U.S. Attorney's Office Announces More Fraud Charges in Southern Florida
On September 30, 2008, the U.S. Attorney's Office in the Southern District of Florida issued a Press Release announcing health care fraud charges against 41 defendants and involving more than $160 million in Medicare claims.
As part of the Press Release, the U.S. Attorney's Office also made a fiscal year comparison of the total number of health care fraud cases prosecuted by the office during fiscal years 2006, 2007 and 2008. The fiscal year comparison shows a steady increase in the number of health care fraud prosecutions (from 111 defendants in 2006 to 245 defendants in 2008). According to the Press Release, the increase in the number of health care fraud prosecutions in the Southern District of Florida is the direct result of the efforts of the South Florida Health Care Fraud Strike Force prosecutors and other Assistant U.S. Attorneys, and Federal law enforcement agencies, led by the Federal Bureau of Investigation and the Department of Health and Human Services' Office of Inspector General.
In May 2007, the Department of Justice and Department of Health and Human Services (HHS) announced in a News Release that the Medicare fraud strike force began operations in March 2007 and had already resulted in 38 arrests and indictments involving over $142 million in Medicare billings. At the time of the announcement, HHS revealed that the strike force used "real-time analysis of billing data" to identify and react to fraud schemes. Since May 2007, strike force efforts have yielded a steady stream of arrests and indictments.
Posted by Michael Apolskis on October 03, 2008 in Fraud & Abuse | Permalink
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Wednesday, October 1, 2008
44-year-old Perry Belcher, A Shelby County man who peddled home health care products
Associated Press - September 30, 2008 11:45 AM ET
MEMPHIS, Tenn. (AP) - A Shelby County man who peddled home health care products over the Internet has pleaded guilty to computer fraud.
The Commercial Appeal reported 44-year-old Perry Belcher drew a 10-year suspended sentence in state criminal court Monday and agreed to give up cash, vehicles and other property valued at more than $1 million. He must also shut down his Internet sites for outfits called Selmedica and Increase Media and several related enterprises.
Belcher was accused of using bogus scientific research and fake testimonials to sell products for treating a wide range of medical disabilities. Prosecutors say he claimed his remedies had special powers when he was actually selling products commonly found in drugstores and supermarkets.
Information from: The Commercial Appeal, http://www.commercialappeal.com
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
MEMPHIS, Tenn. (AP) - A Shelby County man who peddled home health care products over the Internet has pleaded guilty to computer fraud.
The Commercial Appeal reported 44-year-old Perry Belcher drew a 10-year suspended sentence in state criminal court Monday and agreed to give up cash, vehicles and other property valued at more than $1 million. He must also shut down his Internet sites for outfits called Selmedica and Increase Media and several related enterprises.
Belcher was accused of using bogus scientific research and fake testimonials to sell products for treating a wide range of medical disabilities. Prosecutors say he claimed his remedies had special powers when he was actually selling products commonly found in drugstores and supermarkets.
Information from: The Commercial Appeal, http://www.commercialappeal.com
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Florida,Massachusetts, Michigan, Minnesota Medicaid program ,
Four states, federal government share $9.9 million Medicaid fraud settlement
BY DREW SMITH
DEERFIELD, Ill. (Legal Newsline)-Florida, Massachusetts, Minnesota and Michigan will be receiving money from Walgreen Co., an Illinois-based pharmacy chain, as part of a $9.9 million Medicaid fraud settlement.
Florida Attorney General Bill McCollum announced today his state will be receiving more than $1.5 million from the Deerfield, Ill.-based company, while Massachusetts Attorney General Martha Coakley said the Bay State would be getting more than $3.5 million.
Michigan, Minnesota and the federal government will be receiving a total of $4.9 million.
"This substantial recovery of funds will help ensure the continued availability of Medicaid funds which provide basic health care products and services for those who need it most," said McCollum, a Republican.
The settlement is a result of an investigation that found the pharmacy chain had received excessive Medicaid payments for prescription drugs given to people who had both Medicaid and private third-party insurance coverage. The billing improprieties took place between January 1998 and December 2005.
The investigation arose from a whistle-blower lawsuit filed in April 2005 in the U.S. District Court in Minnesota. The whistleblowers will receive $1.4 million of the settlement.
