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Whistleblower Rewards

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Page 64 of 102

October 30, 2017

Ohio-based Chemed Corporation and various wholly-owned subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, agreed to pay $75 million to resolve charges they violated the False Claims Act by submitting claims for hospice services to Medicare for patients not terminally ill.  Vitas is the largest for-profit hospice chain in the United States and was acquired by Chemed in 2004.  The government alleged the defendants rewarded employees with bonuses for the number of patients receiving hospice services, without regard to whether they were actually terminally ill and whether they would have benefited from continuing curative care.  The government further alleged that Vitas submitted false claims to Medicare for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements.  The allegations originated in several whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a portion of the proceeds of the government's recovery.  DOJ

October 16, 2017

Virginia-based defense contractor Triple Canopy, Inc. agreed to pay $2.6 million to settle charges it violated the False Claims Act by submitting false claims for payment to the Department of Defense for unqualified security guards stationed in Iraq.  Specifically, the government alleged that Triple Canopy knowingly billed the government for security guards who could not pass contractually required firearms proficiency tests and that Triple Canopy concealed the guards’ inability to satisfy the firearms testing requirements by creating false test scorecards that Triple Canopy was required to maintain for government review.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former Triple Canopy employee.  The whistleblower will receive an award of roughly $500,000 from the proceeds of the government's recovery.  DOJ (EDVA)

October 13, 2017

First Coast Cardiovascular Institute, P.A. agreed to pay roughly $450,000 to settle charges of violating the False Claims Act by knowingly delaying repayment of more than $175,000 in overpayments owed to Medicare, Medicaid, TRICARE, and the Department of Veterans Affairs.  Specifically, the government alleged the company accrued credit balances or overpayments owed to federal health care programs and despite repeated warning failed to pay back the money it owed.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former First Coast employee Douglas Malie.  He will receive a whistleblower award of $90,000 from the proceeds of the government's recovery.  DOJ (MDFL)

October 10, 2017

Sage Tee LLC, a subcontractor at the Department of Energy's Hanford Site, and its owner Laura Shikashio, agreed to pay $235,000 to settle charges they violated the False Claims Act in connection with improperly receiving two small business subcontracts at DOE's Hanford nuclear site.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive an award from the proceeds of the government's recovery. DOJ (EDWA)

October 4, 2017

Med-Fast Pharmacy, Inc. and its owner Douglas Kaleugher agreed to pay roughly $2.7 million to settle charges of violating the False Claims Act by distributing and submitting claims to Medicare for medication that it had either recycled from long-term care facilities serviced by its institutional pharmacy, or that otherwise differed from the medications identified as part of the claims submitted to the government.  The government further alleged the company sought reimbursement for the retail-packaged version of diabetes testing strips, while actually supplying patients with cheaper mail-order-packaged version of the same strips.  The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive an award from the proceeds of the government's recovery. DOJ (WDPA)

October 4, 2017

Four Houston-area hospitals agreed to pay $8.6 million to settle allegations they violated the False Claims Act and Anti-Kickback Statute by receiving kickbacks from various ambulance companies in exchange for rights to the hospitals’ more lucrative Medicare and Medicaid transport referrals.  The hospitals are all affiliated with Nashville-based Hospital Corporation of America include Bayshore Medical Center, Clear Lake Regional Medical Center, West Houston Medical Center and East Houston Regional Medical Center.  The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive an award from the proceeds of the government's recovery. DOJ (SDTX)

October 3, 2017

New York-based contractors Zoladz Construction Company Inc., Arsenal Contracting LLC and Alliance Contracting LLC, along with two owners, John Zoladz and David Lyons, agreed to pay more than $3 million to settle allegations they violated the False Claims Act by improperly obtaining federal set-aside contracts designated for service-disabled veteran-owned small businesses.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive an award of $450,000 from the proceeds of the government's recovery. DOJ

October 3, 2017

Pennsylvania garment wholesaler Notations, Inc. agreed to pay $1 million to settle charges of violating the False Claims Act by repeatedly ignoring warning signs that its business partners, Yingshun Garments Inc., Import Global Designs Inc., and Olgrem LLC, which imported garments from China, were engaged in a fraudulent double-invoicing scheme to underpay customs duties owed on the imported garments they sold to Notations.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower, Xing Wei, will receive an award from the proceeds of the government's recovery.  DOJ (SDNY)

September 27, 2017

South Carolina hospital AnMed Health agreed to pay over $7 million to resolve allegations it violated the False Claims Act by knowingly disregarding the statutory conditions for submitting claims to the Medicare program for a variety of services, including radiation oncology services, emergency department services, and clinic services.  Specifically, the government alleged that AnMed Health billed for radiation oncology services for Medicare patients when a qualified practitioner was not immediately available to provide assistance and direction throughout the radiation procedure, as required by Medicare regulations.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former AnMed Health employee Linda Jainniney.  She will receive a whistleblower award of roughly $1.2 million from the proceeds of the government's recovery.  DOJ (NDGA)

September 22, 2017

Aegerion Pharmaceuticals Inc., the Massachusetts-based subsidiary of Novelion Therapeutics Inc., agreed to plead guilty to charges relating to its prescription drug Juxtapid.  Specifically, Aegerion introduced Juxtapid into interstate commerce that was misbranded because, among other things, Aegerion failed to comply with a Risk Evaluation and Mitigation Strategy.  Aegerion agreed to pay more than $35 million to resolve criminal and civil liability arising out of violations of the False Claims Act and Federal Food, Drug, and Cosmetic Act.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Aegerion former employees Michele Clarke, Tricia Mullins, and Kristi Winge.  They will receive a whistleblower award of $4.7 million from the proceeds of the government's recovery. DOJ
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