April 5, 2019 - Posts

Whistleblower Roundup – April 5th, 2019

A look back at the week’s news and developments affecting whistleblowers.


CEO of Tennessee Pain Management Company Found Guilty of $4 Million Medicare Kickback Scheme

A federal jury in Nashville, TN found the former CEO of a Tennessee pain management company guilty today for his role in an illegal kickback scheme involving $4 million in wrongful durable medical equipment claims to Medicare. John Davis, former CEO of Comprehensive Pain Specialists (CPS), was convicted of defrauding Medicare and violating the Anti-Kickback Statute. Davis, along with co-conspirators, concocted a sham company ProMed that had no offices, employees, or equipment and used it in a kickback scheme. To read the full story from The Tennessean, click here.


White House Whistleblower Says Trump Administration Overturned 25 Security Clearance Denials

Tricia Newbold, a manager in the White House’s Personnel Security Office, has told a House committee that senior Trump administration officials granted security clearances to at least 25 individuals whose applications had been previously denied for “disqualifying issues.” The whistleblower disclosed that the 25 applicants included two current senior White House officials, and the issues included foreign influence, conflicts of interests, drug use and criminal conduct. Mrs. Newbold has stated that the decisions were unusual and irregular in comparison to the previous 18 years she has worked for the White House. To read the full story from the New York Times, click here.


3 Pharmaceutical Companies Agree to Pay a Total of Over $122 Million to Resolve Charity Kickback Allegations

3 drugmakers – Jazz Pharmaceuticals, Lundbeck and Alexion Pharmaceuticals – will pay a combined $122.6 million to resolve claims they used charities that help cover Medicare patients’ out of-pocket drug costs as a kickback aimed at encouraging the use of their medications. Drug companies are prohibited from paying the copay obligations for patients enrolled in Medicare government programs. To read the full story from CNBC, click here.



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