Category: Federal False Claims Act

Minnesota Hospital to Pay U.S. to Resolve Allegations of False Claims Involving Unnecessary Admissions

Wheaton Community Hospital, the City of Wheaton (MN), and Dr. Stanley Gallagher have agreed to pay the United States $846,461.00 to settle allegations that their hospital admission practices violated the False Claims Act.  In particular, the suit against Wheaton Community Hospital, the City, and Dr. Gallagher alleged that they admitted some patients and kept others admitted to acute care when doing so was not medically necessary. 

Michigan Health Care Provider to Pay United States $669,413 to Settle False Claims Allegations

Genesys Health System, a Michigan-based health care service provider, has agreed to pay the United States $669,413.00 to settle allegations that it submitted false claims to Medicare. Specifically, a whistleblower’s qui tam suit alleged that from 2001 through 2007, Genesys repeatedly billed Medicare for higher levels of service than were actually provided to the company’s cardiology patients.

House approves Wall Street Reform and Consumer Protection Act

On December 11, 2009, the United States House of Representatives approved The Wall Street Reform and Consumer Protection Act (H.R. 4173).  The legislation is aimed at reforming the financial services industry in the wake of the recent economic crisis.  Significantly, the legislation contains a whistleblower incentive program.  Under the program,

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,

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