"Pharmacies and other medical service providers that do business with the Massachusetts Medicaid program must understand and follow the law," said Coakley, a Democrat.
"This settlement demonstrates the ongoing commitment our office has made to identify and eliminate improper billing practices that drain desperately needed funds from the state's Medicaid budget," she added.
Florida will give $300,000 of its settlement money to the state's Medicaid program in recoveries and more than $220,000 will be given to the state general revenue fund.
Filed Under: State AGs
BY DREW SMITH
DEERFIELD, Ill. (Legal Newsline)-Florida, Massachusetts, Minnesota and Michigan will be receiving money from Walgreen Co., an Illinois-based pharmacy chain, as part of a $9.9 million Medicaid fraud settlement.
Florida Attorney General Bill McCollum announced today his state will be receiving more than $1.5 million from the Deerfield, Ill.-based company, while Massachusetts Attorney General Martha Coakley said the Bay State would be getting more than $3.5 million.
Michigan, Minnesota and the federal government will be receiving a total of $4.9 million.
"This substantial recovery of funds will help ensure the continued availability of Medicaid funds which provide basic health care products and services for those who need it most," said McCollum, a Republican.
The settlement is a result of an investigation that found the pharmacy chain had received excessive Medicaid payments for prescription drugs given to people who had both Medicaid and private third-party insurance coverage. The billing improprieties took place between January 1998 and December 2005.
The investigation arose from a whistle-blower lawsuit filed in April 2005 in the U.S. District Court in Minnesota. The whistleblowers will receive $1.4 million of the settlement.
"Pharmacies and other medical service providers that do business with the Massachusetts Medicaid program must understand and follow the law," said Coakley, a Democrat.
"This settlement demonstrates the ongoing commitment our office has made to identify and eliminate improper billing practices that drain desperately needed funds from the state's Medicaid budget," she added.
Florida will give $300,000 of its settlement money to the state's Medicaid program in recoveries and more than $220,000 will be given to the state general revenue fund.
Filed Under: State AGs
Tuesday, September 30, 2008
Many economists now doubt that government measures can prevent a major recession
Unfortunately, objective media coverage and comparisons of single-payer public health care with our current profit-driven corporate system are almost non-existent at this time.
George Seldes once said, “Journalism’s job is not impartial ‘balanced’ reporting. Journalism’s job is to tell the people what is really going on.”
Truth Emergency US
By Peter Phillips and David Kubiak
Many economists now doubt that government measures can prevent a major recession given the severe slump in the housing market, the subprime mortgage crisis, growing unemployment, declining consumer spending, and record high oil prices. Even harder times for working people are undoubtedly at hand, yet mainstream corporate media continues to lavish more attention on the Super Bowl and celebrity misadventures than measures to protect Americans from grave personal economic harm. We are spun, mislead, propagandized and amused to death by our media conglomerates and as a result the US has become the best entertained and least informed society in the world.
There is a literal truth emergency in the United States, not only regarding distant wars, torture camps, and doctored intelligence, but also around issues that most intimately impact our lives at home. For example, few Americans know that there has been a thirty-five year decline in real wages for most workers in the country, while the top 10% now enjoy unparalleled wealth with strikingly low tax burdens.
George Seldes once said, “Journalism’s job is not impartial ‘balanced’ reporting. Journalism’s job is to tell the people what is really going on.” Michael Moore’s top-grossing movie Sicko is one example of telling the people what is really going on. Health care activists know that US health insurance is an extremely large and obscenely lucrative industry with the top nine companies “earning” $93 billion in profits in 2006 alone. The health-care industry represents the country’s third-largest economic sector, trailing only energy and retail among the 1,000 largest US firms.
Nevertheless, 16%of Americans still have no health insurance whatsoever and that number will not soon decline, as insurance costs continue to rise two to three times faster than inflation. The consequences are immediate and tragic. Unpaid medical bills are now the number one cause of personal bankruptcy in the country, and the Institute of Medicine estimates that nearly eighteen thousand Americans die prematurely each year because they lack coverage and access to adequate care.
