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May 6, 2019

Ten, including Pharmacy Owners, Pharmacist, and Nurse Practitioner, Charged in Over $200 Million Prescription Drug Fraud

Ten defendants were charged in a 103-count indictment, including a nurse practitioner, and the owners, a pharmacist, managers, sales representatives, and billers, of a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. The indictment charges them with fraudulently billing health care insurers and prescription drug administrators for over $200 million in prescription drugs. In one listed instance, the defendants’ fraudulent conduct caused a prescription plan administrator to pay over $29,000 for one tube of a cream advertised as treating “general wounds.”

May 3, 2019

Fraudster Sentenced To 11 Years In Federal Prison For Stealing The Identities Of Hundreds Of Victims To Fraudulently Obtain More Than $2.2 Million In Tax Refunds

U.S. District Judge Catherine C. Blake sentenced Toyosi Alatishe, a/k/a Felix Victor Johnson, age 49, of Columbia, Maryland, today to 11 years in federal prison, followed by 3 years of supervised release, for a conspiracy to commit credit/debit card fraud, wire fraud, and for aggravated identity theft, in connection with two separate schemes to obtain fraudulent tax refunds. Judge Blake entered an order requiring Alatishe to pay restitution in the amount of $2,287,959.67. A federal jury convicted Alatishe on all 16 counts on January 24, 2019.

May 2, 2019

Mississippi Couple Plead Guilty To Receiving $1.7 Million in Health Care Kickback Scheme

U.S. Attorney Peter G. Strasser announced that a Mississippi couple, KIMBERLY HOMRIGHAUSEN, age 42, and RICHARD HOMRIGHAUSEN, age 36, pleaded guilty on May 2, 2019, to conspiracy to pay and receive kickbacks related to compounded medications paid for by TRICARE, a federally funded health care benefit program that serves United States military personnel and their families.

May 2, 2019

Founder and Four Executives of Insys Therapeutics Convicted of Racketeering Conspiracy

The founder and four former executives of lnsys Therapeutics Inc. were convicted today by a federal jury in Boston in connection with bribing medical practitioners to prescribe Subsys, a highly-addictive sublingual fentanyl spray intended for cancer patients experiencing breakthrough pain, and for defrauding Medicare and private insurance carriers.

May 2, 2019

Former U.S. Army Range Operations Manager Pleads Guilty to Conspiracy

A former U.S. Army civilian employee pleaded guilty today to conspiring to accept bribes and disclose sensitive U.S. Army procurement information while serving as a range operations manager at Hawaii's Schofield Barracks.

May 1, 2019

Insulation Contractor Executive Pleads Guilty To Antitrust and Fraud Charges

Michael S. Flynn, executive and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in multiple schemes to rig bids in violation of the antitrust laws and to engage in criminal fraud on insulation contracts, marking the second conviction in this ongoing investigation, the Department of Justice announced.

April 30, 2019

Pharmaceutical Company Agrees to Pay $17.5 Million to Resolve Allegations of Kickbacks to Medicare Patients and Physicians

The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.

April 25, 2019

Pain Management Clinics Settle Medicare Civil Fraud Claims

National Spine and Pain Centers (NSPC), and Physical Medicine Associates (PMA), with pain management clinics in northern Virginia, Glen Allen and Fredericksburg, have agreed to pay approximately $3.3 million to settle civil fraud allegations.

April 23, 2019

Company Agrees to $46 Million Penalty for Falsifying Test Results

An Oregon aluminum extrusion manufacturer has agreed to pay $46 million to NASA, the Department of Defense, and others to resolve criminal charges and civil claims relating to a 19-year fraud scheme that included falsifying thousands of certifications for aluminum extrusions provided to hundreds of customers.

April 12, 2019

Sunnyvale-Based Network Security Company Agrees to Pay $545,000 to Resolve False Claims Act Allegations

On April 12, 2019, Sunnyvale, California-based Fortinet, Inc. agreed to pay $545,000 to resolve alleged violations of the False Claims Act by falsely representing its products were in compliance with the Trade Agreements Act. According to the settlement agreement, Fortinet acknowledged that from approximately 2009 to 2016, A Fortinet employee responsible for supply chain management arranged to have labels on certain products altered to fraudulently claim that the products complied with the Trade Agreements Act. The employee has since been terminated from Fortinet. To settle the allegations, Fortinet has agreed to pay $400,000 and to provide the United States Marine Corps with additional equipment valued at $145,000. The lawsuit was filed by Yuxin “Jay” Fang under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on or behalf of the government for false claims and share in any recovery. The act also permits the United States to intervene in and take over a whistleblower suit, as was done here. This was a joint investigation with DCIS, the General Services Administration OIG, the Air Force Office of Special Investigations, the U.S. Army Criminal Investigative Division/Command, DHS-OIG, the Department of the Navy, and the Coast Guard Investigative Service.