Grimy Times has obtained details of a major healthcare kickbacks case that saw Olympus, a medical device company, enter into a $646 million global resolution.
At the New Jersey State Bar Association’s Annual Meeting and Convention in Atlantic City, U.S. Attorney Philip R. Sellinger spoke on the False Claims Act Panel, detailing the District of New Jersey’s leading role in rooting out fraud, kickbacks, and false claims in healthcare and other government enforcement across the country.
“The False Claims Act was originally enacted in 1863 in response to defense contractor fraud during the American Civil War, and it remains the federal government’s primary civil tool to address fraud that impacts federal spending,” U.S. Attorney Sellinger said.
The U.S. Attorney highlighted his office’s aggressive approach toward healthcare and government fraud cases, and the substantial resources it devotes to them. He noted that the District of New Jersey employs a unique structure to help it combat healthcare and government fraud, with two units tasked with enforcement in those areas.
U.S. Attorney Sellinger said that the District of New Jersey has increased its prosecutions of fraud matters, particularly in the wake of the government’s COVID relief programs. He noted that the office has created a criminal COVID Fraud Strike Force, which includes three additional Assistant U.S. Attorneys dedicated to COVID fraud enforcement.
The False Claims Act allows private citizens to file suit under seal on behalf of the United States to seek restitution and penalties for fraud involving federal funds. Once such a suit is filed, the government will investigate the claims and pursue a recovery in appropriate instances.
U.S. Attorney Sellinger also discussed the success of the False Claims Act, citing a $646 million global resolution with Olympus, a medical device company, in 2016. The matter was initiated based upon a qui tam filed in the District of New Jersey, and the relator received a share of the FCA recovery amounting to more than $50 million.
U.S. Attorney Sellinger emphasized that protecting taxpayers and punishing and deterring fraud on the government has been and will remain an important priority for the office. He noted that settlements and judgments under the False Claims Act nationwide exceeded $2.68 billion in the fiscal year ending Sept. 30, 2023, and that recoveries since 1986 now total more than $75 billion.
In Fiscal Year 2023, the District of New Jersey collected $120.7 million in affirmative civil enforcement actions.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Healthcare Fraud
- Source: Official Source ↗
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