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Several Florida-based radiation oncology providers have agreed to pay $3.5 million to the U.S. government and the State of Florida to resolve allegations that they knowingly submitted or caused the submission of false claims to federal health care programs, the U.S. Department of Justice announced last week.  The defendants include Gulf Region Radiation Oncology Centers Inc. (GRROC), Gulf Region Radiation Oncology MSO LLC, Sacred Heart Health System Inc., West Florida Medical Center Clinic P.A., Emerald Coast Radiation Oncology Center LLC (ECROC), Dr. Gerald Lowrey and Dr. Rod Krentel.

The government alleged that the defendants regularly billed for radiation oncology services that were not supervised by a physician, as required by Medicare, Medicaid and TRICARE, and that, in fact, these services were often performed while the defendant doctors were on vacation or were working at another radiation oncology clinic.   The government also alleged that the defendants billed for other treatment services even when patients’ medical records provided no evidence that the services were rendered.   The defendants also allegedly billed twice for the same services and misrepresented the level of a service provided to increase their reimbursement from the federal health care programs. 

The lawsuit was originally filed by Richard Coch, a former employee of GRROC, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Coch will receive $609,796 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.

Farideh Heidarpour, her billing company A.B.C. Billing Inc., and her son Ali Heidarpour (who was also her employee) have agreed to pay $1.7 million to settle allegations that her and her company knowingly submitted or caused the submission of false claims to workers’ compensation programs, U.S. Attorney for the Northern District of California Melinda Haag announced last month.

The United States alleges that Heidarpour, her company, and her son submitted or caused to be submitted to the Department of Labor, Office of Workers’ Compensation Programs, false claims by certain clinics for supplies and services not provided, not supported by medical documentation and/or not medically necessary, resulting in millions of dollars of damages to the United States. The majority of the patients at issue were United States Postal Service (USPS) employees claiming work-related injuries.

The lawsuit was originally filed by a former employee of a clinic in Texas that worked with ABC Billing.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  The whistleblower in this case will receive $323,000 as her share 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.

Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., have agreed to pay $60.9 million to resolve allegations that Tremco knowingly submitted or caused the submission of false claims in connection with contracts with the General Services Administration (GSA), the U.S. Department of Justice announced last week.  Tremco is a manufacturer of construction products and services.

The government alleged that Tremco knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers and to pass those discounts on to government customers.  Tremco allegedly failed to provide the government with price discounts given to non-federal government customers and also allegedly marketed expensive materials to government purchasers without disclosing that the same materials were available at a lower cost that were manufactured and sold by the company.  As a result, the government allegedly paid more than it should have for Tremco’s services and products.   In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems.

The lawsuit was originally filed by former Tremco vice president Gregory Rudolph, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Rudolph will receive $10.9 million as his share 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.

ATI Enterprises, a Texas-based chain of career training schools operating in the southern and western United States, has agreed to pay the U.S. government $3.7 million to resolve allegations that the company knowingly submitted or caused the submission of false claims to federal student aid programs, the U.S. Department of Justice announced last month.  ATI Enterprises allegedly falsely certified compliance with federal student aid programs’ eligibility requirements and submitted claims for ineligible students.

To participate in federal student aid programs, schools must enter into a contract with the Secretary of Education called a Program Participation Agreement, in which they agree to a number of terms.   For example, if an institution advertises its job placement rates as a means of attracting students to enroll, it must make available to prospective students its most recent and accurate employment statistics to substantiate the truthfulness of its advertisements.   The government alleged that, by misrepresenting its job placement statistics in order to maintain state licensure and accreditation, ATI Enterprises fraudulently maintained its eligibility for federal financial aid.

The government further alleged that ATI employees engaged in fraudulent practices to induce students to enroll and maintain their enrollment in the schools.  This falsely increased the schools’ enrollment numbers, and consequently, the amount of federal dollars they received at the expense of taxpayers and students, who incurred long-term debt.

The lawsuits were originally filed by several former employees of ATI Enterprises under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Their 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 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.

The U.S. government has filed suit against PharMerica Corp. for violations of the False Claims Act and the Controlled Substances Act by dispensing controlled drugs without valid prescriptions and knowingly submitting or causing the submission of false claims to be submitted to the Medicare program, the U.S. Department of Justice announced earlier this month.  The lawsuit was filed in the U.S. District Court for the Eastern District of Wisconsin.

PharMerica is a long-term care pharmacy that dispenses drugs to residents of long-term care facilities, including nursing homes and skilled nursing facilities. PharMerica services approximately 300,000 residents of long-term care facilities and fills approximately 40 million prescriptions annually.   Many of the prescriptions filled by PharMerica are for controlled substances listed in Schedule II under the Controlled Substances Act.   Schedule II drugs, such as oxycodone and fentanyl, can cause significant harm if used improperly and have a high potential for abuse.

The government’s complaint alleges that PharMerica routinely dispensed Schedule II controlled drugs in non-emergency situations without first obtaining a written prescription from a treating physician.    PharMerica’s alleged actions violated both the spirit and the letter of the Controlled Substances Act by enabling nursing home staff to order narcotics, and pharmacists to dispense narcotics, before confirming that a physician had made a medical judgment about whether these narcotics were necessary and should be used by the resident.  The complaint alleges that PharMerica knowingly caused the submission of false claims to Medicare for these improperly dispensed Schedule II drugs, in violation of the False Claims Act.

The lawsuit was originally filed by Jennifer Denk, a former PharMerica employee, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  The government may intervene on its own behalf, which it has elected to do in this case.  Denk’s suit was later consolidated with a subsequent complaint filed by Eric Beeders and Lesa Martino.

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.