Whistleblower Case
This archive displays posts tagged as involving a whistleblower case or claim. You may also be interested in our pages:
July 14, 2021
Diesel Direct, LLC of Stoughton, Massachusetts will pay $850,000 to resolve claims brought in a qui tam action alleging that the company knowingly delivered nonconforming petroleum diesel fuel to state agencies while charging for a higher-priced and more environmentally-friendly biodiesel fuel; improperly charged state agencies a federal fuel excise tax; and failed to comply with the state's Supplier Diversity Program requiring spending with women-owned, minority-owned, and veteran-owned businesses. MassJune 28, 2021
Surgical Care Affiliates, LLC and Orlando Center for Outpatient Surgery, LP have agreed to pay $3.4 million to resolve a whistleblower’s allegations that they billed Medicare and TRICARE for medically unnecessary kidney stone procedures. The centers also engaged in an illegal kickback arrangement whereby urologist Dr. Patrick Hunter performed lithotripsy procedures in exchange for per-procedure payments from the Orlando Center. For bringing a successful action, whistleblower Scott Thompson will receive a relator’s share of $748,000 from the settlement with SCA and the Orlando Center. USAO MDFLJuly 6, 2021
Defense contractor AAR Corp. and its subsidiary, AAR Airlift Group Inc., have agreed to pay $11 million to resolve allegations of knowingly failing to maintain U.S. military aircrafts in accordance with U.S. Transportation Command (TRANSCOM) contracts. The alleged False Claims Act violations involved nine helicopters that were deemed not airworthy and not mission capable as a result of the failures. A former Airlift employee who filed the underlying qui tam complaint, Christopher Harvey, will receive over $2 million as part of the settlement. USAO SDILJuly 2, 2021
An Ohio-based hospital system that has since been acquired by the Cleveland Clinic Foundation has agreed to pay over $21 million to resolve alleged violations of the Anti-Kickback Statute, Physician Self-Referral Law, and False Claims Act. Between 2010 and 2016, Akron General Health System (AGHS) allegedly paid area physician groups far above fair market value in order to induce referrals, then submitted claims arising from those illegal referrals to federal healthcare programs. The settlement resolves a qui tam suit brought forth by former internal audit director at AGHS, Beverly Brouse, and Ethical Solutions LLC. DOJJuly 2, 2021
Select Medical Corporation (SMC) and Encore GC Acquisition LLL have agreed to pay $8.4 million to settle allegations that contract rehabilitation therapy provider Select Medical Rehabilitation Services Inc. (SMRS)—a previous subsidiary of SMC and current subsidiary of Encore—violated the False Claims Act. According to former SMRS employee Melissa Vail, SMRS’s desire to maximize profits led it to provide medically unnecessary, unreasonable, and unskilled therapy services, and subsequently caused twelve skilled nursing facilities in the New York and New Jersey area to submit false claims to Medicare over a six-year period. USAO NJJune 25, 2021
Multinational telecommunications and internet service provider Level 3 Communications, LLC has agreed to pay over $12.7 million to resolve claims a former employee brought under the False Claims Act, alleging violations of the Anti-Kickback Act, False Claims Act, and Procurement Integrity Act. Under a contract with the General Services Administration, Level 3 allegedly accepted kickbacks from subcontractors MSO Tech, Inc. and P.V.S. Inc. in exchange for steering work to them. Additionally, under a contract with the Department of Homeland Security, Level 3 allegedly maintained that subcontractor PVS qualified as a contractually obligated woman-owned small business when in fact PVS is owned by a man. USAO EDVACatch of the Week: a Medley of Contracting Fraud in Telecom
Posted 06/25/21
June 3, 2021
A Department of Energy (DOE) prime contractor responsible for cleaning up a decommissioned nuclear production complex in Washington State has agreed to pay over $3 million to resolve alleged False Claims Act violations involving false and fraudulent small business subcontract reports. Whistleblower Salina Savage and her company, Savage Logistics LLC, had alleged that CH2M Hill Plateau Remediation Company (CHPRC) knowingly misrepresented two of its subcontractors, Indian Eyes, LLC and Phoenix-ABC A Joint Venture, as businesses located in Historically Underutilized Business Zones (HUBZones) in order to meet contract requirements and obtain reimbursements totaling hundreds of millions of dollars from DOE. As a result of bringing a successful enforcement action, Savage and her company will receive a relator’s share of approximately $865,000. USAO EDWACatch of the Week: Dental Clinics to Pay $2.7M for Using Unsterilized Tools on Medicaid Patients
Posted 05/28/21
