whistleblower act

Shipping Co.’s Settle False Claims for $3.4M ; Whistleblower to Get $512K

Submitted by mma on March 7, 2014
March 7, 2014
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Sea Star Line LLC and Horizon Lines LLC have agreed to pay $3.4 million to resolve allegations that the companies knowingly submitted or caused the submission of false claims to the federal government by fixing the prices of government cargo transportation contracts between the United States and Puerto Rico, the U.S. Department of Justice announced today.  Sea Star Line will pay $1.9 million, while Horizon Lines will pay $1.5 million.

The government alleged that former executives of the defendant ocean shippers used personal email accounts to communicate confidential bidding information, thereby enabling each of the shippers to know the transportation rates that its competitor intended to submit to federal agencies for specific routes.   This information allowed the shippers to allocate specific routes between themselves at predetermined rates.  Among the contracts affected were U.S. Postal Service contracts to transport mail and Department of Agriculture contracts to ship food.   Both Sea Star Line and Horizon Lines previously pleaded guilty, in related criminal proceedings, to anticompetitive conduct in violation of the Sherman Act.

The lawsuit was originally filed by William B. Stallings, a former Sea Star Line executive, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Stallings will receive $512,719 as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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SelfRefind to Settle False Medicare Claims for $15.8M

Submitted by mma on March 6, 2014
March 6, 2014
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SelfRefind and PremierTox LLC have agreed to pay $15.75 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Kentucky’s Medicaid program for tests that were medically unnecessary, more expensive than those performed, or billed in violation of the Stark Law, the Department of Justice announced. 

Drs. Bryan Wood and Robin Peavler, owners of SelfRefind, each purchased a 20 percent ownership stake in PremierTox LLC, a new clinical laboratory created to perform urine drug testing. Allegedly, after Wood and Peavler became owners of PremierTox, SelfRefind began referring comprehensive urine drug screening tests to PremierTox that were unnecessary and more expensive than other suitable alternative tests. The government also alleged that PremierTox knowingly submitted inflated claims to Medicare and Medicaid that misidentified the class of drug being tested and billed for tests that were referred by SelfRefind in violation of the Stark law.  The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. 

The lawsuit was filed under the whistleblower provisions of the False Claims Act. Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery. Had there been a whistleblower in this case, their portion of the settlement may have been anywhere from 15 to 30 percent. Of the total $15.75 million settlement amount, the federal share is $13.01 million, and the remaining $2.74 million will be paid to the Commonwealth of Kentucky.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Vector to Settle False Billing Claims for $6.5M; Whistleblower to Receive $1.3M

Submitted by kludowitz on February 18, 2014
February 18, 2014
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Vector Planning and Service Inc. (VPSI) has agreed to pay the government $6.5 million to settle False Claim Act allegations that the company inflated claims for payments under several Navy contracts, the Justice Department announced today.

VPSI, an information technology and systems engineering firm, has a number of contracts with the U.S. Navy to provide information technology, systems engineering, and management consulting services. Under these contracts, VPSI is entitled to bill the government for indirect costs, such as overhead expenses that cannot be allocated directly to a particular contract. VPSI allegedly inflated its indirect cost billings to the government by improperly including direct costs, for which it had already been paid, in indirect cost accounts that were then allocated across its government contracts, and billed again. The government further alleged that VPSI submitted claims for other costs that were never incurred.

The lawsuit was originally filed by an unnamed whistleblower under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. The whistleblower will receive $1.28 million as his or her portion of the settlement.

This case was prosecuted by the Hirst Law Group.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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MPRI to Settle False Labor Claims for $3.2M; Whistleblower to Receive $576K

Submitted by kludowitz on February 14, 2014
February 14, 2014
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MPRI Inc. has agreed to pay $3.2 million to resolve allegations under the False Claims Act that it submitted false labor charges on a contract to support the Army in Afghanistan, the Justice Department announced earlier this week.

MPRI allegedly billed for employees who had been granted leave and were out of the country and were thus not working.  Under its contract with the Army, MPRI was required to provide support to the Army in its efforts to re-design and build from a new Afghan Defense Sector that would establish an Afghan national security system.  Among other things, MPRI was required to provide support for program and financial management, development/implementation of core systems for the Afghan Ministry of Defense, General Staff, and intermediate Commands. MPRI was also responsible for sustaining institutions, training in logistics, acquisitions, installation management, and intelligence. 

