Source: http://www.morganverkamp.com/category/press/
Timestamp: 2019-04-20 00:58:24+00:00

Document:
JITENDRA SWARUP PAYS OVER $2,900,000 TO THE UNITED STATES TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS BROUGHT BY RELATOR KIPP FESENMAIER. THE UNITED STATES INTERVENES AGAINST ADDITIONAL DEFENDANTS.
In August 2017, Sightpath Medical and related defendants paid $12 million to resolve federal False Claims Act allegations that Sightpath paid kickbacks to physicians and physician practices to induce the use of its products and services in eye surgeries paid for by the United States. Today, one of the defendant doctors, Jitendra Swarup of North Carolina, paid an additional $2.9 million to resolve allegations that he accepted Sightpath’s kickbacks and subsequently used and recommend its services.
The United States also filed its Complaint-in-Intervention today against two additional Defendants: the Cameron-Ehlen Group, Inc., d/b/a Precision Lens, and its owner, Paul Ehlen, both located in Minnesota. The United States’ Press Release can be found here.
The settlement with Dr. Swarup is the second settlement to partially resolve a qui tam whistleblower case brought by Kipp Fesenmaier, a former Vice President of Operations for Sightpath’s predecessor entity. The case was filed in Minneapolis federal court in November 2013 under the False Claims Act. The case remains pending against Precision Lens and Ehlen.
The False Claims Act encourages private citizens like Mr. Fesenmaier to bring cases in the name of the United States against government contractors, such as Precision Lens, the company’s owners, and individual physicians like Dr. Swarup, who are accused of knowingly violating Medicare laws. False Claims Act cases, also called qui tam cases, return money back to the Treasury for false claims made to federal programs. The False Claims Act requires payment to successful whistleblowers of between 15% and 30% of the total recovery.
Mr. Fesenmaier advised the Justice Department that Precision Lens, Sightpath, and Ehlen offered and paid kickbacks to physicians in the form of luxury hunting, skiing, fishing, golfing, and other trips and entertainment, beginning in the 1990s and continuing until recently. He also provided evidence that Sightpath entered into sham consulting agreements with physicians. Mr. Fesenmaier alleged that Dr. Swarup was a prime recipient of these illegal kickbacks, which were intended to and did induce physicians like him to use Defendants’ products and services, including mobile cataract surgery equipment, products, and services in connection with eye surgeries paid for by Medicare from January 1, 2006 to January 1, 2015.
The kickbacks Dr. Swarup allegedly accepted from Sightpath violated the Anti-Kickback Statute, which prohibits the exchange (or offer to exchange) anything of value in return for the referral of claims for payment to federal health care programs, like Medicare. When claims are submitted as a result of a kickback, they are false or fraudulent. Thus, by knowingly paying and accepting such kickbacks, both the Anti-Kickback Statute and the False Claims Act are violated.
The claims against Dr. Swarup, Sightpath, and its president and owners were settled after they entered into settlement discussions with the United States and Relator. The matter will proceed against the remaining Defendants, Precision Lens and Paul Ehlen.
Mr. Fesenmaier is represented by Jennifer Verkamp, Frederick Morgan, Jr., and Maxwell Smith of Morgan Verkamp LLC in Cincinnati, and Susan Coler of Halunen Law in Minneapolis. The United States is represented by Assistant United States Attorney Chad Blumenfield, who was instrumental in leading the Government’s investigation and reaching settlement terms with Sightpath and the other settling parties.
The case is United States ex rel. Fesenmaier v. Sightpath Medical, Inc., et al., Civil No. 13-3003. A copy of the Amended Complaint can be found here. A copy of the United States’ Complaint-in-Intervention can be found here.
Morgan Verkamp LLC is a Cincinnati law firm whose practice is focused on whistleblower cases under federal and state False Claims Acts and IRS and SEC whistleblower laws. Its principals, Jennifer Verkamp and Rick Morgan, have handled qui tam cases nationwide for 22 years.
/wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png 0 0 Tracy Smith /wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png Tracy Smith2018-02-09 17:23:452018-06-07 09:00:23JITENDRA SWARUP PAYS OVER $2,900,000 TO THE UNITED STATES TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS BROUGHT BY RELATOR KIPP FESENMAIER. THE UNITED STATES INTERVENES AGAINST ADDITIONAL DEFENDANTS.
