Mylan Pharmaceuticals, UDL Laboratories, AstraZeneca Pharmaceuticals and Ortho McNeil Pharmaceutical have entered into settlement agreements for a total of $124 million to resolve claims that they violated the False Claims Act by failing to pay appropriate rebates to state Medicaid programs for drugs paid for by those programs.

“With the nation’s focus on health care, this settlement demonstrates the Justice Department’s commitment to ensuring that federal health care dollars are spent appropriately,” said Tony West, Assistant Attorney General for the Civil Division.

Sims Lawson Jr., a resident of Killen, Ala., was sentenced to 70 months in prison by Judge R. David Proctor.

Rosa N. Rivera, a resident of the Bronx, N.Y., pleaded guilty today to aiding and assisting in the presentation of a false individual income tax return for clients and to filing a false individual income tax return.

The United States today sued Lincoln Fabrics Ltd., a Canadian company, and Lincoln Fabrics Inc., aka Lincoln Textiles Inc., its American subsidiary, under the False Claims Act in connection with the companies’ weaving and sale of defective Zylon fabric which was used as the key ballistic material in bullet-proof vests.

A hospital group based in McAllen, Texas, has agreed to pay the United States $27.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute between 1999 and 2006, by paying illegal compensation to doctors in order to induce them to refer patients to hospitals within the group

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 United States and the Commonwealth of Virginia have intervened in a False Claims Act suit in the Western District of Virginia against the Medicaid providers Universal Health Services Inc., Keystone Marion LLC and Keystone Education and Youth Services LLC.

“I take seriously the Department of Justice’s obligation to pursue allegations that a defense contractor is creating a safety risk to our military,” said Assistant Attorney General Tony West, in charge of the Department’s Civil Division.

Kaiser Foundation Hospitals - Kaiser Sunnyside Medical Center, Kaiser Foundation Health Plan of the Northwest and Northwest Permanente P.C., Physicians & Surgeons (collectively, Kaiser NW) has agreed to pay the United States $1,830,322.41 to settle False Claims Act liability.

The lawsuit, which was filed in the U.S. District Court for the Northern District of Georgia, alleges that since 2003, defendants have violated the False Claims Act.

“Rooting out fraud and safeguarding taxpayers from illegal conduct are among the Justice Department’s highest priorities,” said Tony West, the Assistant Attorney General for the Civil Division.

Cardale Leon Bates of Birmingham, Ala., was sentenced to 57 months in prison today by U.S. District Court Judge L. Scott Coogler.

Tijani Ahmed Saani was also ordered to pay a $1.6 million fine and serve one year of supervised release following his prison term.

University of Phoenix has agreed to pay the United States $67.5 million to resolve allegations that its student recruitment policies violated the False Claims Act.

Our Lady of Lourdes Health Care Services Inc., the parent company of two New Jersey hospitals, has agreed to pay the United States $7.95 million to resolve allegations that the hospitals defrauded Medicare.

The United States and the state of New York have entered into settlement agreements with three home health agencies to resolve allegations that they submitted false claims to the New York Medicaid and Medicare programs.

“The resolution of this matter yielded a substantial recovery for taxpayers, and it underscores our commitment to ensure that services reimbursable by federal health care programs are based on the best interests of patients rather than the personal financial interests of referring physicians,” said Tony West, Assistant Attorney General for the Department’s Civil Division.

Visiting Physicians Association, which is based in Farmington Hills, Mich., will pay the United States and the state of Michigan $9.5 million to settle allegations that the association violated the False Claims Act by submitting false claims to Medicare, TRICARE and the Michigan Medicaid program.

Chevron Corporation, Texaco, Unocal Incorporated and their affiliates (the Chevron companies) have agreed to pay the United States $45,569,584.74, to resolve claims that they violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases.

“As this case demonstrates, we are committed to vigorously pursuing those who defraud Medicare.”

Wheaton Community Hospital, the City of Wheaton, Minn. and Dr. Stanley Gallagher (collectively WCH) have agreed to pay $846,461 to settle allegations that their hospital admission practices violated the False Claims Act.

U.S. Army Major Charles E. Sublett, 46, of Huntsville, Ala., was arrested today on charges of bulk cash smuggling and making false statements to a federal agency.

The chief executive officer of Sterling Seafood Corporation located in Cresskill, N.J., pleaded guilty to importing falsely labeled fish from Vietnam and evading over $60 million in federal tariffs, as well as selling over $500,000 in similarly misbranded fish purchased from another importer in the United States.

James Wilbur Fondren Jr. was sentenced today to 36 months in prison, followed by two years of supervised release, for charges involving espionage and making false statements to the FBI.