US private health care services differ markedly from other industrialized countries where single payer systems provide everyone with medical care as a basic human right. Unfortunately, objective media coverage and comparisons of single-payer public health care with our current profit-driven corporate system are almost non-existent at this time. To protect their bloated bottom lines, private insurance companies and HMOs invest heavily in lobbyists and corporate-friendly political candidates that promote their “indispensable” role in any future health care reforms. Besides their insider political influence, these firms deploy massive advertising budgets to discourage media investigations of the economic interests shaping our health policies today
Tens of thousands of American engaged in various social justice issues constantly witness how corporate media marginalize, denigrate or simply ignore their concerns. Activist groups working on issues like 9/11 truth, election fraud, impeachment, war propaganda, civil liberties/torture, and many corporate-caused environmental crises have been systematically excluded from mainstream news and the national conversation leading to a genuine truth emergency in the country as a whole.
George Seldes once said, “Journalism’s job is not impartial ‘balanced’ reporting. Journalism’s job is to tell the people what is really going on.”
Truth Emergency US
By Peter Phillips and David Kubiak
Many economists now doubt that government measures can prevent a major recession given the severe slump in the housing market, the subprime mortgage crisis, growing unemployment, declining consumer spending, and record high oil prices. Even harder times for working people are undoubtedly at hand, yet mainstream corporate media continues to lavish more attention on the Super Bowl and celebrity misadventures than measures to protect Americans from grave personal economic harm. We are spun, mislead, propagandized and amused to death by our media conglomerates and as a result the US has become the best entertained and least informed society in the world.
There is a literal truth emergency in the United States, not only regarding distant wars, torture camps, and doctored intelligence, but also around issues that most intimately impact our lives at home. For example, few Americans know that there has been a thirty-five year decline in real wages for most workers in the country, while the top 10% now enjoy unparalleled wealth with strikingly low tax burdens.
George Seldes once said, “Journalism’s job is not impartial ‘balanced’ reporting. Journalism’s job is to tell the people what is really going on.” Michael Moore’s top-grossing movie Sicko is one example of telling the people what is really going on. Health care activists know that US health insurance is an extremely large and obscenely lucrative industry with the top nine companies “earning” $93 billion in profits in 2006 alone. The health-care industry represents the country’s third-largest economic sector, trailing only energy and retail among the 1,000 largest US firms.
Nevertheless, 16%of Americans still have no health insurance whatsoever and that number will not soon decline, as insurance costs continue to rise two to three times faster than inflation. The consequences are immediate and tragic. Unpaid medical bills are now the number one cause of personal bankruptcy in the country, and the Institute of Medicine estimates that nearly eighteen thousand Americans die prematurely each year because they lack coverage and access to adequate care.
US private health care services differ markedly from other industrialized countries where single payer systems provide everyone with medical care as a basic human right. Unfortunately, objective media coverage and comparisons of single-payer public health care with our current profit-driven corporate system are almost non-existent at this time. To protect their bloated bottom lines, private insurance companies and HMOs invest heavily in lobbyists and corporate-friendly political candidates that promote their “indispensable” role in any future health care reforms. Besides their insider political influence, these firms deploy massive advertising budgets to discourage media investigations of the economic interests shaping our health policies today
Tens of thousands of American engaged in various social justice issues constantly witness how corporate media marginalize, denigrate or simply ignore their concerns. Activist groups working on issues like 9/11 truth, election fraud, impeachment, war propaganda, civil liberties/torture, and many corporate-caused environmental crises have been systematically excluded from mainstream news and the national conversation leading to a genuine truth emergency in the country as a whole.
Drug manufacturer reaches $425 million fraud settlement
Drug manufacturer reaches $425 million fraud settlement
BY DREW SMITH
HARTFORD, Conn. (Legal Newsline) -- Cephalon, a Frazer, Pa.-based drug manufacturer, has announced a $425 million Medicaid fraud settlement for off-label drug marketing.
After a four-year investigation by federal and state authorities, the company was found to have marketed three drugs -- Actiq, Gabitril and Provigil -- for un-approved uses.
"Cephalon put profits over patients -- illegally promoting drugs at any cost to patients, and endangering public safety," Connecticut Attorney General Richard Blumenthal said in a statement.
Blumenthal's office participated in the investigation and settled a separate suit with Cephalon for $6.15 million.
"We are pleased to have these long-standing matters behind us, while preserving our ability to participate in all federal and state health care programs, thereby maintaining the access of patients in those programs to our medications," said Jerry Pappert, executive VP and general counsel for Cephalon.
