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Whistleblower News From The Inside -- April 17, 2018

Posted  April 17, 2018

By <the C|C Whistleblower Lawyer Team

Allergan settles FCA suit for 3.5M — The company has resolved allegations that it caused providers to submit false claims to Medicare relating to the LAP-BAND system, an inflatable silicone band that is placed around a patient’s stomach during a surgical procedure. Adding or removing saline fluid through a subcutaneous access port adjusts the LAP-BAND, which in turn constricts or expands the size of the stomach pouch. The system is used to aid a patient’s weight loss. According to the allegations, the company sold devices with defective access ports, and then tried to cover up the problem, leading to providers billing Medicare for services that could not have been effective. The fraud was brought to light by a whistleblower, who will receive an award of $594k. USAO Maryland

Kentucky cardiologist convicted of health care fraud for medically unnecessary pacemakers — A jury found that Dr. Anis Chalhoub defrauded Medicare, as well as private insures, when he implanted medically unnecessary pacemakers into his patients and also caused unnecessary follow-up care. Between 2007 and 2011, Dr. Chalhoub implanted 234 pacemakers, dozens of which were medically unnecessary. According to witness testimony, Dr. Chalhoub lied to several patients by telling them that they would likely die without a pacemaker. USAO Eastern District of Kentucky

Former fishing boat captain convicted for violations of the Act to Prevent Pollution from Ships — Randall Fox,  a former captain of the Native Sun, was convicted under the Act to Prevent Pollution from Ships illegally discharging oily bilge into the ocean using unapproved hoses and pumps. One of these instances of dumping was reported by an employee, who filmed the crime and could be eligible for a whistleblower award after Fox is sentenced. Fox faces a fine of up to $250k and a maximum of six years in prison.  DOJ