ATTORNEY NEWSLETTER
Former Vice President Blows Whistle On Alleged Kickbacks
Allegations Of Illegal Kickbacks And Financial Incentives
Realtor Will Receive $9 Million Reward
Private citizen cases for fraud against the government are brought under the False Claims Act, 31 U.S.C. §§ 3729 et seq. (FCA). The FCA allows individuals with knowledge of fraud against the federal government to initiate actions on behalf of the government (known as “qui tam” actions) to recover government funds paid out as a result of fraudulent claims. 31 U.S.C. §3730(b). If the government recovers, these individuals, known as “relators,” are eligible for rewards. 31 U.S.C. § 3730(d). Relators of fraudulent conduct are often employees of the business engaging in the fraud. Each year relators in FCA cases recover billions of dollars for the government. Any business billing the government for products or services is subject to government regulation affecting that business and its billing practices for government work, and is also subject to the fines and penalties of the FCA. Healthcare fraud is the largest type of fraud perpetrated against the government every year for false claims under federal programs like Medicare and Medicaid. If you have credible information of government fraud in Los Angeles or elsewhere in California, call us today at (415)441-8669 and we can help. Our toll-free number is 1-888-50EVANS (888-503-8267).
Medical Records Company Settles FCA Allegations For $45 Milliom
In a recent settlement announced by the U.S. Department of Justice,[1] an electronic health record (EHR) technology vendor has agreed to pay $45 million to resolve allegations that it violated the False Claims Act (FCA) by accepting and providing unlawful remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for federal incentive payments. The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The United States alleged that defendant violated the FCA and the Anti-Kickback Statute through three marketing programs: First, it allegedly solicited and received kickbacks, it conspired to improperly donate technology to health care providers in an effort to increase lab orders ; and paid kickbacks to its current health care provider customers and to other influential sources in the healthcare industry to recommend its technology and refer potential customers to it.
Fundamentals Of A Qui Tam Case
The reported case was brought by a former Vice President who will receive approximately $9 million from the recovery. Qui tam cases begin with filing a complaint in the federal district court where the allegedly fraudulent conduct occurred. 31 U.S.C. § 3730(b). The complaint is filed under seal. The government has sixty days to review the allegations and decide whether to intervene. This review period can be extended. If the government decides to intervene, the government essentially takes over the litigation. 31 U.S.C. § 3730(c). If the government decides not to intervene, the relator has the right to continue the litigation on his or her own. If the relator continues the litigation alone, he or she receive a larger percentage of the amount the government eventually recovers. 31 U.S.C. § 3730(d). The relator may also pursue claims for wrongful retaliation against the defendant if the relator was fired or demoted as a result of blowing the whistle. 31 U.S.C. § 3730(h).
Contact Us
If you have credible information of government fraud call Ingrid M. Evans at (415) 441-8669, or toll-free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. In addition to FCA and CFCA whistleblower cases, Ingrid and Evans Law Firm, Inc. also handle bank fraud whistleblower cases under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program.
[1] Evans Law Firm, Inc. was not involved in the case in any way.
