Tag Archives: False

False Claims Act Settlements at Nearly 20 Percent of the 2014 Fortune 500

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Philadelphia, PA (PRWEB) June 06, 2014

Nearly 50% of the 50 largest corporations in the United States have settled allegations of fraud in their dealings with the federal government, according to analysis of the 2014 list of the Fortune 500 by Young Law Group. Twenty four of the top 50 public companies in America by revenue have been accused of defrauding the United States government and settled those allegations with a monetary payment. Because many have done so in settlements that did not admit liability, it is impossible to determine accurately how many have actually engaged in fraud.

Nevertheless, nearly 20% of the businesses on the Fortune 500 this year have faced accusations of acting in violation of the False Claims Act and resolved the allegations through a monetary payment. The complete list is available at: http://eganyoung.com/fortune-500-fca-settlements/

The top of the Fortune 500 is particularly well represented by companies which have settled allegations of fraud in the past. The nation’s three largest companies, Wal-Mart, Exxon Mobil and Chevron, have all paid settlements under the False Claims Act. Of the twenty two companies with more than $ 100 billion in revenue, thirteen (59%) have paid money back to the government in a settlement.

“We expect the number of large companies paying money back to the U.S. government will rise as more of the cases filed in the last three years work through the system,” said James J. McEldrew, III, Of Counsel to Young Law Group. The number of qui tam lawsuits filed by relators has set a record each of the last two years. *

“Too many of our nation’s top companies have engaged in misconduct that has drained our nation’s treasury,” said Eric L. Young, Managing Partner of Young Law Group. “We need more whistleblowers to come forward and report fraud when they discover evidence of it.”

The False Claims Act is the law passed by Congress in 1863 to authorize private individuals, known as relators, to bring a qui tam lawsuit on behalf of the federal government to recover money it has lost due to false claims. The False Claims Act has been significantly strengthened through amendments starting in 1986, when Congress authorized treble damages and increased awards for eligible whistleblowers to 15 to 30 percent.

Since 1986, lawsuits initiated by whistleblowers have recovered more than $ 27 billion on behalf of the United States. ** Still, estimates are the United States loses more than $ 50 billion every year to health care fraud and improper payments. ***

The Fortune 500 ranks U.S. incorporated companies operating in the United States and filing a financial statement with a government agency. Businesses are ranked based on their total revenues. In 2014, it took revenues of $ 4.9 billion to make the list. This year’s list was released on Monday, June 2, 2014 and is available at http://fortune.com/fortune500/wal-mart-stores-inc-1/

Young Law Group examined the 2014 list to determine how many of America’s largest businesses have been accused of committing fraud against the U.S. Government and settled those allegations. In its research, it attributed settlements by subsidiaries, acquisitions and predecessors to the parent or successor company. It does not include companies under investigation or with pending litigation.

About Young Law Group, P.C.

Young Law Group represents whistleblowers reporting health care fraud to the U.S. Government via qui tam lawsuits permitted by the False Claims Act. Young Law Group also represents individuals reporting securities fraud to the SEC/CFTC programs and tax evasion to the IRS.

Eric L. Young, Esq., Managing Partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries, including United States ex. rel. Lucia Paccione v. Cephalon Inc., E.D.P.A., 03-CV-6268.

Learn more about Eric Young, Esq., and Young Law Group at http://young-lawgroup.com

For a free, confidential case evaluation and discussion about whistleblower laws and rights, please call Eric Young, Esq., at 1-800-590-4116.

Attorney Advertising: Young Law Group, P.C., is a private law office located at 123 S. Broad St., Ste 1920, Philadelphia, PA 19109 with attorneys licensed to practice in Pennsylvania. The firm will associate with local counsel in other jurisdictions when necessary. Young Law Group may not be able to represent residents of all states.

For attribution purposes:


http://www.justice.gov/opa/pr/2013/December/13-civ-1352.html

** http://www.justice.gov/civil/docs_forms/C-FRAUDS_FCA_Statistics.pdf

*** http://www.economist.com/news/united-states/21603078-why-thieves-love-americas-health-care-system-272-billion-swindle







Whistleblower Payments Top $300 Million Under False Claims Act in Fiscal Year 2014

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Philadelphia, PA (PRWEB) May 20, 2014

A review of press releases issued by the Department of Justice since October 1, 2013 conducted by Young Law Group reveals that whistleblowers have been awarded more than $ 300 million from settlements in qui tam lawsuits in the current fiscal year. The federal government’s fiscal year begins on October 1st, leaving more than four months left to add to the impressive amount so far.

