In December 2021, the Biden administration released the United States Strategy on Countering Corruption (“Strategy”). Htttps://www.whitehouse.gov/wp-content/uploads/2021/12/United-States-Strategy-on-Countering-Corruption.pdf. The Strategy follows up on establishing the fight against corruption as a core national security interest of the United States in the National Security Study Memorandum-1 (NSSM-1) earlier in 2021. The Strategy discusses the impacts of corruption and …
DOJ Announces New White Collar Criminal Enforcement Policies
Deputy Attorney General (DAG) Lisa Monaco announced the Department of Justice’s (DOJ’s) new approach to prosecuting corporate crime at the ABA’s 36th National Institute on White Collar Crime. Htttps://www.justice.gov/opa/speech/deputy-attorney-general-lisa-o-monaco-gives-keynote-address-abas-36th-national-institute. The primary announcements addressed: (1) individual accountability, (2) company prior conduct, and (3) corporate monitors. Individual Accountability The DOJ is restoring prior guidance that to …
District of Maryland Dismisses False Claims Act Action based on Conclusory Intent Allegations
In United States ex rel. Fitzer v. Allergan, Inc., et al., 1:17-cv-00668-SAG (D. Md. Sept. 10, 2021), the court dismissed a declined False Claims Act (FCA) action, under 31 U.S.C. § 3729, et seq. The court dismissed the action without prejudice, based upon a holding that the allegations that defendants knew they were acting …
Eastern District of Pennsylvania Dismisses False Claims Act Case based on Quality of Care
In Taylor v. Comhar, Civ. 16-1218 (E.D. Pa. Aug. 30, 2021), the court dismissed a False Claims Act (FCA) action in which the government declined to intervene. The relator, a licensed professional nurse named Sarah Taylor, alleged that treatment facilities for disabled individuals fraudulently billed Medicare and Medicaid for substandard care. In dismissing the …
Fifth Circuit Reverses Lower Court Denial of Rule 41 Motion When Government Seized Attorney-Client Privileged Seized Material
In Harbor Healthcare Systems LP v. United States, No. 19-20624 (July 15, 2021), the Fifth Circuit reversed a decision by the District Court for the Southern District of Texas denying a Rule 41(g) motion for return of property. The Court held that the “district court erred in its assessment of the pre-indictment harm resulting …
COVID-19 Telehealth Fraud Indictment
Telemedicine has been growing over the last several years, and COVID-19 has accelerated that growth. Several provisions in the CARES Act relaxed telemedicine rules. In addition to the CARES Act, there have been many other legislative and policy changes on both the national and state levels. However, providers should recognize that these policy changes …
Supreme Court Clarifies the Term “Exceeds Authorized Access” Under the Computer Fraud and Abuse Act
In Van Buren v. United States, the Court held that an individual “exceeds authorized access” under the Computer Fraud and Abuse Act of 1986 (CFAA), 18 U. S. C. §1030(a)(2), when he accesses a computer with authorization but then obtains information located in areas of the computer that are off-limits to him. The Court …
Department of Justice (DOJ) Announces Task Force to Combat COVID-19 Fraud
On May 17, 2021, United States Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force. The Task Force will marshal the resources of the DOJ with government agencies to enhance enforcement efforts against COVID-19 fraud. https://www.justice.gov/opa/pr/attorney-general-announces-task-force-combat-covid-19-fraud. The Task Force will help the DOJ with work that is already underway by performing the …
Fifth Circuit Reverses Office Manager’s Conviction for Failure to Prove Willfulness under Healthcare Fraud and Anti-Kickback Statutes
In United States v. Nora, 18-31078 (5th Cir. Feb. 24, 2021), the Fifth Circuit reversed a conviction and 40-month sentence in a healthcare fraud case. The jury found Nora guilty of conspiracy to commit healthcare fraud, healthcare fraud, and conspiracy to violate the anti-kickback statute. Twenty-one defendants were indicted, and five individuals went to …
First Paycheck Protection Program False Claims Act Settlement
In January 2021, the Eastern District of California settled the first Paycheck Protection Program (PPP) False Claims Act (FCA) case. In the settlement agreement, SlideBelts, Inc. and its president and CEO, Brigham Taylor, agreed to pay the United States $100,000 after the company repaid a $350,000 PPP loan. The case arose from a false …