FY2017 Winner's Corner!

 

March 2017:
 

CA Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract, the Department of Justice announced today.  CA is an information technology management software and services company headquartered in New York, New York. Read more  

ATCH, LLC d/b/a G-MART and ALI ASGHAR KHAN have paid $65,000 to settle allegations that they violated the False Claims Act by submitting false claims under the Supplemental Nutrition Assistance Program (SNAP) to the United States Department of Agriculture, Food and Nutrition Service, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. Read more

People, Technology and Processes, LLC (“PTP”), Victor Buonamia, and Nicole Buonamia have paid the government $320,000 to resolve allegations that they submitted improper invoices for work allegedly performed for the United States in support of the U.S. Army in Afghanistan. PTP is an information technology and professional services company located in Lakeland, Florida. Victor Buonamia is the President and CEO of PTP, and Nicole Buonamia is the CFO. During 2011 and 2012, PTP was a subcontractor to the prime contractor on a government contract awarded by the United States Army Communications-Electronics Command through the Strategic Sources Services (“S3”) Program. Read more

February 2017:

 CH2M has agreed to pay the United States $1,500,000.00 pursuant to the settlement agreement. CH2M and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that CH2M bill actual labor and overhead rates for the employees working the various projects. The United States contends that it has certain civil claims against CH2M arising from CH2M’s billing under the PMO contract during the period January 1, 2011 through December 31, 2014. This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; b) billing employees of the lower overhead related company CH2M HILL Constructors, Inc. (“CCI”) as if they were employees of the higher overhead CH2M; and c) billing overhead rates of field employees that did not match the actual overhead rates of field employees. Read more

 

Sierra Nevada Corporation (SNC) has paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates paid to SNC pursuant to various government contracts, U.S. Attorney Phillip A. Talbert announced. Read more 

Acting United States Attorney for the District of Colorado, Bob Troyer, today announced the recovery of $300,000 as settlement of allegations that General Production Service of California, Inc. (“GPS”) violated the federal False Claims Act by failing to pay money owed on oil produced from a federal lease. Read more 

Para-Plus Translations, Inc., a New Jersey corporation that contracts with federal and state agencies for interpretation, transcription and translation services, together with its owners, Robert Santiago, III and Sonia Santiago (collectively “Para-Plus”), will pay the United States, Delaware and New Jersey a total of $1.5 million (“Settlement Amount”) to settle False Claims Act allegations, Acting United States Attorney Soo C. Song announced today.Read more 

TeamHealth Holdings, as successor in interest to IPC Healthcare Inc., f/k/a IPC The Hospitalists Inc. (IPC), has agreed to resolve allegations that IPC violated the False Claims Act by billing Medicare, Medicaid, the Defense Health Agency and the Federal Employees Health Benefits Program for higher and more expensive levels of medical service than were actually performed (a practice known as “up-coding”), the Department of Justice announced today. Under the settlement agreement, TeamHealth has agreed to pay $60 million, plus interest. Read more

Gary L. Marder, D.O., a physician residing in Palm Beach County and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, and the United States of America have stipulated to a consent final judgment of over $18 million to settle False Claims Act allegations against Dr. Marder. Co-defendant, Robert I. Kendall, M.D., a physician practicing in Coral Gables, has also agreed to pay the United States $250,000 to settle allegations that he violated the False Claims Act. Read more Read more

Comprehensive Health Services, Inc. has agreed to pay the United States $3,818,881 to settle allegations under the False Claims Act that it submitted false claims to the United States by double-billing and mischarging for medical services in connection with work performed on an Internal Revenue Service (“IRS”) contract. Read more

FastTrain II Corp. d/b/a FastTrain College (FastTrain) and its President and owner, Alejandro Amor (Amor), will pay $20 million for having defrauded the U.S. Department of Education (ED) by submitting falsified documents to obtain federal student aid funds in connection with ineligible students, announced U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. Read more

January 2017:

University of Pennsylvania Health System (“UPHS”) for improperly billing Medicare for stent procedures two interventional cardiologists performed at Pennsylvania Hospital between 2008 and 2012. UPHS voluntarily disclosed the allegations to the U.S. Attorney’s Office and has agreed to pay $845,000 to resolve the matter. The cardiologists no longer work at Pennsylvania Hospital. Read more

Washington River Protection Solutions LLC (WRPS) has agreed to pay the United States $5.275 million to settle allegations that WRPS knowingly submitted false claims to the Department of Energy (DOE) for overtime and premium pay and also failed to comply with the contract’s internal audit requirements. The contract was performed at DOE’s Hanford Site near Richland, Washington.

