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Archive for March, 2014

Whistleblower Paid $63.9 For J.P. Morgan Concealment Of Bad Mortgages

Tuesday, March 25th, 2014

Whistleblower, Keith Edwards, will recover $63.9 million for his false claims act lawsuit in which he revealed that J.P. Morgan Chase had submitted thousands of mortgages for governmental insurance through the Federal Housing Authority and Veterans Administration that did not qualify for those government guarantees. The government ultimately had to cover for these loans when they defaulted.

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Pittsburgh Post Gazette Exposé On Local Whistleblowers

Tuesday, March 25th, 2014

The Pittsburgh Post-Gazette recently published an in-depth article on the growth of local false claims act cases and the whistleblowers behind them. The article focused on efforts of Dave Hickton, U.S. Attorney for the Western District of Pennsylvania, who has diverted more of his office’s resources to false claims act cases. The cases include:

  • U.S. ex rel. Lyttle v. AT&T, which alleged that that AT&T was reaping huge profits permitting a scan for relaying calls of deaf individuals;
  • U.S. ex rel. Washington v. Education Management Corporation, for compensating recruiters based on the number of students they enrolled in for-profit schools even if the students were not appropriate for the education. The case alleges that the corporation reaped $11 billion in federal student aid for ineligible students.

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Big Pharma Takes A Big Hit

Tuesday, March 25th, 2014

Endo Health and its subsidiary Endo Pharmaceuticals will pay $192 million to settle false claims act after whistleblower uncovered off-label marketing of Lidoderm. The FDA only approved Lidoderm for treatment of a complication of shingles. The company required its sales staff to market the drug for unapproved ailments including low-back pain and carpal tunnel syndrome. The improper marketing caused physicians to write prescriptions covered by Medicare and Medicaid.

Referrals Get Ohio Hospital Into Hot Water

Tuesday, March 25th, 2014

Memorial Hospital of Ohio recently settled government claims related to improper referrals under the Anti-kickback and Stark statutes. These statutes restrict the financial incentives that health care providers can provide to other health care providers. The allegations concerned Memorial Hospital’s financial arrangement with a joint venture it had with a pain management physician and a relationship with an ophthalmologist who sold intraocular lenses at inflated prices through the hospital. The violations were self-reported. Memorial Hospital will pay $8.5 million to settle the violations.

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Hospice Caught Submitting False Reimbursement Claims

Tuesday, March 25th, 2014

Hospice Compassus settle false claims allegations for $3.92 million, $700,000 of which will be shared by two whistleblowers. The whistleblowers filed suit under the false claims act alleging that the hospice company sought reimbursement under Medicare for hospice care for ineligible patients.

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