Tuesday, January 31, 2006

South Korea Company to pay U.S. $1.2 Million to settle False Claims Suit

A South Korea electronics company accused of falsifying fire inspection records on U.S. military bases in that country has agreed to a $1.2 million payment to settle the claim, according to an Associated Press story published in today’s Honolulu Advertiser.

A 2002 lawsuit accused the company, Shinwha Electronics Corp., of filing thousands of fraudulent claims with the U.S. government under a one-year, $5 million contract to inspect, test, maintain and repair fire alarms and safety equipment on military facilities. The False Claims lawsuit was filed by a whistleblower who has asked that his name not be revealed.

Click the following link to read the full story on the False Claims Settlement.

Tuesday, January 24, 2006

Medical Device Maker accused of Paying Doctors to Prescribe Products

The spinal-implant division of Minneapolis-based Medtronics stands accused by a whistleblower of making large, six-figure payments to prominent surgeons through a number of different financial ruses. According to a story in today’s New York Times, the suit against Medtronics alleges that doctors were paid amounts such as $400,000 and $700,000 for just a few days “consulting.”

Click the following link to read the full account of the fraud accusation against Medtronics.

Monday, January 23, 2006

Pennsylvania Defense Contractor agrees to $100,000 Fine

A York, PA company embroiled in a federal civil suit has admitted making false statements about its contract with the US Army as part of a settlement of its civil case, according to documents filed in U.S. Middle District Court. The plea agreement calls for the company, WEDJ, Inc., to pay a fine of $100,000.

The company and the government have been working for the past year on details of a settlement of the civil lawsuit, which alleges that WEDJ and several executives violated contracts for environmental-control systems for the military. The $4.6 million suit, which was filed in 2002 but was under seal until last year, was prompted by a whistle-blower.

Click on the following link for the full story on the latest developments in this qui tam case.

Medicare, Medicaid Fraud reached Record Levels in 2005

The Corporate Whistleblowers Center has issued a report on fraud against the US Medicare and Medicaid programs in 2005, identifying the top five areas where the government was overbilled for services. “The results are grim,” according to the group’s president, Thomas Martin.

Among the worst offenses, according to The Corporate Whistleblower Center, are the widespread occurence of unnecessary testing; lack of supervision and attention to patients; the prescribing of the most expensive drugs when generics are available; and billing irregularities. Click on the following link for the complete press release on the report on Medicare and Medicaid Fraud in 2005.

Monday, January 16, 2006

Armored Vehicle Manufacturer accused of Fraud by Whistleblowers

A South Carolina manufacturer of armored vehicles for US troops in Iraq stands accused of falsifying records to cover up defective workmanship and delayed shipments, according to a story in Friday’s edition of The (Charleston, SC) Post and Courier and charleston.net.

A spokesman for the firm, Force Protection, Inc., said management was stunned to learn of a sealed whistleblower suit filed against the company by two former employees. Management said it had not been contacted by federal authorities, and only learned of the sealed charges when a reporter called the company. Click the following link for details on the whistleblower story.

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