Warren Benson Law Group

Earlier this month, the Department of Justice announced that CHRISTUS St. Vincent Regional Medical Center (St. Vincent) and its partner, CHRISTUS Health (CHRISTUS), have agreed to resolve allegations that they violated the  False Claims Act  by making illegal donations to county governments.  These funds were ultimately used to fund the state’s share of Medicaid payments to the hospital. The providers have agreed to pay $12.24 million, plus interest as part of the settlement.  “Congress expressly intended that states and counties use their own money when seeking federal matching funds,”  said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “Using local funds provides an incentive for the counties and states to, among other things, hold down costs rather than rely on non bona-fide donations by private providers.” Under a program known as the Sole Community Provider (SCP) program, the state of New Mexico was...

The government’s crackdown on fraud and abuse has netted several companies who allegedly conspired to put both taxpayers and borrows at risk of significant financial losses. Last week, the Justice Department announced that mortgage lenders PPH. Corp, PPH Mortgage Corp. and PPH Home Loans have collectively agreed to pay it more than $74 million to resolve allegations that they knowingly originated and underwrote mortgage loans that did not meet applicable requirements for said loans. These loans were insured by agencies such as the U.S. Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA) and guaranteed by the United States Department of Veterans Affairs (VA), and purchased by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). PPH is slated to pay $65 million to the FHA and $9.45 million to the VA and FHFA. “Government mortgage programs designed to assist homeowners — includ...

Sometimes alleged fraud and abuse occur on a much greater scale than that which is caused by private companies. This was proven to be the case when earlier this month, the Justice Department filed a complaint against the City of Los Angeles and the CRA/LA alleging that the two fraudulently obtained millions of dollars in housing grants from the U.S. Department of Housing and Urban Development (HUD) by falsely claiming that money was being spent in compliance with the government’s accessibility laws. The “complaint in intervention” replaces a complaint that was previously filed by a whistleblower. The complaint in intervention alleges that the city and CRA/LA received federal money by falsely promising to create accessible housing for the disabled. Instead of doing this, it is alleged that the two used the money to create inaccessible housing that actually deprived people with disabilities equal opportunity to housing of their choice. According to the complaint, the city of L.A. re...

Once again the government has proven that fraud and bribery are not victimless crimes. They impact taxpayers in every way. It proved this last week when it announced that Huntington Ingalls Industries (HII) – a defense contractor based in Newport, Virginia – has agreed to pay a $9.2 million settlement to resolve allegations that it violated the False Claims Act by deliberately overbilling for labor completed on U.S. Navy and Coast Guard ships. Under the settlement, HII will pay $7.9 million which will be combined with an earlier payment it made of $1.3 million. “Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate defense contractors who falsely charge the armed forces or any agency of the United States.” The settlement resolves allegations that HII mischarged f...