Category Archives: Whistleblower News

Johnson & Johnson’s Scios unit will pay $85 million in penalties for misbranding the heart drug Natrecor. Under the False Claims Act, the U.S. alleged that Johnson & Johnson illegally marketed Natrecor for off-label “serial outpatient infusions” not yet approved by the FDA. According to the U.S., this practice has led to “substantial amounts” of false claims being submitted to the Medicare program.
Read more at: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/14/bloomberg1376-LO1H7S1A74E901-6UOBJB6Q63F6MNPNPP8VHND6UL.DTL&type=printable

The DOJ has announced that Maxim Healthcare Services Inc., a company that provides in-home health and nursing services, will pay civil and criminal fines of $150 million. The company admitted to defrauding Medicaid and the Department of Veterans Affairs for $61 million. Maxim agreed to pay approximately $70 million to the federal government, approximately $60 million to 42 states, and $20 million in criminal penalties.

Read more at: http://www.nationaljournal.com/healthcare/maxim-to-pay-150-million-fine-for-health-care-fraud-20110912?print=true

Accenture will pay $63.7 million to settle whistleblower allegations that the company engaged in a large-scale kickbacks scheme involving government contracts. The lawsuit, which was brought in 2004 by two whistleblowers, accused Accenture of receiving kickbacks from IT vendors, inflating prices, and rigging bids on federal IT contracts.  The DOJ joined the lawsuit in 2007. Assistant Attorney General for the DOJ’s Civil Division stated, “[a]t a time when we’re looking for ways to reduce our public spending, it is especially important to ensure that government contractors play by the rules and don’t waste precious taxpayer dollars.”

Read more at: http://www.pcworld.com/printable/article/id,239866/printable.html

The Commodity Futures Trading Commission (CFTC) has established new whistleblower sections required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule changes will take effect on Oct. 24, adding new sections to the Commodity Exchange Act, including a provision which provides a bounty to whistleblowers who recover money for the Government.

Read more at: http://www.ect.coop/industry/business-finance/cftc-finalizes-whistleblower-rule/33742

This past GOP debate highlighted the overwhelming problem of Medicare fraud. The candidates all agreed to maintain the Medicare prescription drug benefit enacted during George W. Bush’s tenure, but added the caveat that government waste and fraud must end. The discussion started when a woman in the audience wanted to know more about the candidates’ plans to balance the budget.

Read more at: http://www.latimes.com/news/politics/la-pn-debate-medicare-20110912,0,5723574.story?track=rss