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July 1, 2020

Acting Manhattan U.S. Attorney Announces $678 Million Settlement Of Fraud Lawsuit Against Novartis Pharmaceuticals Corporation For Operating Sham Speaker Programs Through Which It Paid Over $100 Million To Doctors To Unlawfully Induce Them To Prescribe No

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Gregory E. Demske, Chief Counsel to the Inspector General of the United States Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), Scott J. Lampert, Special Agent in Charge of HHS-OIG’s New York Regional Office, Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Christopher Algieri, Special Agent in Charge the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office (“VA OIG”), announced today that the United States has settled a civil fraud lawsuit against NOVARTIS PHARMACEUTICALS CORPORATION (“NOVARTIS”), part of Swiss drug manufacturer Novartis International AG, alleging that NOVARTIS violated the federal False Claims Act and Anti-Kickback Statute by providing doctors with cash payments, recreational outings, lavish meals, and expensive alcohol to induce them to prescribe NOVARTIS cardiovascular and diabetes drugs reimbursed by federal healthcare programs.Specifically, the Government alleged that NOVARTIS organized tens of thousands of sham educational events at high-end restaurants and other venues, paid exorbitant speaker fees to doctors who gave no meaningful presentations, and provided expensive meals and alcohol to doctor attendees and their guests. When those doctors then prescribed NOVARTIS’s cardiovascular and diabetes drugs, federal healthcare programs paid hundreds of millions of dollars in reimbursements for these tainted prescriptions. As part of the settlement, approved today by U.S. District Judge Paul G. Gardephe, NOVARTIS will pay the United States and various States a total of $678 million. NOVARTIS also made extensive factual admissions in the settlement and agreed to strict limitations on any future speaker programs, including reductions to the amount it may spend on such programs.

June 26, 2020

Acting U.S. Attorney Announces Extradition Of Belgian Man Charged In $8 Million Aircraft Part Fraud Scheme

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” a Belgian citizen, was extradited today from Italy to the United States. GILLIER was arrested on May 26, 2019, for engaging in a scheme in which he and a co-conspirator fraudulently obtained millions of dollars’ worth of aircraft parts through two aircraft part dealerships that they operated, RTF International, Inc. (“RTF”), and UN Air Service, Inc. (“UAS”). GILLIER is expected be presented this afternoon in Manhattan federal court before Chief U.S. Magistrate Judge Gabriel W. Gorenstein. GILLIER’s case is assigned to U.S. District Judge Richard M. Berman.

June 24, 2020

Three Defendants Plead Guilty in $65 Million Health Care Fraud; Additional Charges Brought Against Alleged Ringleaders

Three former U.S. service members pleaded guilty in federal court today, admitting their roles in a fraud scheme that bilked the military healthcare program known as TRICARE out of more than $65 million. Kyle Adams, Daniel Castro and Jeremy Syto are scheduled to be sentenced September 11, 2020 before U.S. District Court Judge Janis L. Sammartino. At the same time, the alleged ringleaders of this scheme were charged with additional crimes. Jimmy and Ashley Collins, a civilian married couple living in Cleveland, Tennessee, were originally charged in January 2018. They were charged on June 9, 2020 with additional crimes related to their operation of the scheme that cheated the health care program that covers United States military service members, retirees, and their dependents.

June 24, 2020

Jefferson County Doctor Indicted for Health Care Fraud Violations

BEAUMONT, Texas -A 43-year-old physician practicing in Beaumont has been indicted on federal healthcare fraud violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

June 24, 2020

Augusta University Medical Center agrees to pay $2.625 million to settle False Claims Act investigation

AUGUSTA, GA: Augusta University Medical Center, Inc. (AUMC) has agreed to a settlement with the United States, the State of Georgia, and the State of South Carolina to resolve allegations that AUMC submitted false claims to several government-funded healthcare programs.

June 24, 2020

Doctor and Nurse Sentenced for Conspiracy to Commit Health Care Fraud in Compounding Pharmacy Scheme

Jackson, Miss. - Dr. Thomas Edward Sturdavant, M.D., 56, of Cordova Tennessee, was sentenced Monday and Freda Cal Covington, RN, 55, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett for their roles in a conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation ("FBI") in Mississippi, and Special Agent in Charge Cyndy Bruce of the U.S. Department of Defense's Criminal Investigative Service's ("DCIS") Southeast Field Office.

June 22, 2020

Doctor Charged with Illegally Distributing Controlled Substances Which Resulted in the Death of Three Patients

OKLAHOMA CITY -A federal grand jury has returned an indictment involving the illegal distribution of opioids and other controlled substances, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.

June 16, 2020

Madison Doctor Sentenced to Four Years in Federal Prison for Conspiracy to Commit Health Care Fraud in Compounding Pharmacy Scheme

Jackson, Miss. – Dr. Shahjahan Sultan, M.D., 37 of Madison, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 3 years of supervised released, for conspiring to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation (“FBI”) in Mississippi, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (“DCIS”) Southeast Field Office. Sultan was also ordered to pay restitution in the amount of $4,102,634.65 to Express Scripts (TRICARE), $582,280.79 to CVS Caremark and $115,611.03 to Catamaran. The Court further imposed a money judgement of more than $2.3 million.

June 15, 2020

Bradken Inc. pays $10.8 million to settle False Claims Act allegations and enters into deferred prosecution agreement

The Department of Justice announced today that Bradken Inc. (Bradken), a subsidiary of Hitachi Construction Machinery, has paid $10,896,924 to resolve allegations that Bradken produced and sold substandard steel components for installation on U.S. Navy submarines, announced Assistant Attorney General of the Justice Department's Civil Division Jody H. Hunt and U.S. Attorney Brian T. Moran for the Western District of Washington. Bradken and Bradken's former lab director have also been charged criminally.

June 12, 2020

Three Charged in $180 Million Health Care Fraud and Money Laundering Scheme

An indictment against three individuals for their alleged involvement in various schemes to defraud Medicare, TRICARE, and private insurance companies, and their conspiracy to launder the proceeds has been unsealed today. The conduct allegedly resulted in more than $180 million in fraudulent billings. Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Special Agent in Charge Michelle Sutphin of the FBl's Jackson Field Office, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service (DCIS) Southeast Field Office made the announcement.