Sightpath Medical, its parent, TLC Vision Corporation, and Sightpath’s former President James Tiffany have paid $12 million to resolve federal False Claims Act allegations that Sightpath paid kickbacks to physicians and physician practices to induce the use of Sightpath’s products and services in eye surgeries paid for by the United States.
The settlement partially resolves a qui tam whistleblower case brought by Kipp Fesenmaier, a former Vice President of Operations for Sightpath’s predecessor entity. The case was filed in Minneapolis federal court in November 2013 under the False Claims Act.
The False Claims Act encourages private citizens like Mr. Fesenmaier to bring cases in the name of the United States against government contractors like Sightpath accused of knowingly violating Medicare laws. False Claims Act cases, also called qui tam cases, return money back to the Treasury for false claims made to federal programs. The False Claims Act requires payment to successful whistleblowers of between 15% and 30% of the total recovery.
Mr. Fesenmaier advised the Justice Department that Sightpath and other defendants offered and paid bribes to physicians in the form of hunting, skiing, fishing, golfing, and other trips and entertainment, beginning in the 1990s and continuing until recently. He also provided evidence that Sightpath entered into sham consulting agreements with physicians and physician practices. The purpose of these bribes was to induce physicians to use Sightpath’s products and services, including mobile cataract surgery equipment and services, in connection with eye surgeries paid for by Medicare from January 1, 2006 to January 1, 2015.
These payments violated the Anti-Kickback Statute and induced physicians to submit false, kickback-tainted claims to Medicare. By knowingly inducing physicians to utilize Sightpath’s products and services in the eye surgeries those physicians performed and/or the facilities that those physicians owned or controlled, Sightpath violated the Anti-Kickback Statute and the False Claims Act.
The allegations against Sightpath, its president, and owners were settled after the company entered into settlement discussions with the United States and Relator. The settlement amount is based on the defendants’ lack of money to pay for all the damage it caused.
The matter was unsealed on August 21, 2017, and will proceed against the other defendants. The United States is expected to file an intervention complaint against Defendants Precision Lens, Paul Ehlen, and Jitendra Swarup within 90 days.
The case is United States ex rel. Fesenmaier v. Sightpath Medical, Inc., et al., Civil No. 13-3003. A copy of the Amended Complaint can be found here.
State Farm Fire and Casualty Company v. United States ex rel. Cori Rigsby, et al.
/wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png 0 0 Tracy Smith /wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png Tracy Smith2016-10-05 13:49:372016-10-05 13:59:57State Farm Fire and Casualty Company v. United States ex rel. Cori Rigsby, et al.
United States ex rel. Julio Escobar; Carmen Correa v. Universal Health Services, Inc.
/wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png 0 0 Tracy Smith /wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png Tracy Smith2016-10-05 13:48:552016-10-05 13:48:55United States ex rel. Julio Escobar; Carmen Correa v. Universal Health Services, Inc.
United States ex rel. Beaujon v. Hebrew Homes Health Network, Inc.
Relator Stephen Beaujon was the Chief Financial Officer for one of Florida’s largest nursing home networks, Hebrew Homes, when he discovered that his company was offering physicians illegal kickbacks in exchange for patient referrals – a scheme that Mr. Beaujon alleged in his lawsuit was largely orchestrated by the company’s president, William Zubkoff. The United States did not intervene in the case, which ultimately settled for $17 million, which the Justice Department held out as the largest settlement paid by a nursing home for violations of the Anti-Kickback Statute. Hebrew Homes also agreed to enter into a Corporate Integrity Agreement, which required the company to change its policies and allows the Government to more closely monitor the company’s actions. Access the Department of Justice’s press release here to learn more; for the Corporate Integrity Agreement, click here.
/wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png 0 0 Tracy Smith /wp-content/uploads/2015/06/MV-logo-2015-400-300x91.png Tracy Smith2016-10-05 13:00:472016-10-05 13:00:47United States ex rel. Beaujon v. Hebrew Homes Health Network, Inc.
On behalf of their client Michael Epp, the law firms Morgan Verkamp LLC (Cincinnati) and Pietragallo Gordon Alfano Bosick & Raspanti, LLP (Philadelphia) note the settlement of claims initiated by Mr. Epp alleging fraud on the part of Supreme Foodservice, the “prime vendor” of food and related items to the Department of Defense and coalition troops in Afghanistan from 2005 until at least 2009.
