Whistleblower News From The Inside -- October 31, 2016
By the C|C Whistleblower Lawyer Team
Detroit-Area Home Health Care Agency Owner Sentenced to 30 Years in Prison for $33 Million Medicare Fraud Scheme – Zafar Mehmood was convicted in July, 2015, following trial on charges that he obtained patients by paying cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with Mehmood’s companies, and paid kickbacks to physicians to refer patients to the companies for unnecessary home health care services. DOJ
Owner Of Real Estate Investment Firm Sentenced In Manhattan Federal Court To 10 Years In Prison For $17 Million Securities Fraud – Carlton Cabot defrauded hundreds of elderly investors by misappropriating funds they had invested in real estate investments his firm managed. Cabot used the stolen funds to pay for personal and business expenses, and manipulated financial statements to conceal the fraud. USAO SDNY
Florida Individuals Sentenced for Issuing Fraudulent Bonds on Government Contracts – The individuals received prison time and were ordered to pay over $4 million in restitution for issuing fraudulent individual surety bonds on a series of government contracts. USAO SDFL
Reno Geothermal Power Plant Operator Enters Into $5.5 Million Settlement With DOJ Over Grant Fraud Allegations – The settlement resolves civil fraud allegations brought by whistleblowers that the defendant companies unlawfully applied for and received millions in federal clean energy grants. USAO NV
Kentucky Cardiologist Convicted of Health Care Fraud – Richard Paulus was convicted of placing unnecessary coronary stents and performing unnecessary diagnostic catheterizations in patients and unlawfully billing Medicare, Medicaid, and private insurers for the medically unnecessary invasive heart procedures. From 2006 to 2012, Paulus billed Medicare for more heart procedures than any other cardiologist in Kentucky and was number 5 in the nation in terms of amount paid by Medicare for stent procedures. USAO EDKY
$15 Million Settlement with Madoff Feeder Fund – California secured a settlement with the estate of investment advisor Stanley Chais, who is alleged to have deceived his clients into paying him substantial fees, claiming he was actively managing their money while in actuality turning their investments over to Madoff. CA AG
Trinity Industries Fights Judgment – The company, which manufactures highway guardrails, is subject to a $663 million judgment following a trial which found it failed to inform federal officials that it had modified its highway guardrail systems but kept promoting the product as approved by the Federal Highway Administration. The company also faces a number of class actions and other proceedings involving its guardrails. The company’s appeal to the 5th Circuit is set for oral argument in December. Dallas News