Month: July 2024

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United States Obtains $26M in False Claims Act Judgments Against Laboratory Companies and Their Owner

Source: United States Department of Justice Criminal Division

On July 18, the U.S. District Court for the District of Maryland entered default judgments for the United States totaling $26,341,951.38 against Patrick Britton-Harr and multiple laboratory companies owned by him for violations of the False Claims Act. The court entered these judgments after Britton-Harr and his companies failed to defend against the United States’ allegations.

In its complaint, filed on July 18, 2023, the United States alleged that Patrick Britton-Harr owned and operated Provista Health, LLC as well as multiple other corporate entities that sought to profit from the unfolding COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wide array of medically unnecessary respiratory pathogen panel (RPP) tests. The complaint alleged that these RPP tests were not medically necessary because the beneficiaries had no symptoms of a respiratory illness and because the tests were for uncommon respiratory pathogens.

The complaint also alleged that Britton-Harr and Provista Health submitted claims for RPP tests that were never ordered by physicians and sometimes for RPP tests that were never performed, including over 300 claims that stated that the nasal swab test sample was supposedly collected from the beneficiary on a date after the beneficiary had died. 

Also on July 18, 2023, the United States filed an application for prejudgment remedies under the Federal Debt Collection Procedures Act seeking to attach and garnish certain financial assets of Britton-Harr and to obtain financial discovery from him to help ensure funds would be available to satisfy a judgment in favor of the United States. Despite a court order prohibiting Britton-Harr from selling his house in Annapolis without approval from the court, he sold the house on Sept. 23, 2023, for $575,000 and dissipated the financial proceeds from the sale. On March 4, the court granted the United States’ motion to hold Britton-Harr in civil contempt for violating this order and ordered him to deposit $575,000 with the court’s registry.

“The Justice Department remains committed to holding accountable individuals and entities who took advantage of the COVID-19 pandemic to defraud the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who attempt to thwart justice by ignoring lawsuits, dissipating assets and violating court orders.”

“The exploitation of federal health care programs designed to help the elderly and disabled during a national crisis is absolutely inexcusable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Regardless their methods, we will hold accountable those who defraud such programs for personal gain.” 

“It’s clear that Patrick Britton-Harr thought he could defraud the government by taking advantage of a global pandemic and never face the consequences. The extent of his fraud and abuse is astounding. He took critical resources away from our healthcare system and cost taxpayers their hard-earned money,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “This investigation proves the FBI and our federal partners will continue to investigate and bring fraudsters like Britton-Harr to justice no matter how long it takes.”

“Taking advantage of Medicare beneficiaries and the COVID-19 pandemic to line companies’ pockets is unacceptable,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG, the Justice Department and our other law enforcement partners work tirelessly to ensure that only legitimate products and services actually provided will be paid for by federal health insurance programs.”

The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).  

The Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Maryland handled the matter.

HHS-OIG and the FBI are providing investigative support.

Trial Attorneys Jonathan Hoerner and Vincent Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorney/Deputy Civil Chief Tarra DeShields for the District of Maryland are handling the case.

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Defense News: Vice Chief of Naval Operations Visits Johns Hopkins Applied Physics Laboratory

Source: United States Navy

Vice Chief of Naval Operations Adm. Jim Kilby visited Johns Hopkins Applied Physics Laboratory, July 24.

The visit highlighted the Laboratory’s work with the Navy including studying real-world lessons learned in Integrated Air and Missile Defense, software development, rapid fleet experimentation and cyber resilience.

The Laboratory was founded in 1942 as part of a government effort to mobilize scientific resources to address wartime challenges and is a Department of Defense designated University Affiliated Research Center and one of five Navy-sponsored UARCs. UARCs provide innovative and independent technical expertise in support of national security objectives.

Today, APL continues to play a pivotal role in supporting the Navy’s mission readiness through research and development initiatives. This collaboration has focused on enhancing naval operations, ensuring maritime security and bolstering national defense.

“Through our partnership, we continue to push the boundaries of what is possible in defense technology,” said Kilby. “This collaboration not only strengthens our national security but also reaffirms our dedication to advancing the frontiers of science and engineering.”

During his visit, Kilby spent time with APL’s Air Missile Defense Sector, discussing IAMD performance in the Red Sea, lessons learned and recommendations to prepare for any future conflict.

“The Navy is a learning organization and partnerships with UARCs play a large role in that,” said Kilby. “Our Sailors are ready, but we can’t discount our adversary. The ability to apply lessons learned including rapid engagement reconstruction and technical program correction allows us to arm our warfighters with the best information.”

