Diabetic Testing Supplier Agrees to $160 Million Penalty to Resolve False Claims Act Charges

Diabetic Testing Supplier Agrees to $160 Million Penalty to Resolve False Claims Act Charges

On August 2, 2021, the Department of Justice (DOJ) announced that Arriva Medical LLC (Arriva), once the nation’s largest Medicare mail-order diabetic testing supplier, and its parent company, Alere Inc., have agreed to collectively pay $160 million to resolve allegations that they violated the False Claims Act (FCA). According to DOJ, from April 2010 through 2016, Arriva and its parent company allegedly made or caused to be made false claims to Medicare that were tainted by kickbacks paid to Medicare beneficiaries, for patients who were ineligible to receive meters, or for patients who were deceased. The allegations include that Arriva provided free or no-cost glucometers by routinely waiving, or not collecting, copayments for meters and diabetic testing supplies. The settlement resolves claims originally brought under the qui tam provisions of the FCA by a relator who used to work in an Arriva call center. Arriva’s founders previously paid $1 million to resolve allegations related to the scheme.

The DOJ press release can be found here.

Department of Justice Charges Miami Man in Alleged Scheme to Bribe Officials in Venezuela and Launder Funds

On August 4, 2021, DOJ announced that it had arrested and charged a Miami man for allegedly conspiring to bribe officials in Venezuela for contracts in violation of the Foreign Corrupt Practices Act (FCPA), and laundering funds related to the scheme. According to DOJ, the defendant conspired with others to pay bribes to officials to obtain $250 million in contracts from, and to do business with, Venezuela’s state-owned and state-controlled oil company. The defendant also allegedly laundered funds related to the scheme, including by purchasing ten apartment units in South Florida, a $3.5 million plane, and a $1.5 million yacht. The defendant was charged in U.S. District Court for the Southern District of Florida with conspiracy to violate the FCPA, conspiracy to commit money laundering, international promotion of money laundering, and engaging in transactions involving criminally derived property.

The DOJ press release can be found here.

Former CFO of Publicly Traded Company Convicted of Securities and Accounting Fraud

On August 2, 2021, DOJ announced that a federal jury in the Eastern District of Wisconsin convicted the former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded trucking and logistics company, on four counts of violating federal securities laws and for his role in a securities and accounting scheme. According to DOJ, the defendant’s conduct caused Roadrunner’s financial statements and Securities and Exchange Commission filings for the third quarter of 2016 to be materially false and fraudulent. The defendant was convicted of one count of securities fraud, one count of misleading Roadrunner’s auditors, and two counts of falsifying Roadrunner’s books and records. He is scheduled to be sentenced on October 29, 2021, and faces a maximum of 25 years’ imprisonment.

The DOJ press release can be found here.