LONG-TERM ACUTE CARE HOSPITAL RESOLVES FALSE CLAIMS ALLEGATIONS

FROM:  U.S. DEPARTMENT OF JUSTICE 
Friday, July 26, 2013

Dubuis Health System and Southern Crescent Hospital for Specialty Care, Inc. to Pay U.S. $8 Million to Resolve False Claims Act Allegations
Dubuis Health System and Southern Crescent Hospital for Specialty Care, Inc. (Southern Crescent) have agreed to pay the United States $8,000,000 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today.  Dubuis Health System manages long-term acute care hospitals in multiple states, including Southern Crescent.  Southern Crescent is a long-term acute care hospital located in Riverdale, GA and is part of the CHRISTUS Health System.

Long term acute care hospitals are similar to typical acute care hospitals except that they are certified to focus on patients with more complex medical needs who, on average, remain in the hospital more than 25 days.  Long term acute care hospitals receive a higher rate of Medicare reimbursement than do typical acute care hospitals.  This settlement resolves allegations that between 2003 and 2009, Dubuis Health System and Southern Crescent knowingly kept patients hospitalized beyond the time considered to be medically necessary, to increase their Medicare reimbursement and to maintain Southern Crescent’s classification as a long-term acute care facility.

"Billing Medicare for patient care that is not necessary or appropriate contributes to the soaring costs of health care.  This settlement demonstrates the Department of Justice’s commitment to protect public funds and guard against abuse of the Medicare system,” said Stuart F. Delery, the Acting Assistant Attorney General of the Justice Department’s Civil Division.

“Hospitals that violate the public trust by keeping patients hospitalized beyond what is medically necessary will not be tolerated.  Our office will continue to bring cases that enforce our health care laws,” said Kenneth Magidson, United States Attorney for the Southern District of Texas.

This matter was initiated by the filing of a whistleblower complaint under the False Claims Act (FCA).  Under the FCA, private citizens can bring suit for false claims on behalf of the United States and receive a share of the recovery obtained by the Government.  The whistleblower in this matter, Darlene Tucker, was a former administrator at Southern Crescent.  As a result of this settlement, Ms. Tucker will receive $2,160,000 of the United States’ recovery.

This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.7 billion.

The case was jointly handled by the U.S. Attorney’s Office for the Southern District of Texas, the Justice Department’s Civil Division, and the Office of the Inspector General of the Department of Health and Human Services.  The claims resolved by this settlement are allegations only, and there has been no determination of liability.

FLORIDA COMPANY AND OWNER SENTENCED FOR WETLANDS VIOLATIONS

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
Florida Man and His Corporation Sentenced for Wetlands Violations in Panama City

WASHINGTON - Brian Raphael D’Isernia, 69, of Panama City Beach, Fla., and Lagoon Landing, LLC, a corporation controlled by D’Isernia, were sentenced today in federal court in the Northern District of Florida for illegal dredging and felony wetlands violations in Panama City. The two defendants were ordered to pay a criminal fine totaling $2.25 million dollars, the largest criminal fine assessed for wetlands-related violations in Florida history. D’Isernia was sentenced to pay a $100,000 criminal fine, while Lagoon Landing, LLC was sentenced to pay a $2.15 million criminal fine, a $1 million community service payment, and a term of three years probation.

D’Isernia pleaded guilty to knowingly violating the Rivers and Harbors Act. D’Isernia was charged with dredging an upland cut ship launching basin in Allanton and the channel connecting it to East Bay between December 2009 and February 2010 without obtaining a permit.

Lagoon Landing, LLC, pleaded guilty to a felony violation of the Clean Water Act for knowingly discharging a pollutant into waters of the United States without a permit. Between 2005 and 2010, Lagoon Landing, through its agents and employees in conjunction with persons using tractors and other heavy equipment, altered and filled wetland areas of property it controlled in Allanton without obtaining a permit. The wetland areas were adjacent to and had a significant nexus to East Bay.

Lagoon Landing, LLC was also ordered to pay a $1 million community service payment to the National Fish and Wildlife Foundation, a charitable non-profit organization created by Congress. The foundation will use the money to fund projects for the conservation, protection, restoration and management of wetland, marine and coastal resources, with an emphasis on projects benefiting wetlands in and around St. Andrew Bay.

