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False Claims Act Update: Enforcement in the Health Care Sector is White Hot

On July 22, 2019, the United States Department of Justice (DOJ) filed a Complaint-In-Intervention in Federal court in New York against medical device manufacturer Life Spine, Inc. and two members of its executive management team alleging violations of the False Claims Act (FCA). The DOJ and the Relator (four former Life Spine employee whistleblowers) contend that defendants engaged in an illegal kickback scheme by paying surgeons millions of dollars in...

Jury Finds Medical Marketing Company Owner Guilty of Medicare Fraud Scheme

In a follow up to last month's OIG fraud alert regarding genetic testing scams, a federal jury found the owner of a Tampa, Florida-area medical marketing company guilty for his role in an over $2.2 million Medicare fraud scheme involving the payment of kickbacks and bribes to medical clinics. The problematic payments were in exchange for the referral of DNA swabs, to the Miami-based lab, that were obtained from Medicare beneficiaries....

Manufacturer ALERT: Vitamin Supplements May Contain Toxins

An Illinois man alleges that he was exposed to toxins, including arsenic, cadmium, and lead, which were in The Vitamin Shoppe's daily vitamin supplement. The complaint was filed by Harvey Mahler in the Circuit Court of Cook County but is now pending in the United States District Court for the Northern District of Illinois.  The lawsuit presents claims against the manufacturer and the distributor, The Vitamin Shoppe, indicating that the...

OIG Issues Fraud Alert Related to Genetic Testing Scam

The Office of the Inspector General for Health and Human Services (OIG) recently issued a Fraud Alert to the public identifying a fraud scheme involving genetic testing. To reduce fraud and abuse in federal health care programs, including Medicare and Medicaid, the OIG actively investigates potentially fraudulent schemes that are used to obtain money from these programs and, when appropriate, issues alerts that identify practices that are potentially fraudulent. This Alert...