Fraud

U.S. Also Files Complaint Against Two Atlanta-Based Nursing Home Chains and Their Principals

November 3, 2009 -- WASHINGTON — The nation’s largest nursing home pharmacy, Omnicare Inc. of Covington, Kentucky, will pay $98 million, and drug manufacturer, IVAX Pharmaceuticals of Weston, Florida, will pay $14 million to resolve allegations that Omnicare engaged in kickback schemes with several parties, including IVAX, the Justice Department announced today. Approximately $68.5 million of the settlement proceeds will go to the United States, while $43.5 million has been allocated to cover Medicaid program claims by participating states.    » read more »

November 3, 2009 -- As part of a continuing effort to identify the latest cyber crime trends and warn the public, the FBI today released the following information:

Within the last several months, the FBI has seen a significant increase in fraud involving the exploitation of valid online banking credentials belonging to small and medium businesses, municipal governments, and school districts. In a typical scenario, the targeted entity receives a “spear phishing” e-mail which either contains an infected attachment, or directs the recipient to an infected website.    » read more »

Washington, D.C., Oct. 30, 2009 — The Securities and Exchange Commission today charged the former chief financial officer of a San Francisco private investment firm and six of his relatives and friends with insider trading, alleging that their scheme collectively reaped more than $8 million in illicit profits from unlawful trades in the securities of Tempur-pedic International, Inc. and Acxiom Corporation.    » read more »

October 28, 2009 -- WASHINGTON -- Bill J. Allen and Richard L. Smith were each sentenced in separate hearings today for their participation in a corruption scheme in which they provided approximately $395,000 in corrupt payments to public officials from the state of Alaska, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. Allen and Smith were sentenced in U.S. District Court for the District of Alaska by U.S. District Court Judge John W. Sedwick.    » read more »

Health Care Fraud Enforcement Act Will Strengthen Tools To Investigate Health Care Fraud

WASHINGTON -- October 28, 2009 – Following a Senate Judiciary Committee hearing Wednesday on “Effective Strategies for Preventing Health Care Fraud,” Senator Patrick Leahy joined with Senator Ted Kaufman (D-Del.) to introduce the Health Care Fraud Enforcement Act. The legislation is also cosponsored by Committee members Arlen Specter (D-Pa.), Herb Kohl (D-Wis.), Chuck Schumer (D-N.Y), and Amy Klobuchar (D-Minn.). Leahy chairs the Senate Judiciary Committee.    » read more »

Hundreds of Thousands Illegally Taking Advantage of Credit, Costing Taxpayers Over $100 Million

October 29, 2009 -- Washington, DC - With new reports that hundreds of thousands are illegally taking advantage of a tax credit to help get first-time homebuyers into the housing market without actually purchasing a home, U.S. Senator Kirsten Gillibrand today co-sponsored legislation that would crack down on fraud and improve oversight of the first-time homebuyer tax credit.

The U.S. Treasury Department Inspector General released a report this month revealing167 schemes and over 100,000 individual cases of fraud related to the first-time homebuyer tax credit - costing taxpayers over $100 million.    » read more »

Franken Calls On Health Care Reform Leaders to Simplify Administrative Processes and Crack Down on Fraud

Washington, D.C. -- Oct 27, 2009 – U.S. Senator Al Franken (D-Minn.) wrote to Chairmen Baucus (D-Mont.) and Harkin (D-Iowa) and Senator Dodd (D-Conn.) to urge them to include administrative simplification measures already adopted in Minnesota as part of the national health care reform efforts.

“Doctors and nurses should spend their time and resources dealing with patients, not paperwork,” said Sen. Franken. “I’m proud that Minnesota has been a leader in simplifying administrative processes. If the nation follows our example, we can save this country billions.”    » read more »

High-Ranking Corporate Executives Also Charged in Scheme That Generated More Than $25 Million in Illicit Gains

Washington, D.C., Oct. 16, 2009 — The Securities and Exchange Commission today charged billionaire Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP with engaging in a massive insider trading scheme that generated more than $25 million in illicit gains. The SEC also charged six others involved in the scheme, including senior executives at major companies IBM, Intel and McKinsey & Company.    » read more »

October 16, 2009 -- Former General Services Administration (GSA) Chief of Staff David H. Safavian was sentenced today to one year in prison on charges of obstruction of justice and making false statements in connection with the investigation into the activities of former Washington lobbyist Jack Abramoff.