“The defendants adversely impacted wetlands, which play a critical role in maintaining water quality, providing habitat for fish and wildlife, reducing flood damage, and providing recreational opportunities for the public,” said Cynthia Giles, assistant administrator of EPA’s Office of Enforcement and Compliance Assistance. “The sentences show that EPA, in conjunction with its federal and state law enforcement partners, will vigorously investigate and seek prosecution for those who harm these essential natural resources.”

In a separate but related civil settlement, Northwest Florida Holdings, Inc., a Florida holding corporation controlled by D’Isernia, entered into an Administrative Compliance Order with the U.S. Environmental Protection Agency (EPA) that will result in the restoration of approximately 58.63 acres of wetlands and upland buffers. The wetlands will be protected from future development by a conservation easement. The corporation also agreed to study the water quality in and around the Allanton and Nelson Street Shipyards; upgrade stormwater protection for the Allanton Shipyard; withdraw applications to convert the launching basin to a marina and create a Planned Unit Development at the Allanton Shipyard; and hire someone to oversee environmental compliance.

In a second separate but related civil settlement, Northwest Florida Holdings, Inc. entered into a consent order with the Florida Department of Environmental Protection (FDEP) and agreed to conduct stormwater corrective actions and water quality studies at the Allanton Shipyard. The corporation will pay a $9,750 civil fine to the Ecosystem Management and Restoration Trust Fund, and $94,718.25 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.

In a third separate but related civil settlement, Bay Fabrication, Inc., a corporation controlled by D’Isernia, entered into a consent order with FDEP and agreed to conduct stormwater corrective actions and water quality studies at the Nelson Street Shipyard. The corporation will pay a $6,000 civil fine to the Ecosystem Management and Restoration Trust Fund, and $76,923 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.

In a fourth separate but related civil settlement, Peninsula Holdings, LLC, a corporation controlled by D’Isernia, entered into a Consent Order with FDEP and agreed to conduct stormwater improvements at property it owns located at 2500 Nelson Street, Panama City, Florida 32401. The corporation will pay a $1,500 civil fine to the Ecosystem Management and Restoration Trust Fund.

In a fifth separate but related civil settlement, D’Isernia and his wife Miriam D’Isernia, entered into a consent order with FDEP to remove unauthorized fill materials from property located in Panama City Beach, Fla. Brian and Miriam D’Isernia will pay a $250 civil fine to the Ecosystem Management and Restoration Trust Fund.

These cases were investigated by the EPA Criminal Investigation Division and the Coast Guard Investigative Service, in partnership with EPA Region 4, the U.S. Department of Transportation, Office of Inspector General, U.S. Army Corps of Engineers, U.S. Coast Guard Station Panama City, U.S. Department of Agriculture, and FDEP. These cases were prosecuted by the Honorable Randall J. Hensel, Assistant United States Attorney for the Northern District of Florida.

PENNY STOCK PROMOTER ORDERED TO PAY MORE THAN $1.6 MILLION IN FRAUD CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Massachusetts-Based Penny Stock Promoter Ordered to Pay Over $1.6 Million in Penny Stock Fraud Case

The Securities and Exchange Commission announced today that on July 24, 2013, a final judgment was entered by default against Massachusetts-based National Financial Communications, Inc. ("NFC"). NFC is a defendant in an action filed by the Commission in the U.S. District Court for the District of Massachusetts on December 12, 2011, alleging that Massachusetts resident Geoffrey J. Eiten and NFC made material misrepresentations and omissions in penny stock publications they issued.

The judgment enjoins NFC from further violations of the antifraud provisions of the federal securities laws (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder) and from certain specified activities related to penny stocks, including the promotion of a penny stock or deriving compensation from the promotion of a penny stock. The judgment also imposed a penny stock bar against NFC which permanently bars it from participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for the purpose of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock. The judgment orders NFC to pay disgorgement of $605,262, representing NFC's ill-gotten gains, plus prejudgment interest of $38,819 and a civil penalty of $1 million.

