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Consumer Fraud 1221 articles

Investment and securities fraud is one area of consumer fraud litigation pursued by the attorneys at Beasley Allen. Litigation includes individual cases as well as class actions that have been filed throughout the country. Cases in this area also involve matters including wrongful conduct of insurance and finance companies including fraud and bad faith, mortgage loan fraud, general consumer fraud and employment issues. Pending cases include securities and investment fraud litigation against companies including Stanford Securities and Regions Morgan Keegan, among others.

Our firm also is representing people who have been taken advantage of in the workplace, through violations of the Fair Labor Standards Act (FLSA). In these cases, employers intentionally misclassify employees as independent contractors or managers in order to reduce costs such as overtime compensation, employee benefits, payroll taxes, unemployment compensation and workers compensation.

Whistleblowers Help U.S Recover $75 Million From Hospice Chain

Three whistleblower lawsuits have led to a recovery of $75 million from Vitas Hospice Services LLC, the nation’s largest for-profit hospice chain, and its parent company Chemed Corporation of Cincinnati, Ohio. An agreement announced by the U.S. Department of Justice (DOJ) on Oct. 30 resolves three lawsuits filed under the whistleblower provisions of the False Claims Act, which allows private parties to sue on behalf of the U.S. in cases of suspected fraud targeting federal agencies and programs. The whistleblower lawsuits alleged that Vitas and Chemed knowingly submitted claims to Medicare and caused the submission of claims to Medicare for hospice ... Read More

Whistleblower Contract Fraud Allegations Return $3 Million To U.S.

Two New York contractors and their owners agreed to pay more than $3 million to settle whistleblower allegations that they violated the wrongfully acquired government contracts reserved for service-disabled veterans for which they were not qualified. The settlement resolves allegations brought by an individual under the whistleblower provisions of the False Claims Act (FCA), which authorizes private parties to file suit on behalf of the federal government in cases of suspected fraud. According to the whistleblower complaint, Zoladz Construction Company Inc, Alliance Contracting LLC, and owners John Zoladz and David Lyons obtained the veteran-reserved contracts by creating a sham company ... Read More

Wells Fargo Pays Additional $5.4 Million For Illegally Repossessing Servicemembers’ Vehicles

Servicemembers who had their vehicles unlawfully repossessed by Wells Fargo Bank now have access to an additional $5.4 million in relief, the U.S. Department of Justice (DOJ) announced. The funds come as part of a 2016 settlement that resolved a lawsuit filed by the Justice Department against Wells Fargo, alleging the bank violated the Servicemembers Civil Relief Act (SCRA). The initial settlement provided about $4.7 million to about 410 servicemembers. The additional compensation provides an additional $5.4 million to be paid to about 450 servicemembers. The U.S. sued Wells Fargo, doing business as Wells Fargo Dealer Services, in Sept. 2016, accusing the ... Read More

Jury Finds New Orleans Woman Guilty of Medicare Fraud

A federal jury found a New Orleans woman guilty of cheating Medicare out of millions of dollars through a scheme of paying and receiving illegal kickbacks and billing the health care program for power wheelchairs and other medical equipment. After a three-day trial, Sandra Parkman, 61, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, two counts of health care fraud, and five counts of accepting kickbacks, the U.S. Department of Justice announced. Federal prosecutors alleged that Ms. Parkman and her boss Tracy Richardson Brown, who is also ... Read More

Whistleblower Suit Exposes Missouri Neurosurgeon’s Kickback Scheme

A lawsuit filed under the whistleblower provisions of the False Claims Act against a Missouri neurosurgeon and his fiancée has resulted in a recovery for the Medicare program. The lawsuit, brought by a group of physicians and other health care providers in 2014, accused Dr. Sonjay Fonn of Cape Girardeau and his fiancée Deborah Seeger of operating a mutually beneficial kickback scheme that resulted in the submission of false claims to Medicare. According to the whistleblower suit, the kickback scheme was hatched in 2008 when Ms. Seeger started a spinal implant distributorship, DS Medical, that supplied most of the spinal ... Read More

Whistleblower Allegations Lead To Prison Sentence, Fines For Medical Equipment Vendor

The owner of an Iowa medical supply store has been sentenced to more than three years in prison for submitting falsified documents to federal authorities investigating fraud allegations raised by a whistleblower in a False Claims Act lawsuit. According to The (Cedar Rapids) Gazette, James O’Connor, 64, was sentenced to 37 months in federal prison and ordered to pay $350,000 in restitution to the Medicare and Medicaid programs. Mr. O’Connor owned and operated O’Connor Medical Supply Inc., a durable medical equipment vendor in the Des Moines, Iowa area. A whistleblower filed a False Claims Act suit against Mr. O’Connor and ... Read More

Whistleblower Sues Epic Systems, Alleging Fraudulent Double Billing

A whistleblower suing Verona, Wisconsin-based Epic Systems alleges the medical IT company’s software defaults to double-billing Medicare and Medicaid for anesthesia services, costing U.S. taxpayers to overpay by hundreds of millions of dollars. According to Law 360, Geraldine Petrowski, an employee of Raleigh, North Carolina-based WakeMed Health between 2008 and 2014, filed the False Claims complaint against Epic under the whistleblower provisions of the False Claims Act after her experiences with implementing Epic’s billing system raised “major concerns” about overbilling the government. Ms. Petrowski’s whistleblower complaint contends that Epic’s billing software defaults to charging Medicare and Medicaid for actual time ... Read More

Whistleblower Law Repeal Makes Wisconsin Fraud-Friendly State

Wisconsin’s whistleblower law protecting taxpayer-funded state agencies and programs from fraud was quietly repealed by Governor Scott Walker in the 2015-17 state budget – a move that is costing the state’s taxpayers millions of dollars. According to the Wisconsin State Journal, Gov. Walker’s repeal of the state’s False Claims Act has already cost Wisconsin taxpayers an estimated $11 million in settlement money from companies that have defrauded the Medicaid program. That’s $11 million out of taxpayers’ pockets and into the bank accounts of corporate cheats. The $11 million estimate “was produced by the Wisconsin Center for Investigative Journalism using methodology ... Read More

Insys founder arrested, charged with racketeering, fraud

The founder and chairman of a pharmaceutical company accused of using unscrupulous practices to push sales of its highly addictive cancer treatment to patients without cancer was arrested and charged with racketeering and fraud. John Kapoor joins six other Insys Therapeutics Inc. officials who have been charged in a scheme to bribe medical professionals to prescribe Subsys, a highly potent, fentanyl-based spray only intended for breakthrough pain in cancer patients. Kapoor is scheduled to appear in a Massachusetts federal court on Nov. 16. “In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his ... Read More

Family sues natural healing center over man’s death

Licensed naturopathic doctor Charmaine Basset had no legitimate training and made bogus claims that led a 64-year-old man not to seek medical treatment for pneumonia, which led to his death, his family members claimed in a wrongful death lawsuit. Family members of Ted Grachek said that Bassett claimed to have received training from fictitious institutions and was certified in holistic treatment methods including nutrition, herbology, biochemistry and advanced quantum feedback. “The whole thing is a fraud,” the family’s attorney said. But Grachek took what Bassett dished out, hook, line and sinker. He became ill in Florida last spring, and as ... Read More