Healthcare Fraud
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January 7, 2015
Florida Attorney General Pam Bondi announced that Florida, along with California, Colorado, Kentucky, and Ohio and the federal government, entered a $22 million national settlement with DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the US. The settlement resolves allegations originating in a whistleblower lawsuit that DaVita paid illegal kickbacks to induce the referral of patients to its dialysis clinics, causing false claims to be submitted to the Medicaid program. DaVita will pay Florida $5.6 million in restitution and other recoveries. FLDOJ Catch of the Week -- CVS Caremark
Posted 10/3/14
By the C|C Whistleblower Lawyer Team
This week's Department of Justice "catch of the week" goes to pharmacy benefit management (PBM) company Caremark LLC. Last Friday, it agreed to pay $6 million to settle charges of failing to reimburse Medicaid for prescription drug costs that should have been paid for by Caremark-administered private health plans. Caremark is operated by CVS Caremark Corporation, one of the...
The Growing Problem of Drug Abuse by Seniors
Posted 09/18/14
By Jason Enzler
Drug abuse and misuse by the older generation is on the rise, according to a recent article in the Wall Street Journal. And the forecast predicts things may get worse.
The problem appears to be two-fold: addiction and misuse. On the addiction side, experts are concerned that seniors are receiving powerful opiates and anti-anxiety medications without adequate monitoring to identify when patients...
September 18, 2014
New York Attorney General Eric T. Schneiderman announced that 46 states and the District of Columbia have reach a settlement agreement with Minnesota-based company Medtronic to resolve claims under the False Claims Act that Medtronic improperly induced physicians to recommend Medtronic devices to treat cardiac rhythmic disease. New York led a national team composed of members from Oregon, Texas and California to negotiate the settlement. The federal government settled its matter in May of this year. The agreement requires Medtronic to pay the settling states $362,362 which will go to those states’ Medicaid programs. The matter was brought by a whistleblower, Adolfo Schroeder. NYAGRose Cancer Center - Healthcare Fraud ($5.7 million)
Constantine Cannon represented a whistleblower in a False Claims Act case alleging Mississippi-based Rose Cancer Center used unqualified technicians performing bone marrow biopsies, diluted chemotherapy drugs, and falsified patient records to conceal the clinic’s fraudulent Medicare billings. The physician who owned and ran the practice plead guilty to various Medicare fraud violations, forfeited $5.7 million, and was sentenced to 20 years in prison. In August 2014, our client (along with three other whistleblowers) received a whistleblower award of $525,000 from the government's recovery. Read more -- Clarion Ledger, CC.Constantine Cannon Whistleblower Exposes Cancer Clinic Horror
Posted 08/21/14
[caption id="" align="alignright" width="280"]
Source: Madison County Sheriff's Department[/caption]
By Marlene Koury
In late 2011, Kristi Beeson was working as a laboratory technician at Rose Cancer Clinic in Mississippi, but had a bad feeling that something was not quite right. In a short time, she had witnessed numerous fraudulent practices at the clinic, including unqualified technicians performing bone...
Anatomy of a Medicare Fraud Scam – Power Wheelchairs
Posted 08/21/14
By Gordon Schnell
It may not be the biggest scam contributing to the estimated $50 billion annual price tag for Medicare fraud and abuse. But according to a recent Washington Post report, it could be one of the simplest and most lucrative ones. It is the power wheelchair scam. According to the Post, "criminals disguised themselves as medical-supply companies. They ginned up bogus bills, saying they’d...
DOJ Catch of the Week – Vascular Solutions
Posted 08/1/14
By the C|C Whistleblower Lawyer Team
This week's Department of Justice "catch of the week" goes to Vascular Solutions Inc (VSI). On Monday, the Minneapolis-based medical device maker agreed to pay $520,000 to resolve allegations that it violated the False Claims Act by marketing a product for sealing veins without FDA approval. Specifically, the government charged that VSI marketed and sold its "Vari-Lase...
States Go After 5-Hour Energy for Deceptive Advertising
Posted 07/24/14
By Gordon Schnell
In the ever-expanding market for high-octane energy drinks, 5-Hour Energy has been the standout success story. These two-ounce power surges are purchased 9,000,000 times a week for a total takeaway of more than $1 billion a year for the crafty vendors of this wonder blend, Living Essentials and Innovation Ventures. And it took them only ten years to get there. Sitting proudly and seductively...