The US Attorney for the Southern District of New York settled false claims against the Local 95 Head Start Employees Welfare Fund for charging a Head Start program more for medical insurance than it had paid for the insurance. The fund administered medical insurance for employees working for agencies that maintain Head Start programs.
James Alderson, a former chief financial officer for a Montana hospital, received a $27 million benefit by blowing the whistle on his former employer’s accounting fraud.
A federal appeals court ruled that the reward, since filing the qui tam suit under the Federal False Claims Act, is taxed as ordinary income and not under the lower capital gains tax rate.
According to a recent report, the Securities and Exchange Commission (SEC) has amassed $452 million to be paid out to whistleblowers across the country.
The cash is part of the SEC’s whistleblower program, which celebrated its first anniversary this week.
An Arizona-based company, NextCare Inc., has agreed to pay the United States $10 million to settle federal and state allegations that it submitted false claims. NextCare is an owner of a chain of urgent care facilities with locations in Arizona, Colorado, Texas, North Carolina, Ohio, and Virginia.
NextCare Inc.
Pietragallo Gordon Alfano Bosick & Raspanti, LLP attorneys, Marc S. Raspanti and Pamela C. Brecht had their article “The Tar Heel State Steps Up Its Fight Against Fraud,” published in The Legal Intelligencer on June 26 and June 27, 2012.
The article discusses the North Carolina False Claims Act and the powerful weapon that North Carolinians have to combat fraud against their tax dollars.
The FY 2011 IRS Whistleblower Office report is out and can be read here:
http://www.irs.gov/pub/irs-utl/fy2011_annual_report.
The Justice Department announced on Monday, July 2, 2012 that GlaxoSmithKline has agreed to pay $3 billion in settlements and to plead guilty to criminal charges related to its branding, safety disclosures and price reporting of several drugs. This is the largest fraud settlement in U.S. history to date.
GlaxoSmithKline will pay $1.
The Department of Justice announced that the United States Government will receive $8,999,999 from AHS Hospital Corp., Atlantic Health System Inc., and Overlook Hospital, located in New Jersey to resolve False Claims Act allegations. The hospital falsely overbilled Medicare for patients that were considered outpatient or observation patients.
Abraham Gutterman and his companies, Alliance Capital Metals LLC and AR Goldman Wealth Management, LLC, are barred from the commodities industry by a court order from Judge Marcia G. Cook, of the U.S. District Court for the Southern District of Florida.
The United States government will collect $6.1 million from Hospice Care of Kansas LLC and its parent company, Ft. Worth, Texas-based Voyager HospiceCare Inc. as a result to resolve False Claims Act allegations. Former Hospice Care of Kansas nurse, Beverly Landis, under the qui tam, or whistleblower, provisions of the False Claims Act revealed that the hospice company was submitting false claims over a course of four years to Medicare for beneficiaries that did not have a terminal prognosis of six months or less.
If you are aware of any person, corporation or entity that you think may be violating the False Claims Act, securities, commodities, tax, anti-money laundering, or sanctions laws, contact us today.