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Whistleblower News

J&J Unit Pays $85M Fine for Misbranding Heart Drug—9/14/11

Johnson & Johnson’s Scios unit will pay $85 million in penalties for misbranding the heart drug Natrecor. Under the False Claims Act, the U.S. alleged that Johnson & Johnson illegally marketed Natrecor for off-label “serial outpatient infusions” not yet approved by the FDA. According to the U.S., this practice has led to “substantial amounts” of […]

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Maxim Agrees on $150M Settlement for Health Care Fraud—9/12/11

The DOJ has announced that Maxim Healthcare Services Inc., a company that provides in-home health and nursing services, will pay civil and criminal fines of $150 million. The company admitted to defrauding Medicaid and the Department of Veterans Affairs for $61 million. Maxim agreed to pay approximately $70 million to the federal government, approximately $60 […]

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Accenture to Pay $63.7M for Allegations on Kickbacks—9/12/11

Accenture will pay $63.7 million to settle whistleblower allegations that the company engaged in a large-scale kickbacks scheme involving government contracts. The lawsuit, which was brought in 2004 by two whistleblowers, accused Accenture of receiving kickbacks from IT vendors, inflating prices, and rigging bids on federal IT contracts.  The DOJ joined the lawsuit in 2007. […]

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CFTC Establishes Whistleblower Program—9/12/11

The Commodity Futures Trading Commission (CFTC) has established new whistleblower sections required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule changes will take effect on Oct. 24, adding new sections to the Commodity Exchange Act, including a provision which provides a bounty to whistleblowers who recover money for the Government. Read […]

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GOP Candidates Agree: Keep Medicare Drug Program, But Eliminate Waste and Fraud—9/12/11

This past GOP debate highlighted the overwhelming problem of Medicare fraud. The candidates all agreed to maintain the Medicare prescription drug benefit enacted during George W. Bush’s tenure, but added the caveat that government waste and fraud must end. The discussion started when a woman in the audience wanted to know more about the candidates’ […]

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TriWest pays $10M in False Claims Case—9/9/11

The DOJ reports that the Arizona-based contractor, TriWest Healthcare Alliance Corp., will  pay $10 million to resolve allegations of  filing false claims to the U.S. military’s Tricare medical benefit plan from 2004 to 2010.  The suit was brought by four former TriWest employees under the whistleblower provisions of the False Claims Act. The relators will […]

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U.S. Intervenes in Suit Against Halifax Hospital Involving Stark Law Violations—9/9/11

According to a DOJ news release, the U.S. has partially intervened in a false claims lawsuit against Florida-based Halifax Hospital Medical Center. The allegations state that Halifax violated the Stark Law, which “prohibits a hospital from billing Medicare for services referred by physicians that have an improper financial relationship with the hospital.” Read more at: […]

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In Aftermath of Whistleblower’s Recent Claim, SEC Bans Destruction of Documents—9/9/11

The SEC has banned its employees from destroying anymore investigative documents, as damage control takes place after an SEC attorney blew the whistle on the agency’s mass destruction or records. Senator Grassley states, “[t]his agency has been in knots over its documents policy… [t]he agency and the National Archives need to determine what records have […]

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Feds Find $295M of Fraudulent Medicare Claims—Largest Amount in Strike Force History—9/7/11

The indictment of two individuals in Houston, TX, who were charged $62 million with Medicare fraud, was the beginning to the “nationwide takedown” that took place during the week of September 5th. The takedown, announced by Attorney General Eric Holder, involved Medicare Fraud Strike Force operations in seven other cities. The task force ended up […]

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Par Pharmaceutical Engaged in Illegal Drug-Switching Scheme, U.S. Says—9/6/11

In a whistleblower lawsuit, the U.S. alleges that a leading company in drug making and distribution defrauded government healthcare systems by engaging in a nationwide illegal drug-switching scheme. The whistleblower lawsuit became public this week in a Chicago federal court. Twenty states and the District of Columbia have joined the lawsuit filed under the False […]

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