The Center for Diagnostic Imaging (“CDI”), one of the nation’s largest providers of diagnostic imaging services for doctors and hospitals, recently agreed to pay at least $1.2 million to settle an allegation of Medicaid billing fraud. CDI’s decision to settle followed on the heels of the federal government’s announcement last week that it intended to intervene and pursue the billing fraud issue on behalf of whistleblowers Dr.
Wilfred Van Gorp, widely known for his declaration that Oddfather Vincent (Chin) Gigante was truly crazy, a claim later soundly rejected based on recorded telephone conversations, was found by a Manhattan federal jury, along with Cornell University, to have violated the federal False Claims Act.
A former loan officer for Bank of America has sued the company for taking money from borrowers who were seeking to refinance their mortgages and then failing to follow through by actually processing the applications.
Universal Health Services, one of the nation’s largest healthcare management companies, is embroiled in a suit pending in Sacramento County, California related to allegations brought by private whistleblowers under California’s False Claims Act that the company bilked the state of public money through special education schools the company owns.
Maryland Lieutenant Governer, Anthony Brown, presently campaigning with Martin O’Malley for re-election this fall, announced that the state’s health department has uncovered $26 million in fraud and waste within the state’s Medicaid program for fiscal year 2010.
On Wednesday, July 21, 2010, President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law provides sweeping new consumer protections in the form of ending certain predatory consumer lending and providing stricter regulatory oversight of consumer credit mortgages.
Teva Pharmaceuticals, the Israeli generic pharmaceutical manufacturer, has settled, for $169 million, claims pending against it in Texas, California and Florida related to overpricing of its pharmaceutical products.
Sodexo, the world’s largest private food purchaser, has agreed to settle claims that it overcharged New York state school districts and the State University of New York from 2004 until 2009. For $20 million, Sodexo will settle the claims of 21 public school districts and SUNY that Sodexo failed to pass along rebates it received from the suppliers of the food and equipment.
Elan Corporation, plc, of Dublin, Ireland has agreed to settle claims related to the marketing of Zonegran, an anti-epileptic drug for which it sold the rights to a Japanese company in 2004.
Today, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. This sweeping legislation will impact fraud enforcement and whistleblower cases. We will be posting more information about the new law in the days to come.
See also http://www.washingtonpost.com/wp-dyn/content/article/2010/07/21/AR2010072100512.
