whistleblower act

Taylor Bean May Settle False Mortgage Claims for $320M

Submitted by kludowitz on December 30, 2013
December 30, 2013
Image: 

Taylor Bean & Whitaker Mortgage may pay the United States more than $320 million to resolve allegations that they violated the False Claims Act submitting false mortgage claims, Bloomberg Businessweek announced earlier this month.

The settlement would resolve allegations that Taylor Bean knowingly submitted fraudulent mortgages to the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD). Taylor Bean allegedly submitted false, fraudulent, incomplete, or even wholly fabricated information to pass loan applications through the process which determined whether or not a customer is qualified for the loan. In some instances, employees were allegedly ordered to close the loan without meeting conditions or were ordered to add additional files to an application after the loan had closed.  When these loans went into default, Taylor Bean allegedly presented these claims to the government in full knowledge that they were false and based on false information.  The fraud caused the government to guarantee loans that it otherwise would not, and to pay money that it did not owe.

Subsequently, six Taylor Bean executives were convicted and jailed for their roles in bankruptcy fraud after the initial FCA charges were made, including former chairman Lee Farkas, who is currently serving a 30-year prison term for conspiracy and fraud.

The lawsuit was originally filed by two former employees, 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 whistleblowers, who asked not to be named because the agreement was still being circulated among the parties, have not yet received a determined amount for their involvement in this 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.

PDFs: 
application/pdf iconus_v_taylor_bean.pdf
Cross-Post On: 
None

Genzyme Settles False Medical Claims For $22.3M

Submitted by kludowitz on December 23, 2013
December 23, 2013

Genzyme Corp. (Genzyme) has agreed to pay $22.28 million to resolve allegations, under the False Claims Act, that they knowingly marketed and caused false claims to be submitted to federal and state health care programs for use of a “slurry” version of its Seprafilm adhesion barrier, the Justice Department announced today. 

 Seprafilm is a thin film intended to reduce adhesions after surgery by forming a bio-resorbable barrier between abdominal tissue and organs. Genzyme sales representatives allegedly taught doctors and other staff to cut the Seprafilm sheets into small pieces, add saline and allow the pieces to dissolve until the desired consistency was reached.  This mixture was referred to as “slurry.” Genzyme sales representatives traded recipes for slurry, and trained each other in how to create it. The slurry was used in laparoscopic or “key hole” surgeries by inserting a catheter filled with the mixture into the body and squirting it into the abdominal cavity. Seprafilm is FDA-approved for use in open abdominal surgery but not for minimally invasive surgeries, such as laparoscopic or key hole surgery.  As a result of this conduct, Genzyme knowingly caused hospitals and other purchasers of Seprafilm to submit false and fraudulent claims to federal health care programs for uses of Seprafilm that were not approved and therefore not reimbursable.

The lawsuit was originally filed by Christopher Russo and Joseph Fuentes, two former Genzyme employees, 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. Russo’s and Fuentes’ share 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 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.

Cross-Post On: 
None

Justice Department Recovers $3.8B from False Claims Act Cases in 2013

Submitted by kludowitz on December 20, 2013
December 20, 2013
Image: 

The Justice Department secured $3.8 billion for settlements and judgments from civil cases involving fraud against the government in the 2013 fiscal year, the U.S. Department of Justice announced today.

This amount, which is the second largest annual recovery of its type in history, brings total recoveries under the False Claims Act, since 2009, to $17 billion – nearly half the total recoveries since the Act was amended 27 years ago in 1986.

The Justice Department’s efforts recovered more than $3 billion for the fourth year in a row. As in previous years, the largest recoveries were related to health care fraud, which reached $2.6 billion. Procurement fraud (related primarily to defense contracts) accounted for another $890 million – a record in that area.

Of the $3.8 billion the department recovered in 2013, $2.9 billion was the result of lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the department paid out more than $345 million to the individuals who exposed fraud and false claims by filing a qui tam complaint. 

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.

Cross-Post On: 
None

Cardiologist to Settle False Medicare Claims For $1.15M

Submitted by kludowitz on December 19, 2013
December 19, 2013
Image: 

Cardiologist Dr. Elie H. Korban (Korban) will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today.

Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease.  The government alleges that Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary and improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself. 

As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future.  The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers. 

The lawsuit was originally filed by Dr. Wood M. Deming, another cardiologist, 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. Deming’s share 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 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.

Cross-Post On: 
None

Northrop Settles Contract Fraud Claims For $11.4M

Submitted by kludowitz on December 12, 2013
December 12, 2013

Northrop Grumman Corp. (Northrop ) has paid the United States $11.4 million to settle a government claim for penalties provided under the Federal Acquisition Regulation (FAR) and False Claims Act allegations stemming from its failure to abide by a 2002 settlement agreement, the Justice Department announced earlier this week.

Northrop allegedly charged federal contracts certain costs for deferred compensation awards to key employees, even though it had promised not to do so as part of an earlier settlement. In 2002 Northrop agreed that it would limit the amount of deferred compensation it would include in proposals for subsequent contracts.  The government’s contracting officer found that Northrop had failed to honor this commitment and should be assessed a penalty equal to twice the amount of the unallowable costs claimed.  Northrop challenged the decision and the Department of Justice responded to the suit with counterclaims alleging that in addition to the FAR penalties, Northrop also had violated the False Claims Act by passing along these unallowable costs to the government in indirect rates applicable to hundreds of contracts with the government.  The government alleged that as a consequence of Northrop’s knowing misrepresentations, it was induced to pay more than $1.9 million in unallowable costs in thousands of vouchers and invoices.

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.

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.

