September 12, 2019 - Posts

Whistleblower Roundup – September 12th, 2019

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


Owner of Telemedicine Company Pleads Guilty in $424 Million Conspiracy to Defraud Medicare

Lester Stockett, owner and chief executive officer of a telemedicine company has pleaded guilty for his role in one of the largest health care fraud schemes prosecuted by the Department of Justice. In connection with his guilty plea, Stockett admitted that he agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, pharmacies and others in exchange for arranging for doctors to order medically unnecessary orthotic braces for beneficiaries of Medicare. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients. To read the full DOJ press release, click here.


Drug Maker Mallinckrodt Agrees to Pay over $15 Million to Resolve False Claims Act Allegations

Pharmaceutical company Mallinckrodt ARD LLC will pay the federal government $15 million to resolve allegations that the company wined and dined physicians to induce them to write prescriptions for the company’s pricey H.P. Acthar Gel, the Department of Justice said. The alleged False Claims Act and Anti-Kickback Statute violations occurred from 2009 to 2013. The allegations in the settlement stem from two whistleblower lawsuits cases, and those plaintiffs will share $2.9 million of the recovery. To read more, click here.


Whistleblower Cites ‘Waste Of Funds’ at Guantánamo Court and Prison

A former top attorney at Guantánamo Bay, retired Air Force Col. Gary Brown, has filed a federal whistleblower complaint alleging “gross financial waste” and “gross mismanagement.” Additionally Brown claims that he was fired after proposing a cost-saving proposal with defense lawyers that allowed prisoners to plead guilty in exchange for life in prison rather than the death penalty. To read the full story from NPR, click here. 



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