Monday, August 07, 2006
Whistleblower opposes Justice Department's Settlement with Medtronics
The Wall Street Journal reports in today’s editions that a whistleblower in a lawsuit alleging kickbacks by Medtronic Inc.’s Sofamor Danek spinal-products division is opposing the Justice Department’s plan to settle that case and another whistleblower lawsuit against the company for $40 million.
According to the report, Kay Poteet, a former Medtronic travel-services manager, filed a motion in Memphis federal district court alleging that “this case has not been adequately investigated” by the U.S. government, and that the $40 million amount is “woefully inadequate.” In her lawsuit, Ms. Poteet alleged that consulting and royalty payments to doctors, as well as travel and gifts, amounted to kickbacks by the medical-devices company to steer surgery business to Medtronic, which is based in Minneapolis.
Medtronic denied those charges before reaching its tentative settlement with the federal government. In its filings in the matter, the government contends the payments were improper.
Click the following link to read the full WSJ account of the whistleblower’s motion in the false claims case. (Subscription required.)
Posted by Quitam Help Admin on 08/07 at 02:11 PM
AGE Refining Inc. reaches $9 Million Settlement with Federal Government
AGE Refining Inc., its founder and chairman emeritus, Albert Gonzalez, and former affiliate AGE Transportation have agreed to pay the United States $9 million as part of a legal settlement related to government contracts.
The settlement, according to the U.S. Department of Justice, resolves allegations that San Antonio-based AGE Refining falsely certified that it was in compliance with the provisions of the Historically Underutilized Business Zone (HUBZone) Act of 1997. The HUBZone Empowerment Contracting Program was created to help stimulate economic development and create jobs in urban and rural communities by providing federal contracting preferences to small businesses. The program is administered by the U.S. Small Business Administration (SBA).
The preferences are supposed to go to small businesses that obtain HUBZone certification. That certification calls, in part, for businesses to employ staff who live in a HUBZone. The businesses must also maintain a principal office in one of these designated HUBZone areas. That HUBZone designation entitled AGE Refining to a price-evaluation preference in bidding on JP-8 jet fuel and other contracts with the Department of Defense.
Click the following link to read the Milwaukee Business Journal’s account of the false claims settlement.
Posted by Quitam Help Admin on 08/07 at 07:06 AM
Iraq War Contractor agrees to pay U.S. $4 Million for Over Billing
Air and ocean freight services provider EGL Inc. of Houston will pay $4 million to settle civil allegations that it over billed for military cargo shipments to Iraq, the Justice Department announced last week.
The government alleges that the improper war risk surcharges were billed to shipments of military goods from Dubai, United Arab Emirates, to Iraq from late November 2003 through July 2004. EGL, which operates as EGL Eagle Global Logistics, was a subcontractor for Halliburton Co. subsidiary Kellogg Brown and Root, the prime contractor for the U.S. Army’s Logistics Civil Augmentation Program contract for logistical support of military operations overseas.
Click the following link for the Houston Business Journal’s story on the false claims settlement.
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Posted by Quitam Help Admin on 08/07 at 06:58 AM