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.
The U.S. Department of Justice announced on February 1, 2011 that three companies, CareSource, CareSource Management Group Co., and CareSource USA Holding Co.
On February 1, 2011, a jury in Travis County, Texas, returned a verdict against drug manufacturer Actavis Mid-Atlantic, LLC, based on allegations that it misrepresented drug prices to the federally-funded Medicaid program. The jury’s finding determined that Actavis and its co-defendant, Actavis Elizabeth, LLC, should pay the state of Texas and the federal government $170.3 million for its fraud against Medicaid.
Even though an estimated one out of every eight people in the United States is currently receiving food stamp benefits as part of the Supplemental Nutrition Assistance Program (“SNAP”) – the highest level of participation in the food stamp program since it began in 1939 – the last five years have seen a 20% drop in the number of investigations conducted by the USDA’s Food and Nutrition Services branch,
On January 18, 2011, United States Attorney B. Todd Jones announced the creation of the Civil Frauds Unit in his office’s Civil Division. The new unit will focus on fraud in the areas of finance, health care, mortgages, banks, and federal grants, and will work hand-in-hand with the U.S. Attorney’s Office’s Criminal Division in handling fraud cases and freezing assets before indictments are filed.
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.