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Eisenhower Calls for Passage of A Pennsylvania State False Claims Act
Feb. 2004
Jim Eisenhower, Democratic candidate for Attorney General, today called on the Pennsylvania State Legislature to enact proposed legislation, known as the Fraud Against Taxpayers Act, which will substantially enhance enforcement and collection efforts against persons and entities that defraud the Commonwealth and local governments.
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Former Polaroid Corporation Settles False Claims Act Suit, Reports U.S. Attorney
March 2004
The United States has settled a civil suit brought against the former POLAROID CORPORATION for violations of the federal False Claims Act. The False Claims Act makes it unlawful to knowingly submit a false or fraudulent claim for payment to the United States.
More » (external site, Yahoo! Finance)

Medicare Targets Drug Fraud: Scam Artists Sponge Off Prescription Program Before It Begins
April 2004
Medicare chief Mark B. McClellan announced a series of initiatives yesterday designed to help thwart hucksters and scam artists who he said have already begun preying on the government's new prescription drug program.
More » (external site, The Washington Post) (Click here to see the Whistleblower Award mentioned)

U.S. Recovers $5.7 Billion in Healthcare Fraud in Five Years
April 2004
The federal government recovered $5.7 billion from civil healthcare fraud cases from 1999 through 2003, according to a report released April 22 by the Economic and Social Research Institute. The federal government recovered $13 for every dollar it spent pursuing healthcare fraud, the study said. In 2003, $1.65 billion was recovered, an increase of 38% over 2001 and more than double the 2000 total.
More » (external site, SCPIE)

Medicare will police new drug cards
April 2004
As the Medicare program expands its benefits, particularly with new coverage of prescription drugs, "we know we need to be ready for those who would take advantage," Medicare Administrator Mark McClellan said at an event to highlight fraud-fighting efforts.
More » (external site, Reuters Health)

Lawmaker suggests task force to prevent drug benefit program abuses
April 2004
A key whistleblower protector on Thursday called for an interagency task force to detect potential fraud in the Medicare prescription drug program.
More » (external site, GovExec.com)

Medco to pay $5.5m in drug benefits settlement
April 2004
Medco Health Solutions will pay Massachusetts $5.5 million to settle allegations that the company cheated the state while it managed prescription drug benefits for nearly 200,000 state employees and retirees, according to documents expected to be filed in US District Court today.
More » (external site, The Boston Globe)

Pfizer settles fraud case for $430 million
May 2004
Pharmaceutical giant Pfizer (PFE) agreed to pay $430 million and plead guilty to charges that its epilepsy drug, Neurontin, was marketed for uses unapproved by the federal government.
More » (external site, USA Today)

$26.6M won't change me, whistleblower says
May 2004
Seven years ago, David Franklin sued his former employer, Warner-Lambert, for illegally marketing an epilepsy drug for unapproved uses. Little did he know how much that lawsuit would unsettle his life.
More » (external site, USA Today)

Firm to plead guilty to defrauding E-rate
May 2004
Criminal investigations into corruption and waste in the E-Rate program, a federal plan to bring Internet access to poor schools and libraries, yielded their biggest legal settlement to date on Thursday. NEC Business Network Solutions, a subsidiary of NEC, the computer giant, agreed to plead guilty to two federal felony counts, one for wire fraud and one for antitrust violation, and to pay $20.7 million in fines and restitution.
More » (external site, New York Times)

NEC Unit Admits It Defrauded Schools
May 2004
Criminal investigations into corruption and waste in the E-Rate program, a federal plan to bring Internet access to poor schools and libraries, yielded their biggest legal settlement to date on Thursday. NEC Business Network Solutions, a subsidiary of NEC, the computer giant, agreed to plead guilty to two federal felony counts, one for wire fraud and one for antitrust violation, and to pay $20.7 million in fines and restitution.
More » (external site, New York Times)

