Security Firm Overcharged Government for Health Insurance; Will Pay $1 Million

On September 18, 2009, the U.S. Department of Justice announced today a settlement between Pinkerton Government Services, Inc. (PGS) and the United States to resolve allegations that the security firm improperly billed self-insurance benefits costs under its contract to provide security services at Department of Energy installations. In accordance with the agreement, PGS, a subsidiary of Securitas Security Services, USA, Inc., will pay the United States $1,016,500.

The investigation was initiated by a lawsuit called a qui tam action filed under the False Claims Act by two whistleblowers. Under the provisions of the False Claims Act, whistleblowers who qualify under the statute are eligible to receive up to 25 percent of the settlement recovery in cases the Government pursues. Under the civil settlement announced today, the whistleblowers will receive a total share of $172,805.

The details of the case are as follows: From October 2001 through September 2005, PGS had a contract with DynMcDermott Petroleum Operations Company (DM) to provide security services at installations that DM operates and manages on behalf of the Department of Energy. Under its contract, PGS was reimbursed for all costs, including costs of providing health insurance to its employees, by the Department of Energy. The Government alleged that, from April 2002 through the end of its contract, PGS improperly billed for costs of health insurance under its parent company’s self-insurance program without first obtaining approval for these costs in accordance with its contract. The Government alleged that, as a result of PGS’s failure to seek approval for its self-insurance healthcare costs, the United States, through its management contractor DM, was overcharged. The settlement resolves PGS’s potential liability under the False Claims Act arising from the United States’ investigation.

If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

Pfizer’s Latest: $2.3 Billion

John Kopchinski thought he had a dream job, with the giant Pfizer drug corporation.  Life looked great for the West Pointer, a Gulf War veteran, and his little boy, and his wife  pregnant with twins.  But he dared to challenge the corporation’s illegally inducing doctors to prescribe Pfizer’s drugs.  He couldn’t stomach seeing the doctors essentially bribed with free golf, massages, resort hotel trips and other forms of kickbacks, and the dangers it presented to patients. His reward for speaking out against crime?  Getting fired.

John wasn’t the lone ranger in speaking truth to power, and getting nailed for it.  David Farber had four children under six years of age.  Mark Westlock ended up without work for years.  Casey Schildhuer dealt with brain cancer to go along with his ordeal.  Together the efforts of one Pennsylvania doctor and  five Pfizer employees exposed the Medicare, Medicaid and Tri-Care fraud relating to drug sales of Lipitor (cholesterol drug), Celebrex and Bextra (anti-inflammatory drugs), Zithromax and Zyvox (antibiotics), Geodon (anti-psychotic), Norvasc (anti-hypertensive), Viagra (erectile dysfunction), Zyrtec (anti-histamine), Lyrica (anti-epileptic), Relpax (anti-migraine) and Depo-Provera (birth control).

The result was the announcement last week of the $2.3 billion healthcare fraud settlement  Pfizer agreed to pay to our federal and state governments.  The day of the announcement, Pfizer’s stock dropped a whopping $ .14 off its $16.24 price.  Pfizer also just announced that it was buying rival drug maker Wyeth for $68 billion.   The press releases I saw never bothered mentioning that Pfizer had paid a $430 million healthcare fraud settlement back in May, 2004.  It was smaller than the February, 2008 $650 million Merck health fraud settlement, and the Bristol Meyers Squib settlement for $515 million in September, 2007, but larger than the AstraZenica settlement for $335 million in June, 2003 and the Bayer Corporation settlement for $257 million in January, 2001.  These are just a sampling of the fraud settlement by the American drug industry.

Our Federal and State False Claims Acts are extremely important to nail these corporate welfare cheaters financially.  Women with little kids around this country are routinely sent to jail for collecting a couple hundred dollars more a month than they should have in welfare fraud.  Will any of these drug executives go to jail?  Extremely unlikely.

And what about all of the American citizens who are over-prescribed these drugs by doctors?  Where is the justice for them?

Remember, please, that President George Bush and the Republican Congress a few years ago made it illegal for our Medicare to negotiate with the drug corporations for better prices.  Opensecrets.org reports that Pfizer spent $13.2 million on politicians since 1990, with 70% of it to Republicans.

This fraud and politician buying is one of the main reasons why we continue to get ruthlessly gouged on drugs, and our health insurance premiums have risen so drastically.  Without a strong public plan, how can anyone realistically think we have a prayer at stopping the rip-offs?

If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.