The two largest settlements, Johnson & Johnson in November 2013 and JPMorgan Chase in February 2014, have also led to the largest payouts. More than $ 167 million was split among the whistleblowers in Johnson & Johnson. The sole relator in JPMorgan Chase was entitled to $ 63.9 million.

A breakdown of the amount of awards in each settlement can be found on the Young Law Group website.

During FY 2013, whistleblowers received more than $ 345 million. * The record for the largest amount was set in 2011, when relators were awarded more than $ 500 million. In total, since the False Claims Act was amended in 1986, whistleblowers have been paid more than $ 4 billion for information they have brought to the government under the law. **

Payments for tips to whistleblowers in Endo Pharmaceuticals, Genzyme and Ensign Group were not included in the total for the current year because they were not disclosed by the Department of Justice. The addition of awards in these cases should add more than $ 25 million to the current total, based on the statutory percentages specified in the legislation.

“If our calculations are correct, Fiscal Year 2014 already ranks sixth on the list for highest payments to relators under the False Claims Act,” said Eric L. Young, Esq., managing partner of Young Law Group.

“Payments for information about health care fraud continue to account for the majority of rewards as the government fights fraud against Medicare, Medicaid and other government programs,” added Young.

About the Federal False Claims Act

The False Claims Act permits individuals to file lawsuits on behalf of the federal government to recover money paid out due to false statements. The individual filing the lawsuit is known as the relator. The government is permitted to intervene in the lawsuit and prosecute it to its conclusion if they wish. In this case, an eligible relator may receive between 15 and 25 percent of the amount recovered by the government. If the government declines to intervene and the individual continues the lawsuit against the company, they may be entitled to between 25 and 30 percent of the recovery.

The False Claims Act, also known as Lincoln’s Law, was passed in 1863 to fight fraud during the Civil War. In 1986, it was amended to increase incentives for relators and provide for treble damages against defendants.

About Young Law Group, P.C.

Young Law Group represents clients filing qui tam lawsuits under the False Claims Act and providing tips to the SEC, U.S. Commodity Futures Trading Commission, and Internal Revenue Service.

Eric L. Young, Esq., managing partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries. Young is licensed to practice law in the Commonwealth of Pennsylvania.

For a free, confidential case evaluation and discussion about whistleblower laws and rights, please call Eric Young, Esq., at 1-800-590-4116.

Learn more about Eric Young, Esq., and Young Law Group at http://young-lawgroup.com    

ATTORNEY ADVERTISING. Young Law Group, P.C. is a private law office located at 123 S. Broad St. Set 1920, Philadelphia, PA 19109. The firm will associate with local counsel in other jurisdictions when necessary. Young Law Group may not be able to represent residents of all states. Past results do not guarantee or predict a similar outcome in any present or future matter.

The lawsuits specifically identified here are captioned as United States ex rel. Victoria Starr v. Janssen Pharmaceutica Prods. L.P., Civil Action No. 04-1529 (E.D. Pa.); United States ex rel. Lynn Powell v. Janssen Pharmaceutica Prods. L.P. and Johnson & Johnson, Civil Action No. 04-5184 (E.D. Pa.); United States ex rel. Camille McGowan and Judy Doetterl v. Janssen Pharmaceutica, Inc., Janssen Pharmaceutica Prods. L.P., and Johnson & Johnson, Civil Action No. 05-5436 (E.D. Pa.); United States ex rel. Kurtis J. Barry v. Ortho-McNeil-Jannsen Pharms., Inc. and Johnson & Johnson, Inc., Civil Action No. 10-0098 (E.D. Pa.); United States ex rel. Lisitza and Kammerer, et al. v. Johnson & Johnson, et al. Civ. No.: 07-10288, 05-11518 (D. Mass); United States ex rel. Keith Edwards v. JPMorgan Chase Bank NA et al, Case No. 13-00220 (S.D.N.Y.); United States ex rel. Ryan v. Endo Pharmaceuticals Inc., Civil Action No. 05-cv-3450 (E.D. Pa.); United States ex rel. Weathersby, et al. v. Endo Pharmaceuticals Inc., et al, Civil Action No. 10-cv-2039 (E.D. Pa.); United States ex rel. Dhillon v. Endo Pharmaceuticals, Civil Action No. 11-cv-7767 (E.D. Pa.); United States ex rel. Fuentes, Russo v. Genzyme Corp., No. 09-cv-1245 (M.D. Fla.); United States ex rel. Kelley v. Genzyme Corp., No. 10-cv-549 (M.D. Fla.); United States of America ex rel. Gloria Patterson v. Ensign Group Inc., Case No. SACV 06-6956 CJC (ANx) (C.D. Calif.); and United States of America ex rel. Carol Sanchez v. Ensign Group Inc., Case No. SACV 06-0643 CJC (ANx) (C.D. Calif.).

