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Three arrested in $90 million Medicare fraud scheme – 12/14/11

Three owners of Spectrum Care in West Houston, a mental health care program, were arrested for defrauding Medicare out of $90 million in fake treatments. According to the indictment, Mansour Sanjar, Cyrus Sajadi, and Chandra Nunn’s scheme involved illegal healthcare kickbacks and fraudulent Medicare billings for treatments that amounted to patients “watching movies, playing bingo […]

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Medtronic to Pay 23.5M for False Claims Settlement—12/13/11

Medtronic will pay $23.5 million to settle DOJ allegations of illegal kickbacks and wrongful use of cardiac implants, but will not admit any misconduct. DOJ civil division Tony West states, “Kickbacks, like those alleged here, distort sound medical judgments with financial incentives paid for by the taxpayers.” Medtronic’s Dr. Marshall Stanton states that Medtronic is […]

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Senators Scrutinize CMS over Felons Enrolled in Medicare —12/12/11

Senators Orrin Hatch (R-Utah) and Tom Coburn (R-Okla.) are questioning the Centers for Medicare & Medicaid Services’ (CMS) ability to protect seniors and taxpayer dollars, when the organization has allowed dozens of convicted felons to enroll in Medicare and bill the government for services. “We believe that the lack of systematic editing, the refusal to implement […]

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Home Healthcare Services Booming in Houston, but Violating Regulations—12/03/11

Medicare has given $1.25 billion for home-based health care services in Houston, Texas for over four years. But according to a Houston Chronicle investigation, nearly all the agencies that provide care for the elderly and disabled have violated state and federal regulations. Although declining to provide details due to ongoing investigations, Assistant U.S. Attorney Justo […]

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Olympus Former Chief Executive and Whistleblower Resigns from the Board —12/03/11

Former chief executive of Japan’s Olympus Corp. has resigned from the board in light of several allegations of a whistleblower. Michael Woodford, who worked at Olympus for three decades, was fired in October after questioning the company’s accounting practices. Upon his departure, Woodford vowed to work with shareholders to replace the company’s board and hopes […]

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Diakon’s Erroneous Claims to Medicare Cost Hospice $10.56M—12/02/11

Diakon Hospice Saint John, which operates hospice care facilities in Pennsylvania, has agreed to pay $10.56 million in a false claims settlement. According to the U.S. Attorney’s Office for the Middle District of Pennsylvania and the HHS’ Office of the Inspector General, Diakon erroneously submitted claims to Medicare for hospice care provided to individuals who […]

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Fake Doctor Sentenced to Over Five years in Prison—12/02/11

Matthew Paul Brown, who posed as a fake doctor for two years in Atlanta, Georgia, was sentenced to five years and ten months in prison. He was charged for health care fraud and wrongful disclosure of patients’ health information. United States Attorney Sally Quillian Yates said, “[u]nlike most fraud cases, which endanger the bank accounts […]

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Genentech to Pay $20M in Rituxan Whistleblower Lawsuit– 12/02/11

Genentech, the San Francisco-based U.S. subsidiary of Swiss pharmaceutical giant Roche, will pay $20 million to settle a whistleblower lawsuit brought in 2003. The suit claims that from 2000 to at least 2002, Genentech “encouraged oncologists and other physicians and medical providers to bill Medicare and other government reimbursement programs for Rituxan for off-label uses.” […]

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