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false claims act 578 articles

False Claims Act Suit Alleges Kansas City Clinic Defrauded Medicare

A Kansas chiropractic clinic faces a False Claims Act lawsuit seeking more than $1.4 million on allegations that it wrongfully billed Medicare for neuropathy treatments that didn’t qualify for reimbursement or were never provided to patients. The lawsuit, filed Dec. 21 in federal court, accuses Kansas City Health & Wellness Clinic and its owners, brothers Ryan Schell and Tyler Schell, of soliciting Medicare beneficiaries with ads claiming they could heal peripheral neuropathy and “rejuvenate the nerve fibers,” according to Kansas City’s KCUR 89.3. Peripheral neuropathy results from damage to the peripheral nerves, causing weakness, numbness, and stabbing, burning, or tingling ... Read More

Florida Vascular Surgeon Settles False Claims Allegations for $2.2 Million

A Florida vascular surgeon has agreed to settle a False Claims Act lawsuit brought by a whistleblower who claimed the doctor and his practice billed Medicare and other federal health care programs for vein ablation procedures that “contained false diagnoses and symptoms.” Dr. Irfran Siddiqui, owner of the Heart and Vascular Institute of Florida, will pay the U.S. $2.2 million to resolve the whistleblower lawsuit, the U.S. Attorney’ Office for the Middle District of Florida announced. According to the complaint, Dr. Siddiqui and his Davenport-based practice submitted false claims to Medicare and TRICARE from Jan. 2, 2011, to June 30, ... Read More

Whistleblower Case Recovers $14.5 Million From Finance of America Mortgage

A whistleblower was instrumental in helping the U.S. recover $14.5 million in Federal Housing Administration (FHA) insurance funds from Gateway Funding Diversified Mortgage Services, which Finance of America Mortgage LLC acquired in 2015. Debra McGeehan, a former quality control underwriter for Gateway, filed a lawsuit on behalf of the U.S. government under the whistleblower provisions of the False Claims Act. She alleges that Gateway knowingly originated and underwrote mortgage loans that did not qualify for FHA insurance. When borrowers defaulted on their mortgages, FHA (i.e. U.S. taxpayers) got stuck with the bill. Gateway participated as a direct endorsement lender (DEL) ... Read More

New York Law Firm Pays U.S. $6.1 Million to Settle False Claims Case

A New York law firm specializing in mortgage foreclosures has agreed to pay the U.S. more than $6 million to settle allegations that it caused the submission of false claims to Fannie Mae with inflated service expenses. The U.S. Attorney for the Southern District of New York announced the agreement, saying that Rosicki Rosicki & Associates and its wholly owned affiliates, Enterprise Process Service and Paramount Land, “systematically generated false and inflated bills for foreclosure-related and eviction-related expenses,” and then caused the submission of those expenses to Fannie Mae. Fannie Mae approved Rosicki to perform legal work in connection with ... Read More

Actelion Pays $360 Million To Resolve Fraudulent Medicare Kickback Case

Actelion Pharmaceuticals has agreed to pay $360 million to resolve claims that it used a charity to pay illegal kickbacks to Medicare patients to boost sales of its pulmonary arterial hypertension drugs. In a Dec. 7 announcement, the U.S. Department of Justice said that Actelion, which became a unit of Johnson & Johnson last year, arranged to pay the Medicare co-pay obligations for thousands of patients taking its pulmonary arterial hypertension drugs Tracleer, Ventavis, Veletri, and Opsumit. Medicare requires beneficiaries to partially pay for some prescription drugs as a way to keep prescription drug costs in check, including the prices ... Read More

Duke University Close To Settling Whistleblower Case

Duke University is nearing a settlement with the U.S. government that would resolve a False Claims Act lawsuit alleging the Durham, North Carolina university received nearly $200 million in federal grants with applications and reports that included fake data. The settlement, which is expected to be disclosed in December, would bring to an end a lawsuit filed in 2015 by whistleblower Joseph Thomas, a former Duke biologist. Mr. Thomas sued Duke on behalf of the U.S. government, alleging that Duke biologist Erin Potts-Kant faked lab data that found its way into multiple other studies and papers, which provided the basis ... Read More

Whistleblower Helps Recover $5.1 Million In Medicaid Funds From Indiana Dental Chain

A whistleblower who sued an Indiana-based dental chain and its Kansas-based management company has helped the U.S. and Indiana recover $5.1 million in Medicaid funds. The whistleblower lawsuit named ImmediaDent of Indianapolis and Samson Dental Partners, LLC, which provided administrative services to the dental chain, as defendants. The complaint alleged that the companies submitted false claims to Medicaid by improperly billing tooth extractions as more costly surgical extractions, the U.S. Attorney’s Office for the Western District of Kentucky said in an announcement of the settlement. The whistleblower’s complaint also accused ImmediaDent and Samson of billing Medicaid for “deep cleanings” that ... Read More

Northrop Grumman Pays $31.65M To Settle Air Force Contract Fraud Allegations

A Northrop Grumman subsidiary will pay the U.S. a total of $31.65 million to settle civil and criminal allegations that it intentionally overbilled the federal government for work on two U.S. Air Force contracts for battlefield communications technology. Northrop Grumman Systems Corporation admitted that its employees deployed to a Middle East air base defrauded the U.S. Air Force by overbilling time charged to the Battlefield Airborne Communications Node (BACN) contract. The Virginia-based company, which maintains operations in Los Angeles and San Diego, also inflated labor hours for employees working under the Dynamic Re-tasking Capabilities Contracts, according to the U.S. Attorney’s ... Read More

Hospice Whistleblowers Ask Appeals Court to Hear Medicare Fraud Case

A group of whistleblowers is asking the Third Circuit Court of Appeals to revive their False Claims Act lawsuit accusing a New Jersey hospice provider of falsifying patient records to make them appear eligible for end-of-life care. Four former employees of Care Alternatives Inc. of Cranford, New Jersey, now known as Ascend Hospice, filed the whistleblower lawsuit in 2008, alleging the company pressured them and others to alter patients’ medical records to satisfy Medicare’s criteria for hospice eligibility. The whistleblowers claimed that the company rewarded employees who complied with the alleged activity with bonuses. Several False Claims Act lawsuits have ... Read More

Whistleblower Helps U.S. Recover $13.2 Million With Mortgage Fraud Case

A whistleblower has helped the U.S. government recover $13.2 million from Universal American Mortgage, a subsidiary of Lennar Homes that does business as Eagle Home Mortgage, in a settlement resolving allegations of mortgage fraud. The settlement with Eagle Home is the latest in a long series of mortgage fraud cases that the U.S. has litigated since the subprime mortgage crisis that helped plunge the U.S. into a deep recession. As with the other cases, many of which were initiated by a whistleblower action, the Eagle Home settlement resolves allegations that it falsely certified the mortgages it underwrote complied with Federal ... Read More