The Commission's complaint alleged that Eiten and NFC issued a penny stock promotional publication called the "OTC Special Situations Reports." According to the complaint, the defendants promoted penny stocks in this publication on behalf of clients in order to increase the price per share and/or volume of trading in the market for the securities of penny stock companies. The complaint alleged that Eiten and NFC made misrepresentations in these reports about the penny stock companies they promoted. For example, the Commission's complaint alleged that during 2010, Eiten and NFC issued reports promoting four penny stock companies: (1) Clean Power Concepts, Inc., based in Regina, Saskatchewan, Canada, a purported manufacturer and distributor of various fuel additives and lubrication products made from crushed seed oil; (2) Endeavor Power Corp., based in Robesonia, Pennsylvania, a purported recycler of value metals from electronic waste; (3) Gold Standard Mining, based in Agoura Hills, California, a purported owner of Russia gold mining operations; and (4) Nexaira Wireless Corp., based in Vancouver, British Columbia, Canada, a purported developer and seller of wireless routers. The Commission's complaint alleged that in these four reports, Eiten and NFC made material misrepresentations and omissions, concerning, among other things, the companies' financial condition, future revenue projections, intellectual property rights, and Eiten's interaction with company management as a basis for his statements.

According to the complaint, Eiten and NFC were hired to issue the above reports and used false information provided by their clients, without checking the accuracy of the information with the companies in question or otherwise ensuring that the statements they were making in the OTC Special Situations Report were true.

DOL SAYS 85% PRIVATE INDUSTRY FULL-TIME WORKERS HAVE MEDICAL CARE AVAILABLE THROUGH EMPLOYER

FROM:  U.S. DEPARTMENT OF LABOR 

Employer-provided medical care was available to 85 percent of full-time private industry workers in the United States in March 2013, the U.S. Bureau of Labor Statistics reported today. By contrast, only 24 percent of part-time workers had medical care benefits available. Access, or availability, also varied by employment size: 57 percent for all workers in small establishments (those with fewer than 100 employees), compared with 85 percent in medium and large establishments (those with 100 employees or more).

Retirement benefits followed a similar pattern as medical care benefits. In private industry, 74 percent of full-time workers had access to a retirement plan, significantly higher than 37 percent of part-time workers. Retirement benefits were available to 49 percent of workers in small establishments and 82 percent of workers in medium and large establishments. A worker with access to a medical or retirement plan is defined as having an employer-provided plan available for use, regardless of the workers’ decision to enroll or participate in the plan.  (See charts 1 and 2.)

Paid sick leave benefits were also more commonly offered to full-time workers and those in medium and large establishments in private industry. Plans were offered to 74 percent of full-time workers and 24 percent of part-time workers. Similarly, 51 percent of workers in small establishments and 72 percent in medium and large establishments had access to a paid sick leave benefit. (See charts 1 and 2 and table 6.)

These data are from the National Compensation Survey (NCS), which provides comprehensive measures of compensation cost trends and incidence and provisions of employee benefit plans.Additional findings include:
   *   In private industry, 64 percent of employees had access to retirement benefits, significantly less  than the 89 percent of state and local government employees with access. Additionally, only 49 percent of private industry employees actually participated in a retirement plan (had current coverage), significantly less than the 85 percent participation rate of state and local government  employees.  (See table 1.)

   *   Full-time workers in state and local government had greater access to employer-provided benefits  than private industry workers. For example, retirement and medical care benefits were offered to 99 percent of state and local government workers while only 74 percent of full-time employees in private industry had access to retirement benefits and 85 percent to medical care coverage. (See tables 1 and 2.)

   *   For private industry employees in the lowest 10 percent of average earnings, employers paid 71 percent of the single coverage medical plan premium. For employees in the highest 10 percent of average earnings, the employer share of the premium was 81 percent. For family coverage, the
       employer share of the premium was 56 percent for employees in the lowest 10 percent of arnings, significantly less than the 73 percent for employees in the highest 10 percent of earnings.  (See tables 3 and 4).

   *   Access and participation in life insurance benefits varied significantly for full-time and part-time workers. In private industry, 72 percent of full-time workers had access to life insurance benefits. For state and local government workers, 90 percent of full-time workers had access. In contrast, only 14 percent of part-time workers in private industry and 23 percent of state and local government workers had access.  Most workers who had access participated in life insurance benefits. (See table 5.)

   *   Paid holidays were available to 97 percent of management, business, and financial employees in private industry.  In contrast, only 53 percent of service employees in private industry were provided paid holidays.  (See table 6.)


More information can be obtained by calling (202) 691-6199, sending e-mail to NCSinfo@bls.gov, or by visiting the BLS Internet site, http://www.bls.gov/ebs/home.htm.