Haroon Amin of Upland, Calif., pleaded guilty to conspiracy to defraud the United States.

The owner and operator of a Los Angeles durable medical equipment (DME) company pleaded guilty today to submitting nearly $1 million in false claims to Medicare.

A federal grand jury in Mobile, Ala., today returned a 28-count indictment against three individuals for conspiring to falsely label, smuggle and misbrand more than 325,000 pounds of seafood in order to avoid paying tariffs and defraud customers.

Ather Ali of Diamond Bar, Calif., pleaded guilty today to conspiracy to defraud the United States.

Mercy Hospital Inc. of Springfield, Mass., has agreed to pay the United States $2,799,462 to settle claims that it violated the False Claims Act between 2005 and 2006 by failing to provide, or failing to document that it provided, the minimum number of hours of rehabilitation therapy required under Medicare guidelines.

Eon Labs Inc. has agreed to pay the United States $3.5 million to resolve False Claims Act allegations relating to the company's drug Nitroglycerin Sustained Release (SR) capsules.

The United States has asked a federal court to stop two Miami-based tax return preparers from improperly claiming the First-Time Home Buyer Credit.

Atlanta-based Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC, as well as their principals, Leonard Grunstein, Murray Forman and Rubin Schron, have agreed to pay the United States and several states $14 million.

The Houston Independent School District has agreed to relinquish millions of dollars in requests for federal funds and to pay a total of $850,000 as part of a civil settlement relating to allegations that the school district violated the False Claims Act in connection with the Federal Communications Commission’s (FCC) E-Rate program.

Rush University Medical Center has agreed to pay $1,547,200 plus interest to resolve allegations that the facility violated the False Claims Act.

American pharmaceutical manufacturer Alpharma Inc. has agreed to pay $42.5 million to resolve False Claims Act allegations in connection with the marketing of the morphine-based drug, Kadian.

“The Justice Department is committed to vigorously pursuing those who defraud Medicare,” said Tony West, Assistant Attorney General of the Civil Division of the Department of Justice.

A federal judge in Kansas City, Kan., has issued a preliminary injunction barring a Garden City, Kan., tax preparer, Jose Lares, from preparing returns with false dependent exemptions and false filing statuses.

Two Baton Rouge, La., tax return preparers were indicted today on charges of aiding in the preparation of false tax returns, the Justice Department and Internal Revenue Service (IRS) announced

The suit, filed in U.S. District Court in Washington, alleges that KBR knowingly included impermissible costs for private armed security in billings to the Army.

The United States has intervened in a False Claims Act lawsuit alleging that Satilla Health Services Inc., dba Satilla Regional Medical Center, and Dr. Najam Azmat submitted claims for medically substandard and unnecessary services to Medicare and Medicaid.

The owner and operator of a Los Angeles durable medical equipment (DME) company pleaded guilty today to submitting nearly one half of a million dollars in false claims to Medicare.

Ramon Bazan, a former Special Agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), pleaded guilty today in U.S. District Court in the District of Columbia to a one-count criminal information charging him with making false statements in connection with a series of fraudulent visa referrals.

A federal grand jury in the District of Maryland has returned a 10-count indictment charging former National Security Agency (NSA) senior executive Thomas A. Drake with the willful retention of classified information, obstruction of justice and making false statements.

Schwarz Pharma Inc. will pay $22 million to resolve False Claims Act allegations that the company failed to advise the Centers for Medicare and Medicaid Services (CMS) that two unapproved products did not qualify for coverage under federal health care programs.

Novartis Vaccines & Diagnostics Inc. and Novartis Pharmaceuticals Corporation have agreed to pay $72.5 million to resolve civil False Claims Act allegations arising from the marketing of the cystic fibrosis drug TOBI.

The Department has intervened in a whistleblower lawsuit against Kellogg Brown & Root (KBR), Panalpina Inc. and others that alleges that employees of two freight forwarders doing business with the companies provided unlawful kickbacks to KBR transportation department employees.

Ciena Capital LLC, a private, non-depository lender located in New York City, has reached an agreement with the United States to settle fraud claims related to its small business lending for $26.3 million.

Nine hospitals located in Alabama, Indiana, Florida, Michigan, South Carolina, New York and Minnesota have agreed to pay the United States more than $9.4 million to settle allegations that the health care facilities submitted false claims to Medicare.

A former Guatemalan special forces soldier was indicted today by a federal grand jury in Palm Beach County, Fla., for lying on his naturalization application about his participation in a 1982 massacre at a Guatemalan village known as Dos Erres.