The Supreme Court denied certiorari to an appeal from the First Circuit’s decision in United States ex rel. Hutcheson v. Blackstone Medical Inc.. The Circuit Court’s decision held that a claim involving a violation of the Anti-Kickback Statute could result in False Claims Act liability, as such a violation could be material to the government’s…
SAIC Reserves $232 Million for NYC CityTime Litigation
Science Applications International Corp. has taken a $232 million charge in relation to a contract with New York City to administer its timekeeping program CityTime. The US Attorney’s Office in Manhattan alleges that SAIC engaged in “a massive and elaborate scheme to defraud the city.” Mayor Bloomberg said that SAIC should repay all the money…
Fraud Victim Testifies Before House Committee
Richard West, the whistleblower responsible for the $150 settlement that Maxim Healthcare agreed to earlier this year, testified before the House Oversight Committee on Wednesday. The representatives to whom he spoke expressed shock and outrage at the Medicare and Medicaid fraud that continues to occur. Rep. Elijah Cummings (D-MD) commented that “when we invest in…
Hospice Companies Face Lawsuits, HHS-OIG Scrutiny
Several hospice care providers have recently faced allegations of Medicare fraud for aggressively enrolling patients that did not meet program requirements. One company, Hospice Care of Kansas, allegedly gave sales people $500 per month to wine and dine medical professionals. Other companies offered incentives like free supplies, enrollment bonuses, pizza parties, and gift cards. Many…
Pharmaceutical Company Ignored FDA, Billed Medicare Anyways
KV Pharmaceutical has agreed to pay $17 million to resolve allegations that a subsidiary, Ethex Corporation, misrepresented the regulatory status of two of its drugs, Nitroglycerin Extended Release Capsules and Hyoscyamine Sulfate Extended Release Capsules. According to the complaint, the FDA made determinations in the 1990s that the drugs were ineligible for coverage under federal…
CBS Investigates Fraud in the Financial Crisis
On Sunday night, CBS News ran a special report entitled “Prosecuting Wall Street.” The piece included interviews of former corporate officials at Countrywide and Citigroup, two of the financial companies alleged to have played a substantial role in creating the current financial crisis. The piece examined how, in the midst of public outrage toward Wall…
Genetech to Pay $20 Million for Off-Label Fraud
Genetech’s Roche unit agreed to pay $20 Million to resolve allegations related to the company’s off-label marketing of Rituxan, a drug then-approved to treat non-Hodgkin’s lymphoma. According to the complaint, Genetech trained physicians to use Rituxan for unapproved uses and encouraged sales representatives to push off-label prescriptions. Read the entire article, “Genetech to Pay $20…
Hospice Care Company Voluntarily Admits to FCA Violations
Diakon Lutheran Social Ministries, a hospice operator, agreed to pay $10.56 million to resolve violations of the False Claims Act based upon improper Medicare and Medicaid payments. Diakon voluntarily disclosed its False Claims Act violations and thereby avoided potential treble damages and civil penalties. Read the entire article, “Diakon Lutheran Social Ministries to pay $10.56…
Marilyn Tavenner to Take Over CMS
Last Wednesday, President Obama announced that he would nominate Marilyn Tavenner, a former nurse, health care executive, and secretary of Virginia’s Health and Human Services, as the new head of the Centers for Medicare and Medicaid Services. Ms. Tavenner is currently serving as the principal deputy administrator and chief operating officer for CMS. Her predecessor,…
Federal Judge Rejects Citigroup Settlement- More Accountability Needed
In an opinion issued today, Southern District of New York Judge Jed Rakoff rejected the S.E.C.’s proposed settlement with Citigroup, stating that the settlement is “neither reasonable, nor fair, nor adequate, nor in the public interest.” The settlement would have resolved allegations that Citigroup bundled risky mortgage-backed securities into a billion-dollar fund and misled ill-informed…