Saturday, October 08, 2011
SEC Increases Efforts, Still Faces Problems
SEC Chairman Mary Schapiro vowed to be tougher on enforcement when she first took office. Since she took the reins at the SEC in 2008, the Commission has adopted several reforms in order to ramp up enforcement efforts, including reorganizing its enforcement staff, lowering internal hurdles to its police work, and creating a centralized database of tips and complaints. The SEC also implemented a whistleblower program which rewards those who bring financial fraud to the government’s attention with a share of the government’s recovery. Although some criticize the SEC for its purported reticence to hold individuals accountable, 35 senior corporate officers have been charged in cases related to the financial crisis.
Some, however, have argued that the SEC should be even more aggressive in policing corporate fraud and criticized the Commission’s handling of recent events, including a potential conflict of interest case regarding the SEC’s former general counsel and problems with its document retention policies, resulting in a civil suit by a member of the SEC’s enforcement staff and a probe by the National Archives.
Read the entire article, “SEC under Schapiro struggles to turn around amid political, financial head winds"
Posted by eithurburn on 10/08 at 10:15 AM
Thursday, October 06, 2011
Oracle to Pay $199.5 to Resolve FCA Violations
Oracle Corp. and Oracle America Inc. ("Oracle") agreed to pay $199.5 million to settle False Claims Act allegations against it. According to the complaint, Oracle violated a 1998 contract which granted Oracle a contract to provide software licenses and technical support to multiple government entities through the General Services Administration ("GSA"). Under the contract, Oracle was obligated to provide GSA with current, accurate, and complete information about its sales practices and discounts offered to other customers. Oracle allegedly gave commercial customers discounts higher than those reported to GSA and failed to provide equivalent discounts to the government entities it supplied.
This case represents the largest False Claims Act settlement ever obtained by the General Services Administration and one of the top 30 largest False Claims Act settlements ever. The whistleblower who brought this fraud to the government’s attention, a former Oracle employee, will receive a $40 million share of the settlement.
Since January 2009, the Department of Justice has recovered over $7.8 billion on behalf of taxpayers.
Read the press release, “Oracle Agrees to Pay U.S. $199.5 Million to Resolve False Claims Act Lawsuit"
Read the entire article, “Oracle to Pay $199.5 Million to Resolve False Claims Charge"
Posted by eithurburn on 10/06 at 09:55 AM
Duran Gets 50 Years For Medicare Fraud Scheme
Larry Duran, a health care executive who defrauded Medicare of hundreds of millions of dollars while lobbying the government to ease Medicare restrictions on mental health centers, received a record-breaking fifty year prison sentence for his role in orchestrating the fraud.
Read the entire article, “Health executive lobbied in Washington to advance Medicare fraud scheme"
Read our earlier post on Duran’s fraud, “Possible 50 Year Sentence for Architect of $205 Million Medicare Fraud Scheme"
Posted by eithurburn on 10/06 at 09:51 AM
Hospital Director Lined Pockets with Medicaid Money, Faces 20 Years in Jail
The former director of a Detroit hospital was convicted of twenty-five counts of Medicaid fraud and one count of racketeering for filing false claims to Medicaid, defrauding the state and federal governments of over $3.3 million. Deborah D’Anna, Palmer Health Center’s former director, personally billed Medicaid for millions of dollars of services that were never provided and lined her pockets with the money. She used the money to buy luxury cars, a home, undeveloped land, and jewelry.
D’Anna could receive up to twenty years when she is sentenced on October 27th.
Read the entire article, “Former Detroit health center executive convicted of stealing $3.3 million from Medicaid"
Posted by eithurburn on 10/06 at 09:49 AM
Columbia University, New York Presbyterian Settle FCA Suits
Columbia University, New York Presbyterian Hospital, and Dr. Erik Goluboff have settled a False Claims Act case which alleged that Dr. Goluboff, while employed at New York Presbyterian and later at Columbia University, filed false claims to Medicare for urological procedures and diagnostic tests that were medically unnecessary. According to the Complaint, Dr. Goluboff billed for unnecessary diagnostic tests, and even billed for more tests than could actually be conducted in a single day.
Dr. Goluboff, a urologic oncologist, was the Director of Urology at New York Presbyterian’s Allen Pavilion before becoming an Associate Professor of Clinical Urology at Columbia University’s College of Physicians and Surgeons. Colombia University will pay $995,000.
Read the entire article, “Prominent hospitals settle complaint alleging Medicare fraud"
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Posted by eithurburn on 10/06 at 09:43 AM