The article, “The IRS’s Proposed Amendments to Its Informant Reward Program” authored by Marc S. Raspanti and Douglas K. Rosenblum was published in The Legal Intelligencer on March 2, 2011. Mr. Raspanti is a partner in the firm’s Philadelphia office and Mr.
On February 11, the SEC appointed Sean McKessy, former corporate secretary for AOL and Altria group (Phillip Morris) to head its new whistleblower program. McKessy was previously an attorney in the SEC’s enforcement division. Because of his corporate background, many worry that he will be an impediment to creating an effective SEC whistleblower program.
New York State recently settled claims against Young Adult Institute (YAI), a provider of residential services for developmentally disabled adults for $18 million. Under government sponsored programs, New York State reimbursed YAI for losses sustained in operating its state programs.
The office manager of a wheelchair manufacturer pleaded guilty to conspiring with a church pastor that defrauded Medicare of over $6 million. The defendant admitted to submitting false claims for high-end power wheelchair and other medical equipment provided to Medicare beneficiaries that did not need them. The defendant also admitted to destroying documents in an attempt to cover up the fraud.
On February 17, U.S. Attorney General, Eric Holder, announced that a joint Department of Justice and Health and Human Services Medicare fraud strike task force made its largest arrest ever in connection with a false billing investigation. In total, 111 individuals were arrested and 16 search warrants were executed across the country in connection with the investigation.
Ohio Attorney General Mike DeWine is advocating for a state false claims act similar to the federal act. DeWine recognized the benefits of having a state false claims act, having recovered $10 million as its share of a recent FCA settlement with CareSource of Dayton under the Federal False Claims Act.
The article, “Proposed SEC Rules Undermine Dodd-Frank’s Whistleblower Incentives,” authored by Marc Raspanti and Bryan Neft was published in The Legal Intelligencer, February 10, 2011. Mr. Raspanti is a partner in the firm’s Philadelphia office and Mr. Neft is a partner in the firm’s Pittsburgh office.
On February 1, 2011, the U.S. Department of Justice filed a motion indicating its intent to join in a whistleblower suit against Abbott Laboratories, Inc. This False Claims Act case was brought by whistleblowers inside Abbott Laboratories and accuses the company and the subsidiary of legally promoting off-label uses of the seizure drug Depakote for which it was reimbursed by the federal government.
In a January 24, 2011 letter to U.S. Senator Charles E. Grassley of Iowa, representatives from the U.S. Department of Health and Human Services (“HHS”) and the U.S. Department of Justice (“DOJ”) detailed their efforts in combating health care fraud.
On January 27, 2011, New York Attorney General, Eric Schneiderman, announced, his initiative to use a taxpayer-protection unit empowered through New York’s recently strengthened False Claims Act to target multi-state corporate tax fraud schemes, corrupt contractors, and firms that steal public pension funds. Attorney General Schneiderman remarked that the State’s False Claims Act is “the strongest anti-fraud statute in the United States” and also makes New York the only state able to bring false claims against those who commit tax fraud.
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.