Occidental Oil to Pay $2.5M for Royalty Underpayments from Federal Land
August 27, 2011 by casey
The settlement arises from a lawsuit filed by a whistleblower, Harrold Wright, under the False Claims Act against the Occidental oil companies as well as a number of other companies. Because Mr. Wright is deceased, his heirs will receive $91,000, plus interest, as his share of the settlement. The United States initially declined to participate in this case, but was actively involved in the discussions that led to this settlement. The current settlement brings the total recovery in the case to approximately $230 million.
Congress has authorized federal land to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced. Each month, companies are required to report to the Department of the Interior the amount of royalty that is due. This settlement resolves claims that the Occidental oil companies improperly deducted the cost of boosting gas up to pipeline pressures from the royalty values they reported, and failed to properly report and pay royalties related to a natural gas keep-whole agreement, pool pricing for gas and gas re-sold to affiliates.
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CEO of KV Pharmaceutical Given One Month in Jail; $1M Fine
August 27, 2011 by casey
On March 11, 2011, Missourinet announced the sentencing of former CEO of KV Pharmaceutical Marc Hermelin to one month in jail and a fine of $1 million for misbranding drugs. He also was made to forfeit $900,000. KV Pharmaceuticals was once one of the St. Louis area’s biggest drug companies.
Court records show Hermelin ordered the company to increase its daily drug production about 80 percent at a time when internal auditors were finding oversized and irregular tablets that were shipped out to pharmacies.
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Medline to Pay $85 Million to Resolve Kickback Allegations
August 27, 2011 by casey
On March 11, 2011, Reuters announced that Medline, an Illinois medical products company, is paying $85 million to settle a whistleblower lawsuit accusing it of paying fraudulent kickbacks to hospitals and companies such as HCA Inc and HealthSouth Corp (HLS.N) that buy supplies paid for by Medicare and Medicaid.
The case was brought forth by a whistleblower, former Medline employee Sean Mason, who will receive $23.4 million of the total sum paid back to the US government. In his complaint, Mason contended that privately held Medline offered the kickbacks to win new business. He said some of these kickbacks were falsely labeled as “rebates,” and others took the form of junkets, expensive gifts and charitable donations.
Mason’s attorneys called the accord one of the largest involving alleged violations of the False Claims Act in which the federal government chose not to get involved.
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
