whistleblower act

Family Dermatology P.C., which owns and operates a dermatopathology lab and a number of dermatology practices, has agreed to pay $3.2 million plus interest to settle allegations that the company violated the False Claims Act by engaging in improper financial relationships with a number of its employed physicians, the U.S. Department of Justice announced earlier this week.

The settlement resolved allegations that financial relationships that Family Dermatology and its affiliates had with a number of their employed physicians violated the Stark Statute and the False Claims Act.  The Stark Statute restricts the financial relationships that health care providers may have with doctors who refer patients to them.  Family Dermatology employs a number of dermatologists as independent contractors and it has routinely required them to use Family Dermatology’s in-house pathology lab, which operated under the name Nelson Dermatopathology, for their pathology services.  The government alleged that Family Dermatology’s financial relationships with a number of these physicians did not comply with the requirements of the Stark Statute, and that Family Dermatology improperly billed Medicare for dermatopathology analyses performed by Nelson Dermatopathology on specimens that were sent to the laboratory by these employed physicians.

The allegations settled today arose from three separate lawsuits filed by three whistleblowers, Scott M. Ross MD, Mark F. Baucom and Harold Milstein MD under the qui tam provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The whistleblowers will collectively receive more than $584,000 from the recovery announced today.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

A lawsuit accusing OneWest Bank FSB, formerly known as IndyMac Bancorp Inc., of knowingly submitting or causing the submission of false claims to a federal mortgage program has been unsealed, Reuters reported.  The U.S. government paid out over $200 million as a result of the alleged fraud.

The complaint was filed by Michael Fisher, who worked on modifications for OneWest from 2008 to 2012, and alleges that OneWest violated the Home Affordable Modification Program (HAMP).  OneWest allegedly loaned new principle without itemizing as required, thereby not providing required disclosure of terms such as payment amounts, interest rates, finance charges, and late payment policies.  The lawsuit says that as a result of these false statements, the government paid $206 million under HAMP to help homeowners avoid foreclosure.

The lawsuit was filed under the whistleblower provisions of the False Claims Act, which allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  The Act also allows the government to intervene in such cases, which it has elected not to do in this case.  Should Fisher prevail, he will be entitled to up to 30 percent of the recovery.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

American Family Care Inc. has agreed to pay $1.2 million to settle allegations that the company knowingly submitted or caused the submission of false claims to the federal health care program Medicare, the U.S. Department of Justice announced today.  American Family Care is a network of walk-in medical clinics headquartered in Birmingham, Ala., with offices in Alabama, Tennessee and Georgia.

Following guidance adopted by the Centers for Medicare and Medicaid Services, health clinics such as American Family Care bill Medicare for their services by selecting a corresponding Evaluation and Management code.  The codes are divided into five different levels - from basic (level 1) to most complex (level 5).  Higher level codes result in higher reimbursement from Medicare than lower level codes.  The government alleged that American Family Care knowingly selected Evaluation and Management codes for a level of services that exceeded those actually provided in order to artificially increase the amount of reimbursement it received for those visits.

The lawsuit was originally filed by Anita C. Salters, a former American Family Care employee, under the whistleblower provision of the False Claims Act.  The Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Salters’ portion of the settlement has not yet been determined.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Sea Star Line LLC and Horizon Lines LLC have agreed to pay $3.4 million to resolve allegations that the companies knowingly submitted or caused the submission of false claims to the federal government by fixing the prices of government cargo transportation contracts between the United States and Puerto Rico, the U.S. Department of Justice announced today.  Sea Star Line will pay $1.9 million, while Horizon Lines will pay $1.5 million.

The government alleged that former executives of the defendant ocean shippers used personal email accounts to communicate confidential bidding information, thereby enabling each of the shippers to know the transportation rates that its competitor intended to submit to federal agencies for specific routes.   This information allowed the shippers to allocate specific routes between themselves at predetermined rates.  Among the contracts affected were U.S. Postal Service contracts to transport mail and Department of Agriculture contracts to ship food.   Both Sea Star Line and Horizon Lines previously pleaded guilty, in related criminal proceedings, to anticompetitive conduct in violation of the Sherman Act.

The lawsuit was originally filed by William B. Stallings, a former Sea Star Line executive, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Stallings will receive $512,719 as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Vector Planning and Service Inc. (VPSI) has agreed to pay the government $6.5 million to settle False Claim Act allegations that the company inflated claims for payments under several Navy contracts, the Justice Department announced today.

VPSI, an information technology and systems engineering firm, has a number of contracts with the U.S. Navy to provide information technology, systems engineering, and management consulting services. Under these contracts, VPSI is entitled to bill the government for indirect costs, such as overhead expenses that cannot be allocated directly to a particular contract. VPSI allegedly inflated its indirect cost billings to the government by improperly including direct costs, for which it had already been paid, in indirect cost accounts that were then allocated across its government contracts, and billed again. The government further alleged that VPSI submitted claims for other costs that were never incurred.

The lawsuit was originally filed by an unnamed whistleblower under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. The whistleblower will receive $1.28 million as his or her portion of the settlement.

This case was prosecuted by the Hirst Law Group.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.