Under agreements finalized today between Supreme Foodservice GmBH, Justice Department lawyers in Washington, D.C. and Philadelphia, and Mr. Epp, Supreme will pay the United States $101,000,000 in damages under the False Claims Act. Supreme Foodservice GmBH and related entities have entered guilty pleas to charges of major fraud, conspiracy to commit major fraud, and wire fraud. The criminal plea agreements require payment of $288,300,000 in fines and restitution, making the total recovery on the prime vendor contract $389,300.000. The allegations are detailed in a criminal Information filed this morning in U.S. District Court in Philadelphia.
Mr. Epp’s civil complaint, brought in March 2010 under the qui tam provisions of the United States Civil False Claims Act, alleges in part that Supreme Foodservice used a shell corporation to inflate the cost to the government of produce served to the troops; illegally increased the cost of bottled water by misrepresenting acquisition costs; and obtained kickbacks from vendors disguised as “prompt payment” discounts. Mr. Epp is a German citizen who worked for Supreme in Dubai, where its Prime Vendor operation was based. Such contracts are used by the military to allow it to purchase all needed food and beverage items from a single company, which procures from manufacturers and suppliers and delivers to the government. He managed Supreme’s supply chain under the Prime Vendor contract until early 2007.
The Department of Justice’s civil investigation was run by Trial Attorney Art J. Coulter, Assistant Branch Director Michael Tingle, and Director Michael Granston of the Commercial Frauds Branch of the Civil Division, all of Washington, D.C.; and by Assistant United States Attorneys Colin Cherico, Joel Sweet, Mary Catherine Frye, and Margaret Hutchinson of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The criminal investigation was run by Assistant United States Attorney Bea Witzleben, also of the Eastern District. Principal investigative support was provided by Defense Criminal Investigative Service Special Agent Kishara Gant of the DCIS Philadelphia Field Office, with support from DCIS Special Agent Andrew Dunphy.
The civil case, United States ex rel. Epp v. Supreme Foodservice A.G., No. 10-CV-1134, remains pending before Hon. Mary A. McLaughlin of the United States District Court for the Eastern District of Pennsylvania. The civil complaint, the settlement agreement, the criminal information, and other documents will be available at www.morganverkamp.com.
Morgan Verkamp LLC is a Cincinnati law firm whose practice is focused on whistleblower cases under the federal and state False Claims Acts. Its principals, Rick Morgan and Jennifer Verkamp, have handled qui tam cases nationwide for 19 years. Pietragallo Gordon Alfano Bosick & Raspanti, LLP is a regional firm which has handled many False Claims Act cases under the leadership of Michael A. Morse and Mr. Raspanti for more than 25 years.
On behalf of its client Michael Daugherty, Morgan Verkamp, LLC is pleased to announce that Bostwick Laboratories, Inc., an anatomic and pathology lab based in Uniondale, New York, has agreed to pay the United States $6,048,000 to resolve allegations regarding violations of the False Claims Act.
The False Claims Act allows private citizens to bring cases in the name of the United States against government contractors charged with fraud. False Claims Act cases, also called qui tamcases, recover damages back to the Treasury for false claims made to federal programs, including federal healthcare programs.
The qui tam complaint was filed in May 2008. It alleges that Bostwick Laboratories improperly billed Medicare and Medicaid for tests and services referred in violation of the Anti-Kickback Statute and for tests performed without a doctor’s order or consent. The Justice Department decided in June 2011 not to intervene in the case. In 2012, Senior District Judge S. Arthur Spiegel issued a well- reasoned order denying the defendants’ motions to dismiss. U.S. ex rel. Daugherty v. Bostwick Laboratories, et al., 2012 U.S. Dist. LEXIS 178641 (S.D. Ohio Dec. 18, 2012).
The case against Bostwick Laboratories settled after the company entered into settlement discussions with Mr. Daugherty and the United States based on its inability to pay the full value of the damages sought in the qui tam action.
Jennifer Verkamp of Morgan Verkamp said, “Mr. Daugherty exposed public health insurance fraud in one of the most costly, and most frequently abused, segments of health care. When laboratories and other suppliers and providers pay kickbacks to obtain business from providers, honest companies cannot compete, and the entire system suffers.” Ms. Verkamp noted that Daugherty’s allegations against Dr. Bostwick himself are still pending and are expected to go to trial in late 2015.
The Department of Justice is represented by Assistant United States Attorney Andrew Malek and Civil Division Trial Attorney Alison Cendali, of Washington, D.C., who were instrumental in reaching settlement terms with Bostwick Laboratories. The case is U.S. ex rel. Daugherty v. Bostwick Labs, et al., No. 1:08-cv-354, in the U.S. District Court, Southern District of Ohio.