For attribution purposes:


http://www.justice.gov/opa/pr/2013/December/13-civ-1352.html

** http://www.justice.gov/civil/docs_forms/C-FRAUDS_FCA_Statistics.pdf







More Expert Witness Press Releases

Rewards for Evidence of Ambulance Fraud Available to Whistleblowers Under the False Claims Act, According to Young Law Group

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Philadelphia, PA (PRWEB) April 28, 2014

The fraudulent billing of Medicare by ambulance companies is an area prime for whistleblowers with the U.S. Department of Health and Human Services estimating that ambulance providers were overpaid more than $ 300 million last year.* Employees who identify that their company is charging Medicare illegally may earn a substantial reward if they report their evidence through the procedures set up by the False Claims Act and the United States recovers money from the company as a result.

Medicare pays for transportation by ambulance when it is medically necessary. “Although there are dialysis and cancer patients who may appropriately require rides for treatment, unscrupulous service providers will offer ambulance rides to patients who they could safely transport in a wheelchair van or could drive their own vehicle. The owners implement this practice in order to line their pockets because the government will reimburse more for ambulance transportation,” commented Eric L. Young, Esq., Managing Partner of Young Law Group.

Other practices which may violate the False Claims Act include the billing for emergency services in non-emergency situations, business acquired by referral agreements prohibited under the Anti-Kickback Statute and under the table payments to patients are also prohibited.

“Employees at companies engaged in this misconduct should consult with an attorney to determine their rights,” said Young. The Young Law Group offers a free, confidential evaluation to potential whistleblowers who have evidence of fraud by ambulance providers against the U.S. government. Please call 1-800-590-4116 for additional information.

“The federal government revised the False Claims Act in 1986 to strengthen the public-private partnership in the fight against fraud,” declared James J. McEldrew, III, Esq., Of Counsel to Young Law Group. “The government can not investigate every bill submitted by Medicare service providers in order to determine whether the charge is valid. It relies, in part, on ethical individuals working for the companies and others who come across evidence of fraud to report it.”

The False Claims Act authorizes individuals to report fraudulent bills submitted to and paid by Medicare in a qui tam lawsuit. If the government or the relator, as the whistleblower filing the lawsuit is commonly known, is able to recover money paid out by the government through litigation, the relator may receive between 15 and 30 percent of the amount recovered. The law also provides whistleblowers with protection against retaliation by authorizing a federal lawsuit for damages when an employer changes the terms and conditions of their employment due to lawful whistleblowing.

Earlier this month, the payment data for $ 77 billion paid through Medicare Part B to 880,000 providers in 2012 was released by the Centers for Medicare and Medicaid Services (CMS).** The $ 5 billion paid by Medicare to ambulance companies in 2012 was more than was paid to orthopedic surgeons or cancer doctors.*

The Medicare data reveals that the program pays fifty percent more per patient, on average, to providers in West Virginia, Massachusetts, South Carolina and New Jersey for transportation. This may signal fraudulent billing but insiders are needed to confirm it with actual evidence of fraud. The U.S. government has already identified Houston, Texas and Philadelphia, Pennsylvania as areas where illegal billing is likely to originate. New ambulance companies are not permitted to register with Medicare and Medicaid in these two regions at present.

About Young Law Group, P.C.

Young Law Group represents whistleblowers reporting health care fraud to the U.S. Government via qui tam lawsuits permitted by the False Claims Act. Young Law Group also represents individuals reporting securities fraud to the SEC/CFTC programs and tax evasion to the IRS.

Eric L. Young, Esq., Managing Partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries, including United States ex. rel. Lucia Paccione v. Cephalon Inc., E.D.P.A., 03-CV-6268.

For a free, confidential case evaluation and discussion about whistleblower laws and rights, please call Eric Young, Esq., at 1-800-590-4116.

Young Law Group, P.C., is a private law office located at 123 S. Broad St., Ste 1920, Philadelphia, PA 19109 with attorneys licensed to practice in Pennsylvania. The firm will associate with local counsel in other jurisdictions when necessary. Young Law Group may not be able to represent residents of all states.

Learn more about Eric Young, Esq., and Young Law Group at http://eganyoung.com

For attribution purposes:


http://www.bloomberg.com/news/2014-04-24/medicare-s-5-billion-ambulance-tab-signals-area-of-abuse.html

** http://money.cnn.com/2014/04/09/news/economy/medicare-doctors/