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fraud 614 articles

Walmart Pays $825,000 to Settle Whistleblower’s Medicaid Allegations

Walmart Stores and Sam’s Club have agreed to pay the U.S. and Minnesota $825,000 to resolve allegations that they violated the federal and state False Claims Acts for violating Medicaid rules for automatic prescription refills. U.S. Attorney Gregory Brooker and Minnesota Attorney General Lori Swanson jointly announced the settlement, which they said stemmed from a lawsuit filed by a whistleblower under the False Claims Act. Minnesota is one of about 20 states that does not allow Medicaid beneficiaries to have their prescription drugs automatically refilled. Instead, the state’s Medicaid program, called Medical Assistance, requires beneficiaries to request refills. The state’s ... Read More

Whistleblower Case Leads To $114 Million Judgement Against Ex-Diagnostic Lab CEO, Others

Three whistleblower lawsuits played a key role in a $114 million judgment against Health Diagnostics Laboratory CEO LaTonya Mallory and two other individuals who allegedly co-conspired to pay physicians kickbacks for patient referrals and causing the submission of false claims to Medicare for diagnostic tests that patients didn’t need. According to the U.S. Department of Justice, the government intervened in the whistleblower lawsuits and consolidated them in federal court in Charleston, South Carolina. During a two-week jury trial, federal prosecutors presented evidence that Ms. Mallory and co-defendants Floyd Calhoun Dent III and Robert Bradford Johnson paid kickbacks to doctors disguised ... Read More

Whistleblower: Ohio Cyberschool Manipulated Data to Keep Overpayments

Education officials in Ohio are reviewing a whistleblower’s allegations that a now-defunct online charter school manipulated its attendance numbers so it could hold onto millions of dollars in state overpayments. The Associated Press reports that a former technology officer of the Electronic Classroom of Tomorrow (ECOT), once the state’s largest online charter school, told Ohio Department of Education regulators that school officials ordered staff to inflate student attendance records with ActivTrak software it started using after the state demanded that it return $60 million in overpayments for the 2015-2016 school year. The whistleblower also stated his concerns about the alleged ... Read More

QLaser Fraud Scheme Ends With Prison Sentences

A South Dakota man who made $16.6 million selling fraudulent medical devices called QLasers to the elderly and others with medical problems has been sentenced to prison. South Dakota federal judge Roberto A. Lange sentenced Robert “Larry” Lytle, 83, of Rapid City, to 12 years in prison, followed by two years’ supervised release for organizing and leading the fraud scheme. Mr. Lytle pleaded guilty in January to one count of conspiracy to introduce misbranded medical devices into interstate commerce with the intent to defraud and mislead and one count of criminal contempt. According to the U.S. Department of Justice, Mr. ... Read More

The Arc of Anchorage Settles False Claims Act Allegations

The Arc of Anchorage, an organization supporting Alaskans with intellectual and developmental disabilities, has agreed to pay nearly $2.3 million to settle a False Claims Act complaint alleging it defrauded Alaska’s Medicaid Program. In an April 24 announcement, the Alaska Department of Law said the State of Alaska accused Arc of Anchorage of billing Medicaid for services that it never provided and billing for overlapping services with the same provider. Additionally, the state further alleged that Arc of Anchorage failed to repay funds owed to the Medicaid program that the organization had identified in fiscal audits. The allegations constitute violations ... Read More

Oklahoma Ambulance Provider Settles Whistleblower Kickback Allegations

An Oklahoma ambulance service provider will pay $300,000 to settle a whistleblower lawsuit alleging it violated the federal False Claims Act and Anti-Kickback Statute by engaging in an unlawful kickback scheme with a former Texas contractor. According to Tulsa World, a whistleblower lawsuit provided the basis for allegations lodged by federal officials. The complaint alleged that Emergency Medical Services Authority (EMSA), its former president and CEO Stephen Williamson, and contractor Paramedics Plus LLC controlled a slush fund that they used to pay out more than $20 million in kickbacks, including $50,000 or more for Mr. Williamson’s personal benefit. The State ... Read More

Georgia Whistleblower Exposes $3.2 Million Kickback Scheme

A whistleblower who sued a group of Atlanta-area orthopedic and anesthesia providers for their alleged participation in an illegal kickback scheme has helped the U.S. government recover $3.2 million for Medicare. According to the U.S. Department of Justice (DOJ), the whistleblower lawsuit led to a settlement agreement between the federal government and Georgia Bone & Joint; Summit Orthopaedic Surgery Center; Southern Crescent Anesthesiology; and Sentry Anesthesia Management, as well as nurse anesthetist David LaGuardia. The whistleblower complaint, brought by Sharon Kopko, former Practice Administrator for Georgia Bone & Joint, alleged that Mr. LaGuardia, Sentry, and Southern Crescent provided a free ... Read More

Wells Fargo Whistleblower Allegedly Fired For Reporting Foreign Exchange Violations

Wells Fargo Bank finds itself facing another whistleblower lawsuit, this time filed by the former head of the bank’s foreign exchange (FX) group who says the bank encouraged employees to “make false and misleading representations to customers, to engage in abusive sales practices, and to enrich themselves at the expense of clients.” According to The Mercury News, whistleblower Simon Fowles alleges he voiced complaints about the unlawful and unethical practices to managers at the San Francisco-based banking giant for years but that his concerns essentially fell on deaf ears. Mr. Fowles claims he warned high-level Wells Fargo executives about “significant ... Read More

Whistleblower Sues Arizona Cancer Center For Alleged Medicare Fraud

A whistleblower complaint alleging an Arizona cancer treatment company cheated Medicare and other federal health care programs out of millions of dollars is moving ahead after a federal judge rejected the defendant’s motion to dismiss the case. The Republic/Arizona Central reports that the whistleblower suit alleges the Arizona Center for Cancer Care and its principals engaged in schemes to double-bill the government, overcharge for testing and treatments, and bill for medical services that patients didn’t need. The lawsuit claims these practices helped AZCCC improperly collect more than $8 million since 2011. Based in the Phoenix metro area, AZCCC operates 35 ... Read More

Whistleblower Helps U.S. Recover $33.2 Million From Alere Inc.

Massachusetts medical device maker Alere Inc. will pay the United States $33.2 million to settle a whistleblower lawsuit that alleged the company knowingly sold unreliable testing devices to hospitals. The U.S. Attorney’s Office for the District of Maryland said that from 2006 to 2012, Alere sold its “Triage” cardiac testing devices to hospitals even when it knew that the devices provided unreliable results. Alere’s Triage devices are frequently used in emergency departments for the quick diagnosis of acute coronary syndrome, heart failure, drug overdose, and other serious conditions. The whistleblower lawsuit, filed by former Alere senior quality analyst Amanda Wu, ... Read More