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This site provides news and information about the False Claims Act qui tam whistleblower law, the Tax Whistleblower law and the Securities and Commodities Whistleblower law. On this site you can learn the basics of each law and the process of bringing a case as well as read about the latest developments.

Getnick & Getnick LLP is a Manhattan-based law firm dedicated to business integrity and anti-fraud cases. Our whistleblower cases have resulted in recoveries of over a billion dollars for U.S. taxpayers.
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Saturday, June 16, 2007

Fraud Action Against Abbott Laboratories, Inc. Filed In Massachusetts

The federal government filed a fraud action against Abbott Laboratories, Inc. in Massachusetts court on June 4, 2007.  The government alleges that over the past several years, Abbott has reported inflated pharmaceutical prices that it knew Medicare and Medicaid relied upon to set reimbursement rates for Abbott’s pharmaceutical products.  Abbott’s reported prices that were often 1000% higher than Abbott’s actual prices, ensuring that Abbott’s customers received inflated reimbursements and profits from Medicare and Medicaid.

Click here to read the Qui Tam Suit filed against Abbott Laboratories, Inc.

Posted by Quitam Help Admin on 06/16 at 08:34 PM

Pennsylvania State Representative Proposes Qui Tam Legislation

Pennsylvania State Representative Michael Gerber (D-148) has proposed legislation that would allow the state to join 15 other states with false-claims laws.  Gerger says, “With my legislation, we could seriously cut the amount of money lost to fraud and create a new source of revenue by encouraging good citizens to blow the whistle on those who are ripping off taxpayer dollars.”

Like other qui tam laws, Pennsylvania’s law would reward and protect whistleblowers who report stolen funds from the Commonwealth.  Additionally, lawbreakers would be punished with significant penalties.  The federal government has enacted a financial incentive program to encourage states to enact qui tam laws primarily to reduce Medicaid fraud at the state level.

Click hear to read Michael Gerber’s Qui Tam plan for Pennsylvania.

Posted by Quitam Help Admin on 06/16 at 06:29 PM

Tuesday, June 12, 2007

Ambulance Provider to pay $2.5 Million for violating False Claims Act

The U.S. Justice Department has announced that Rural/Metro Corporation, one of the nation’s largest ambulance providers, will pay the government $2.5 million to resolve allegations that the company violated the federal False Claims Act. Rural/Metro had been charged with providing illegal inducements to hospitals in Texas in exchange for steering business its way.

In the action, the government alleged that Rural/Metro, which is based in Scottsdale, AZ, used contracts known as “swapping arrangements” as an inducement to the Texas hospitals. Such contracts gave the medical facilities discounts on transports in exchange for the referral of all or some of the ambulance transports of patients being discharged from the hospitals, which in turn were billed to Medicare.

The settlement arose from qui tam lawsuits filed in 2000 and 2001 by Daniel Block and Adam Wightman, both former employees of one of Rural/Metro’s competitors. As a result of the settlement, the two men will receive approximately $450,000—based on the percentage of the total settlement prescribed under provisions of the False Claims Act.

Click the following link to read the press release on the false claims settlement issued by the justice department.

Posted by Quitam Help Admin on 06/12 at 06:12 AM

Monday, June 11, 2007

Ambulance Operators Rural/Metro Settle Fraud Case

On June 11, 2007 the Justice Department announced that ambulance operator, Rural/Metro Corp had agreed to settle charges of providing illegal inducements to hospitals in Texas in exchange for referrals. 

The $2.5 million settlement was the outcome of the qui tam lawsuits filed by Daniel Block and Adam Wightman, two former employees of a Rural/Metro competitor, American Medical Response, Inc (AMR).  Block and Wightman had successfully filed a qui tam lawsuit against AMR in October 2006 for similar allegations.

Peter Keisler, Assistant Attorney of the Justice Department’s Civil Division said, “Illegal inducements corrupt the integrity of the Medicare program by freezing out competitors, masking the true costs of services, and misdirecting program funds.  This matter should serve as a reminder that referrals of Medicare patients should never be treated as a commodity that health care providers are free to trade to enhance their bottom line.”

Click here to read more about the Rural/Metro Qui Tam Settlement.

Posted by Quitam Help Admin on 06/11 at 06:48 PM

Friday, June 08, 2007

Department of Justice Investigating Fraudulent Practices by First Kuwaiti

The Wall Street Journal is reporting that a False Claims Act lawsuit has been filed against the company building the US Embassy in Baghdad.  Author Yochi Dreazen writes that the allegations claim that First Kuwaiti General Trading & Contracting Company"overcharged the U.S. government and failed to properly install many of the embassy’s security fortifications, according to a copy of the sealed complaint reviewed by The Wall Street Journal.”

The investigation is also looking into allegations that First Kuwaiti is mistreating its foreign work force.  Workers were told they would be sent to Dubai and Kuwait, not Iraq.  Once in Iraq, workers have had their passports confiscated and have worked in facilities that were dirty and lacked running water and supplies.

Click here to read the full article in the Wall Street Journal about the fraudulent practices of First Kuwait.

Posted by Quitam Help Admin on 06/08 at 06:49 PM
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