Kilby also addressed APL leaders during his visit and stressed the importance the Laboratory plays in our Navy’s foundation.

“I’ve worked with APL for more than 17 years and have no doubt the work you do is important, I saw that firsthand today,” said Kilby. “Our Navy wants to work together with our partners who are working to solve our most difficult problems to ensure we can fight and win when that call comes. You are helping us do just that. Thank you for all you do for our Navy and Nation.”

For more information on Johns Hopkins University Laboratory, visit: https://www.jhuapl.edu/

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Defense News: Eye on The Pacific: Strategic Weapons Facility Pacific Celebrates 60 Years of Supporting the Nation’s Nuclear Deterrence Mission

Source: United States Navy

Originally designated Polaris Missile Facility Pacific in 1964—and renamed SWFPAC in 1980—the field site was established to support the nation’s sea-based nuclear deterrence program.

“It’s the people that have really made SWFPAC a success throughout these years,” said Vice Adm. Johnny Wolfe Jr., director of U.S. Navy Strategic Systems Programs (SSP).

“The foundation that they laid back in the 1960s to assemble the facility, this mission and the first generation of trained people who executed the development, oversight, and surety of the nation’s inaugural sea-based strategic weapon system, cultivated a culture that has carried throughout the last 60 years and will stand strong for the next 60 years.”

SWPAC—SSP’s naval shore facility in the Pacific—assembles and deploys Trident II D5 missiles aboard Fleet Ballistic Missile submarines (SSBNs) while safeguarding the nation’s strategic assets. SWFPAC’s strategic deterrence mission has been a vital lynchpin to the nation’s Warfighting Navy in the Pacific—a region where the Navy’s maritime mission is critical to defending against near-peer competitors and adversaries, supporting U.S. strategy and acting as a guarantor for the security of its citizens.

During the gala, Vice Adm. Wolfe presented two awards to Capt. Keith Fahlenkamp, SWFPAC commanding officer, including the fiscal year 2023 Admiral Raborn Award and the fiscal year 2023 Chief of Naval Operations Shore Safety Award—an honor that has now been awarded three times to the command.

“I want to impart a heartfelt congratulations to the incredible team here at SWFPAC that has been directly responsible for the continued security of the Nation for 60 years,” said Capt. Fahlenkamp.

“These awards represent just a fraction of the dedication of this workforce to the mission, our organization and the Nation.”

Against the backdrop of an extremely complex global environment, the Navy must be equipped to operate in challenging conditions, and SWFPAC is at the forefront of ensuring sailors have the right platforms, the right capabilities and weapons, and the right people for the job, today and in the future.

“One example of SWFPAC’s tremendous support to the fleet and the warfighter was the expedited load-out of USS Kentucky (SSBN 737),” Vice Adm. Wolfe recalled during his speech.

“The excellent foresight of the staff enabled Kentucky crucial flexibility to execute a port call in South Korea in July 2023—a reassurance to our Nation’s allies that we are committed to strategic deterrence in the region and for the world.”

The last six decades have paved the way for the next 60 years as SWFPAC focuses forward to supporting SSP’s efforts to sustain and develop weapon systems in support of the Sea-Based Strategic Deterrence mission through the year 2084 (SBSD 2084). Providing the Navy’s warfighters the ability to preserve the peace, respond in crisis, and win decisively in war will be at the forefront of SWFPAC’s responsibilities in the coming years. As the Columbia-class SSBNs begin operational patrols in the next decade, SWFPAC will not only sustain the strategic weapons system (SWS) for the current Ohio-class SSBNs but provide our Navy advanced weapon capabilities with the Trident D5 Life Extension (D5LE) II SWS and the W93/Mk7 warhead and reentry body assembly.

“What you do has broad influence nationally and internationally,” said Vice Adm. Wolfe, who highlighted the critical nature of the Navy’s charge in the Pacific.

“As we move away from the last 60 years and into the next 60, we must think, act, and operate outside of the traditional sources of strength our military has relied on for the last six decades in order to be prepared for tomorrow’s complex battlefield, especially in here in the Pacific.”

SSP provides training, systems, equipment, facilities and personnel responsible for ensuring the safety, security, and effectiveness of the nation’s Submarine Launched Ballistic Missile (SLBM) Trident II (D5LE) Strategic Weapon System

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Foreign National Charged for Selling Counterfeit Cancer Drugs

Source: United States Department of Justice Criminal Division

A federal grand jury in Houston returned an indictment today charging an Indian national with selling and shipping tens of thousands of dollars’ worth of counterfeit oncology pharmaceuticals into the United States.  