                                               NOTE

More information will be published in early fall, including March 2013 data for civilian, private industry, and state and local government workers on the incidence and provisions of health care benefits,
retirement benefits, life insurance, short-term and long-term disability benefits, paid holidays and vacations, and other selected benefits. For the latest benefit publications, see: http://www.bls.gov/ebs.
In addition, new editions of Beyond the Numbers: Pay and Benefits (http://www.bls.gov/opub/btn/) will be published featuring the latest benefits data. Beyond the Numbers: Pay and Benefits, brings together employee benefits information from various National Compensation Survey publications into one convenient and easy-to-read format.

Press Announcements FDA warns consumers about health risks with Healthy Life Chemistry dietary supplement

Press Announcements FDA warns consumers about health risks with Healthy Life Chemistry dietary supplement

ANOTHER GUILTY PLEA OBTAINED IN DEEPWATER HORIZON CRIMINAL INVESTIGATION

FROM:  U.S. DEPARTMENT OF JUSTICE 

Thursday, July 25, 2013
Halliburton Agrees to Plead Guilty to Destruction of Evidence in Connection with Deepwater Horizon Tragedy

Third Corporate Guilty Plea Obtained by the Deepwater Horizon Task Force
Halliburton Energy Services Inc. has agreed to plead guilty to destroying evidence in connection with the Deepwater Horizon disaster, the Department of Justice announced today.  A criminal information charging Halliburton with one count of destruction of evidence was filed today in U.S. District Court in the Eastern District of Louisiana.

Halliburton has signed a cooperation and guilty plea agreement with the government in which Halliburton has agreed to plead guilty and admit its criminal conduct.  As part of the plea agreement, Halliburton has further agreed, subject to the court’s approval, to pay the maximum-available statutory fine, to be subject to three years of probation and to continue its cooperation in the government’s ongoing criminal investigation.  Separately, Halliburton made a voluntary contribution of $55 million to the National Fish and Wildlife Foundation that was not conditioned on the court’s acceptance of its plea agreement.

According to court documents, on April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled blowout and related explosions and fire, which resulted in the deaths of 11 rig workers and the largest oil spill in U.S. history.  Following the blowout, Halliburton conducted its own review of various technical aspects of the well’s design and construction.  On or about May 3, 2010, Halliburton established an internal working group to examine the Macondo well blowout, including whether the number of centralizers used on the final production casing could have contributed to the blowout.  A production casing is a long, heavy metal pipe set across the area of the oil and natural gas reservoir.  Centralizers are protruding metal collars affixed at various intervals on the outside of the casing.  Use of centralizers can help keep the casing centered in the wellbore away from the surrounding walls as it is lowered and placed in the well.  Centralization can be significant to the quality of subsequent cementing around the bottom of the casing.  Prior to the blowout, Halliburton had recommended to BP the use of 21 centralizers in the Macondo well.  BP opted to use six centralizers instead.  

As detailed in the information, in connection with its own internal post-incident examination of the well, in or about May 2010, Halliburton, through its Cementing Technology Director, directed a Senior Program Manager for the Cement Product Line (Program Manager) to run two computer simulations of the Macondo well final cementing job using Halliburton’s Displace 3D simulation program to compare the impact of using six versus 21 centralizers.  Displace 3D was a next-generation simulation program that was being developed to model fluid interfaces and their movement through the wellbore and annulus of a well.  These simulations indicated that there was little difference between using six and 21 centralizers.  Program Manager was directed to, and did, destroy these results.  

In or about June 2010, similar evidence was also destroyed in a later incident.  Halliburton’s Cementing Technology Director asked another, more experienced, employee (“Employee 1”) to run simulations again comparing six versus 21 centralizers.  Employee 1 reached the same conclusion and, like Program Manager before him, was then directed to “get rid of” the simulations.

Efforts to forensically recover the original destroyed Displace 3D computer simulations during ensuing civil litigation and federal criminal investigation by the Deepwater Horizon Task Force were unsuccessful.

In agreeing to plead guilty, Halliburton has accepted criminal responsibility for destroying the aforementioned evidence.

The guilty plea agreement and criminal charge announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill.  The Deepwater Horizon Task Force, based in New Orleans, is supervised by Acting Assistant Attorney General Mythili Raman and led by John D. Buretta, who serves as the director of the task force.  The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana and other U.S. Attorney’s Offices; and investigating agents from:  the FBI; Department of the Interior, Office of Inspector General; Environmental Protection Agency, Criminal Investigation Division; Environmental Protection Agency, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.

The case is being prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.

An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.