With billions of dollars being recovered under the False Claims Act from the healthcare industry, it’s sometimes easy to forget that the fraud that led to the creation of the law itself started and still continues in the defense industry.
When President Lincoln enacted the False Claims Act, or whistleblower law as it has come to be known, it was meant to fight unscrupulous contractors who were supplying defective weapons, rotten food and decrepit horses to the Union Army.
Those same principles still govern today, although the technology and scope of our military actions have certainly changed.
Read More Tags: Medical Malpractice Whistleblower Litigation Fraud False Claims ActFor the fifth time, a state court has issued a huge fine against healthcare giant Johnson & Johnson over charges that the company engaged in fraudulent acts while promoting its Risperdal drug. However, the company’s reaction indicates it still may not have learned a lesson.
In an unprecedented decision, Arkansas Judge Tim Fox levied a penalty of more than $1.1 billion against J & J for nearly 240,000 violations of the state’s Medicaid fraud laws, which carry a fine of $5,000 each. He issued an additional $11 million fine for more than 4,500 violations under the state’s deceptive practices act.
The decision came after a jury found that J & J engaged in “false or deceptive acts” by sending a 2003 letter to thousands of doctors claiming Risperdal was safer than other antipsychotics. Such statements were later proven to be false.
In the United States, where corporate and securities fraud often goes unchecked or results in a slap on the wrist fine for those involved, the thought of serious jail time or capital punishment for a financial scam seems extreme.
Read More Tags: Personal InjuryA feature for ABC News which sent a healthy 82 year old woman into a McAllen, Texas clinic for an undercover check of their billing practices has shed light on what could be widespread Medicare fraud in the area and drawn the attention of authorities.
According to the office of the Inspector General at the Department of Health and Human Services, Medicare fraud costs the government and taxpayers nearly $60 billion each year. While much of it occurs here in Florida, in Detroit, or in other retirement rich areas, authorities are discovering a significant amount in this area of Texas.
Without proper resources and help from the public, the government is simply ill-equipped to police all the fraud. They are hoping stories like this will help.
Read More Tags: Whistleblower Litigation Fraud False Claims ActFollowing an eventual FDA recall in 2010, pending lawsuits and complaints from tens of thousands of people suffering the effects of defective hip implants, many now know the dangers of metal-on-metal hip systems sold by DePuy Orthopedics from 2005 until 2010.
What is just surfacing, however, are the behind-the-curtain attempts by the Johnson & Johnson subsidiary to hide the dangers of their hip implants and continue selling them to patients in the United States even after they knew of large-scale problems and bans from other countries.
According to an internal email published this week by The New York Times, executives at DePuy were addressing an FDA ban of similar metal-on-metal hip implants and growing problems overseas while assuring patients and doctors in the U.S. that they were safe.
Read More Tags: Personal Injury Medical Malpractice Whistleblower Litigation Fraud Catastrohic Injury False Claims Act Mass TortsNews came last week that more of the corporate scumbags responsible for wrecking the U.S. and world economy by making worthless loans and selling them as investments to line their own pockets would have to fork over a huge settlement. Unfortunately, those involved are still walking free.
A U.S. Attorney for the Eastern District of New York announced last week that their office had arrived at a settlement agreement by which Bank of America would pay a total of $1 billion to resolve claims that its subsidiary, Countrywide, had engaged in mortgage fraud affecting the FHA.
Since 2009, the government has investigated allegations that Countrywide systematically targeted borrowers who were not qualified and passed on the then-worthless securities to investors around the world. Bank of America acquired Countrywide in 2008.
Read More Tags: Whistleblower Litigation Fraud False Claims Act