Merck has agreed to plead guilty to introducing a misbranded drug into interstate commerce in connection with its illegal marketing of Vioxx. Merck will pay a criminal fine of $321,636,000 and $628,264,000 to resolve related civil allegations. The criminal plea relates to Merck’s marketing of Vioxx for rheumatoid arthritis. Although the drug was not approved…
Whistleblowing Principal Receives $860,000
The Camden School District has agreed to pay $860,000 to the former principal of Dr. Charles E. Brimm Medical Arts High School to settle allegations that he was fired as a result of reporting the district’s efforts to fraudulently improve test results. Mr. Carruth became principal of Brimm at the start of the 2004-2005 school…
NY Nursing Homes Pay for Fraudulent Billing
Three New York nursing homes, Cliffside Rehabilitation & Residential Health Center, Forest View Center for Nursing & Rehabilitation, and Woodcrest Rehabilitation & Residential Center, have agreed to pay over $745,000 for Medicaid fraud under the New York State False Claims Act. The nursing homes allegedly billed Medicaid for unoccupied beds, billed for more costly placements…
Allied Allowed to Issue Mortgages Again
Although the Department and Housing and Urban Development suspended Allied Home’s FHA lending privileges on November 1st, a federal judge has ruled that Allied’s privileges must be reinstated. The United States elected to revoke Allied’s FHA-backed mortgage origination privileges when it filed a case against Allied alleging that the company had repeatedly lied about its…
Hospice Provider Sued For Medicare Fraud
According to a recently unsealed complaint, Vitas, the largest U.S. Provider of hospice care, improperly enrolled and recertified patients that did not meet hospice requirements. In order to receive hospice care under Medicare, a patient must be diagnosed by two doctors to have six months or less to live. Patients who survive their life expectancy…
Doctor to Pay Nearly $1 Million for Medicaid Fraud
A Monroe, North Carolina gynecologist agreed to pay $950,000 to settle allegations that she fraudulently billed North Carolina Medicaid for her services. According to the complaint, brought under the False Claims Act, from 2003-2009 Dr. Millicent Francis-Lane billed Medicaid for more expensive services than those she provided. As part of the settlement she agreed to…
SEC Releases Report
The SEC has released its first annual report on the Dodd-Frank whistleblower program. The report details the steps the SEC has taken to establish the office, such has hiring the Chief of the Office of the Whistleblower Sean McKessy, hiring and training staff, obtaining advice from key organizations and relevant professionals, and publicizing the program. …
Another Bullet-Proof Vest Manufacturer Settles
Point Blank Solutions Inc. has agreed to pay $1 million to resolve allegations that it sold defective body armor to government law enforcement agencies. Point Blank continued to manufacture bullet-proof vests with Zylon, even though they allegedly knew the material degraded quickly, causing it to lose its bullet-proof properties. Point Blank is one of several…
Concerns Surrounding Anemia Drugs Grow
A new book has been published that reiterates many of the allegations of recent lawsuits surrounding the marketing of anemia drugs Aranesp, Procrit, and Epogen, which are all manufactured by Amgen. One of the drugs, Procrit, is marketed and sold by Johnson & Johnson. According to recent allegations and FDA findings, these drugs, which were…
SDNY Judge Skeptical of Corporate Integrity Agreements
As Citigroup prepares to settle allegations of its most recent securities fraud violations, the district judge tasked with evaluating the settlement has approached the SEC’s handling of such cases with skepticism. Judge Rakoff has questioned the effectiveness of Citigroup’s corporate integrity agreement, under which the company has agreed not engage in fraudulent activity in the…