Morgan Verkamp, LLC represents clients nationwide in cases under the False Claims Act.
Follow the link below for the full story published by Bloomberg News.
Cincinnati-based Omnicare, a Fortune 400 company and the nation’s largest provider of pharmacy services to nursing home patients, has agreed to pay the United States $120 Million to resolve kickback and false-claims allegations brought by Donald Gale, an Ohio pharmacist who worked for the company from 1993 until 2010. Mr. Gale sued Omnicare pursuant to the United States Civil False Claims Act. The agreement between Mr. Gale and Omnicare, which was announced in open court in Cleveland on Tuesday, will not be final until it is approved by the Civil Division of the United States Department of Justice, avoids a jury trial scheduled for Monday, October 28. Omnicare acknowledged the settlement in SEC filings this morning, indicating a material impact on the corporation.
Mr. Gale’s complaint alleges a kickback scheme called “swapping,” asserting tht Omnicare paid nursing home owners kickbacks in the form of heavily-discounted prescription drugs for Medicare Part A inpatients. The nursing homes are financially responsible for Part A patients’ medical because Medicare pays a flat fee to the facility. Omnicare offered the nursing homes daily, or “per diem,” pricing. Mr. Gale’s Complaint alleges that the per diem pricing for hundreds of facilities was substantially below the fair market value of the goods provided, and that this violated the Medicare Anti- Kickback Statute and the False Claims Act because Omnicare gave the discounts intending that the nursing homes would refer, or “swap,” their non-Part A patients, most of whom participate in the Medicare Part D prescription-drug benefit program, to Omnicare. Omnicare then charged full price for their prescription drugs and other pharmacy services. The HHS Office of Inspector General has made clear since 1999, when Medicare Part A services were converted to the “Prospective Payment system,” that swapping was prohibited by the Anti-Kickback Statute.
Mr. Gale was the General Manager of an Omnicare pharmacy in Wadsworth, Ohio. His civil complaint was filed under seal in January 2010. The case was unsealed in 2011, after the U.S. Attorney for the Northern District of Ohio elected not to intervene. This decision, which occurs in about 85% of False Claims Act cases, cleared the way for Mr. Gale to pursue the case on behalf of the taxpayers. The case has been vigorously litigated since early 2012.
Omnicare has paid prior False Claims Act settlements alleging payment of kickbacks to nursing homes and receipt of kickbacks from drug companies. It has, since 2006 operated under a series of Corporate Integrity Agreements with the HHS Office of Inspector General.
The False Claims Act, also called “Lincoln’s Law,” was first signed by President Lincoln in 1863. Amendments in 1986 made it the primary weapon of the United States against fraud and abuse by government contractors. The FCA permits a private citizen like Mr. Gale to bring a case in the name of the United States, and to recover a portion of any recovery. If the Justice Department approves the Omnicare settlement, Mr. Gale’s share of the proceeds will be 25 to 30% of the federal recovery.
According to Frederick Morgan of the Morgan Verkamp law firm in Cincinnati, “Don Gale is living proof that no matter how large the corporation, one person can make an enormous difference. He showed great courage in coming forward to bring Omnicare’s swapping arrangements to the attention of the United States, and in weathering months of fierce litigation and trial preparation, with no certainty of recovery. Mr. Gale assembled a talented and devoted team of litigators who worked tirelessly to prepare this complex case for trial, resulting in the eleventh-hour settlement which we have asked the Justice Department to approve.” Morgan believes that this is one of the largest settlements of a qui tam case which the Justice Department did not take over.
The False Claims Act creates a unique and powerful public/private partnership for the pursuit of fraud claims by whistleblowers. Mr. Gale’s legal team worked in close coordination with attorneys of the Department of Justice’s Civil Division in Washington and the Office of Northern District of Ohio United States Attorney Steven M. Dettlebach.
Mr. Gale is represented by Rick Morgan, Jennifer Verkamp, and Sara Vann of Morgan Verkamp LLC; Virginia Davidson and Eric Zell of Calfee Halter & Griswold LLP; Ross Brooks and Roland Marquez of Sanford Heisler LLP; and Daniel Miller and Shauna Itri of Berger Montague.
The case remains pending until final resolution before United States District Judge James S. Gwin of the United StatesDistrict Court for the Northern District of Ohio. Judge Gwin has asked the parties to resolve all remaining issues withinDistrict Courtthree weeks.

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