Category: General

General

27 Jul, 2021

Payoneer Pays $1.4 Million to Resolve OFAC Sanctions Violations

Payoneer, Inc., an online money transmitter and prepaid access company, agreed to pay $1.4 million to OFAC to settle violations of multiple sanctions programs.  In an ironic twist, Payoneer, which often touts its comprehensive sanctions and anti-money laundering compliance programs to its business customers, had to acknowledge 2,260 apparent violations of OFAC sanctions. Payoneer is a well-known money service business (MSB) and acknowledged that it...

General

26 Jul, 2021

Watching a Slow Train Wreck – Culture Breakdowns Step-by-Step

A corporate scandal does not occur overnight. (Thank you Bob Dylan). A CEO does not begin the day telling him or herself that today is the day to begin the Ponzi scheme or complex fraud.  It is hard to imagine but corporate scandals grow from itsy-bitsy steps to bigger risks, and eventually to the full corporate embrace. (Thank you Three Stooges, “Slowly I Turned”).  Along...

General

26 Jul, 2021

The Danger of an Out-of-Touch C-Suite

While billionaires continue to trumpet their excess and competitive desires to fly into space, they may want to take a look around before launching themselves on the next rocket to the edge of space for a ten-minute flight. John Glenn’s first manned flight carried much greater import and influence over the world’s imagination. Corporate leaders need to address the world’s challenges – the pandemic, climate...

General

21 Jul, 2021

Avanos Medical Pays $22 Million to Settle Criminal Mislabeling Charges for Surgical Gowns

Avanos Medical, a global medical device company, agreed to pay $22 million to resolve criminal charges relating to its fraudulent misbranding of its MicroCool surgical gowns.  Avanos Medical falsely labeled the surgical gowns as providing the highest level of protection against fluid and virus penetration. As part of the settlement, Avanos Medical agreed to a three-year deferred prosecution agreement (DPA), in exchange for a payment...

General

20 Jul, 2021

DOJ’s Antitrust Division Charges Seris Security and Three Executives, and Announces Plea Agreement with G4S Secure Solutions in Bid-Rigging Conspiracy Involving Overseas Security Services

The Justice Department’s Antitrust Division returned a criminal indictment against Seris Security and three executives, Danny Vandormael, CEO of Seris, Peter Verpoort, Director for Security at Seris, and Jean Paul Van Avermaet, CEO of G4S Secure Solutions, for participating in the bid-rigging conspiracy for U.S. and NATO security contracts.  All of the defendants are Belgian nationals. In a separate action, G4S Secure Solutions entered into...

General

19 Jul, 2021

DOJ Antitrust’s Ongoing Criminal Investigation of Labor Market Collusion in Health Care Industry Nets DaVita and Former CEO

The health care industry is taking it on the chin these days.  As DOJ increases False Claims Act prosecutions, the primary targets are pharmaceutical, medical device and health care providers.  So let’s add to the list of risks and prosecutions coming down the line – DOJ’s Antitrust Division is targeting health care companies for labor market collusion agreements among competitors not to solicit or hire...

General

15 Jul, 2021

False Claims Investigations and Criminal Prosecutions: Recent Examples of Criminal Charges – a Lab Owner, A Physician and a Nurse Practitioner (Part V of V)

A False Claims Act case can easily turn into a criminal prosecution.  The Federal Bureau of Investigation often initiates criminal investigations as part of its commitment to reducing health care fraud.  Working closely with an Assistant U.S. Attorney, DOJ often prosecutes physicians, lab owners, and  associates in criminal cases stemming from fraudulent billing and unnecessary medical services. In a stark example, the owner and a...

General

14 Jul, 2021

Akron Ohio Health System Agrees to Pay Over $21 Million to Settle False Claims Act Violations for Improper Payments to Referring Physicians (Part IV of V)

Akron General Health Systems, a regional hospital system based in Akron, Ohio agreed to pay $21.25 million to resolve allegations under the False Claims Act that it maintained improper relationships with referring physicians, resulting in the submission of false claims to the Medicare program.  Akron General was acquired in late 2015 by the Cleveland Clinic Foundation.  The timing of the case and the investigation raise...

General

14 Jul, 2021

St. Jude Agrees to Pay $27 Million to Settle False Claims Act Charges for Selling Defective Heart Devices (Part III of V)

St. Jude Medical agreed to pay $27 million to settle False Claims Act charges that it knowingly sold a defective heart device to health care facilities.  St. Jude was acquired by Abbott Laboratories in early 2017. St. Jude failed to disclose serious health events caused by the early depletion of the battery in certain models of its Fortify, Fortify Assura, Quadra and Unify devices which...

General

13 Jul, 2021

Alere Agrees to Pay $38.75 Million to Settle False Claims Act Violations (Part II of V)

Alere, Inc. and its San Diego subsidiary, agreed to pay $38.75 million to resolve False Claims Act charges for billing the Medicare program for defective rapid point-of-care testing devices. Alere sold diagnostic devices knowing that the devices had a materially defective algorithm.  During the period 2008 to 2016, Alere sold defective INRatio-blood coagulation monitors used by Medicare patients taking anticoagulant drugs (e.g., warfarin).  Blood coagulation...

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