People: Suzanne E. Durrell: Government Business Risk
Boston Business Journal
July 23-29, 2004
More (PDF) »

Whistleblowers Help Protect Government From Fraudulent Drug Manufacturers
December 2004
A new study from the Taxpayers Against Fraud Education Fund reports that over $2.4 billion has been recovered from drug manufacturers engaged in fraud against the U.S. Government and the 50 states.
More » (external site, www.TAF.org)

Bad Medicine
"To gather evidence, prosecutors painstakingly searched through years of billing by individual doctors. "You could see doctors literally switching the cancer medication that a patient would be on based not on the best treatment for the patient, but based on the spread for the doctor on that drug," says Suzanne E. Durrell, former head of the civil division in the U.S. Attorney's Office in Boston, who supervised the case."
Boston Magazine
Feb. 2005
More » (Boston magazine PDF)  |  More » (Boston magazine Word)

ADL to pay $65M to settle government fraud claim
March 2005
Arthur D. Little (ADL), now known officially in Chapter 11 Proceedings as Dehon Inc., has agreed to pay the United States government $6.5 million to resolve civil claims related to ADL's overbillings to the federal government allegedly the result of inflating indirect costs and overhead charges on various government contracts, according U.S. Attorney Michael J. Sullivan.
More » (PDF)  |  More » (Mass High Tech)
Related Link » (USDOJ Press Release)
Do you know of fraud related to a government contract? Please contact us.

BROOKLINE DERMATOLOGIST INDICTED FOR DEFRAUDING MEDICARE OF OVER $5.4 MILLION
March 2005
In a federal Indictment unsealed today, a Brookline doctor has been charged with mail fraud, health care fraud, obstruction of justice and money laundering in connection with defrauding Medicare of approximately $5.4 million.
More » (USDOJ Press Release)
Do you know of fraud related to a health care? Please contact us.

Researcher admits fraud in grant data
March 2005
In the worst case of scientific fakery to come to light in two decades, a top obesity researcher who long worked at the University of Vermont admitted yesterday that he fabricated data in 17 applications for federal grants to make his work seem more promising, helping him win nearly $3 million in government funding.
More » (PDF)  |  More » (boston.com)
Do you know of fraud related to a study or grant? Please contact us.

Mass. Investigating Big Dig Contractors
March 2005
The Massachusetts attorney general is investigating two of the largest contractors in the $14.6 billion Big Dig highway project amid new questions about the project's safety. The civil investigation into Bechtel/Parsons Brinckerhoff and Modern Continental Construction Co. focuses on what Attorney General Thomas Reilly called poor oversight and shoddy work on the project, a system of bridges and tunnels plagued by cost overruns and riddled by leaks and other flaws.
More » (Wired magazine PDF)  |  More » (Wired.com)
Do you know of fraud in the Big Dig? Please contact us.

Serono agrees to pay $704 million to settle fraud allegations
Robert M. Thomas featured in The Boston Globe, 10/18/2005
Swiss drugmaker Serono SA has agreed to pay $704 million to settle criminal and civil charges that it illegally promoted its AIDS drug, prosecutors said yesterday, in one of the biggest sums collected in the government's growing scrutiny of pharmaceutical firms.

In papers unsealed on October 17, 2005, the prosecutors announced that five former employees who filed whistleblower complaints will receive 17% of the government’s civil recovery. The combined federal and state “relators’ share” will exceed $75 million. Thomas & Associates’ client, Frank Garcia expects to receive more than $10 million as part of the settlement.
Serono Settlement Press Release (PDF)
(Word) | (Web)

Boston Globe coverage:
$704m penalty for drug maker: Improper efforts to build demand (PDF)

 
>>NECN Video:
Drug firm pays $700 million settlement
>>Related articles:
Serono agrees to pay $704 million to settle fraud allegations (PDF)
Pharmacies that sold AIDS drug by Serono may face US inquiry (PDF)

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