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Whistleblower News: False Claims Act, Ghosn, Goldman Insider Trading, Boeing

01/08/2020

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United States Files False Claims Act Complaint against Community Health Network

DEPARTMENT OF JUSTICE

The United States has filed a complaint against Community Health Network Inc. (Community) in the U.S. District Court for the Southern District of Indiana, the Department of Justice announced today.  Community, an integrated health care system in central Indiana, is alleged to have violated the Stark Law and thereby submitted false claims to the Medicare program. 

The Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper financial relationship that does not meet any statutory or regulatory exception.  The government’s complaint alleges that Community had employment relationships with a number of physicians that did not meet any Stark Law exception because the compensation Community paid to the physicians was well above fair market value and because Community conditioned paying bonuses on physicians achieving a minimum target of referral revenues to the hospital.  The complaint alleges that Community received referrals from these physicians in violation of the Stark Law and submitted claims to Medicare knowing that the claims for those referred services were not eligible for payment. read more »

Carlos Ghosn joins list of execs fighting extradition

REUTERS

Ousted Nissan boss Carlos Ghosn says he fled to Lebanon last week to escape a “rigged” justice system in Japan, where he believed he would not get a fair trial.

Ghosn, who faces four charges including hiding income and enriching himself through payments to dealerships in the Middle East, denies the allegations against him.

His stunning escape from Japan sees him join the ranks of other former or current corporate executives with pending extradition requests by foreign countries. read more »

Ex-Goldman Sachs banker pleads guilty in insider case

CRAIN’S NEW YORK

A Goldman Sachs Group Inc. investment banker ensnared in a global insider-trading ring pleaded guilty to conspiracy on Tuesday, admitting he passed confidential information stolen from the bank to a trader in Switzerland.

Bryan Cohen’s guilty plea on Tuesday came as another alleged member of the ring, Telemaque Lavidas, stood trial in the same Manhattan courthouse.

Cohen, 33, was arrested in October and accused of passing tips about pending mergers, using burner phones and speaking in code. Goldman placed Cohen on paid leave after his arrest. read more »

In a reversal, Boeing says pilots need simulator training before 737 Max returns to skies

CHICAGO TRIBUNE

Boeing said Tuesday it is recommending that pilots receive training in a flight simulator before the grounded 737 Max returns to flying, a reversal of the company's long-held position that computer-based training alone was adequate.

Chicago-based Boeing said the recommendation is based on changes to the plane, test results and a commitment to the safe return of the Max.

The plane has been grounded worldwide since last March after two crashes killed 346 people. read more »