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Whistleblower Rewards

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Page 82 of 102

July 5, 2016

Drayer Physical Therapy Institute, LLC , with locations in in South Carolina and 14 other states, agreed to pay $7 million to settle charges of violating the False Claims Act by providing services to multiple patients simultaneously as though the services were being provided by a physical therapist or physical therapist assistant to one patient at a time.  The allegations originated in a whistleblower lawsuit filed by two former employees of Drayer under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of roughly $1.7 million from the proceeds of the government's recovery.  DOJ (DSC)

June 30, 2016

California-based Marshall Medical Center agreed to pay $5.5 million to settle allegations that it, along with Marshall Foundation for Community Health, El Dorado Hematology & Medical Oncology II, Inc., Dr. Lin H. Soe and Dr. Tsuong Tsai, violated the federal False Claims Act and California False Claims Act through a variety of Medicare and Medicaid billing improprieties.  The allegations originated in a whistleblower lawsuit filed by oncology nurse Colleen Herren under the qui tam provisions of the False Claims Act. She will receive a whistleblower reward of roughly $1,430,000 from the proceeds of the government's recovery.  DOJ (EDCA)

June 30, 2016

Florida cardiologist Dr. Asad Qamar and his practice, the Institute of Cardiovascular Excellence (ICE), will pay $2 million plus release any claim to $5.3 million in suspended Medicare funds, to settle charges they violated the False Claims Act by billing for medically unnecessary procedures and paying kickbacks to patients by waiving Medicare copayments irrespective of financial hardship.  By waiving the required copayments, Dr. Qamar and ICE induced patients to agree to unnecessary and invasive procedures and other services.  Dr. Qamar’s and ICE’s illegal conduct made Dr. Qamar the highest paid Medicare cardiologist in the country in 2012 and 2013.  The allegations originated in two whistleblower lawsuits filed by Dr. Robert A. Green and Ms. Holly A. Taylor under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of roughly $1.3 million from the proceeds of the government's recovery.  DOJ

June 30, 2016

SRA International Inc., Galaxy Scientific Corp. (GSC), Galaxy Technology LLC, and Engineering Integrated Services L.L.C. agreed to pay roughly  $1.1 million to resolve allegations they violated the False Claims Act through GSC's use of shell affiliates to improperly induce the government to fund and award task orders, disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit with respect to certain military contract.  The allegations originated in a whistleblower lawsuit filed by former GSC contracting officer John Carr under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of roughly $250,000 from the proceeds of the government's recovery.  DOJ (DNJ)

June 29, 2016

Minneapolis-based Cardiovascular Systems, Inc. (CSI) agreed to pay $8 million to resolve allegations that it violated the False Claims Act by paying illegal kickbacks to induce physicians to use the company’s medical devices.  According to the government, CSI developed and distributed marketing materials to promote physicians using CSI’s devices to referring physicians; coordinated meetings between these physicians and referring physicians; and developed and implemented business expansion plans for the physicians.  The government alleged that CSI engaged in these activities to induce doctors to begin to use or continue to use CSI’s devices.  The allegations originated in whistleblower lawsuit filed by former CSI employee Travis Thams under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award from a share of the government's recovery.  DOJ (WDNC)

June 27, 2016

Ten North Texas companies and individuals agreed to pay $1.125 million to resolve charges they violated the False Claims Act for failing to comply with rules and regulations governing Medicaid transportation services.  The companies include: Irving Holdings, Inc. (together with its predecessor companies Big Tex Taxi Corporation, Terminal Taxi Corporation, Choice Cab, Inc., Yellow Checker Cab of Dallas, Inc., and Yellow Checker Cab of Fort Worth, Inc.); JetTaxi, Inc.; Dallas Taxi, LLC; US Cab, LLC; Terminal Taxi Corporation of Irving; Classic Shuttle Acquisition Corporation, Inc.; and Dallas Car Leasing, LLC.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Robert Spence, Mike Jones, and Cheryl Jones.  They were employees of Irving Holdings, one of the largest taxicab companies in the US.  They will receive a whistleblower award of $202,500 from the proceeds of the government's recovery.  DOJ (EDTX)

June 9, 2016

Raleigh, North Carolina-based specialty pharmacy Salix Pharmaceuticals, Inc., which sells products used to treat various gastroenterology conditions, agreed to pay $54 million to settle charges it violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe Salix drugs and medical devices.  Specifically, the government alleged Salix held sham speaker programs, frequently at high-end restaurants, where doctors were paid substantial honoraria purportedly to educate other doctors about a Salix product, but in reality spent little or no time discussing the product.  $16,578,000 of the settlement amount will go to the Medicaid programs of different states including Ohio.  The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a yet-to-be-determined award from the proceeds of the government's recovery.  DOJ (SDNY), OH

June 6, 2016

Genentech Inc. and OSI Pharmaceuticals LLC agreed to pay $67 million to resolve charges they violated federal and state False Claims Act by making misleading statements about the effectiveness of the cancer drug Tarceva.  According to the government, Genentech and OSI made misleading representations to physicians and other health care providers about the effectiveness of Tarceva when there was little evidence to show that Tarceva was effective to treat those patients unless they also (i) had never smoked or (ii) had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells.  The allegations originated in a whistleblower lawsuit filed by former Genentech employee Brian Shields under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of approximately $10 million out of the proceeds of the government’s recovery.  Whistleblower Insider GA, MA, OH

June 1, 2016

Dr. Jonathan Oppenheimer, former owner and CEO of Nashville drug testing laboratory Prost-Data, Inc. (d/b/a OURLab), OPKO Health, Inc., and OPKO Lab, have agreed to pay $9.35 million to resolve charges they violated the False Claims Act by providing illegal kickbacks in exchange for business.  According to the government, Dr. Oppenheimer and OURLab made donations toward electronic health records (EHR) systems purchased by their client physician practices that fell outside the restrictions set forth in the Anti-Kickback Statute EHR safe harbor and the Stark EHR exception.  The allegations originated in a whistleblower lawsuit filed by a former OURLab employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of $1.683 million from the proceeds of the government's recovery.  DOJ (MDTE)

June 1, 2016

San-Diego-based Harper Construction Company, Inc. paid $5.4 million to resolve allegations it violated the False Claims Act by fraudulently billing the government for work on multiple projects on military bases through the use of sham small disadvantaged businesses.  The settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune.  According to the government, Harper claimed it met the contract requirement that it subcontract a certain percentage of work to small disadvantaged businesses when in fact it subcontracted with sham small disadvantaged businesses.  Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation.  The allegations originated in a whistleblower lawsuit filed by Rickey Howard, a former employee of Harper subcontractor Frazier Masonry Corporation, under the qui tam provisions of the False Claims Act.  Mr. Howard will receive a whistleblower award of $1,485,000 from the proceeds of the government's recovery.  DOJ (SDCA)
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