 

WALGREEN CO. (“WALGREENS”), a nationwide retail pharmacy chain that owns and operates thousands of retail pharmacies throughout the United States will pay a $50 million settlement in a civil fraud lawsuit. The settlement resolves claims that WALGREENS violated the federal Anti-Kickback Statute (“AKS”) and False Claims Act (“FCA”) by enrolling hundreds of thousands of beneficiaries of government healthcare programs (“government beneficiaries”) in its Prescription Savings Club program (“PSC program”). Read more

Shire Pharmaceuticals LLC and other subsidiaries of Shire plc (Shire) will pay $350 million to settle federal and state False Claims Act allegations that Shire and the company it acquired in 2011, Advanced BioHealing (ABH), employed kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its product “Dermagraft,” a bioengineered human skin substitute approved by the FDA for the treatment of diabetic foot ulcers. Shire plc is a multinational pharmaceutical firm headquartered in Ireland, with its United States operational headquarters in Lexington, Massachusetts. Shire sold the assets associated with Dermagraft in early 2014. Read more

Texas-based MB2 Dental Solutions (MB2) and 21 pediatric dental practices affiliated with MB2, along with their owners and marketing chief, have agreed to pay the United States and the State of Texas Medicaid program $8.45 million to resolve allegations that they violated the False Claims Act by knowingly submitting, or causing the submission of, claims for pediatric dental services that were not rendered, were tainted by kickbacks, or falsely identified the person who performed the service, announced U.S. Attorney John Parker of the Northern District of Texas. Read more

Rehabililtation Medicine of Oklahoma - have paid $315,000 to settle civil claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the United States Department of Labor ("DOL-OWCP"). Read more

December 2016: 

Bay Sleep Clinic, its related businesses— Qualium Corporation and Amerimed Corporation—and their owners and operators, Anooshiravan Mostowfipour and Tara Nader (collectively, the Defendants) have agreed to pay $2.6 million to settle allegations that they fraudulently billed the Medicare program, announced United States Attorney Brian J. Stretch and U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Special Agent in Charge, Steven Ryan.  The settlement resolves allegations that the Defendants fraudulently charged the Medicare program for diagnostic sleep tests and medical devices in violation of Medicare payment rules. Read more

Advanced C4 Solutions, Inc. agreed today to pay $4.535 million to the United States to settle allegations that it submitted inflated invoices to the government for work performed at Joint Base Andrews. Read more

United Shore Financial Services LLC (USFS) has agreed to pay the United States $48 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.  USFS is headquartered in Troy, Michigan. Read more

Forest Laboratories LLC, located in New York, New York, and its subsidiary, Forest Pharmaceuticals Inc., have agreed to pay $38 million to resolve allegations that they violated the False Claims Act by paying kickbacks to induce physicians to prescribe the drugs Bystolic®, Savella®, and Namenda®, the Department of Justice announced today. Read more

Elite Lab Services, LLC, along with its husband-and-wife owners Gerard and Suzanne Dengler, will pay the United States $3.75 million after billing Medicare for tens of thousands of miles that were never driven by Elite Lab’s personnel, announced Acting United States Attorney Brit Featherston. Read more

Vitas Health Corporation Midwest and related entities agreed to pay $200,000 to resolve allegations that they violated the False Claims Act and the Anti-Kickback Statute by paying Dr. Farid Fata for patient referrals to its hospice care services, announced U.S. Attorney Barbara L. McQuade. In an earlier unrelated criminal matter, Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks and promotional money laundering, and was sentenced to a term of 45 years in prison. Read more

Eyeland Optical Centers, a chain of eye care centers in Pennsylvania.  The settlement resolves allegations that Eyeland had billed Medicaid for more than four lenses per year, in violation of Pennsylvania’s Medicaid regulations, and retained those payments even once it became aware that it had done so.  Eyeland has agreed to pay $135,328.56 to resolve these claims. Read more

Southeast Orthopedic Specialists (SOS), a Jacksonville, Florida-based orthopedic medical group, has agreed to pay the government $4.488 million to resolve allegations that it violated the False Claims Act. Read more 

Rosciti Construction Corporation and Wallace Construction Corporation, together with four of the companies’ current and former owners and officers, will pay $1 million dollars to resolve civil allegations that they violated the Federal False Claims Act by submitting, or causing the submission of, claims for reimbursement for funding earmarked for minority, women-owned, or small business that they were not entitled to receive. Read more

South Miami Hospital, a not-for-profit regional hospital located in South Miami, Florida has agreed to pay the United States approximately $12 million to settle allegations that it violated the False Claims Act by submitting false claims to federal healthcare programs for medically unnecessary electrophysiology studies and other procedures allegedly performed by John R. Dylewski, M.D., at South Miami Hospital.  Read more