According to court documents, Sanjay Kumar, 43, of Bihar, India, and his co-conspirators allegedly arranged for the sale and shipment of fake, counterfeit versions of oncology pharmaceuticals—including Keytruda—to individuals in the United States. Genuine Keytruda is a cancer immunotherapy that is approved in the United States for 19 different indications, including to treat certain types of melanoma, lung cancer, head and neck cancer, Hodgkin lymphoma, gastric cancer, cervical cancer, and breast cancer. Merck Sharp & Dohme LLC, formerly known as Merck Sharp & Dohme Corp., has the exclusive right to authorize the manufacture of Keytruda for introduction into interstate commerce.

Kumar was arrested on June 26 in Houston after traveling to the United States to conduct further negotiations aimed at expanding his business selling fake Keytruda in the U.S. market.

Kumar is charged with one count of conspiracy to traffic in counterfeit drugs and four counts of trafficking in counterfeit drugs. If convicted, he faces a maximum penalty of 20 years in prison on each count.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Alamdar Hamdani for the Southern District of Texas; Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston; and Special Agent in Charge Charles Grinstead of the Food and Drug Administration’s (FDA) Office of Criminal Investigations, Kansas City Field Office made the announcement.

HSI and the FDA investigated the case.

Trial Attorneys Jeff Pearlman and Bryce Rosenbower of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay Hileman for the Southern District of Texas are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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United States Sues National General Holdings Corp. and Subsidiaries for Falsely Placing Insurance on Hundreds of Thousands of Borrowers’ Vehicles

Source: United States Department of Justice Criminal Division

The United States has filed a civil complaint under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) against National General Holdings Corp. and its subsidiaries, National General Insurance Company, National General Lender Services Inc. and Newport Management Corporation (National General), alleging that, for over a decade, National General erroneously force-placed its Collateral Protection Insurance (CPI) product on vehicles financed through Wells Fargo, despite borrowers already having insurance through other carriers.

“Companies must deal fairly and honestly with consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s lawsuit demonstrates that the department will use all of the tools at its disposable to protect the American public against deceptive and fraudulent business practices.”

“Today’s complaint alleges a long-running scheme to defraud hundreds of thousands of car buyers,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “For years, these defendants saddled ordinary Americans, including residents of this district, with allegedly unnecessary insurance, leading to dire real-world consequences like repossessed vehicles and other unwarranted collection activities. This enforcement action reinforces an important message: our office, together with our law enforcement partners, will take decisive action to combat fraud in the insurance industry, protect consumers and hold companies accountable for their wrongdoing under federal law.”  

The government’s complaint, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that, from at least 2008 and through the latter part of 2016, National General systemically failed to accurately track whether cars financed by Wells Fargo had the requisite insurance coverage from an outside carrier, and thereby knowingly or recklessly force-placed its own, much costlier CPI on at least 655,000 vehicles that already had outside insurance. In particular, the United States alleges that National General’s tracking efforts were deficient for a variety of reasons, including that National General repeatedly mailed letters seeking insurance information to borrowers at addresses that had previously been returned as undeliverable; in many instances, National General made no phone calls to insurance carriers, agents or borrowers to obtain outside insurance information, despite internal requirements to make a certain number of phone calls; and National General often failed to match insurance information in its possession to financed vehicles.

According to the complaint, National General knew for years that its so-called tracking system was wholly ineffective and that it was routinely imposing force-placed CPI on hundreds of thousands of borrowers in error. National General allegedly received thousands of complaints from borrowers and tracked and reported, both internally and to Wells Fargo, its high “false placements” rates throughout the relevant period.

The complaint further alleges that, as a result of falsely placing CPI, borrowers were charged duplicative and unnecessary CPI premiums in connection with their loans, often without adequate notification to the borrowers. The United States also contends that National General’s conduct had a range of additional negative consequences for borrowers, including improper charges for late fees and interest, negative effects on credit scores and improper repossession of some financed vehicles.

FIRREA authorizes the Attorney General to bring a civil action for penalties for violations of certain criminal predicate offenses — as established by a preponderance of the evidence — that involve financial institutions or particular government agencies. The United States’ complaint alleges that National General violated FIRREA by committing the predicate acts of mail fraud, wire fraud and bank fraud.

The Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Western District of Pennsylvania handled the matter. The United States is represented in this matter by Trial Attorneys Lindsay DeFrancesco and Laura Hill of the Civil Division’s Fraud Section and Assistant U.S. Attorney Adam Fischer for the Western District of Pennsylvania.

The claims asserted against defendants are allegations only. There has been no determination of liability.