Whistleblower News from the Inside -- July 27, 2015
By the C|C Whistleblower Lawyer Team
Owner of Detroit Home Health Care Companies Sentenced to 80 Months in Prison for Role in $12.6 Million Fraud Scheme – A Michigan resident, Mohammed Sadiq, was sentenced to 80 months in prison late yesterday for his leading role in a $12.6 million Medicare fraud and tax fraud scheme. Sadiq, who owned and directed operations at two home health care companies in Detroit, admitted that, working with co-conspirators, he billed Medicare for home health services that were not provided. Sadiq also admitted to paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill Medicare for services that were not medically necessary or were not provided at all. Sadiq further admitted that he created fake patient files to fool a Medicare auditor by making it appear as if home health services were provided and medically necessary. DOJ
Fiat Chrysler Hit With Record $105 Million Fine Over Safety Recalls – Federal regulators are fining Fiat Chrysler $105 million for failing to acknowledge and address safety defects in a timely fashion. The civil penalty — the largest ever imposed by the National Highway Traffic Safety Administration — will be accompanied by three years of “unprecedented” federal oversight, the agency says. Fiat Chrysler has also agreed to buy back some vehicles from their owners. Regulators at a hearing earlier this month outlined widespread transgressions at Fiat Chrysler, accusing the auto maker of misleading and obstructing the government on its handling of recalls. The lapses included failing to properly alert car owners to recalls, botched repairs and taking too long to fix vehicles. WSJ
E.U. Opens Antitrust Case Against Major U.S. Studios and Sky UK – The European Union’s top antitrust authority charged six American studios and a pay television company in Britain with unfairly blocking access to films and other content. The charges threaten to disrupt a longtime business model under which studios and independent film companies have sold films and television shows on a country-by-country, as opposed to pan-European, basis. According to the Commission charges, the practices prevent consumers who buy films, music or articles from Sky UK online from retrieving that content while traveling elsewhere in Europe. NY Times
U.S. probing possible price-gouging by airlines after rail crash – The U.S. Transportation Department is investigating possible price gouging by the five biggest U.S. airlines while train service was disabled between New York and Washington following a deadly Amtrak crash in May. The regulator sent letters on Friday asking each carrier (Delta Air Lines; American Airlines; United Continental; Southwest Airlines; and, JetBlue) to detail average fares along the route before, during and after the crash. It demanded an explanation for price increases, if any, and asked the airlines whether they communicated with each other about those fares, which might signal collusion. “These airlines have allegedly raised fees beyond what you would ordinarily expect in the Northeast Corridor at a time when the Amtrak line was shut down,” Transportation Secretary Anthony Foxx told reporters. Reuters