Category: Federal False Claims Act

Case Studies Show Fraud and Abuse Allowed Ineligible Firms to Obtain Millions of Dollars in Contracts

The U.S. Government Accountability Office (GAO) released a report on November 19 finding that contractors falsely claiming to be run by disabled military veterans have defrauded the government of at least $100 million since 2003.  Congress established goals for the distribution of a certain portion of federal contracts to small businesses that are owned and operated by vets injured in the course of active duty. 

Justice Department Recovers $2.4 Billion in False Claims Cases in Fiscal Year 2009; More Than $24 Billion Since 1986

Earlier this week, the United States Department of Justice announced that it had secured $2.4 billion in settlements and judgments in cases involving fraud against the government in the fiscal year ending Sept. 30, 2009. This represents the second largest annual recovery of civil fraud claims in history, and brings total recoveries since 1986,

United States Sues Kaman Dayron, Inc., Under False Claims Act

The US Department of Justice filed a lawsuit under the False Claims Act against defense contractor Kaman Dayron, Inc. for allegedly substituting non-conforming parts in sophisticated ignition devices supplied in “bunker buster” bombs.  The lawsuit contends that Kaman Dayron knowingly substituted non-conforming parts that might cause the ignition devices to fire prematurely,

AtriCure Pays $3.8M to Settle With U.S.

The manufacturer of devices for treatment of atrial fibrillation (irregular heartbeats) tentatively settled with the US Department of Justice allegations of false claims for $3.8 million.  The DOJ claimed that the manufacturer, AtriCure, marketed its devices beyond the scope of its FDA clearance and by instructing hospitals to use incorrect Medicare billing codes.

U.S. Sues Canadian Firm Over Bullet Vests

The US Department of Justice sued a seller of bullet-proof vests, and several of manufacturers of component parts of the vests under the False Claims Act claiming that the vests were defective. The DOJ sued Lincoln Fabrics, Ltd. of Canada and its American subsidiary, Toyobo Co., Honeywell International, Inc. and others,

United States Intervenes in False Claims Act Suit Against Virginia Medicaid Providers

The United States and the Commonwealth of Virginia have intervened in a False Claims Act suit in the Western District of Virginia against the Medicaid providers Universal Health Services Inc., Keystone Marion LLC and Keystone Education and Youth Services LLC, the Justice Department announced today. They did business as the Keystone Marion Youth Center,

Flaws Found in Body Armor Tests

The Government Accountability Office has reported that the the Army deviated from established standards in testing conducted last year of ballistic vests that contain hardened ceramic plates that protect the upper bodies of soldiers from enemy bullets and shrapnel. The audit recommends pulling 33,000 ceramic plates from the Army’s inventory of nearly 2 million.

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