Actiq is a pain medication with potency 100 times stronger than morphine. It was designed to treat cancer patients, but Cephalon was accused of marketing the drug to "virtually any physician who could treat chronic pain."
Gabitril is a drug that was meant to treat seizures but was found to actually cause seizures when prescribed off-label to patients who were not epileptic. After Cephalon's aggressive promotion, sales of the drug grew from $4.3 million in 2000 to $66.5 million in 2005.
In addition to paying the $425 million fine to federal authorities and $6.15 million to Connecticut, the company must also pay $12 million in accrued interest. Cephalon must also plead guilty to a misdemeanor violation and enter into a five-year Corporate Integrity Agreement.
http://www.legalnewsline.com/news/216160-drug-manufacturer-reaches-425-million-fraud-settlement
BY DREW SMITH
HARTFORD, Conn. (Legal Newsline) -- Cephalon, a Frazer, Pa.-based drug manufacturer, has announced a $425 million Medicaid fraud settlement for off-label drug marketing.
After a four-year investigation by federal and state authorities, the company was found to have marketed three drugs -- Actiq, Gabitril and Provigil -- for un-approved uses.
"Cephalon put profits over patients -- illegally promoting drugs at any cost to patients, and endangering public safety," Connecticut Attorney General Richard Blumenthal said in a statement.
Blumenthal's office participated in the investigation and settled a separate suit with Cephalon for $6.15 million.
"We are pleased to have these long-standing matters behind us, while preserving our ability to participate in all federal and state health care programs, thereby maintaining the access of patients in those programs to our medications," said Jerry Pappert, executive VP and general counsel for Cephalon.
Actiq is a pain medication with potency 100 times stronger than morphine. It was designed to treat cancer patients, but Cephalon was accused of marketing the drug to "virtually any physician who could treat chronic pain."
Gabitril is a drug that was meant to treat seizures but was found to actually cause seizures when prescribed off-label to patients who were not epileptic. After Cephalon's aggressive promotion, sales of the drug grew from $4.3 million in 2000 to $66.5 million in 2005.
In addition to paying the $425 million fine to federal authorities and $6.15 million to Connecticut, the company must also pay $12 million in accrued interest. Cephalon must also plead guilty to a misdemeanor violation and enter into a five-year Corporate Integrity Agreement.
http://www.legalnewsline.com/news/216160-drug-manufacturer-reaches-425-million-fraud-settlement
Sunday, September 28, 2008
Prosecutors began their investigation after several U.S. employees of Swiss-based Serono claimed fraud.
"...president of a medical device company was sentenced Wednesday to three years probation and fined $10,000 for plotting ..."
Serono and its U.S. subsidiaries agreed in October 2005 to pay $704 million to resolve civil and criminal charges.
Executive sentenced in Serono fraud case
By Jay Lindsay, Associated PressWriter09.25.2008
Categories AP Business Business & Finance conspiracy Corporate management Court Proceedings crime Drug approvals General news Government and politics health Medical equipment and supplies manufacturing Technology Weight loss technologies
Comments 0
The president of a medical device company was sentenced Wednesday to three years probation and fined $10,000 for plotting with Swiss-based Serono Laboratories to increase sales of an AIDS drug by manipulating a test for AIDS patients.
Rudolph Liedtke, president of Michigan-based RJL Sciences, pleaded guilty to conspiracy in 2005 for making and selling a software package in a device that Serono used to diagnose AIDS "wasting," an often fatal condition involving severe weight loss.
Prosecutors said the device diagnosed wasting even without weight loss so that Serono could increase sales of its drug Serostim. Demand for the drug had dropped in the late 1990s with the advent of "cocktails" of AIDS drugs that prevented wasting.
After Liedtke's cooperation with federal authorities, Serono and its U.S. subsidiaries agreed in October 2005 to pay $704 million to resolve civil and criminal charges.
On Wednesday, prosecutors asked U.S. District Judge Edward Harrington to sentence Liedtke to a prison sentence of just less than 3½ years. But Harrington refused, citing the case of Dr. Norma Muurahainen, who worked as a medical director for Serono and pleaded guilty to disseminating an adulterated device, but does not face prison time.
