Posts Tagged With Health Care

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Former Principal Investigator of Biopharmaceutical Company Found Guilty of Insider Trading

On November 28, 2017, a federal jury in Hartford, Connecticut found Edward J. Kosinski guilty of two counts of insider trading.  U.S. District Judge Vanessa L. Bryant presided over the trial, which lasted just over two weeks.  At trial, the government presented evidence that, in January 2014, Kosinski entered into an agreement with an agent of Regado Biosciences, Inc. (“Regado”) to act as a principal investigator for Regado’s clinical trial.  Kosinski owned 40,000 shares of
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Former Chief Financial Officer of Pharmaceutical Company Pleads Guilty to Making False Statements to Auditors About Improper Accounting

On November 2, 2017, Philip Jacoby, the former CFO of Osiris Therapeutics, Inc., pled guilty to one count of making false statements to auditors in connection with a review of Osiris’s 2014 10-K and third quarter 2015 10-Q filings.  In September 2013, Osiris agreed with the FDA that it would not sell one of its products, Ovation, after December 31, 2014.  An Osiris distributor wanted to continue to be able to access Ovation after that
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Former Executive of a Tenet Hospital and Health Clinic Owner and Operator Charged for $400 Million Fraud and Bribery Scheme

On September 26, 2017, a former Tenet Healthcare Corporation Hospital CEO, Bill Moore, along with an owner and operator of an Atlanta-based chain of pre-natal clinics, Edmundo Cota, were charged for orchestrating a fraud and bribery scheme that caused Tenet to bill Georgia and South Carolina Medicaid Programs for over $400 million.  Moore was charged with one count of conspiracy to defraud the United States and pay and receive health care bribes, two counts of
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New York-Based Hospital Operator Pays $4 Million for False Claims Act Violations Relating to Improper Payments to Doctors

On September 13, 2017, MediSys Health Network Inc., which operates two hospitals in Queens, New York, settled charges it violated the False Claims Act, agreeing to pay $4 million for submitting claims to the Medicare program for services provided to patients that had been referred by doctors who had improper financial relationships with the company.  MediSys provided compensation and advantageous office lease arrangements to physicians in violation of the Stark Law, which places limitations on
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Santa Fe-Based Christus St. Vincent Regional Medical Center and Partner Pay $12.24 Million to Resolve Medicaid False Claims Act Allegations

On September 1, 2017, Christus St. Vincent Regional Medical Center, along with its partner Christus Health (“Christus”), agreed to pay $12.24 million for violations of the False Claims Act (“FCA”) to settle DOJ charges that they made illegal donations to local county governments which then funded the state share of Medicaid payments to the hospital.  Santa Fe’s now-defunct Sole Community Provider (“SCP”) Program provided supplemental Medicaid funds to hospitals in underserved communities, and the federal
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Acting Assistant Attorney General Chad A. Readler of the Civil Division Testifies Before the House Judiciary Committee Subcommittee on Regulatory Reform, Commercial & Antitrust Law at a Hearing on Oversight of the Civil Division

On June 8, 2017, Acting Assistant Attorney General Chad A. Readler testified before the House Judiciary Committee Subcommittee on Regulatory Reform, Commercial & Antitrust Law.  During his prepared remarks, Readler discussed a number of topics, including national security, health and safety, various forms of financial fraud, and immigration actions.  According to Readler, the Civil Division and U.S. Attorneys recovered $4.7 billion under the False Claims Act in 2016, bringing the total amount recovered under the
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Acting Assistant Attorney General Kenneth A. Blanco of the Criminal Division Speaks at the American Bar Association 27th Annual Institute on Health Care Fraud

On May 18, 2017, Acting Assistant Attorney General Kenneth A. Blanco of the Criminal Division addressed attendees at the American Bar Association 27th Annual Institute on Health Care Fraud, focusing on the problem of health care fraud Blanco began by announcing that “health care fraud is a priority for the Department of Justice” and stated that “[t]he investigation and prosecution of health care fraud will continue” and “the department will be vigorous in its
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