The History of the False Claims Act

Posted on July 15th, 2010 No Comments

The False Claims Act is a federal law passed in 1863 that allows private citizens to file legal actions against federal contractors they believe are defrauding the government.

The False Claims Act is also called the “Lincoln Law.” During the American Civil War defense contractors defrauded the government on every level of the Union north. These early contractors sold the union army decrepit horses and sick mules, as well as faulty rifles and ammunition, and rancid rations. Congress passed the False Claims Act on March 2, 1983 as an effort to respond to entrenched fraud at a time when the Justice Department was reluctant to prosecute fraud cases.

The “Qui Tam” provision of the False Claims Act allows a citizen to sue on behalf of the government and, if successful, be paid a percentage of the recovery. The term comes from the latin phrase “qui tam pro domino rege quam pro se ipso in hac parte sequitur” which means “he who brings a case on behalf of our lord the King, as well as for himself.”

If you have information that could prove useful in a fraud suit against a corporation or contractor, you may be eligible to file for a whistleblower suit under the False Claims Act. Contact the Qui Tam lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900 today.http://www.fraudfighters.net/wp-admin/post-new.php#

US Government Files Suit Against Johnson & Johnson

Posted on July 2nd, 2010 No Comments

The United States government sued Johnson & Johnson claiming that the company paid millions of dollars in kickbacks to the Omnicare pharmacy chain to buy and recommend medications.

According to the lawsuit filed January 15, 2010, Johnson & Johnson made payments to Omnicare, the nations largest senior care pharmacy, in exchange for buying and recommending Johnson & Johnson drugs, including its antipsychotic medication Risperdal. The payments allegedly persuaded Omnicare pharmacies to switch patients from other anti-psychotic medications to Risperdal.

Johnson & Johnson argues that it did not violate the False Claims act or Anti-Kickback statute. The company claims the United States government is trying to brand allowable rebates as illegal.

The Qui Tam attorneys of Tycko & Zavareei LLP are experienced in healthcare fraud investigations and litigation, and are here to help you with a free, confidential, initial consultation. Contact us at 202-973-0900 today.

Oracle suit joined by Justice Department

Posted on June 18th, 2010 No Comments

The Justice Department has joined a former Oracle employee in a whistleblower suit that alleges the company has defrauded the United States government for millions of dollars.

According to the General Services Administration, companies under the Multiple Awards Schedules must provide the federal government with their lowest private-sector price. However, the man who has filed the suit against Oracle, a major software firm, has claimed that the company has been giving discounts to their best clients and have not disclosed that information to the government.

The man filing the suit was originally employed by Oracle in 1997, and specifically worked as a contract specialist involved with GSA contracts. His lawsuit was filed in May 2007, going through the District Court of the East District of Virginia.

The Justice Department joined the suit earlier this year. The suit estimates that tens of millions of dollars were added to the price of Oracle’s services and software.

If you have witnessed fraud against the government, you may be able to file a qui tam lawsuit against that company. These lawsuits return millions of taxpayer dollars every year. Contact the GSA fraud lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900 today.

Kickback suit ends in $176,000 reward for whistleblower

Posted on June 16th, 2010 No Comments

After a lawsuit that began six years ago, a woman was rewarded $176,000 for her part in a health care whistleblower suit.

The suit, filed against Cochlear Americas, was picked up by the United States government in 2007, making the woman eligible for monetary compensation under the qui tam laws of the False Claims Act. The total settlement reached $880,000. Federal agencies involved included the Commercial Litigation Branch of the Justice Department’s Civil Division, the Affirmative Civil Enforcement Unit of the US Attorney’s Office of the District of Colorado, and both the Office of Counsel to the Inspector General and Office of Investigations of the US Department of Health and Human Services.

Cochlear Americas was charged with violating both the False Claims Act and the Anti-Kickback Act by offering kickback money to doctors who would prescribe use of a Cochlear implant device for Medicare and Medicaid patients. The company was also under investigation for administrative civil monetary penalties by the federal government, which was one of the reasons the suit was stretched over so much time. The settlement in the case was announced June 9.

If you have information that could prove useful in a fraud suit against a corporation or contractor, you may be eligible to file for a whistleblower suit under the False Claims Act. Contact the Qui Tam lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900 today.

Bribe scheme indictment filed against defense contractor

Posted on June 11th, 2010 No Comments

An indictment that came from the District of Hawaii’s U.S. District Court on June 8 has charged two Army officials and two contractors in connection with defense contract fraud.

