False Claims Act

February 5, 2014
JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees, the Department of Justice announced yesterday. JPMC admitted that, for more than a decade, it approved thousands of Federal Housing Administration (FHA) loans and hundreds of...
January 31, 2014
Prime Healthcare Services Inc. (PHS) is being sued by an employee whistleblower, Karin Berntsen, for allegations under the False Claims Act that they knowingly falsified patients’ admission information, Law360 announced earlier this month. PHS allegedly directed hospital staff to falsify patients’ diagnoses in order to charge the highest amount to Medicare and...
January 29, 2014
Saint Joseph Health System, Inc. has agreed to pay the U.S. Government $16.5 million to resolve allegations under the False Claims Act that they submitted false or fraudulent claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary heart procedures, the Justice Department announced today. Several doctors working at the Saint Joseph London...
January 27, 2014
Two orthopedic clinics, Tennessee Orthopaedic Clinics P.C. and Appalachian Orthopaedic Clinics P.C., will pay a combined $1.85 million to resolve allegations under the False Claims Act that they knowingly billed state and federal health care programs for re-imported osteoarthritis medications, known as viscosupplements, the Department of Justice announced last week. ...
January 16, 2014
New York City (NYC) has agreed to pay $1.37 million to resolve allegations that the city’s Department of Education (DOE) violated the False Claims Act by submitting false claims to Medicaid, the Department of Justice announced earlier this week. Medicaid pays DOE a flat fee of $223 for each student to whom DOE provides at least two psychological counseling sessions in a...
January 24, 2014
The government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. (La Nouvelle) and First Kuwaiti Trading Co. (First Kuwaiti) for submitting false claims in connection with KBR’s contract with the Army to provide logistical support in Iraq, the Department of Justice...
January 23, 2014
General Electric Hitachi Nuclear Energy Americas LLC (GE Hitachi) has agreed to pay $2.7 million to resolve allegations under the False Claims Act that it made false statements and claims to the Department of Energy (DOE) and the Nuclear Regulatory Commission (NRC) concerning an advanced nuclear reactor design, the Department of Justice announced today. GE Hitachi allegedly...
January 21, 2014
RehabCare Group Inc. has agreed to pay $30 million to resolve allegations that they violated the False Claims Act by engaging in a kickback scheme related to the referral of nursing home businesses, the Justice Department announced last week.   RehabCare allegedly arranged to obtain Rehab Systems of Missouri’s contracts to provide therapy to patients residing...
January 17, 2014
BioScrip has agreed to pay $15 million to resolve allegations under the False Claims Act that they received kickbacks from Novartis in exchange for recommending refills to patients, the Department of Justice announced earlier this week. Novartis allegedly provided kickbacks to BioScrip, in the form of patient referrals and in the guise of rebates, in exchange for BioScrip...
January 13, 2014
St. Mary Medical Center has agreed to pay over $2.3 million to resolve allegations under the False Claims Act that it failed to administer certain contracts which led to overbilling from physicians, the Department of Justice announced last week. St. Mary voluntarily disclosed the allegations. According to the self-disclosure and subsequent investigation, St. Mary admitted that...