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kickbacks 122 articles

U.S. Government Sues Lockheed Martin, Alleging Hanford Nuclear Cleanup Fraud

The notorious Hanford Nuclear Reservation in Southeastern Washington has been mired in fraud and corruption for decades, ever since the U.S. government started paying contractors billions of dollars to clean up and convert 56 million gallons of radioactive sludge. On Feb. 8, the U.S. Department of Justice (DOJ) announced it has lodged a False Claims Act lawsuit against Bethesda, Maryland-based Lockheed Martin, alleging the company and its executives used a $232 million support contract for nuclear waste disposal to enrich themselves. According to federal prosecutors, Lockheed Martin engaged in a fraudulent kickback scheme by paying more than $1 million to ... 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

Whistleblowers Help U.S. Recover $3.8 Million From Vascular Care Company

Two whistleblowers who alleged that a Philadelphia-based vascular health company and several of its subsidiaries were cheating Medicare and engaging in illegal kickback schemes have helped the U.S. recover more than $3.8 million. The whistleblowers filed separate lawsuits alleging Vascular Access Centers LP and 23 of its subsidiary companies violated the federal False Claims Act and Anti-Kickback Statute, both of which are intended to protect U.S. taxpayer money from being squandered and misspent. The U.S. Department of Justice investigated the whistleblowers’ claims and chose to intervene, thereby taking over their litigation. ‘ According to the Justice Department, Vascular Access Centers ... Read More

AmerisourceBergen Pays U.S. $625 Million, Resolving Illegal Drug Repackaging Scheme

AmerisourceBergen Corp. and four subsidiary companies will pay $625 million to settle allegations that they ran a profiteering scheme that involved buying sterile vials of drugs from manufacturers, breaking them open, pooling the contents, and then repackaging them into pre-filled syringes. AmerisourceBergen, a drug wholesaler that ranks number 11 on the Fortune 500 list, provided the illegally repackaged drugs to physicians treating cancer patients, the U.S. Department of Justice said in its announcement of the settlement. Federal prosecutors alleged that AmerisourceBergen profited by skimming drug overfill from the FDA-approved sterile vials and repacking them into pre-filled syringes. They said the ... Read More

Whistleblower Sues Montana Hospital over Alleged Kickback Scheme

A newly unsealed whistleblower complaint against Kalispell Regional Healthcare accuses the Montana hospital of engaging in an extensive kickback scheme that put the profits of specialist physicians and hospital executives above patient care while defrauding U.S. and Montana taxpayers. The newly unsealed suit was originally filed in September 2016 by John Mohatt, formerly the CEO of Kalispell Regional Healthcare’s physician network. An amended False Claims Act complaint was filed in May of last year and remained under seal until recently, although the U.S. Department of Justice continues to investigate the whistleblower’s allegations, Kalispell’s Flathead Beacon reports. U.S. law prohibits hospitals ... 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

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

Whistleblower Lawsuit Leads to $63.7 Million Recovery From DaVita Rx

A pair of whistleblowers has helped the U.S. government recover $63.7 million from DaVita Rx LLC, a nationwide pharmacy that specializes in serving patients with kidney disease. The U.S. Department of Justice (DOJ) said that Patsy Gallian and Monique Jones, both former DaVita employees, filed the lawsuit under the whistleblower provisions of the False Claims Act, alleging that the company was improperly billing Medicare and Medicaid and engaging in illegal kickback arrangements to boost its profits. DaVita settled the whistleblower complaint ahead of trial, paying the U.S $63.7 million to resolve allegations that it billed the federal health care programs for ... Read More

Whistleblower Lawsuits Accuse Drug Companies of Using Nurses To Push Drugs

A round of lawsuits brought by a health care whistleblower group accuses three pharmaceutical giants of conducting illegal marketing schemes that use nurses to push their diabetes drugs on doctors and patients. According to the whistleblower complaints, Amgen, Bayer Pharmaceuticals, and Gilead Sciences violated federal anti-kickback law when they hired nurses to talk up the diabetes drugs to physicians and their patients, Pharmalot/STAT reports. Using nurses to promote the drugs effectively made them sales reps, eliminating concerns that actual sales reps might get little or no in-person contact with doctors. This “white coat marketing” scheme also helped spare the doctors ... 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