November 2016:

Allied Home Mortgage and CEO liable for violating the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) in connection with over a decade of fraudulent misconduct related to ALLIED’s participation in the Federal Housing Administration (“FHA”) mortgage insurance program.  The jury awarded the United States a total of $92,982,775 in damages, including $7,370,132 against HODGE.  Pursuant to the FCA, damages in this case are subject to mandatory trebling.  In addition, the FCA provides for a penalty of $5,500 to $11,000 for each violation.  Separately, FIRREA provides for a penalty for each statutory violation. Read more

Bechtel, Aecom have agreed to pay $125 million to resolve allegations under the False Claims Act that they made false statements and claims to the Department of Energy (DOE) by charging DOE for deficient nuclear quality materials, services, and testing that was provided at the Waste Treatment Plant (WTP) at DOE’s Hanford Site near Richland, Washington.  Read more

Dr. Anthony Clavo has agreed to the entry of a consent judgment for $430,000 plus interest to resolve allegations that he violated the False Claims Act by billing Medicare, Medicaid, and TRICARE for medically unnecessary services.  The federal government’s portion of the consent judgment is $322,407, and the State of Georgia’s portion is $107,593. Read more

Lemon Bay Drugs North, Inc. and Brooksville Drugs, Inc. have agreed to pay a total of $750,000 to the government to resolve allegations that the pharmacies violated the False Claims Act by causing claims to be submitted to federal health care programs for prescription drugs that were never dispensed.  Read more

Zwanger-Pesiri Inc., a Long Island radiology company, pleaded guilty to two counts of health care fraud for illegally performing and billing for procedures that had not been ordered by treating physicians.  After accepting the guilty plea, United States District Court Judge Joanna Seybert approved a settlement with the United States and the State of New York in which Zwanger-Pesiri agreed to forfeit $2.4 million in the criminal case and pay $8,153,727 million to resolve civil liability arising from its fraudulent practices. Read more

MedNet Inc., a Ewing, New Jersey-based remote cardiac monitoring company and a subsidiary of BioTelemetry Inc., has agreed to pay more than $1.35 million to resolve allegations that it paid kickbacks to induce physicians to use the company’s cardiac monitoring services, U.S. Attorney Paul J. Fishman announced today. Read more

Biocompatibles Inc., a subsidiary of BTG plc, pleaded guilty today to misbranding its embolic device LC Bead and will pay more than $36 million to resolve criminal and civil liability arising out of its illegal conduct, the Justice Department announced today. LC Bead is used to treat liver cancer, among other diseases. Read more

 

October 2016: 

Whittier Health Network, Inc., and its Director of Long Term Care, Leo Curtin, have agreed to pay $2.5 million to resolve allegations concerning inflated Medicare claims. Read more

 Several Reno companies that operate geothermal power plants in Nevada, California, Hawaii and elsewhere, have agreed to pay the United States $5.5 million to resolve civil fraud allegations that they unlawfully applied for and received millions in federal clean energy grants, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. Read more

 HUDSON VALLEY ASSOCIATES, R.L.L.P.  will pay a $5.31 million settlement of a civil fraud lawsuit against.  This settlement resolves claims brought under the False Claims Act, alleging that HUDSON VALLEY routinely waived copayments without lawful basis and fraudulently billed Medicare for these copayments, and systematically submitted false claims for services that it did not provide and/or were not permitted under the Medicare and Medicaid program rules. Read more

SecurityNational Mortgage Company headquartered in Salt Lake City, Utah, has agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, U.S. Attorney Paul J. Fishman and the U.S. Department of Justice announced today. Read more

NeuroScience, Kellermann, and Pharmasan also agreed to pay $6,138,134 to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare and TRICARE, which provides health insurance coverage for military forces personnel and retirees, and their dependents. Read more

Mark Gilmore has agreed to pay the government $4.25 million to resolve allegations that he violated the False Claims Act. Read more

Daybreak Partners, LLC, a holding company for a number of subsidiaries that operate and manage skilled nursing facilities throughout Texas, has agreed to pay $5,300,000.00 to resolve allegations that they billed Medicare and Medicaid for materially substandard nursing services.  The skilled nursing facilities are operated as individual limited partnerships owned by Daybreak Venture, LLC and Daybreak Healthcare, Inc. (Daybreak).  Daybreak denies the allegations.  U.S. Attorney John Parker of the Northern District of Texas made the announcement today. Read more

Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today.  Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country. Read more

Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals.  Read more

Category