Government Collects $22.6 Million On Rigged Bid

Three defense contractors–Science Applications International Corp. (SAIC), Lockheed Corp. and former federal employee, Dale Galloway and his corporation Applied Enterprise Solutions–along with the former Director and Deputy Director of the Navy Oceanograph Office (NAVO) supercomputer center have agreed to pay the U.S. government $22.6 million to settle False Claims Act allegations against them.  The Department…

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SEC Awards Whistleblower $30 Million

The SEC announced an award of $30 million to a whistleblower whose report of securities violations led to a successful SEC action and related enforcement actions.  The award is the largest paid to date under the Dodd Frank whistleblower program established in 2010. According to the SEC, this is the fourth award issued to a…

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A Plus to Pay $1.65M for Sham-Job Kickbacks

A Florida healthcare company called A Plus Home Health Care Inc. and its owners have agreed to pay $1.65 million to settle False Claims Act allegations that the company induced referrals by hiring the spouses of referring physicians for sham jobs.  According to the government, A Plus hired the partners of physicians for sham “marketing”…

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IRS Commissioner Throws Weight Behind Whistleblower Program

IRS Commissioner John Koskinen issued a statement in August which he called the IRS Whistleblower Program “an important tool for improving tax administration” and said that he is “a strong believer in this program.”  Commissioner Koskinen, whose remarks on the program were a first for a standing IRS Commissioner, also said that the information whistleblowers provide about…

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Johnson & Johnson Pleads Guilty to Misbranding Natrecor; Still Faces FCA Case

Johnson & Johnson’s Scios unit, which manufactures the congestive heart failure drug Natrecor, agreed to pay an $85 million penalty and plead guilty to a misdemeanor count of misbranding medication due to inadequate directions on Natrecor’s label.  The agreement also resolves any potential offenses based on Johnson & Johnson’s sale and marketing of Natrecor. Johnson…

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DOJ Files Suit Alleging Reliance Medical Systems Paid Kickbacks through Physician-Owned Distributors

The Department of Justice announced that it had filed its own complaint in a whistleblower lawsuit alleging that Reliance Medical Systems, a spinal implant company, set up physician-owned distributorships in order to funnel payments to physicians who were using the company’s surgical implants.  According to the government’s complaint, Reliance allowed physicians who were using the…

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Two Skilled Nursing Companies Pay $3.75 Million for Unnecessary Rehab Services

Two companies, Life Care Services (LCS) and ParkVista, have agreed to pay $3.75 million in connection with rehabilitation services provided in their skilled nursing facilities.  According to the government, both companies hired RehabCare to provide rehabilitation therapy services to their patients.  RehabTherapy allegedly provided unreasonable and unnecessary therapy, which increased the reimbursement LCS and ParkVista…

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SEC Issues $300,000 to Whistleblower in Audit & Compliance Role

The steady stream of SEC whistleblower awards continues, as the SEC has paid $300,000 to its tenth whistleblower. The individual, whose anonymity has been preserved, is the first whistleblower to receive an award for providing information gained while working in an audit and compliance capacity. Under the SEC whistleblower statute, in order for an individual…

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Dr. Reddy’s Faces FCA Suit on Childproof Packaging

Indian pharmaceutical company Dr. Reddy’s Laboratories announced in a recent SEC filing that it is currently being investigated by the Department of Justice for False Claims Act violations in connection with the company’s alleged failure to adequately child-proof its drug packaging.  According to the company, U.S. Consumer Product Safety Commission is pursuing civil penalties under…

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HP to Pay $32.5 Million for Overcharging Post Office

Hewlett-Packard agreed to pay $32.5 million to settle allegations that the company charged the U.S. Postal Service more than was agreed upon in their contract. Under HP’s contract with the USPS, HP was obligated to give the USPS the lowest price given to comparable customers. HP allegedly failed to give the USPS the benefit of…

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