The charges filed against the contractors, their company, and one of the Army officials tally up to one count of bribery, one count of money laundering, one respective count of conspiracy to commit both crimes. The other Army official was similarly charged with one count of conspiracy to commit bribery, one count of money laundering, one count of conspiracy to commit money laundering.

Allegedly, the contracting company had paid a $50,000 bribe to secure a Department of Defense contract to support trucking needs in Afghanistan. While the individuals face jail sentences and large fines, the company, AZ Corporation, could face a combined $1 million fine for its connection to the crimes.

The charges were filed by the National Procurement Fraud Task Force.

If you have information or a case against a defense contractor, you may be eligible for file a qui tam suit against that company. These lawsuits can make sure that U.S. taxpayer money is not being abused in illegal schemes and that military forces are not endangered by fraudulent business actions. Contact the defense contract fraud lawyers of Tycko & Zavareei, LLP, at 202-973-0900 today to learn more about the law in this area.

$9.4M returned in hospital case

Posted on June 4th, 2010 No Comments

Across seven states, nine hospitals have been found responsible and guilty in a Medicare fraud suit. The payment, in total, that was settled upon was a $9.4 million claim. A whistleblower suit was responsible for originally bringing the hospitals to court.

According to the 2008 lawsuit, hospitals were found keeping patients with kyphoplasty an additional night, charging Medicare for the expenses. However, kyphoplasty is considered an outpatient procedure, meaning that patients staying overnight were in the hospital under unnecessary terms.

Of the nine hospitals in the suit, seven were implicated in another 2008 suit involving kyphoplasties. In this case, the company Medtronic Spine was found guilty of defrauding the government of about $20 million in connection with the hospitals. Medtronic Spine itself was forced to settle for $75 million in another Medicare fraud case at a previous date.

The Justice Department was pleased to see the funds return to the government, as they can go back into legitimately operating hospitals and health care facilities.

If you or someone you know is in a position to act as a whistleblower against fraud, there may be a legal course of action that could recover funds for the government. Contact the Qui Tam lawyers of Tycko & Zavareei, LLP, at 202-973-0900 today to discuss your suit.

Case settled with NYC Medicare fraud

Posted on June 4th, 2010 No Comments

A settlement was reached between the federal government and several New York City ambulance companies to dismiss a qui tam suit filed under the False Claims Act, leading to a $2.85 million pledge to repay the fraudulent claims.

According to the federal government, Metropolitan Ambulance & First Aid Corp., Metro North Ambulance Corp., and Big Apple Ambulance Service Inc. all filed for Medicare refunds after completing a series of non-emergency trips using ambulances. The law prohibits refunds for non-emergency trips only if the patient in question is reasonably incapable of getting to a hospital or clinic by any other means. The U.S. government claimed that the suspected companies could not prove adequate reasons for their actions, and committed themselves to fraud instead of admitting fault.

Since January 2009, the U.S. Justice Department has reported $3 billion in recovered fraud funds in cases related to health care and Medicare alone through the False Claims Act.

If you or someone you know has information that could lead to a whistleblower case, contact the Qui Tam attorneys of Tycko & Zavareei, LLP, at 202-973-0900 today.

Justice Department backs suit against military contracts

Posted on June 2nd, 2010 No Comments

The US Justice Department announced that it would intervene in a qui tam case involving Kellogg Brown & Root, Panalpina, and others. The companies are accused of allegedly accepting kickbacks while working as contractors in military logistics operations in Iraq. According to the suit, the merger of Eagle Global Logistics and TNT Logistics worked with Panalpina to provide kickbacks to KBR employees in the form of meals, drinks, golfing, and tickets to sports games. The suit also alleges that a subcontractor of KBR working in the Balkans, Wesco, has been overbilling while under a military contract. The suit was filed in the US District Court for Texas’ Eastern District. Implicated in the suit, Eagle Global Logistics has already settled in a previous suit, seeing two pleading guilty to criminal charges and the company itself being charged $4 million. The company was caught filing for expenses that did not exist concerning war risk insurance, putting the orders through KBR, and then expecting the US Army to pay. The company had also been connected to overcharging the government in a case involving shipping, as well as another $750,000 settlement due to allegations of kickbacks also involving KBR. The US Justice Department said its involvement in the case will be limited, but nevertheless present in the case proceedings.

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