"(Liedtke) cooperated for three years. The other person, who in my judgment is equally culpable, did not," Harrington said. "It would have been a gross disparity to give him 41 months while the doctor walks."
Liedtke, 67, and his attorney, Robert Kalec, declined comment after the hearing. Assistant U.S. Attorney Mary Elizabeth Carmody and U.S. Attorney Michael Sullivan declined comment.
As part of the plea deal, prosecutors had originally agreed to a shorter sentence than they recommended Wednesday. But Carmody said that after Liedtke pleaded guilty in April 2005, he continued selling his company's device, which had not been approved by the Food and Drug Administration.
"Our position before the court would be different had he not continued the crime after he had pled guilty," Carmody said. "How does society tolerate, how does the court tolerate this kind of behavior? How does the court know that this defendant is not going to walk out the door and do it again? That is his history."
Kalec said he couldn't justify what his client did after his guilty plea. But he said that Liedtke's wrongdoing "paled in comparison" to others in the case, and added his company's profits were minuscule next to Serono's. He argued that without Liedtke's extensive cooperation with prosecutors, Serono would not have agreed to the huge penalty, the third-largest recovery in a health care fraud case in U.S. history.
Kalec asked Harrington to sentence Liedtke to probation, arguing that Carmody's concern that Liedtke would repeat his crime was unfounded.
"How do we know he won't go out and do it again? If he's on probation, the court continues to have a hammer over his head to ensure that he doesn't," Kalec said.
In brief comments before the court, Liedtke apologized for continuing to sell the device after his guilty plea.
"I'm just very, very sorry," he said.
Serono began marketing Serostim in 1996. But demand for the drug fell off sharply in the late 1990s after"cocktails" of AIDS drugs that made patients less susceptible to wasting hit the market. Serono then conspired with RJL Sciences to create a market for Serostim by selling a software package called SomaScan, which was used to diagnose AIDS wasting, but was not approved by the Food and Drug Administration for that use.
The cost of many of the prescriptions for Serostim, $21,000 for 12 weeks of treatment, was paid by Medicaid. Prosecutors began their investigation after several U.S. employees of Swiss-based Serono claimed fraud.
Serono paid a criminal fine of $136.9 million and civil penalties of $567 million, and pleaded guilty to federal conspiracy charges.
____
AP Legal Affairs Writer Denise Lavoie contributed to this report from Boston
Serono and its U.S. subsidiaries agreed in October 2005 to pay $704 million to resolve civil and criminal charges.
Executive sentenced in Serono fraud case
By Jay Lindsay, Associated PressWriter09.25.2008
Categories AP Business Business & Finance conspiracy Corporate management Court Proceedings crime Drug approvals General news Government and politics health Medical equipment and supplies manufacturing Technology Weight loss technologies
Comments 0
The president of a medical device company was sentenced Wednesday to three years probation and fined $10,000 for plotting with Swiss-based Serono Laboratories to increase sales of an AIDS drug by manipulating a test for AIDS patients.
Rudolph Liedtke, president of Michigan-based RJL Sciences, pleaded guilty to conspiracy in 2005 for making and selling a software package in a device that Serono used to diagnose AIDS "wasting," an often fatal condition involving severe weight loss.
Prosecutors said the device diagnosed wasting even without weight loss so that Serono could increase sales of its drug Serostim. Demand for the drug had dropped in the late 1990s with the advent of "cocktails" of AIDS drugs that prevented wasting.
After Liedtke's cooperation with federal authorities, Serono and its U.S. subsidiaries agreed in October 2005 to pay $704 million to resolve civil and criminal charges.
On Wednesday, prosecutors asked U.S. District Judge Edward Harrington to sentence Liedtke to a prison sentence of just less than 3½ years. But Harrington refused, citing the case of Dr. Norma Muurahainen, who worked as a medical director for Serono and pleaded guilty to disseminating an adulterated device, but does not face prison time.
"(Liedtke) cooperated for three years. The other person, who in my judgment is equally culpable, did not," Harrington said. "It would have been a gross disparity to give him 41 months while the doctor walks."
Liedtke, 67, and his attorney, Robert Kalec, declined comment after the hearing. Assistant U.S. Attorney Mary Elizabeth Carmody and U.S. Attorney Michael Sullivan declined comment.