In addition to the prison term, Safavian was sentenced today to two years of supervised release by U.S. District Court Judge Paul L. Friedman of the District of Columbia.    » read more »

WASHINGTON, October 2 – The Senate last night passed an amendment by Senator Bernie Sanders (I-Vt.) that would require the Department of Defense to calculate how much the Pentagon pays companies that committed fraud.

The measure, added to a defense appropriations bill, also would make the Pentagon recommend how to penalize contractors that repeatedly cheated the government out of hundreds of millions of dollars.    » read more »

Senator introduces bill to make it easier for employees to report waste and fraud in government contracting

October 1, 2009 -- WASHINGTON, D.C. – With the federal government spending $530 billion on contracts in 2008 alone, people who blow the whistle when they see waste or fraud are more important than ever. Yet, most employees of government contractors currently don’t have adequate whistleblower protections to safeguard them from retaliation.

U.S. Senator Claire McCaskill plans to change that in order to encourage more people to step forward and report fraud, waste and abuse by introducing legislation to extend ground breaking whistleblower protections to all government contractors.    » read more »

New County-By-County Report Estimates More Than Half a Million New York Seniors Fall Victim to Consumer Fraud

September 16, 2009 -- Washington, D.C. - To combat fraud and protect seniors, U.S. Senator Kirsten Gillibrand today unveiled her plan to crack down on financial fraud against seniors, increase penalties on those scamming seniors, increase awareness of criminal tactics, and hold workshops across New York on financial literacy to empower seniors to protect themselves and their life savings.

A new report from Senator Gillibrand's office estimates that over half a million New York seniors fall victim to consumer fraud each year.    » read more »

September 17, 2009 -- WASHINGTON – The Department of Veterans Affairs (VA) is warning Veterans not to give credit card numbers over the phone to callers claiming to update VA prescription information.

"America’s Veterans have become targets in an inexcusable scam that dishonors their service and misrepresents the Department built for them," said Dr. Gerald Cross, VA’s Under Secretary for Health. "VA simply does not call Veterans and ask them to disclose personal financial information over the phone."

Veteran Service Organizations have brought to VA's attention that callers are misrepresenting the VA to gain personal information over the phone. They say VA recently changed procedures for dispensing prescriptions and ask for the Veteran's credit card number.    » read more »

September 17, 2009 -- WASHINGTON – This morning, Treasury Secretary Tim Geithner hosted Attorney General Eric Holder, Housing and Urban Development (HUD) Secretary Shaun Donovan, Federal Trade Commission (FTC) Chairman Jon Leibowitz, Financial Crimes Enforcement Network (FinCEN) Director Jim Freis and attorneys general from 12 states to discuss emerging trends and proactive strategies to combat fraud against consumers in the housing markets as well as best practices to bolster coordination across state and federal agencies.

This meeting follows up on an announcement by the Obama Administration in April of a multi-agency crackdown on foreclosure rescue scams and loan modification fraud designed to protect homeowners from predatory financial practices.    » read more »

Washington, D.C., Sept. 1, 2009 — The Securities and Exchange Commission today announced the distribution of more than $35 million in Fair Funds to more than 98,000 investors in Cardinal Health, Inc. who were harmed by a fraudulent revenue and earnings management scheme.

The SEC's enforcement action against Cardinal Health in July 2007 alleged that the company presented a false picture of its operating results to the financial community and the investing public — one that matched its publicly disseminated earnings guidance and analysts' expectations rather than its true economic performance. Cardinal Health settled the SEC's charges and paid $35 million in penalties and disgorgement that were placed into the Fair Fund being distributed.    » read more »