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A Tennessee whistleblower complaint led to the FBI investigating the alleged fraudulent purchases at Memphis Department of Veterans Affairs Medical Center. Sean Higgins, a former employee at the hospital, reported suspicious bogus purchases of equipment in March. The whistleblower is also free to file a lawsuit with adequate evidence and even go alone with his Tennessee false claims attorney if the state refuses to be a party to the proceedings. A settlement or court verdict assures him up to a third of recovered amount as award.
The whistleblower accused another former employee of making fake purchases orders for of certain equipment that went to his partner outside the department. While the order was not officially approved, these equipment were allegedly resold causing over a million dollar loss to the VA.
The claim goes back to November 2013 when VaproQuip bed bug decontamination machines or “RayPods” were bought for $1.5 million apiece. An email by the TN whistleblower claimed that these machines were ineffective. Similarly, $290,000-worth Magnet Resonance Imaging machine was purchased from the University of Tennessee than the original Swiss supplier by a researcher affiliated with the institution. When Higgins brought these discrepancies to the notice of the logistics head, the order was “straightened out” and the complainant received a Special Recognition award.
Tennessee False Claims Lawsuit: Erlanger Saga Continues
A Tennessee false claims lawsuit filed against Erlanger Medical Center alleging Medicare and TennCare fraud continue to make news. In 2005, it paid $40 million to settle referral kickback accusation that reported committed between 1995 and 2003. The Justice Department initiated an investigation after a whistleblower reported violation of Ethics in Patients Referrals Act. At the time of the settlement, the hospital agreed to refrain any such wrongdoing.
However, a Tennessee false claims attorney representing another whistleblower, a former consultant and care management director at the hospital, filed a fraud petition in 2006. It reported about the practice of “submitting false or fraudulent claims for reimbursement to federally funded healthcare programs.”
In 2009, Erlanger returned $477,140.42 following an audit by the government. The defendant made it a basis to seek dismissal of the Tennessee whistleblower lawsuit. However, the Sixth Circuit Court of Appeals restored the litigation ruling that “government audit or investigation did not constitute public disclosure under the False Claim Act.”
Medtronic Makes Third Settlement
Medical device manufacturer Medtronic has settled the “country of origin false claim lawsuit” filed against it in Tennessee for $4.4 million. This is the third such settlement by the third-biggest medical device maker in the last two months. In February, it settled two overbilling and Medicare fraud claims for $1.25 million and $2.8 million.
The Tennessee false claims lawsuit was filed by three Memphis whistleblowers. Filed in 2012, it accused the Irish company of supplying “medical devices to the American military as made in Memphis.” The federal law requires only supply of US-made medical devices to the military. But these devices were procured from China and Malaysia before relabeled and repackaged at a Memphis distribution center, according to the Tennessee false claims lawyer representing the trio.
One of the three whistleblowers was also instrumental in filing a TN false claims lawsuit against Smith & Nephew for supplying similar relabeled foreign-made medical devices. The claim ended with a $11.3 million settlement in 2014.
For free case evaluation of whistleblower actions, please call on 1-800-632-1404 to consult our expert false claims attorney in Tennessee.
Contact a Tennessee False Claims Act Attorney
We help whistleblowers on a contingency basis, meaning there is no fee charged for our work unless there is a recovery. We also front any and all expenses. No matter where you are located — we will represent you. We will come to you, you will not have to come to us. Attorneys in our firm and attorneys that we work with on Whistleblower, Qui Tam, False Claims Act cases have represented a host of persons making claims, for violations of federal tax law, Medicare law and more. For more information, please contact our team of whitsleblower and qui tam attorneys today.
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