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We are attorneys that investigate False Claims Act cases nationwide for Medicare fraud, IRS tax fraud, contractor fraud and more against a range of employers including but in no way limited to healthcare providers, medical device companies, defense contractors, and pharmaceutical companies. We stand ready to provide a free case evaluation to you; please call us today.

UPDATE ON FALSE CLAIMS ACT CASES

As False Claims Act lawyers, especially in the states of Tennessee, Arkansas, Mississippi, Alabama, and Kentucky, we wanted to let you know about several cases that were decided in whole or in part in October 2012.

In the case of Malhotra v. Steinberg, 2012 WL 5342509 (W.D. Wash. October 29, 2012), two relators filed a Qui Tam suit under the False Claims Act alleging that a former bankruptcy trustee and a group real estate agents and their employers defrauded the government by undervaluing real estate throughout the relator’s bankruptcy proceeding as part of an illegal kickback scheme.  The government declined to intervene and one of the real estate company defendants, along with one of its employees, who is named as a defendant, moved for summary judgment on the relator’s claims arguing that the relator’s claims were time barred, that the relators were improperly trying to hold the defendant company liable for its former employees conduct, and that the relators complaint failed to state a claim.

The United States District Court for the Western District of Washington denied the motion for summary judgment first holding that the False Claims Act Complex Statute of Limitations generally provides a six year period but notes that the False Claims Act includes a ten year statute of repose and an equitable tolling provision under which a plaintiff has three years to begin an action after the appropriate government official should have become aware of the government’s right of action.

The Court also found that the relator had not sued the company solely based on the conduct of one former employee but alleged that the company itself “was involved in the kickback scheme and actively concealed the fraud even after” the former employee had stopped working there.

The Court finally held that since the relator alleged that the defendant defrauded the government out of its money and issues regarding whether or not the funds in question were unpaid taxes, summary judgment was improper.

Another case that was recently filed was U.S. Ex Rel Boros v. health Management Associates, 2012 WL 5304172.  This case was in the United States District for the Southern District of Florida and decided on October 25, 2012.  In that case two relators filed an action under the False Claims Act alleging that a group of healthcare companies presented false claims for unnecessary cardiac catherizations to Medicare and other federal governmental healthcare programs.  Unfortunately, the court observed that although the relators identified various patients who allegedly received unnecessary medical treatment, the complaint did not identify any details about defendant’s alleged submission of false claim to the government or the government’s payment of that claim.  More specifically, the complaint failed to note the dates, times and amounts of allegedly false claims.  As such, the complaint was dismissed under Rule 9(b) of the Federal Rules of Civil Procedure.

The third case was decided on October 24, 2012 in the Southern District of Mississippi in the United States Ex Rel Walker v Corporate Management, Inc., 2012 WL 5287065. In Walker, two relators filed a Qui Tam suit alleging that the hospital and an affiliated health center they previously worked for violated the False Claims Act by causing false claims to be submitted to the federal government for healthcare services.  The relators alleged claims under the False Claims Act for fraud conspiracy, and the United States District Court for the Southern District of Mississippi granted a motion to dismiss in part and denied in part allowing the relators to proceed with their claims for fraud but dismissing the claims for conspiracy.

In another case, the United States v. Eracare, 2012 WL 5289475, the United States District Court for the Northern district of Alabama granted a motion to intervene by the government.  The defendants opposed the government’s motion arguing that the relators qui tam case was barred by the federal claims act’s first to file rule and therefore the government did not have subject matter jurisdiction over the matter in order to allow their intervention.

The Court disagreed with such an argument noting that “even though a relator’s claims may be barred by the first file rule, the government’s intervention in a qui tam action may change the claims that are currently asserted.”

The Court also felt that “courts have found good cause [for intervention by the government later in a case] where the government realized the magnitude of the alleged fraud was much larger than it had originally anticipated; where the government received additional and new evidence about the case; and where intervention would protect the interests of the relators.”  Because the government met this burden, intervention was appropriate.

The final case that was recently decided is Brazill v. California North State College of Pharmacy, LLC, 2012 WL 5289330 in the Eastern District of California.  There, the plaintiff who was a licensed pharmacist and professor of pharmacy with over 25 years of experience filed an action against his former employers alleging that the defendants wrongfully terminated him in violation of the False Claims Act anti-retaliation provision.  The plaintiff alleged that after learning about his comments concerning the accreditation board, the defendants advised him that he could resign or be fired.  The District Court denied the motion to dismiss for failure to state a claim noting that the plaintiff alleged that he brought his complaint to the attention of the defendant’s dean and as a result he was fired.  Accordingly, there was sufficient proof to allege wrongdoing to survive a motion to dismiss.

If you have information about any alleged fraud against the government, please contact us immediately.

THE SCOPE OF FRAUD

Amazingly, some estimates have suggested that approximately 10% of the entire annual United States budget is lost to companies or individuals who are defrauding the government. The United States Federal budget for 2010 was $3.456 billion, meaning around $345.6 million was wrongfully wasted on fraud.

The entities defrauding the government do so in a variety of ways: Medicare or Medicaid fraud whereby they bill the government for services which they never provided or overbill for services that were provided; SEC Trading; Tax Fraud; TARP Fraud; Military/Defense contract fraud; Pharmaceutical Manufacturing;contract fraud involving any number of large government spending programs; or other types public benefit fraud.

HELPING THE PUBLIC.

As a whistleblower attorney, we are interested in speaking with persons willing to make known the truth about company practices and are willing to file a qui tam or whistleblower action. One area in particular we are interested in discussing are lawsuits involving medical device companies where the company is alleged to have overcharged, engaged in kickback programs, and the like. We will nevertheless investigate claims in a variety of areas.

Workers and persons all across the country witness actions at their work that may be unlawful or even corrupt. Unfortunately, some employees and workers feel that they will be fired, terminated, harrassed or punished if they report an unlawful or corrupt action. These reporters, however, are protected by the law as a Whistleblower and can receive compensation because of the False Claims Act or the Medicaid False Claims Act. If you have reported actions that may be fraudulent, then you should talk to a Whistleblower or qui tam lawyer about your facts.

Whistleblowers help the government to get back billions of dollars each year with the help of the False Claims Act. In fact, fraudulent Medicaid claims are also caught by whistleblowers having the Medicaid False Claims Act on their side. If you report a false claim or fraudulent action to the government, then the government will give you, the whistleblower, a part of the money that gets recovered. This is because of qui tam requirements. Qui Tam means that a person files a lawsuit for the king and also for him or herself. The phrase is qui tam pro domino rege quam pro se ipso in hac parte sequitur, or, “he who sues for the king as well for himself.”

These requirements and lawsuits were made popular during the Civil War when many people were getting away with fraudulent actions against the government. In 1986, the False Claims Act was amended to raise the total compensation given to people who reported fraudulent actions, or whistleblowers. If a whistleblower works with a lawyer then it may be possible for them to get three times the amount the government would get in damages and also get additional compensation for general fines.

TYPES OF CASES

The most common situations that could form the basis of a Qui Tam action include:

• Submitting a false or fraudulent record, bill or statement to the government in order to fraudulently obtain money such as reporting a medical service that was never performed for Medicare or Medicad;
• Conspiring with a third party to submit or present have a false or fraudulent claim to the government;
• Withholding property of the government with the intent to defraud or conceal the property from the government;
• Fraudulently buying property of the government from someone not authorized to sell that property; and
• Making a false statement to fraudulently avoid paying money to the government or to avoid delivering property to the government.

FOR HELP, PLEASE CONTACT US.

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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