Student loan servicing company Navient has settled with 39 states to end claims it had made predatory student loans. The allegations included targeting students it knew would struggle to pay back the loans. They also asserted that the company inflated borrowers' bills by directing them to long-term forbearance instead of affordable income-based...
National drug addiction treatment center CleanSlate, pays $4.5 million to settle case for invoicing unnecessary urine drug tests at its own laboratory, to Medicaid
CleanSlate, Total Wellness Centers, national addiction treatment centers, will pay $4.5 million to the Massachusetts Medicaid program to settle claims the company submitted false claims for unnecessary urine drug tests illegally performed at the company's own lab. The Complaint alleged that Cleanslate required patients to submit to a variety of irine...
SEC fines JP Morgan $200 million for conducting business communications on unofficial channels like whatsApp
The US Securities and Exchange Commission and Commodity Futures Trading Commission have fined JP Morgan $200 million for engaging in business communication on unofficial channels like WhatsApp. The bank admitted to violating US recordkeeping obligations from 2018 to 2020. The SEC issued subpoenas and requests and but JPMorgan was unable to fully...
Wall Street Journal features case of whistleblower represented by Jeffrey A. Newman of Newman & Shapiro.
Read the article in the Wall Street Journal.
Southbridge Massachusetts doctor and three others charged by feds alleging kickback payments to doctors for faulty telemedicine prescriptions leading to $37 million in losses
Dr. Le Thu, a licensed physician from South Bridge Massachusetts, and three other individuals have been charged with one count of conspiracy to violate the federal Anti-kickback Statute for their involvement in a telemedicine fraud scheme that swindled public and private payers out of $37...
House Report on Drug Pricing Shows Continuing Potential for Whistleblower Suits Involving Patient Assistance Programs
A new Congressional report exposes ongoing abuses by pharmaceutical companies that seek to cover up the effects of high drug prices by financing co-pay foundations. On December 10, 2021, the United States House of Representatives Committee on Oversight and Reform issued a lengthy report on drug pricing. The report includes detailed...
Latest Department of Justice Settlement with Specialty Pharmacies Reflects Ongoing Crackdown on Prior Authorization Fraud and Waiver of Medicare Co-Pays
In its recent settlement with pharmaceutical company kaléo, Inc., the Department of Justice foreshadowed that it also would be pursuing cases against specialty pharmacies that sold and dispensed Evzio, a kaléo drug. Evzio, a naloxone anti-overdose auto-injector, cost over $4000, while Narcan, which was approved for the same purpose, cost only about...
SEC charges man for defrauding $7 million from hundreds on fraudulent offerings of digital assets
The Securities and Exchange Commission has charged a Ivan Auzins for defrauding at least $7 million from hundreds of investors via two fraudulent offerings for digital asset securities.
The agency alleges he was behind the unregistered offer and sale of digital asset securities in an...
Former Chief Financial Officer of Roadrunner Transportation sentenced to two years in prison for significant securities fraud
Peter R. Ambruster, the former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly-traded trucking and logistics company formerly headquartered in Cudahy, Wisconsin, was sentenced yesterday in the Eastern District of Wisconsin to 24 months in prison for his role in a complex securities...
