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criminal 188 articles

Similar whistleblower lawsuits against drug maker Cephalon may be joined in Pennsylvania

A whistleblower who is suing biopharmaceutical manufacturer Cephalon Inc. on allegations of fraud under the U.S. False Claims Act has asked a federal judge in New York to move his case to a U.S. District Court in Pennsylvania where another whistleblower complaint with similar charges against the same company is pending. According to Law 360, Matthew Cestra, a former senior-level manager at Cephalon, filed his whistleblower complaint in a New York federal court in August 2010 under the qui tam provisions of the False Claims Act, which allow private individuals to sue on behalf of the U.S. government when they ... Read More

Pensacola oncology providers settle whistleblower allegations with U.S. for $3.5 million

PENSACOLA, Fla. –Several radiation oncology providers in Pensacola will pay the U.S. and Florida governments $3.5 million to settle allegations brought by a whistleblower under the qui tam provisions of the False Claims Act, which allow private citizens with knowledge of fraud and other wrongdoing to sue on behalf of the federal government. According to the U.S. Justice Department, Richard Koch, a former employee of Gulf Region Radiation Oncology Centers Inc., accused his employer and six other oncological radiation clinics and providers of billing Medicare, Medicaid and TRICARE for services that were not eligible for payment. The U.S. chose to ... Read More

Resort conglomerate MGM must rehire and compensate whistleblower fired for reporting SEC violations

LAS VEGAS, N.V. – MGM International must immediately reinstate and pay an employee $325,000 for violating the state’s whistleblower protection laws, the Occupational Safety and Health Administration (OSHA) has ordered. According to OSHA, the Signature Condominiums LLC, a subsidiary of MGM Resorts International, fired an employee in retaliation for reporting co-workers who engaged in “forecasting” in an effort to increase condominium sales. Forecasting is this context is an illegal activity in which potential buyers are provided information about projected condo occupancy rates and revenues. Under Securities and Exchange Commission (SEC) rules, if a condominium unit is offered for sale with ... Read More

Whistleblower who reported product-related deaths alleges retaliation, discrimination

A former employee of Lifeline Systems has filed a whistleblower complaint against the Philips subsidiary, alleging the company retaliated against her for years and ultimately terminated her employment for voicing concerns that defective products were causing fires and killing customers. Denise Rock, who was employed as a Lifeline Systems salesperson for several years, filed her complaint in U.S. District Court in Boston on August 1, claiming she was fired in June 2012 after filing discrimination charges with the Massachusetts Commission Against Discrimination (MCAD) and the U.S. Equal Employee Opportunity Commission (EEOC). Ms. Rock’s allegations stretch back to 2007, when she ... Read More

Texas school chain pays $3.7 million to settle whistleblowers’ fraud allegations

A Texas-based chain of career-training schools with campuses in several states has agreed to pay the U.S. government $3.7 million to resolve allegations brought against it by two whistleblowers who accused the school of defrauding federal financial aid programs. ATI Enterprises Inc. and affiliated companies agreed to settle the allegations brought by two separate whistleblower complaints under the False Claims Act, which allows U.S. citizens to sue on behalf of the U.S. government when they witness fraud, waste, mismanagement, and other wrongdoing. Whistleblowers who sue under the qui tam provisions of the False Claims Act share a portion of the ... Read More

Florida hospital system settles whistleblower fraud allegations for $26 million

A Florida hospital system has agreed to pay $26 million to resolve whistleblower allegations that six of its hospital facilities admitted patients who did not require hospitalization, resulting in millions of dollars in false claims being submitted to Medicare, Medicaid and other federally funded health care programs. According to the complaint, Shands Healthcare knowingly submitted inpatient claims to Medicare, Medicaid, and TRICARE for a number of services and procedures that it knew were only supposed to be billed as outpatient services and procedures. The whistleblower complaint alleges the fraud scheme went on from 2003 through 2008, The six Shands hospitals ... Read More

Whistleblower complaints lead to U.S. lawsuit against national pharmacy company

Acting on whistleblower allegations, the U.S. government filed a lawsuit against PharMerica Corp., a pharmacy company that provides prescription drugs to nursing homes and other long-term care facilities, for allegedly dispensing controlled substances without valid prescriptions and knowingly causing false claims for those drugs to be submitted to Medicare. The lawsuit, filed in the U.S. District Court for the eastern District of Wisconsin, alleges PharMerica violated the False Claims Act and the Controlled Substances Act by illegally dispensing the drugs, including potent Schedule II drugs such as oxycodone and fentanyl, which can cause serious harm or death if used improperly. ... Read More

Texas businessman accused of defrauding federal school program settles whistleblower lawsuit

A Texas businessman who supplied digital equipment and services to the Houston Independent School District (HISD) with funds provided by the federal government, has agreed to pay $400,000 for defrauding the Federal Communications Commission’s E-rate program, a successful program that helps connect every U.S. library and school to the Internet. According to the U.S. Justice Department, Larry Lehmann of Giddings, Texas, functioned as the CEO and managing partner of Acclaim Professional Services, which partnered with other companies to provide E-rate funded equipment and services to HISD from 2004 through 2006. Created by Congress in the Telecommunications Act of 1996, the ... Read More

Whistleblower lawsuit accuses major hospital chains of Medicaid fraud

A whistleblower lawsuit filed under the False Claims Act (FCA) and unsealed Wednesday accuses two large hospital operators of paying kickbacks to clinics that directed expectant, undocumented Hispanic women to their hospitals so that they could submit Medicaid claims on them. According to the lawsuit, Health Management Associates of Naples, Fla., and Tenet Healthcare Corp. of Dallas, Texas, the third-largest U.S. hospital chain, recruited pregnant women living in the U.S. illegally who would become eligible for Medicaid benefits upon giving birth. The for-profit hospital systems contracted with Georgia-based Hispanic Medical Management, Clinica de la Mama, and affiliated companies, which sent ... Read More

U.S., Georgia hospital settle whistleblower Medicare fraud case for $8 million

A Georgia long-term acute-care hospital and its managing company have agreed to pay the U.S. government $8 million to settle a whistleblower’s allegations that they were involved in a scheme to defraud Medicare between 2003 and 2009. Darlene Tucker, was a former administrator at Southern Crescent Hospital for Specialty Care, Inc. (Southern Crescent) in Riverdale, Ga., filed a whistleblower complaint under the False Claims Act (FCA), which allows individuals to sue on behalf of the U.S. government when they witness fraud, mismanagement, abuse and other wrongdoing against taxpayer-funded government agencies and programs and share in the recovery. According to the ... Read More