Whistleblower News From The Inside -- August 23, 2017

By the C|C Whistleblower Lawyer Team

U.S. Bioservices to Resolve Kickback Claims for $13.4M — According to court filings, specialty pharmacy firm U.S. Bioservices Corp. has agreed to settle federal and state governments’ claims that it violated that False Claims Act by encouraging patients to unnecessarily refill prescriptions for iron overload drug Exjade in exchange for illegal kickback referrals from drug manufacturer Novartis. In 2015, Novartis resolved allegations that it paid kickbacks to promote Exjade and other drugs for $390 million. Reuters 

Banca IMI Securities to Pay $35 Million for Improper Handling of ADRs in Continuing SEC Crackdown — The SEC announced the settlement with broker Banca IMI Securities, resolving charges that it violated federal securities laws by requesting the issuance of and receiving American Depositary Receipts (ADRs)—U.S. securities representing shares of a foreign company—without possessing the underlying foreign shares. Broker ITG settled similar charges earlier this year. SEC

Houston Home Health Agency Owner Sentenced to 480 Months in Prison in $17.8M Fraud Scheme — Godwin Oriakhi, owner and operator of five Texas home health agencies, admitted he and his co-conspirators, including his daughter, paid illegal kickbacks to patient recruiters, his office employees, and physicians for patient referrals. He also admitted to paying patients in exchange for the ability to use the patients’ Medicare and Medicaid numbers to bill the government for services. He is the fourth to plead guilty for playing a role in the scheme. DOJ