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False Claims Act Lawsuit Forces Golden Living to Settle Claims of Fraudulent Wound Care

 

Golden Living Center Clinic

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The United States and the State of Georgia recently reached a settlement in a False Claims Act lawsuit with Golden Gate National Senior Care (GGNSC). While headquartered in the state of Texas, Golden Gate National Senior Care operates skilled nursing facilities across the nation under the “Golden Living” brand, including facilities in Atlanta, Georgia. The government alleges GGNSC provided poor and fraudulent wound care services to residents at two of its Atlanta area nursing homes. GGNSC agreed to pay $613,300 to settle a whistleblower case filed under the federal False Claims Act and the Georgia State False Medicaid Claims Act .

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False Claims Act Violations Caused Government to Overpay Nursing Facilities Over $5 Billion

HHS OIG

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In a shocking new report recently released by the Department of Health and Human Services Office of Inspector General (HHS-OIG), it was revealed that Medicare overpaid approximately $5.1 billion for patient stays in skilled nursing facilities.

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Deutsche Bank Whistleblower Endures Hostile Workplace & Termination after Reporting to SEC

Deutsche Bank

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Securities and Exchange Commission (SEC) whistleblower, Dr. Eric Ben-Artzi, is alleging multi-billion dollar securities violations at Deutsche Bank, an investment bank located in Germany.  Dr. Ben-Artzi is a former Quantitative Risk Analyst at Deutsche Bank. He initially attempted to report the violations to superiors at Deutsche Bank, but was ignored and ultimately terminated after disclosing information to the SEC. Dr. Artzi alleges Deutsche Bank attempted to hide as much as $12 billion in losses from its investors.

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Florida Sleep Testing Center Agrees to Pay Over $15 Million in Settlement

American Sleep

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In a recent settlement with the the Department of Justice, a Florida-based sleep-testing center, American Sleep Medicine LLC, has agreed to pay more than $15 million to resolve allegations of violating the False Claims Act.  American Sleep Medicine agreed to the settlement to resolve allegations that they fraudulently billed Medicare, TRICARE and other federal health care programs for sleep diagnostic testing services that were not eligible for payment according to an official statement from the Justice Department. While Medicare is a federal health program covering United States citizens, TRICARE is a healthcare program specifically for Uniformed Service members, retirees and their immediate family members worldwide.

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Two False Claims Act Lawsuits Settle Allegations of Medicare and Medicaid Fraud

Medicare and Medicaid Fraud

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A doctor in Stratford, Connecticut recently agreed to pay a $700,000 settlement to the United States government to resolve charges of Medicare overbilling under the False Claims Act. At the same time, a mental healthcare facility located in New Hampshire agreed to pay the state $54,281.76 to resolve claims that under New Hampshire’s False Claims Act, the hospital fraudulently billed Medicaid for amounts that did not correctly correspond to the services that were actually provided.New Hampshire’s Medicaid Fraud Control Unit discovered the fraud.

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CIA Contractors to Pay $3 Million for False Claims Act and Anti-Kickback Act Violations

Stuart F. Delery

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Three Former CIA Contractors Choose to Settle with the Government and Resolve Charges of Violating the False Claims Act and Anti-Kickback Statute.

 

According to an official statement from the Justice Department, American Systems Corporation, Anixter International Inc. and Corning Cable Systems LLC have each agreed to pay the United States government $3 million in order to settle allegations of violating the False Claims Act and the Anti-Kickback Statute while bidding on a contract with the Central Intelligence Agency (CIA).

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Georgia False Claim Act Law Shakes Up Doing Business With Government

Governor Nathan Deal

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New Georgia law completely changes the game for those conducting business with state and local government.

Governor Nathan Deal recently signed the Georgia Taxpayer Protection False Claims Act into law. This new law vastly changes the landscape for anyone who conducts business with Georgia’s state and local government, while also expanding the state’s original false claims law, the Georgia Medicaid False Claims Act. The False Claims Act gives sweeping authority to the Georgia government when seeking to recover damages and penalties from private contractors or subcontractors who present false claims to the government. Both houses of the Georgia legislature voted unanimously to approve the bill.