The lawsuit was originally filed by Byron Scott Lankford, a former employee for MPRI in Afghanistan, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Lankford will receive $576,000 as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Dongwon Sued Under False Claims Act for Falsely Obtained Fishing Licenses

Submitted by kludowitz on February 10, 2014
February 10, 2014
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A lawsuit against StarKist’s parent company, Dongwon Industries (Dongwon), has been filed under the False Claims Act for making false statements to secure vessel certification and fishing licenses, Undercurrent News announced last week.

Allegedly, Dongwon knowingly submitted false information to obtain documentation allowing two Korean owned companies, Majestic Blue and Pacific Breeze, to receive tuna fishing licenses under the South Pacific Tuna Treaty (SPTT). These licenses are reserved only for vessels registered in the United States and are paid for using U.S. taxpayer dollars.

Jaewoong Kim, former executive of Dongwon, is reported to have registered his two daughters as the managers, in name only, of Majestic Blue and Pacific Breeze. By registering his daughters, whom hold U.S. citizenship, Majestic Blue and Pacific Breeze were able to receive the U.S. licenses needed to fish the profitable zones of the South Pacific. Dongwon is further alleged to have created a false identity under the American-sounding alias “William Phil”, as a fictitious manager when dealing with U.S. officials.

It is also alleged that Dongwon failed to report oil discharge and sea dumping in an attempt to avoid penalties for violating the Act to Prevent Pollution from Ships.

The lawsuit was filed by a private whistleblower under the whistleblower provisions of the False Claims Act. Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery.  The whistleblower may receive anywhere from 15 to 30 percent as their portion of the settlement.

 The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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JPMorgan to Settle False Claims for $614M

Submitted by kludowitz on February 5, 2014
February 5, 2014
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JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees, the Department of Justice announced yesterday.

JPMC admitted that, for more than a decade, it approved thousands of Federal Housing Administration (FHA) loans and hundreds of Veterans Affairs (VA) loans that were not eligible for FHA or VA insurance because they did not meet applicable agency underwriting requirements. JPMC further admitted that it failed to inform the FHA and the VA when its own internal reviews discovered more than 500 defective loans that never should have been submitted for FHA and VA insurance. 

JPMC also falsely certified that loans it originated and underwrote were qualified for FHA and VA insurance and guarantees. As a consequence of JPMC’s misrepresentations, both the FHA and the VA incurred substantial losses when unqualified loans failed and caused the FHA and VA to cover the associated losses.

The lawsuit was originally filed by a Keith Edwards under the whistleblower provisions of the False Claims Act. The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Edwards’ portion of the settlement has not yet been determined.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Prime Healthcare Sued Under False Claims Act

Submitted by kludowitz on January 31, 2014
January 31, 2014
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Prime Healthcare Services Inc. (PHS) is being sued by an employee whistleblower, Karin Berntsen, for allegations under the False Claims Act that they knowingly falsified patients’ admission information, Law360 announced earlier this month.

PHS allegedly directed hospital staff to falsify patients’ diagnoses in order to charge the highest amount to Medicare and Medicaid. PHS also refused to release patients to post-acute care centers so they could further their profits. It is further alleged that PHS bought failing hospitals and enhanced their revenue by having those hospitals engage in similar fraudulent practices. PHS allegedly cost Medicare and Medicaid around $50 million in reimbursements.

The lawsuit was originally filed by Karin Berntsen, a former PHS employee, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. The government has elected not to intervene in this case, and Berntsen could receive up to 30 percent of the settlement, if there is one.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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St. Joseph to Settle False Medicare Claims for $16.5M; Whistleblowers to Receive $2.5M

Submitted by kludowitz on January 29, 2014
January 29, 2014
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Saint Joseph Health System, Inc. has agreed to pay the U.S. Government $16.5 million to resolve allegations under the False Claims Act that they submitted false or fraudulent claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary heart procedures, the Justice Department announced today.

