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The United States has intervened in a False Claims Act case against Florida-based Health Management Associates, Inc. (HMA), after uncovering allegations of unlawful kickbacks and improper billing claims to federal healthcare entities such as Medicare and Medicaid, the Atlanta Business Chronicle announced last month.

HMA allegedly encouraged physicians to inappropriately admit a certain number of emergency room patients each year and submit reimbursement claims for treating those individuals to federal health care programs in order to garner greater reimbursements and meet quotas.

HMA said it has also been advised that federal authorities will also intervene in four other ongoing cases against the company.

Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery. The unnamed whistleblower(s) in this case may receive anywhere from 15 to 30 percent 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.

Taylor Bean & Whitaker Mortgage may pay the United States more than $320 million to resolve allegations that they violated the False Claims Act submitting false mortgage claims, Bloomberg Businessweek announced earlier this month.

The settlement would resolve allegations that Taylor Bean knowingly submitted fraudulent mortgages to the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD). Taylor Bean allegedly submitted false, fraudulent, incomplete, or even wholly fabricated information to pass loan applications through the process which determined whether or not a customer is qualified for the loan. In some instances, employees were allegedly ordered to close the loan without meeting conditions or were ordered to add additional files to an application after the loan had closed.  When these loans went into default, Taylor Bean allegedly presented these claims to the government in full knowledge that they were false and based on false information.  The fraud caused the government to guarantee loans that it otherwise would not, and to pay money that it did not owe.

Subsequently, six Taylor Bean executives were convicted and jailed for their roles in bankruptcy fraud after the initial FCA charges were made, including former chairman Lee Farkas, who is currently serving a 30-year prison term for conspiracy and fraud.

The lawsuit was originally filed by two former employees, 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 whistleblowers, who asked not to be named because the agreement was still being circulated among the parties, have not yet received a determined amount for their involvement in this 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.

Genzyme Corp. (Genzyme) has agreed to pay $22.28 million to resolve allegations, under the False Claims Act, that they knowingly marketed and caused false claims to be submitted to federal and state health care programs for use of a “slurry” version of its Seprafilm adhesion barrier, the Justice Department announced today. 

 Seprafilm is a thin film intended to reduce adhesions after surgery by forming a bio-resorbable barrier between abdominal tissue and organs. Genzyme sales representatives allegedly taught doctors and other staff to cut the Seprafilm sheets into small pieces, add saline and allow the pieces to dissolve until the desired consistency was reached.  This mixture was referred to as “slurry.” Genzyme sales representatives traded recipes for slurry, and trained each other in how to create it. The slurry was used in laparoscopic or “key hole” surgeries by inserting a catheter filled with the mixture into the body and squirting it into the abdominal cavity. Seprafilm is FDA-approved for use in open abdominal surgery but not for minimally invasive surgeries, such as laparoscopic or key hole surgery.  As a result of this conduct, Genzyme knowingly caused hospitals and other purchasers of Seprafilm to submit false and fraudulent claims to federal health care programs for uses of Seprafilm that were not approved and therefore not reimbursable.

The lawsuit was originally filed by Christopher Russo and Joseph Fuentes, two former Genzyme employees, 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. Russo’s and Fuentes’ share 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 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.

Cardiologist Dr. Elie H. Korban (Korban) will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today.

Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease.  The government alleges that Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary and improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself. 

As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future.  The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers. 

The lawsuit was originally filed by Dr. Wood M. Deming, another cardiologist, 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. Deming’s share 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 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.

Northrop Grumman Corp. (Northrop ) has paid the United States $11.4 million to settle a government claim for penalties provided under the Federal Acquisition Regulation (FAR) and False Claims Act allegations stemming from its failure to abide by a 2002 settlement agreement, the Justice Department announced earlier this week.

Northrop allegedly charged federal contracts certain costs for deferred compensation awards to key employees, even though it had promised not to do so as part of an earlier settlement. In 2002 Northrop agreed that it would limit the amount of deferred compensation it would include in proposals for subsequent contracts.  The government’s contracting officer found that Northrop had failed to honor this commitment and should be assessed a penalty equal to twice the amount of the unallowable costs claimed.  Northrop challenged the decision and the Department of Justice responded to the suit with counterclaims alleging that in addition to the FAR penalties, Northrop also had violated the False Claims Act by passing along these unallowable costs to the government in indirect rates applicable to hundreds of contracts with the government.  The government alleged that as a consequence of Northrop’s knowing misrepresentations, it was induced to pay more than $1.9 million in unallowable costs in thousands of vouchers and invoices.

Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery.  Had there been a whistleblower in this case, their portion of the settlement may have been anywhere from 15 to 30 percent.

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.