June 24, 2019

Two Physicians and Two Registered Nurses Indicted in Mississippi Compounding Pharmacy Fraud Scheme

Two Mississippi-licensed physicians and two Mississippi-licensed registered nurses were charged in an indictment unsealed today for their roles in a multimillion dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members, as well as private health care benefit programs Blue Cross & Blue Shield of Mississippi and United Healthcare of Mississippi.

June 20, 2019

Defense Supply Companies Resolve False Claims Act Liability for Substituting Surplus Parts

United States Attorney William M. McSwain announced today that two defense supply companies, and a married couple who operated them, have agreed to resolve the government’s claims that they supplied non-conforming parts to the military in violation of the False Claims Act. The government described its claims in its federal court complaint filed today.

June 17, 2019

Granite Bay Man Sentenced For Multi-Million Dollar Product Substitution Fraud On Federal Government Agencies

U.S. District Judge Kimberly J. Mueller sentenced Jim A. Meron, 54, of Granite Bay, today to 33 months in prison and three years of supervised release on two counts of wire fraud arising out of a government-procurement fraud scheme, U.S. Attorney McGregor W. Scott announced. As part of the sentence, the Court ordered Meron to pay restitution of $1,622,729.13 to dozens of victims. The Court also entered a final order forfeiting more than $1.7 million in assets seized during the investigation of Meron's crimes.

June 14, 2019

United States Files False Claims Act Complaint Against Two Compounding Pharmacies and Their Owner For Submitting Inflated Claims and Improperly Waiving Patient Copayments

The Department of Justice announced today that the United States has filed a complaint in intervention against Smart Pharmacy Inc., and SP2 LLC, two compounding pharmacies located in Jacksonville, Florida. The complaint alleges that the pharmacies improperly included the drug aripiprazole, an atypical antipsychotic drug, in compounded pain creams in order to boost the pharmacies' reimbursement for the prescriptions and that the pharmacies routinely waived patient copayment obligations. The government has also brought claims against Gregory Balotin, a co-owner of the pharmacies, for his involvement in the alleged schemes.

June 13, 2019

Three Physicians and Five Marketers Charged for Violations to Federal Anti-Kickback Statutes

Three physicians and five marketers have been charged in U.S. District Court with violations of the federal anti-kickback statute and other criminal offenses, announced U.S. Attorney Trent Shores. The men allegedly caused federal health care insurance programs to pay reimbursement costs for fraudulent and expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.

June 13, 2019

"Wholesaler Admits to Conspiracy to Manufacture and Sell Counterfeit Goods to the U.S. Military & Government

A Brooklyn, N.Y., clothing and goods wholesaler pleaded guilty in U.S. District Court in Providence today to charges related to his participation in a conspiracy that sold more than twenty million dollars worth of Chinese-made counterfeit goods to the United States military, government purchasers, and companies that supply the U.S. Government.

June 11, 2019

Medical Device Maker ACell, Inc. Pleads Guilty And Will Pay $15 Million To Resolve Criminal Charges And Civil False Claims Allegations

ACell, Inc. (ACell), a Maryland-based medical device manufacturer, pleaded guilty to charges relating to its MicroMatrix powder wound-dressing product (MicroMatrix). ACell entered a guilty plea before U.S. District Court Judge Ellen L. Hollander in the District of Maryland to one misdemeanor count of failure and refusal to report a medical device removal in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).

June 6, 2019

Fort Washington Man Sentenced to 66 Months in Federal Prison for Two Separate Drug Cases

U.S. District Judge Paul W. Grimm sentenced Daniel Mark Wilkerson, age 45, of Fort Washington, Maryland today to 66 months in federal prison, followed by five years of supervised release, for possession with intent to distribute more than 100 kilograms of marijuana, and in a separate case for conspiring to steal prescription drugs from federal military hospitals. Judge Grimm also ordered that Wilkerson pay restitution of $4,450,679.60, and forfeit $16,320.44.

June 5, 2019

Opioid Manufacturer Insys Therapeutics Agrees to Enter $225 Million Global Resolution of Criminal and Civil Investigations

As part of the civil resolution, lnsys agreed to pay $195 million to settle allegations that it violated the False Claims Act. As part of the criminal resolution, lnsys will enter into a deferred prosecution agreement with the government, lnsys's operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture.

June 3, 2019

Government Contractor Pleads Guilty To Making False Statements

Enco Industries, Inc., a company located in Plaistow, New Hampshire, pleaded guilty to making false statements to the U.S. Department of Defense's Defense Logistics Agency, announced United States Attorney Scott W. Murray.