Thursday, January 27, 2005

Suit alleges GE cover-up of cracked engine blades

A False Claims Act whistleblower suit alleges that General Electric produced cracked engine blades for military helicopters and tried to hide the evidence of it.

The whistleblower suit was revealed in November and an affidavit filed by an Army investigator supported those charges. The suit, seeking $64.4 million in damages, was reported on in the Cincinnati Enquirer on January 27, 2005.

Thursday, January 13, 2005

Contractor will pay $2.6 million to settle False Claims Act suit

Westinghouse Savannah River Co. has agreed to pay $2.6 million to settle allegations that it filed travel reimbursement for workers who were not traveling.

The travel fraud settlement is the third since May 2000 involving Westinghouse and two Savannah River Site subcontractors. The companies will have repaid the U.S. Treasury a total of $7.4 million.

The story ran in the January 11, 2005 issue of The State.

Wednesday, January 12, 2005

Inter-Tel to settle E-Rate suit for $8.7 million

Inter-Tel Technologies has agreed to pay $8.7 million and to plead guilty to wire fraud and antitrust charges. The charges filed by the Justice Department alleged that Inter-Tel submitted rigged bids, inflated prices and provided false documents relating to government-sponsored E-Rate projects in Michigan and California.

The E-Rate program provides funding for schools and libraries to connect to and utilize the Internet.

The Arizona Republic ran the story on January 6, 2005.

Sunday, January 09, 2005

New York State hospital will pay $1.5 million to settle qui tam suit

Catskill Regional Medical Center paid $52,000 per month in illegal kickbacks to an unnamed entity for sham administrative services. Catskill received millions of dollars for treating these illegally referred alcohol and substance abuse inpatients.

The scheme operated from 1997 to 2000 according to the civil complaint and settlement agreement.

The suit was filed by a whistleblower who brought a qui tam suit under the federal False Claims Act.

PR Newswire reported on the settlement on January 7, 2005.

Wednesday, January 05, 2005

Massachusetts physician settles Medicare overbilling case

Arthur Bregoli, a Braintree, Massachusetts, physician has paid $100,000 to settle charges that he overbilled Medicare patients for nursing facility care.

The settlement was reported by PR Newswire on January 3, 2005.


Monday, January 03, 2005

U.S. Dept. of Justice announces HealthSouth settlement

The Dept. of Justice announced on December 30, 2004 that HealthSouth Corporation, the nation's largest provider of rehabilitative medicine services, has agreed to pay the United States $325 million to settle allegations that the company defrauded Medicare and other federal healthcare programs.

The settlement will resolve a variety of allegations involving outpatient physical therapy services and inpatient rehabilitation admissions.

Some of the claims were brought by whistleblowers under the qui tam provisions of the False Claims Act. The whistleblowers will receive a share of the settlement proceeds.

The Dept. of Justice press release was posted on their website on December 30, 2004.