Category Archives: Whistleblower News

Medtronic will pay $23.5 million to settle DOJ allegations of illegal kickbacks and wrongful use of cardiac implants, but will not admit any misconduct. DOJ civil division Tony West states, “Kickbacks, like those alleged here, distort sound medical judgments with financial incentives paid for by the taxpayers.” Medtronic’s Dr. Marshall Stanton states that Medtronic is happy to have the investigation behind them.

Read more at: http://minnesota.cbslocal.com/2011/12/12/medtronic-to-pay-23-5m-to-settle-kickback-claims/

Senators Orrin Hatch (R-Utah) and Tom Coburn (R-Okla.) are questioning the Centers for Medicare & Medicaid Services’ (CMS) ability to protect seniors and taxpayer dollars, when the organization has allowed dozens of convicted felons to enroll in Medicare and bill the government for services. “We believe that the lack of systematic editing, the refusal to implement enhanced oversight of high-risk providers and suppliers, and malleable policy positions are the wrong direction for the Medicare program,” the senators have stated.

Read more at: http://www.ama-assn.org/amednews/2011/12/12/gvsd1212.htm

Medicare has given $1.25 billion for home-based health care services in Houston, Texas for over four years. But according to a Houston Chronicle investigation, nearly all the agencies that provide care for the elderly and disabled have violated state and federal regulations. Although declining to provide details due to ongoing investigations, Assistant U.S. Attorney Justo Mendez informed the Chronicle that some companies in Houston bill fraudulently for services not rendered.

Read more at: http://www.chron.com/news/houston-texas/article/Home-health-care-firms-breaking-rules-raking-in-2342534.php

Former chief executive of Japan’s Olympus Corp. has resigned from the board in light of several allegations of a whistleblower. Michael Woodford, who worked at Olympus for three decades, was fired in October after questioning the company’s accounting practices. Upon his departure, Woodford vowed to work with shareholders to replace the company’s board and hopes that the company will come clean about its accounting cover up. Speculation still remains as to the amount that Olympus falsified. The company must submit a proper financial report by December 14, or it could be delisted by the Tokyo Stock Exchange.

Read more at: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10770490

Diakon Hospice Saint John, which operates hospice care facilities in Pennsylvania, has agreed to pay $10.56 million in a false claims settlement. According to the U.S. Attorney’s Office for the Middle District of Pennsylvania and the HHS’ Office of the Inspector General, Diakon erroneously submitted claims to Medicare for hospice care provided to individuals who were not eligible to be beneficiaries at that time. These errors went on from 2004 to 2010. The President of Kiakon, Mark T. Pile, apologized for the “mistakes,” which he claims were “unintentional.”

Read more at: http://www.timesleader.com/news/Claims_in_error_cost_hospice__10_56M_12-02-2011.html