whistleblower act

Fox Rx, Inc. has filed a complaint against Walgreens Company in the federal district court of the Southern District of New York for violations of the False Claims Act.  Walgreens allegedly submitted or caused the submission of false claims to state and federal health care programs such as Medicare and Medicaid.

Fox Rx alleges that Walgreens routinely overbilled Medicare and Medicaid by failing to substitute generic drugs for brand-name medication, in violation of state laws that required Walgreens pharmacies to substitute equivalent generic drugs whenever possible.  Walgreens also allegedly dispensed expired drugs to Medicare and Medicaid beneficiaries.  These actions caused the U.S. government, as well as state governments, to pay more for prescription drugs than they should have.

The lawsuit was filed under the False Claims Act, which allows those with knowledge of fraud against the government to sue on behalf of the government and share a claim in the recovery.  According to the False Claims Act, the government may be awarded damages three times the amount of damages sustained by the government because of the false claims.  Fox Rx would receive 15 to 30 percent as their share 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.

Kmart Corporation has agreed to pay the United States and 32 participating states a total of $2.5 million to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs, the Federal Bureau of Investigation announced yesterday.

Kmart allegedly violated the False Claims Act by billing government health care programs (Medicaid, Tricare and the Federal Employee Health Benefits Program) for all drugs included in a prescription when, for many prescriptions, it dispensed only a portion of the prescribed drugs. Although billed in full to the government health care programs, the remaining portion of the prescriptions were never dispensed to beneficiaries and were later returned to stock. 

The lawsuit was originally filed by Mark Kirsch, a former Kmart employee, 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.  Kirsch will receive $309,687 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 uncover fraud of every kind perpetrated against our 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.

The U.S. Attorney’s Office has intervened in a lawsuit against Pinnacle Bank (Pinnacle) in the U.S. District Court for the District of Wyoming, the U.S. Department of Justice announced last month.  The complaint alleges that Pinnacle made false statements to the United States Small Business Administration (SBA) regarding a loan under the SBA’s “504 Loan Program.”

Pinnacle Bank provided the Columbine Group, LLC, (developer of the hotel) with an interim construction loan for the AmericInn Lodge and Suites located in Laramie, Wyoming.  The government alleges that Pinnacle falsely certified to the SBA that it had no knowledge of any un-remedied substantial adverse change in Columbine’s financial condition since the date of the application for the SBA loan, that Columbine was current on its payments to Pinnacle and not otherwise in default of the loan, and that Pinnacle had disclosed to the SBA all material information known to it. Columbine later defaulted on its loans and the United States was required to use taxpayer dollars to repurchase the debenture pursuant to its guarantee.

The lawsuit was originally filed by Hospitality Management, Inc. (HMI), business operations manager for the hotel, under 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.  Should the United States government and HMI prevail in court, HMI will receive 15 to 30 percent 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.

California-based Kan-Di-Ki, doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs) has agreed to pay $17.5 million to resolve allegations that the company violated both the federal and California False Claims Acts, the U.S. Department of Justice announced today.  Kan-Di-Ki allegedly paid kickbacks for the referral of mobile lab and radiology services that were subsequently billed to Medicare and Medi-Cal.

The government alleged that Diagnostic Labs took advantage of Medicare’s different reimbursement system for inpatient and outpatient services by charging discounted rates to California Skilled Nursing Facilities (SNFs) for inpatient services paid by Medicare, in exchange for referrals of outpatient business.  For inpatient services, Medicare pays a fixed rate based on the patient’s diagnosis, regardless of specific services provided.  For outpatients, Medicare pays for each service separately.  Diagnostic Labs’ scheme enabled the SNFs to maximize profit earned for providing inpatient services by decreasing SNFs’ costs of providing these services.  It also allegedly allowed Diagnostic Labs to obtain a steady stream of lucrative outpatient referrals that it could directly bill to Medicare and Medi-Cal.  The provision of inducements, including discounted rates, to generate referrals is prohibited by federal and state law.

The lawsuit was originally filed by Jon Pasqua and Jeff Hauser, former Diagnostic Lab employees, under the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Pasqua and Hauser will receive $3.75 million as their 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.

Conax Florida Corp. and related companies have agreed to settle allegations that Conax knowingly submitted or caused the submission of false claims to the U.S. government in connection with improperly tested and non-conforming equipment, the U.S. Department of Justice announced last month.

Conax Florida Corp. designed and manufactured inertia reels and voltage references used by the U.S. military and NASA.  Inertia reels are part of a system designed to secure aircrew members in the event of a crash.  On impact, inertia reels lock in place harnesses worn by aircrew members, preventing injury.  Voltage references are electronic parts used in water-activated parachute releases, designed to protect unconscious or injured aircrew members who parachute into salt water. 

The government alleged that the inertia reels were not tested in accordance with contractual requirements and that Conax used non-conforming voltage references.  The voltage reference is an integral part of the water-activated parachute release, intended to automatically separate parachutes from aircrew members when they are physically unable to do so.  If parachutes are not released, they may fill with water and drag aircrew members underwater. 

Besides the $2 million settlement, Conax has also agreed to provide the government with almost five thousand new electronic parts for use with parachute releases, which are worth up to $2.4 million.

The lawsuit was originally filed by Mark Hansson and Steven Schummer, former Conax employees, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Hansson and Schummer will together receive up to a total of $810,478.

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.