False Claims Act’s whistleblower provision is a powerful tool
  1. Home
  2.  ▶ 
  3. False Claims Act
  4.  ▶ False Claims Act’s whistleblower provision is a powerful tool

False Claims Act’s whistleblower provision is a powerful tool

| Mar 3, 2018 | False Claims Act

The False Claims Act, originally instituted in 1863, is a federal law aimed at fighting fraud against the United States government. Recently, a lawsuit using the whistleblower provision of this law was filed in Florida by two former employees of Patient Care America (PCA), Marisela Medrano and Ada Lopez. This provision allows individuals to stand up for the integrity of the United States government to curb fraud.

A Complex System

At issue was alleged fraud that harmed TRICARE, which is a federal health care insurer for members of the military and their families. The kickback scheme involved a complex network of a compounding pharmacy named Diabetic Care Rx LLC, which is a division of PCA, two pharmacy executives, and a private equity firm from Los Angeles that both managed and owned the compounding pharmacy.

Reimbursement Maximized

The compounding pharmacy allegedly optimized its reimbursement from the TRICARE system by fraudulently generating prescriptions through marketing efforts and doctors who prescribed without seeing patients. Payments from TRICARE skyrocketed into the tens of millions of dollars in a matter of months.

As whistleblowers that filed the initial lawsuit, Medrano and Lopez will share in the proceeds in the event the lawsuit results in charges against the defendants. These former employees’ courage to speak out against a formidable and corrupt corporate network is protected by the letter of the law.

When you go against powerful corporations to stand up for what is right, you shouldn’t have to worry about the intricacies of legal procedure. You need strong and experienced legal representation to stand by you every step of the way.