Michigan to Receive $42 Million in Nationwide Healthcare Fraud Settlement

Matthew Worley, Esq.

 

Johnson & Johnson and its subsidiaries have agreed to pay more than $2.2 billion to the federal government and 45 states in one of the largest health care fraud settlements in history.

 

The payment is made to settle criminal fines and civil suits alleging the entities offered kickbacks to doctors and pharmacies to promote certain drugs for uses not approved by the FDA – a practice prohibited under U.S. law.

Allegedly, the health care giant promoted the use of schizophrenia drugs for use in elderly dementia patients and for children with AD/HD, autism, and other disorders.  These drugs were not approved for these uses, making it illegal for the manufacturer of the drug to market them.

Michigan’s share of the settlement, which is approximately $42 million, will primarily go to the state’s Medicaid program which initially paid for most of these prescriptions.  According to Michigan Attorney General Bill Schuette, this major settlement makes a statement that the hardworking taxpayers of Michigan deserve better than to be duped into paying more than they should have.

Under a “Corporate Integrity Agreement,” the federal government will be closely monitoring the company’s marketing practices going forward.

If you have questions about health care fraud, or are afraid that you may have been the victim of a fraud, contact the experienced attorneys at Fausone Bohn, LLP, by calling (248) 380-0000 or online at www.MichiganFraudLawyer.com. 

To read the original article detailing this health care fraud settlement, visit: http://www.mlive.com/business/index.ssf/2013/11/michigan_johnson_johnson_drug.html

Michigan Supreme Court Justice Retires After Accusations of Bank Fraud

Mark J. Mandell, Esq.

Amidst federal charges of bank fraud, Diane Hathaway has filed for retirement, stepping down from her post as Michigan Supreme Court Justice. The charge was filed Friday as a “criminal information,” which means it was negotiated and that a guilty plea is expected in federal court. As a result, Hathaway faces the loss of her law license and time in prison.

In order to convince a lender that she qualified for a short sale on her $1.5 million home in Grosse Pointe, Hathaway concealed her ownership of a Florida home by placing the home in husband’s daughter’s name. As a result, the short sale went through in November 2011 and erased the $600,000 debt they had with the bank. Following the short sale, the Florida home was transferred back to Hathaway in March 2012. Hathaway has refused to make any public comments explaining the transactions; instead, she claims that the property shuffle was a private matter.

Now, the judge that sentences her must be concerned with the message that is sent by his decision: “Do you cut a break to a sitting Supreme Court Justice who has to know better?” Peter Henning, a professor at Wayne State University Law School, asked. The maximum penalty for bank fraud is 30 years in prison. While such an extreme sentence seems rare, Hathaway should expect some time in custody. Former federal prosecutor Lloyd Meyer of Chicago believes it “would be unthinkable to have this type of defendant get a slap on the wrist.”

Governor Rick Snyder plans to appoint a replacement. Last year, the Michigan Judicial Selection Task Force made a recommendation for the process, suggesting that when a vacancy occurs on the Michigan Supreme Court, a non-partisan panel should screen candidates and then submit three to five choice from which the governor could choose. As of late, Governor Snyder is conducting his own search, hoping to appoint a replacement sooner rather than later.

Chief Justice Young called the scandal one that “diminishes the public’s trust in government.” Hopefully, Synder’s newest appointee will help to rebuild this trust.

 

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

 
To learn more and read the original article, please visit: http://www.clickondetroit.com/news/Michigan-Justice-Diane-Hathaway-retires-amid-bank-fraud-charges/-/1719418/18211054/-/msqdmv/-/index.html