Cross-Post On: 
None

Government Intervenes in IPC False Claims Lawsuit

Submitted by kludowitz on December 10, 2013
December 10, 2013

The government has intervened in a lawsuit against IPC The Hospitalist Co. Inc. (IPC), and its subsidiaries, under the False Claims Act, for submitting false claims to federal health care programs, the Justice Department announced yesterday. 

IPC, one of the largest providers of hospitalist services in the US, employs physicians and other health care providers who work in more than 1,300 facilities in 28 states.  Hospitalists are physicians who work only in hospitals and other long-term care facilities, overseeing and coordinating inpatient care from admission to discharge.

The lawsuit alleges that IPC physicians knowingly sought payment for higher and more expensive levels of medical services than were actually performed – a practice commonly referred to as “upcoding.”  Specifically, the lawsuit alleges that IPC encouraged its physicians to bill at the highest levels regardless of the services provided, trained physicians to use higher level codes and encouraged physicians with lower billing levels to “catch up” to their colleagues.

The lawsuit was originally filed by Dr. Bijan Oughatiyan, a former IPC physician, 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. Oughatiyan’s share 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 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.

Cross-Post On: 
None

Lynch Settles False Medicare Claims For $3M; Whistleblower to Get $5.5K

Submitted by kludowitz on December 9, 2013
December 9, 2013
Image: 

Lynch Ambulance has agreed to pay more than $3 million to settle a lawsuit, under the False Claims Act, alleging it received overpayments from the Medicare program and other federal health care programs for transporting patients who were not eligible for ambulance transports, the U.S. Attorney’s Office announced last month.

Allegedly, Lynch Ambulance knowingly billed Medicare and other federal healthcare programs for transporting patients who were not “bed-confined” or whose transports otherwise were not medically necessary. The federal health care programs that paid claims for medically unnecessary transports were Medicare, TRICARE, and the Federal Employees Health Benefits Program.

 Lynch Ambulance has also entered into a Corporate Integrity Agreement with the Department of Health and Human Services.

The lawsuit was originally filed by Jamie Weatherly and Dawn Lucero, two former Lynch Ambulance employees, 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. Weatherly’s and Lucero’s share 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 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.

Cross-Post On: 
None

Caremark Settles False Medicaid Claims For $4.2M; Whistleblower to Get $5.5K

Submitted by kludowitz on December 4, 2013
December 4, 2013
Image: 

Caremark LLC (Caremark) has agreed to pay the government more than $4.2 million to settle allegations, under the False Claims Act, that they knowingly failed to reimburse Medicaid for prescription drug costs, the Justice Department announced earlier this week. Caremark is operated by CVS Caremark Corp., one of the largest pharmacy benefit management (PBM) company and retail pharmacies in the country.

Caremark served as the PBM for private health plans that insured a number of individuals receiving prescription drug benefits under both a Caremark-administered plan and Medicaid.  When an individual is covered by both Medicaid and a private health plan, the individual is called a “dual eligible.”  Under the law, the private insurer, rather than the government, must assume the costs of health care for dual eligibles.  If Medicaid erroneously pays for the prescription claim of a dual eligible, Medicaid is entitled to seek reimbursement from the private insurer or its PBM, in this case Caremark. 

According to the government, Caremark allegedly used a computer claims processing platform to cancel claims for reimbursement submitted by Medicaid for dual eligibles.  The government alleged that Caremark’s actions caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid.

The lawsuit was originally filed by Janaki Ramadoss, a former Caremark quality assurance representative, 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.  Ramadoss will receive $505,680 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 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.

Cross-Post On: 
None

CA Slaughterhouses Settle False Claims for up to $2.4M; Whistleblower to Get $600K

Submitted by kludowitz on December 3, 2013
December 3, 2013
Image: 

Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations, under the False Claims Act, of inhumane handling of cattle, circumventing appropriate inspection of non-ambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced last week. 

The Humane Society of the United States (HSUS) alleges that Westland Meat Co., Westland, M&M Management and Cattleman’s Choice knowingly engaged in inhumane cattle handling and improper downer cattle inspection practices at slaughterhouses and meat processing facilities. The lawsuit, brought about after an HSUS investigator videotaped these practices, additionally claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron Magidow, was a partner in and otherwise responsibly connected with the facility’s operations.  U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations. 

The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day.  All ground beef products from the defendants were recalled and the defendants no longer supply beef to the National School Lunch Program.

Under the settlements, Westland Meat Co. and its owner, Steve Mendell, will pay $240,000. Westland will enter into a consent judgment for $155.68 million. M&M Management, Cattleman’s Choice and the estate of Cattleman’s deceased owner, Arnie Magidow, and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Donald R. Hallmark and Donald W. Hallmark will also settle allegations for $304,130.

The lawsuit was originally filed by HSUS 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.  HSUS will receive $600,000 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.

Cross-Post On: 
None

Vantage Settles False Medicare Claims For $2.1M; Whistleblower to Get $3.5K

Submitted by kludowitz on November 27, 2013
November 27, 2013

Vantage Oncology LLC (Vantage) has agreed to pay the government more than $2.08 million to settle allegations, under the False Claims Act, that it knowingly submitted false claims to Medicare for radiation oncology services, the Justice Department announced last week. 

The government alleged that Vantage double billed and overbilled Medicare for certain procedures, billed for services that lacked supporting documentation and improperly billed for radiation treatment provided to patients without proper physician supervision. 

The lawsuit was originally filed by Suleiman Refaei, a former Vantage employee, 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.  Refaei will receive $354,450 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 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.

Cross-Post On: 
None
Syndicate content