Judge Richard Roberts of the District Court for the District of Columbia ruled last week that that United States can proceed with its case against bulletproof vest manufacturer First Choice Armor & Equipment. First Choice allegedly sold bulletproof vests to state and local governments knowingly concealing the fact that the material it used, Zylon, degraded…
D.C. Circuit Decision Expected on False Claims Act First-to-File Bar
On September 16, 2011, the D.C. Court of Appeals is expected to hear the appeal from D.C. District Judge Richard Leon’s ruling barring a qui tam suit based on an earlier, similar suit against SLM Corp. (Sallie Mae). Sheldon Batiste, a former Sallie Mae employee, filed his suit in Washington D.C. in 2008 alleging a…
Kentucky-Based Nurses’ Registry Faces Medicare Kickback Allegations
On Friday, the Department of Justice filed an amended complaint against Nurses’ Registry, a home health agency, adding allegations that it provided cash and tickets to sporting events and concerts as an inducement for doctors and their staff to refer patients to Nurses’ Registry. Medicare laws prohibit providers from submitting claims for services which were…
Massive Takedown by Medicare Fraud Strike Force, 91 Charged
Over the last week, Medicare Fraud Strike Force operations executed massive takedowns of 91 doctors, nurses, health care company owners, and medical professionals who were indicted for their alleged participation in Medicare fraud schemes across the country. The indictments, spanning 8 cities, account for $295 million in fraudulent claims, the largest amount from a single…
Janzen, Johnston & Rockwell Emergency Mgmt. Svcs. to Pay $4.6 to U.S. Government
Janzen, Johnston & Rockwell Emergency Management Services (JJ&R), a billing services provider, agreed to pay the U.S. government $4.6 million to resolve allegations that it submitted false claims to Medicare and Louisiana’s Medicaid Program. The Department of Justice accused JJ&R of routinely using billing codes for greater or more expensive services than were provided and…
Noble Jewelry Settles in False Claims Act Customs Fraud Case
Noble Jewelry Ltd. entered into an agreement with the U.S. Attorney’s Office and the Office of U.S. Immigrations and Customs Enforcement to settle allegations that it cheated the government of customs duties. Noble Jewelry allegedly under-reported the value of the jewelry it imported into the United States on customs declarations and accompanied shipments with false…
Eighteen Charged With Healthcare Fraud in Detroit
This week, the U.S. Attorney’s Office for Detroit filed charges against eighteen people for engaging in separate, but similar Medicare fraud schemes. The defendants – doctors, nurses, clinic owners, and other medical professionals – are alleged to have billed Medicare for home health and psychotherapy services which were medically unnecessary or never provided. Law enforcement…
Labcorp to Pay California $50 Million, Other States Still Investigating
Labcorp, a laboratory testing company, reached a $50 million settlement with the state of California to settle allegations that it overbilled Medi-Cal, the state’s low-income health insurance program, $72 million over fourteen years. Labcorp allegedly gave private insurers discounts if they required providers serving their network to refer Medi-Cal patients to Labcorp for medical testing,…
D.C. Non-Profit Sued for Using Federal Funds to Renovate Strip Club
The D.C. Attorney General filed a suit against Miracle Hands, a non-profit organization, and its director claiming that the organization was given federal grant money to start up a job training center for individuals with HIV/AIDS. Instead of using federal funds to renovate the proposed facility, Miracle Hands allegedly moved its job training center to…
Whistleblower “Improvement” Act Before Congress
n July this year, Representative Michael Grimm (R-NY) introduced a bill in the U.S. House of Representatives called the “Whistleblower Improvement Act of 2011.” Currently before the House Committee on Financial Services, the bill would require whistleblowers to first report fraud internally to their employers. Critics have raised concerns that this could help companies cover…