Rickey Kanter, former CEO and founder of Dr. Comfort, a Wisconsin company that sells shoe inserts for diabetics, agreed to plead guilty to mail fraud. Kanter will pay a $27 million civil fine and may face jail time as well. He is prohibited from participating in any federal health care programs for 15 years. Dr….
DynaCorp and the Sandi Group Pay $8.7 Million to Resolve Allegations of False Claims
DynaCorp International LLC and its subcontractor, The Sandi Group (TSG), will settle various allegations of false claims by paying the U.S. more than $8.7 million. These allegations, related to police work in Iraq, included DynaCorp inflating claims for the construction of container camps throughout Iraq and reimbursement for danger pay that TSG allegedly falsely claimed…
Doctor and Wife Use Craigslist to Commit Millions in Healthcare Fraud
A New Jersey Doctor and his office manager wife pleaded guilty to two counts of conspiracy to commit healthcare fraud after paying men without medical licenses as little as $10 an hour to treat and diagnose patients. Yousuf Masood ran a clinic, while his wife Maruk Masood hired employees, assigned providers, and managed appointments. In…
CVS Will Pay $17.5 Million after Fraud Accusations
CVS Caremark Corp.’ pharmacy division, CVS Pharmacy, has agreed to pay a $17.5 million settlement in connection with claims that the company overbilled the U.S. government and various states. The suit alleges CVS charged Medicaid programs in Alabama, California, Florida, Indiana, Massachusetts, Minnesota, New Hampshire, Nevada and Rhode Island more than the company was rightfully…
Legislation Leads to First IRS Whistleblower Reward
A CPA in-house accountant and auditor became the first IRS whistleblower rewarded under new legislation, receiving more than $4.5 million for uncovering a $20 million-plus tax liability that had gone unreported at a financial services firm. The whistleblower, who has requested his identity not be revealed, was part of the first U.S. tax whistleblower case…
Department of Justice Targets Healthpoint in Xenaderm Suit
The Department of Justice has joined a 2002 whistleblower case alleging that Healthpoint marketed an ineffective and unapproved drug to healthcare providers, resulting in more than $90 million in Medicaid and Medicare payments. Over several years, Healthpoint told healthcare providers that Xenaderm removed dead tissue from wounds and burns. However, the FDA claims that the…
Court Rules in Favor of False Claims Act Sealing Provision
A US Court of Appeals for the 4th Circuit has ruled that the False Claims Act’s sealing provision, which can keep whistleblower complaints sealed for years, does not infringe upon the public’s right to access court proceedings. The suit was brought by three advocacy groups, including the American Civil Liberties Union, none of whom are…
Department of Justice and Pfizer Work to Reach Settlement in Protonix Case
Pfizer and the Department of Justice have filed a joint motion to extend deadlines, allowing for more settlement discussions related to a case alleging the drugmaker defrauded government health programs. Less than a year ago, 17 states joined two whistleblower lawsuits alleging Wyeth, now owned by Pfizer, failed to report to Medicaid rebates and discounts…
California Insurance Commission to Intervene in Bristol Myers-Squibb Suit
The California Insurance Commission will intervene in a whistleblower lawsuit against Bristol Myers-Squibb. It will be the largest health insurance fraud case ever undertaken by a California state agency. The suit alleges that Bristol Myers-Squibb instructed sales representatives to bribe doctors with meals, sports tickets, paid trips, and other gifts to convince them to prescribe…
Medline to Pay $85 Million
Medline Industries Inc., a medical products company, has settled a whistleblower lawsuit for $85 million. The company allegedly defrauded Medicaid and Medicare by using kickbacks to induce sales that the government programs then paid for. The suit was brought by former Medline employee Sean Mason. Mason, who worked from 1998 to 2005 as a distribution…