Author: Qui Tam

SEC to Companies: “Hands Off Whistleblowers!”

On April 1, 2015, the SEC announced its first whistleblower protection case involving restrictive confidentiality language.  The agency charged the Houston-based engineering and technology firm KBR, Inc., with using overly restrictive language in confidentiality agreements that allegedly obstructed the whistleblowing process.

The provision at issue contained language that witnesses in certain internal investigations could be disciplined,

Bharara Says Whistleblower Awards May Aid Corruption Fight

Speaking at a Fordham University School of Law event on Friday, March 6, U.S. Attorney for the Southern District of New York, Preet Bharara said that whistleblower bounties and leniency agreements could be useful tools for uncovering public corruption. Bharara is the latest law enforcer to endorse the benefits of rewarding tipsters who come forward with information about misconduct.

2014 Whistleblower Recoveries

In 2014, the total whistleblower recoveries amounted to just shy of $3 billion, $2.2 billion (73 percent) of which were in the health care arena.

When the Department of Justice announces a False Claims Act recovery, they put the total recovery into the headline (the total amount that the fraudster is paying as a result of the FCA action),

Medicare, Part D, Full of Fraud Due to Lack of Oversight

Medicare, Part D began in 2006 as a program to get much needed medication to more than 36 million senior citizens and people with disabilities.  Billions of needless expense has been added to the program due to lack of oversight and doctors prescribing name brand medications instead of generics.  Moreover,

US Settles False Claims Act Allegations Against ev3 for $1.25 Million

The Justice Department announced that it has reached a $1.25 million settlement with ev3, a medical device manufacturer base in in Minnesota.   Ev3 formerly was known as Fox Hollow Technologies. A lawsuit filed under the whistleblower provision of the False Claims Act alleges that between 2006-2007, Fox Hollow induced 12 hospitals in 9 states to admit patients who were undergoing elective atherectomy procedures.   

$2.25 Million Settlement for Unnecessary Angioplasties

United States ex rel. Carroll v. Adventist Health Systems, et al., Case No. CV-10-4925 DMR

A settlement in the amount of $2,250,000, payable by St. Helena Hospital, to the United States, stems from allegations that it submitted false claims to Medicare for certain cardiac procedures and related inpatient submissions.

ALLEGATIONS AGAINST RESPIRATORY THERAPY COMPANY SETTLED UNDER THE FALSE CLAIMS ACT

North Atlantic Medical Services Inc. (NAMS), a medical device company that provides equipment and services for treatment of respiratory ailments, reached an agreement to pay $852,378 to resolve allegations that it violated the False Claims Act. The Department of Justice announced that NAMS agreed to pay this settlement due to submitting claims to Medicare and Medicaid for services provided by unlicensed personnel.

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