Several doctors working at the Saint Joseph London Hospital allegedly performed numerous invasive cardiac procedures on Medicare and Medicaid patients who did not need them. The hospital then billed the federal programs for these unnecessary procedures, which include coronary stents, pacemakers, coronary artery bypass graft surgeries (“CABGS”), and diagnostic catheterizations. Medicare and Medicaid programs only reimburse health care providers for operations that are deemed medically necessary. Hospitals generally receive between $10,000 and $15,000 for medical procedures such as heart stents.

The settlement also resolves allegations that Saint Joseph violated the federal Stark Law and Anti-Kickback Statute by entering into management agreements with doctors at the Cumberland Clinic. These agreements served as an inducement for the doctors to refer patients to Saint Joseph. The government contends that Medicare and Medicaid are not responsible for claims that resulted from this improper financial relationship between the doctors and the hospital.

Saint Joseph has also agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), which obligates the hospital to undertake substantial internal compliance reforms and commit to a third-party review of its claims to federal health care programs for the next five years.

The lawsuit was originally filed by Doctors Michael Jones, Paula Hollingsworth, and Michael Rukavina, three Lexington cardiologists, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. The three whistleblowers will receive $2,458,810 as their portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Clinics to Settle False Medicare Claims for $1.8M; Whistleblower to Get $324K

Submitted by kludowitz on January 27, 2014
January 27, 2014
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Two orthopedic clinics, Tennessee Orthopaedic Clinics P.C. and Appalachian Orthopaedic Clinics P.C., will pay a combined $1.85 million to resolve allegations under the False Claims Act that they knowingly billed state and federal health care programs for re-imported osteoarthritis medications, known as viscosupplements, the Department of Justice announced last week. 

Viscosupplements are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid and other federal health care programs at a set rate based on the average sales price of the domestic product. The government alleged that the clinics knowingly purchased deeply discounted viscosupplements that were re-imported from foreign countries and billed them to state and federal health care programs at the set rate in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. Allegedly, the re-imported product included labeling in foreign languages and in English for additional uses not approved in the United States, demonstrating that the product was re-imported.  Moreover, because the product was re-imported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately. 

Tennessee Orthopaedic Clinics P.C. will pay $1.3 million, and Appalachian Orthopaedic Clinics P.C. will pay $550,000. 

The lawsuit was originally filed by Douglas Estey, a physician’s assistant paid to speak to medical providers about the use of viscosupplements, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Estey will receive $323,750 as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Government Intervenes in KBR False Claims Lawsuit

Submitted by kludowitz on January 24, 2014
January 24, 2014
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The government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. (La Nouvelle) and First Kuwaiti Trading Co. (First Kuwaiti) for submitting false claims in connection with KBR’s contract with the Army to provide logistical support in Iraq, the Department of Justice announced yesterday. 

Allegedly, KBR knowingly made false claims to the government for a contract with the Army to provide wartime logistical support, known as the Logistics Civil Augmentation Program (LOGCAP) III. The award of LOGCAP III paved the way for the company to become a critical source for logistical support services in Iraq, which included transportation, maintenance, food, shelter, and facilities management. KBR performed many of these services through subcontracts awarded to foreign companies local to the region, such as La Nouvelle and First Kuwaiti. 

The government alleged that, KBR employees took kickbacks from La Nouvelle and First Kuwaiti in connection with the award and oversight of subcontracts awarded to these companies. KBR then claimed reimbursement from the government for costs it incurred under the subcontracts that allegedly were inflated, excessive, or for goods and services that were grossly deficient or not provided. La Nouvelle later rewarded the KBR employee who awarded the subcontract with a $1 million bank draft.  KBR billed the government for the costs of both of these subcontracts.  The lawsuit also alleges that KBR used refrigerated trailers to transport ice for consumption by the troops that had previously been used as temporary morgues without first sanitizing them.

The government is suing KBR, La Nouvelle and First Kuwaiti under the False Claims Act, as well as the Anti-Kickback Act.

The lawsuit was originally filed by Bud Conyers, a former KBR/Halliburton truck driver, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. The False Claims Act also permits the government to investigate the allegations made in the whistleblower’s complaint and decide whether to intervene in the lawsuit, which it has elected to do in this case.

 The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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