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.
The jury trial in the civil lawsuit against Blackwater (now Xe Services), “hangs by a thread,” U.S. District Court Judge T.S. Ellis III stated, after throwing out several claims against the company. The case was initially brought in 2008 under the False Claims Act by Melan Davis, a former Blackwater employee.
A Kuwaiti food supplier could face charges of defrauding the U.S. government as federal prosecutors investigate claims against The Public Warehouse Company, also known as Agility.
U.S. District Court Judge Royce Lamberth has ruled against the largest private contractor in Iraq and Afghanistan in a lawsuit brought by the U.S. government. Houston based contractor KBR Inc.’s request to dismiss a $100 million lawsuit involving false claims for private security in Iraq was denied on August 3.
The number of Qui Tam false claims cases has grown by double digits each year, since amendments were made to the False Claims Act (FCA) in 1986. Approximately 7,200 Qui Tam cases have been filed since 1987, according to the U.S. Department of Justice (DOJ).
