Earlier this year, New York Attorney General Eric Schniederman pulled out of the 50-state settlement talks with mortgage lenders because of concerns that it overly limited the ability of the states to adequately investigate the case. Now, the A.G. has signed an agreement to share investigative documents and findings with the Federal Housing Finance Agency’s…
SEC Sues Fannie Mae and Freddie Mac Execs
On Friday, the SEC brought a civil fraud suit against the former CEOs of Fannie Mae and Freddie Mac, as well as four other top executives. The suit alleges that the executives misled investors with respect to the company’s exposure to subprime mortgages in their loan portfolios. According to the suit, the executives made material…
Healthcare Prosecutions Rise
Health care prosecutions in the United States increased by 69% over last year, according to a new report. Read the entire article, “Health-Care Fraud Cases Filed by U.S. Rose 69% to Record, Researchers Say”
Three Arrested in TX Medicare Fraud Case
Two physicians and the owner of an assisted living facility were arrested in Texas for their alleged participation in a conspiracy that the government says defrauded the taxpayers of $90 million. The physicians allegedly paid kickbacks to the owner of the assisted living facility in exchange for enlisting patients in their partial hospitalization program. The…
Medtronic to Pay $23.5 Million
Medtronic Inc. has agreed to pay $23.5 million to resolve allegations that it paid kickbacks to doctors for using its cardiac rhythm management devices under the guise of payment for post-market studies and device registries. The case was initiated by four whistleblowers who together will share almost $4 million. Read the entire article, “DOJ: Medtronic…
Job Placement Company Investigated by NYC, Manhattan US Attorney
The U.S. Attorney’s Office in Manhattan issued a Civil Investigative Demand to Structured Employment Economic Development Corporation (Seedco), an organization that has had a contract with the New York City Department of Small Business Services to operate career centers in Manhattan and the Bronx. Seedco is already under investigation by the New York City Department…
Jail Time for Radiologist’s Health Care Fraud
An Atlanta radiologist was sentenced to four and a half years of jail time and three years of post-release supervision for healthcare fraud related offenses. Dr. Rajashahker Reddy’s company, Reddy Solutions Inc., was employed by multiple hospitals in the Southeast to provide evaluations of x-rays and scans performed at the hospitals. Records produced at trial…
Iowa Insurance Agent Pays $835,000 for Crop Insurance Fraud
An Iowa insurance agent has agreed to pay $835,000 to resolve allegations that he filed false claims under a federal crop insurance program on behalf of a group of South Dakota farmers. Under the settlement, the insurance agent denied the allegations and so continues to be eligible to participate in the crop insurance program. Read…
Third American Therapeutic Corporation Defendant Gets 35 Years
A third defendant was sentenced last Friday in connection with a massive healthcare fraud conspiracy that cost taxpayers $205 million; Judith Negron received 35 years. Along with co-defendants Larry Duran and Marianella Valera, who previously received sentences of 50 and 35 years, Negron was found guilty of her role in a health care fraud conspiracy…
Diaper Company to Pay $5 Million
Shield Healthcare, a company that supplies adult diapers and other incontinence products, agreed to pay $5 million to resolve allegations that it violated regulations limiting billing to no more than double a product’s net purchase price. The company continues to deny the allegations. Read the entire article, “Diaper company pays $5 mil to settle lawsuit”…