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Whistleblower Rewards

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Page 92 of 102

August 13, 2015

Two Southwest Missouri health care providers agreed to pay $5.5 million to settle allegations they violated the False Claims Act by engaging in improper financial relationships with referring physicians.  The two providers are Mercy Health Springfield Communities (formerly known as St. John’s Health System Inc.) and its affiliate, Mercy Clinic Springfield Communities (formerly known as St. John’s Clinic).  Specifically, the government charged the hospitals with submitting false claims to Medicare for services rendered to patients referred by physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals of patients to the clinic.  The allegations first arose in a whistleblower lawsuit filed by Dr. Jean Moore, a physician who is employed by one of the defendants, under the qui tam provisions of the False Claims Act.  Dr. Moore will receive a whistleblower award of $825,000.  DOJ

Tagged in: Anti-Kickback and Stark, FCA Federal, Hospital Fraud, Whistleblower Case, Whistleblower Rewards,

August 11, 2015

Computer Supply company PC Specialists Inc. (d/b/a Technology Integration Group) agreed to pay $5.9 million to settle charges it inflated the price of computers sold through another company to the National Nuclear Security Administration for use at Sandia National Laboratories in Albuquerque, New Mexico.  Specifically, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA.  According to the government, TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract.  The government’s allegations arose from a whistleblower lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be determined whistleblower award.  Whistleblower Insider

Tagged in: FCA Federal, Government Procurement Fraud, Pricing Fraud, Whistleblower Case, Whistleblower Rewards,

July 30, 2015

California-based medical device manufacturer NuVasive Inc. agreed to pay $13.5 million to resolve charges it violated the False Claims Act by improperly promoting the company’s CoRoent System for spine surgeries for uses not approved by the Food and Drug Administration.  The settlement also resolves allegations NuVasive paid illegal kickbacks to induce physicians to use the company’s CoRoent System.  The government’s allegations originated in a whistleblower lawsuit filed by former NuVasive sales representative Kevin Ryan under the qui tam provisions of the False Claims Act.  He will receive a whistleblower reward of approximately $2.2 million.  Whistleblower Insider

Tagged in: Anti-Kickback and Stark, FCA Federal, Medical Devices and DME, Whistleblower Case, Whistleblower Rewards,

July 6, 2015

LB&B Associates Inc. and its principals, Lily A. Brandon and F. Edward Brandon, agreed to pay $7.8 million to resolve allegations they made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program for Small Disadvantaged Businesses.  The allegations first arose in a whistleblower lawsuit filed by Steven O. Sansbury and James T. Buechler, former employees of LB&B, under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of $1.5 million.  DOJ

Tagged in: FCA Federal, Set-Asides and Preferences, Whistleblower Case, Whistleblower Rewards,

June 30, 2015

VMware Inc. and Carahsoft Technology Corporation agreed to pay $75.5 million to settle charges they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services.  The allegations originated in a whistleblower lawsuit filed by Dane Smith, a former vice president of the Americas at VMware Inc., under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be-determined whistleblower award from a portion of the government’s recovery.  Whistleblower Insider

Tagged in: FCA Federal, Government Procurement Fraud, Pricing Fraud, Whistleblower Case, Whistleblower Rewards,

June 29, 2015

John Muir Health agreed to pay $550,000 to resolve allegations it submitted false claims for Medicare reimbursement by failing to have physicians adequately supervise the delivery of radiation therapy services.  The allegations originated in a whistleblower lawsuit filed by a former John Muir Health employee under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of $110,000 as her share of the government’s recovery.  DOJ

Tagged in: FCA Federal, Hospital Fraud, Improper Medical Personnel, Whistleblower Case, Whistleblower Rewards,

June 24, 2015

For-profit education company Education Affiliates agreed to pay $13 million to settle charges it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid.  The Maryland-based company operates 50 campuses under various trade names, including All State Career, Fortis Institute, Fortis College, Tri-State Business Institute Inc., Technical Career Institute Inc., Capps College Inc., Driveco CDL Learning Center, Denver School of Nursing and Saint Paul’s School of Nursing.  According to the government, the company engaged in a variety of fraudulent acts to increase admissions including admitting unqualified students, creating false high school diplomas, falsifying students’ federal aid applications, and referring prospective students to “diploma mills” to obtain invalid online high school diplomas.  The allegations first arose in five whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  As part of this resolution, the five whistleblowers will receive whistleblower award payments totaling approximately $1.8 million.  Whistleblower Insider

Tagged in: Education Fraud, FCA Federal, Multiple Whistleblowers and First-to-File, Whistleblower Case, Whistleblower Rewards,

June 16, 2015

Hebrew Homes Health Network Inc., a Florida-based operator of rehabilitation and skilled nursing facilities, along with its former president and executive director William Zubkoff, agreed to pay $17 million to resolve allegations it violated the False Claims Act by improperly paying doctors for referrals of Medicare patients requiring skilled nursing care.  It is the largest settlement involving alleged violations of the Anti-Kickback Statute by skilled nursing facilities in the US.  The allegations against Hebrew Homes first arose in a whistleblower lawsuit filed by Stephen Beaujon, a former CFO of Hebrew Homes, under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $4.25 million.  Whistleblower Insider

Tagged in: Anti-Kickback and Stark, FCA Federal, SNF, Whistleblower Case, Whistleblower Rewards,

June 16, 2015

Jacksonville, Florida-based home health company Advanced Homecare, Inc.agreed to pay $1,293,169 to settle charges it violated the False Claims Act by billing the government for millions of dollars of medically unnecessary services.  According to the government, Advanced Homecare accepted and treated patients who were not actually homebound and did not have a valid physician certification of home health need, as required by Medicare.  The allegations first arose in a whistleblower lawsuit filed by Advanced Homecare former employee Marsha Yandell under the qui tam provisions of the False Claims Act.  Ms. Yandell will receive a whistleblower award of more than $200,000.  DOJ

Tagged in: FCA Federal, Home Health and Hospice, Lack of Medical Necessity, Whistleblower Case, Whistleblower Rewards,

June 15, 2015

Children’s Hospital, Children’s National Medical Center Inc. and its affiliated entities agreed to pay $12.9 million to resolve allegations they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services, as well as to Virginia and District of Columbia Medicaid programs.  The allegations first arose in a whistleblower lawsuit filed by former Children’s National Medical Center employee James A. Roark Sr. under the qui tam provisions of the False Claims Act.  Mr. Roark will receive a whistleblower award of $1,890,649.98.  DOJ

Tagged in: FCA Federal, FCA State, Hospital Fraud, Whistleblower Case, Whistleblower Rewards,

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