As part of the plea deal, prosecutors had originally agreed to a shorter sentence than they recommended Wednesday. But Carmody said that after Liedtke pleaded guilty in April 2005, he continued selling his company's device, which had not been approved by the Food and Drug Administration.
"Our position before the court would be different had he not continued the crime after he had pled guilty," Carmody said. "How does society tolerate, how does the court tolerate this kind of behavior? How does the court know that this defendant is not going to walk out the door and do it again? That is his history."
Kalec said he couldn't justify what his client did after his guilty plea. But he said that Liedtke's wrongdoing "paled in comparison" to others in the case, and added his company's profits were minuscule next to Serono's. He argued that without Liedtke's extensive cooperation with prosecutors, Serono would not have agreed to the huge penalty, the third-largest recovery in a health care fraud case in U.S. history.
Kalec asked Harrington to sentence Liedtke to probation, arguing that Carmody's concern that Liedtke would repeat his crime was unfounded.
"How do we know he won't go out and do it again? If he's on probation, the court continues to have a hammer over his head to ensure that he doesn't," Kalec said.
In brief comments before the court, Liedtke apologized for continuing to sell the device after his guilty plea.
"I'm just very, very sorry," he said.
Serono began marketing Serostim in 1996. But demand for the drug fell off sharply in the late 1990s after"cocktails" of AIDS drugs that made patients less susceptible to wasting hit the market. Serono then conspired with RJL Sciences to create a market for Serostim by selling a software package called SomaScan, which was used to diagnose AIDS wasting, but was not approved by the Food and Drug Administration for that use.
The cost of many of the prescriptions for Serostim, $21,000 for 12 weeks of treatment, was paid by Medicaid. Prosecutors began their investigation after several U.S. employees of Swiss-based Serono claimed fraud.
Serono paid a criminal fine of $136.9 million and civil penalties of $567 million, and pleaded guilty to federal conspiracy charges.
____
AP Legal Affairs Writer Denise Lavoie contributed to this report from Boston
healthcare workers voted by more than a 3-to-1 margin to be represented by SEIU United Healthcare
California Assembly Speaker pro Tempore Sally Lieber (D-San Jose) reacted to the vote of healthcare workers at Stanford hospitals in favor of union representation.
In an election conducted by the National Labor Relations Board, healthcare workers voted by more than a 3-to-1 margin to be represented by SEIU United Healthcare Workers - West (UHW) at Stanford Hospital & Clinics (SHC) and Lucile Packard Children’s Hospital (LPCH). Today’s vote garnered an even wider margin of support than when workers first voted for union representation in 1998.
“I am very pleased by the outcome of this vote,” said Lieber. “The overwhelming show of support for union representation should give the community confidence that the voice of front-line caregivers will be heard.”
Lieber continued, “Clearly this is an important decision for these workers and their families-but also for the community that relies on Stanford Hospital and Lucile Packard Children’s Hospital for care.”
SEIU-UHW will be representing approximately 1,450 healthcare workers at the Stanford hospitals.
A month ago, Stanford physically blocked Speaker pro Tem Lieber and union members from entering the hospital to deliver an open letter signed by workers asking Stanford management to remain neutral and open-minded toward employees seeking union representation.
California State Assembly
Other news:
In an election conducted by the National Labor Relations Board, healthcare workers voted by more than a 3-to-1 margin to be represented by SEIU United Healthcare Workers - West (UHW) at Stanford Hospital & Clinics (SHC) and Lucile Packard Children’s Hospital (LPCH). Today’s vote garnered an even wider margin of support than when workers first voted for union representation in 1998.
“I am very pleased by the outcome of this vote,” said Lieber. “The overwhelming show of support for union representation should give the community confidence that the voice of front-line caregivers will be heard.”
Lieber continued, “Clearly this is an important decision for these workers and their families-but also for the community that relies on Stanford Hospital and Lucile Packard Children’s Hospital for care.”
SEIU-UHW will be representing approximately 1,450 healthcare workers at the Stanford hospitals.
A month ago, Stanford physically blocked Speaker pro Tem Lieber and union members from entering the hospital to deliver an open letter signed by workers asking Stanford management to remain neutral and open-minded toward employees seeking union representation.
California State Assembly
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