not charge more rent than was agreed upon. According to a tenant who filed the qui tam complaint that launched the investigation, however, Tyler effectively charged additional rent in the form of a recurring "non-refundable deposit" of nearly $200 per month. USAO EDVAMarch 7, 2019
A Connecticut-based durable medical equipment supplier, Med Tech, and its owner, Thomas Macre, Sr., have agreed to pay more than $467,000 to resolve allegations of violating the federal and state False Claims Acts. The alleged misconduct involved billing Medicaid for unprovided and medically unnecessary back braces and electrical stimulation units. USAO CTMarch 5, 2019
The United States reached a $25 million settlement against an Afghan delivery and transport subcontractor accused of violating the False Claims Act. From 2010 to 2012, Hikmat Shadman Logistics Services Company (HSLSC) and its owner, Hikmatullah Shadman, allegedly overcharged the United States millions of dollars by inflating their rates to well above those of competitors, falsifying thousands of documents, and charging for work that was never performed. In addition to the civil charges, HSLSC faced criminal charges for paying bribes to at least two U.S. service members to influence the awarding of contracts. As part of the criminal settlement, the company and its officers have agreed to seek no further business with the United States and to refrain from applying for travel visas to the United States. DOJ; USAO DCFebruary 27, 2019
Tennessee-based skilled nursing facility chain Vanguard Healthcare LLC, along with former executives William Orand and Mark Miller, have agreed to pay upward of $18 million to resolve False Claims allegations of billing Medicare and Medicaid for worthless and "grossly substandard nursing home services." According to press releases, five facilities in the Vanguard network allegedly submitted false claims for reimbursement, despite a litany of failures, including forging nurse and physician signatures, using unnecessary physical restraints on residents, failing to prevent pressure ulcers, failing to provide wound care as ordered, failing to provide standard infection control, failing to administer medications as prescribed, and failing to meet basic nutrition and hygiene requirements. The case is considered the largest case of fraud involving worthless services in state history. DOJ; USAO MDTNFebruary 25, 2019
Skyline Urology will pay $1.85 million to resolve allegations under the federal False Claims Act that it improperly billed Medicare for evaluation and management (E&M) services that did not meet the criteria for separate billing. Skyline allegedly used "Modifier 25" to unbundle its E&M billing even when the E&M services were provided on the same day as other billed medical services and were not significant, separately identifiable, and beyond those ordinarily involved with the associated procedure. A whistleblower, James M. Cesare, filed a qui tam complaint, and will receive a relator's share of approximately $323,750. DOJFebruary 22, 2019
Pharmaceutical manufacturer Lehigh Valley Technologies, Inc. will pay $4 million to resolve claims that it caused the submission of false claims through a scheme to avoid the payment of FDA new drug application (NDA) fees. The FDA will waive such fees for a small business applicant submitting its first NDA, and had waived fees for Lehigh on an NDA in 2010. Subsequently, in an effort to avoid $2 million in fees for a later NDA, Lehigh entered into agreements with two other companies to submit the NDAs and claim the fee exemptions, while Lehigh retained undisclosed control. USAO ED PAFebruary 21, 2019
Hooshang Poor, a doctor of geriatric medicine based in Newton, Massachusetts, has agreed to pay $680,000 to resolve claims under the False Claims Act that he knowingly submitted inflated charges to Medicare and the Massachusetts Medicaid program. Dr. Poor was alleged to submit bills with false procedural codes that overstated the length, extent, and scope of services that he furnished to nursing home residents, and misrepresented services provided by non-physician employees. USAO Mass.Data Whistleblower Case Raises Question of What is a Public Disclosure
Posted 02/21/19
