The State of Indiana has joined in a whistleblower lawsuit against Education Management Corporation (EDMC), alleging the for-profit college company and two of its subsidiaries received more than $12 million in state financial aid after making false claims and misrepresentations to the state.
John P. Kacavas, the U.S. Attorney for the District of New Hampshire, announced that Red River Computer Co., Inc. has agreed to pay $2.3 million to resolve allegations that it violated the False Claims Act. The allegations relate to Red River Computer Co’s business with various federal agencies, including the U.S.
The Justice Department has announced that Taleo Corp. has agreed to pay $6.49 million to resolve allegations that it knowingly caused false claims to be submitted to the Transportation Security Administration (TSA).
Taleo’s subcontract with an entity that provided human resource services to the TSA stated that Taleo would provide supporting software and would charge its commercial rates with certain discounts.
St. Francis Hospital and Medical Center has settled a False Claims Act complaint for $516,527 amidst claims that it overbilled Medicare for a prostate cancer treatment. The drug Lupron is an injectable that is used to treat prostate cancer in men, as well as endometriosis and fibroids in women.
Following the conviction of cardiologist Dr. John R. McLean on six charges of health care fraud offenses, Peninsula Regional Medical Center in Salisbury, Maryland has agreed to pay $1.8 million to settle allegations that the hospital failed to prevent the doctor from inserting medically unnecessary cardiac stents. The $1.8 million settlement is being paid under the False Claims Act.
In response to a recent New York Times Article (Insiders Sound an Alarm Amid a Natural Gas Rush, June 25, 2011) concerning inflated projections for the production of natural gas from three shale gas formations, the SEC has issued subpoenas to at least two producers, Quicksilver Resources, Inc.
The new SEC whistleblower provisions take effect today. A new website is up and running regarding this program:
http://www.sec.
The IRS gave its 2010 report to Congress on the Use of Section 7623, more commonly known as the IRS Whistleblower Law. Some of its highlights include an increase in staffing in the department from 17 to 21 during fiscal year 2010. Additionally, the IRS has invested in a new software program.
Massachusetts Attorney General Martha Coakley has announced that she will oppose the inclusion of MERS (Mortgage Electronic Registration System) issues in the $20 billion mortgage settlement deal proposed by the Department of Justice. The deal would release the banks from legal claims in state investigations and lawsuits.
The new attorney general in New York, Eric Schneiderman, is taking an aggressive lead in the inquiries by state officials concerning banks overcharging state and local pension funds for foreign-exchange currency transactions over the past decade. Schneiderman is investigating Bank of New York Mellon Corp.’s (“BNY Mellon”) charging of New York pension funds for thousands of transactions.
If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.