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Whistleblower from New England Compounding Center Speaks Out on 60 Minutes

Whistleblower Joe Connolly, former lab technician for New England Compounding Center,  speaks out for the first time to 60 Minutes anchor, Scott Pelly

If a pharmaceutical manufacturer recalls a product due its potential dangers, it often takes several months or years for the public to become aware of how much the company knew beforehand and when they became aware of the danger. Too often, manufacturers participate in the act of concealing pertinent information, delaying their findings to the public and hoping the situation goes unnoticed.   

Barry Cadden

Barry Cadden image from wsmv.com

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Tailor to the Stars Pleads Guilty to Tax Fraud

Attorney General Eric Schneiderman says “Mohan” Ramchandani will plead guilty to felony tax fraud after failing to pay New York sales and income tax for almost 10 years.

Eric Schneiderman

NY AG Eric Schneiderman picture from wamc.org

Attorney General Eric Schneiderman announced today that Mohanbhai “Mohan” Ramchandani, known as the “tailor to the stars,” and his business corporation, Mohan’s Custom Tailors, Inc., has chosen to plead guilty to felony charges for evading the payment of New York sales and income tax for nearly a decade. Ramchandani reportedly owes at least $2 million in taxes dating back to 2002.

Ramchandani also agreed to pay $5.5 million in fines to settle civil suits alleging tax fraud filed by a whistleblower under New York State’s False Claims Act. On Tuesday, Ramchandani pleaded guilty to felony tax fraud charges, according to authorities.

Ramchandani owns and operates “Mohan’s Custom Tailors,” which provides men’s custom clothing and tailoring services to high-end clients. Ramchandani claims to outfit multiple celebrities and sports stars. Former celebrity clients include figures such as former Mayor Rudy Giuliani and basketball stars Patrick Ewing and Clyde Frazier. The business is located on East 42nd Street in Manhattan and is still in operation.

“There are no excuses for tax cheats – regardless of how prominent they are. Mr. Ramchandani’s conviction for orchestrating this multi-million dollar scheme to defraud taxpayers sends a clear message that those who rip off the public will be held accountable for their crimes,” said Attorney General Schneiderman.

“Honest citizens are harmed by people who break the law to avoid paying their fair share, making it harder for New York State to provide essential services. This office will continue to bring aggressive action against tax evaders who believe they are above the law.”

Details of the Tax Fraud Case

According to evidence gathered during the Attorney General’s investigation, going back to at least 2002, Ramchandani and his business failed to pay at least $1.7 million in state and local sales taxes that were charged to customers. In addition, during the tax years of 2007, 2008 and 2009, Ramchandani failed to pay at least $256,000 in state and local personal income taxes.

Attorney General Schneiderman’s office began their investigation on a tip that was received from a credible whistleblower with inside information about Ramchandani and his Custom Tailor business’ illegal tax practices. The Attorney General’s office came to a resolution in this case by using the Taxpayer Protection Bureau and the Criminal Prosecutions Bureau, with additional aid from the New York State Department of Taxation and Finance.

 

Tailor

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Mohanbhai “Mohan” Ramchandani working in his New York business

As part of the plea agreement, Ramchandani gave a detailed confession, admitting that he willfully and knowingly defrauded the government out of nearly $2 million in sales and income taxes. Ramchandani also admitted that between September 2002 and June 2012, he fraudulently reported only $5,674,738 in retail sales on the tax returns, although the business made at least $28,046,064 million in taxable income.

In exchange for pleading guilty to tax fraud, Ramchandani will receive a prison term of at least one to three years. He and his business must also pay $5.5 million dollars in damages and fines as part of the settlement.

A First for the False Claims Act

This multi-million dollar settlement is unique, in that it is the first time the False Claims Act has been used to resolve a tax fraud case. The law requires that defendants pay treble damages and civil penalties if they are found liable. In an attempt to strengthen the law, Attorney General Schneiderman authored several amendments to New York’s False Claims Act in 2010. One of those amendments makes it possible for whistleblowers to sue substantial tax law violators on behalf of the government, and be protected and rewarded for coming forward with the information. Early in his term, Attorney General Schneiderman created the Taxpayer Protection Bureau as a way to combat fraud against the government and handle cases under the False Claims Act. The False Claims Act entitles those whistleblowers that come forward and report fraud against the government to receive a share of the money recovered.

 

 

 

 

And Here Come the Average Sales Price Fraud (“ASP”) Cases…

Sanofi

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Sanofi-Aventis is the latest pharmaceutical company to settle with the United States Department of Justice in an Average Sales Price Fraud case, but will almost certainly not be the last.

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