Posts Tagged ‘feds’

Feds to start directly targeting drug company execs in health care fraud schemes

Saturday, June 11th, 2011

Natural News – June 10, 2011

by Ethan A. Huff

The days of drug companies simply settling out of court every time they break the law may soon be coming to an end. In a move that represents a significant shift toward punishing individuals for crimes rather than faceless corporations, federal officials say they will begin personally going after CEOs and other company executives whose companies fraudulently bilk Medicare, Medicaid, and other federal programs out of millions of dollars, or that falsely market dangerous drugs.

When a 1996 law was passed that banned drug companies convicted of felony charges from further participating in any federal health programs, Big Pharma quickly devised creative ways to get around it. As a result, drug companies for years have been able to continually break the law without much consequence by simply settling for a few million dollars, and continuing on with shady dealings that raked in a whole lot more (http://www.naturalnews.com/001867.html).

But now, company execs could face criminal charges for crimes committed by their companies, even if they claim to have had no awareness that any crimes were being committed. And drug companies will no longer be able to skirt by after breaking the law — if they cheat the government health system, they will lose any eligibility to participate in it. After all, ignorance of the law or of the illicit dealings of one’s company have never been a legitimate excuse for anyone else to evade justice — why should it be any different for drug companies?

“When you look at the history of health care enforcement, we’ve seen a number of Fortune 500 companies that have been caught not once, not twice, but sometimes three times violating the trust of the American people, submitting false claims, paying kickbacks to doctors, marketing drugs which have not been tested for safety and efficacy,” said Lewis Morris, chief counsel for the inspector general of the Health and Human Services Department (HHS), to The  Washington Post.

“To our way of thinking, the men and women in the corporate suite aren’t getting it. If writing a check for $200 million isn’t enough to have a company change its ways, then maybe we have got to have the individuals who are responsible for this held accountable. The behavior of a company starts at the top.”

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$1,000 a Pop: How Forest Labs Bribed Doctors to Prescribe Antidepressants to Kids

Thursday, September 16th, 2010

BNET

By Jim Edwards | September 15, 2010

Forest Labs (FRX) appears to have initially underestimated how much it needed to pay the feds to go away: In 2009, the company said it had set aside $170 million in case it needed to settle a Department of Justice investigation of the kickbacks it paid in its marketing of Celexa and Lexapro, two antidepressants. Today, the company paid $313 million to wrap up the probes.

Forest’s management is used to lavish spending, however, as the whistleblower complaints behind the settlement allege.

The meat of Forest’s wrongdoing is that the company promoted Celexa for children even though the FDA had specifically rejected the drug for kids, and even though European data showed it was not useful in youths. The company did something similar with Lexapro — one pharmaceutical sales rep recommended crushing up Lexapro into apple sauce in order to make it more palatable to children.

Forest overcame resistance to the pediatric use of its antidepressants by bribing doctors with cash and gifts, the lawsuits alleged. Among the goodies Forest handed out were:

  • Tickets to St. Louis Cardinals games.
  • A $1,000 certificate to Alain Ducasse, one of the best (and most expensive) restaurants in New York, according to this suit.
  • A trip to see a George Carlin concert. (They’re antidepressants and he’s funny, geddit?).
  • $1,000 in cash to attend dinner at the Doral Park Country Club in Miami.
  • A trip to the Great Escape amusement park in New York.
  • Tickets to The Nutcracker at the Paper Mill Playhouse in Millburn, N.J., according to this suit.

The settlement, in which Forest pleads guilty to the accusations against it, also implies that one unnamed Forest executive lied to Congress in September 2004 — which is in itself a crime.

Read the rest of the article here: http://www.bnet.com/blog/drug-business/1000-a-pop-how-forest-labs-bribed-doctors-to-prescribe-antidepressants-to-kids/5753

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