BioSpace.com

Biotech and Pharmaceutical
News & Jobs
Search the Site
 
   
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Browse Biotech Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

INVESTOR
Market Summary
News
IPOs

PROFILES
Company Profiles

START UPS
Companies
Events

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Biotech Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
eNewsletter Signup
Miles
Km80.5

   

Orthofix International NV (OFIX) Medicare Fraud Probe is Rejected Again by Judge


12/14/2012 9:41:10 AM

Orthofix International NV (OFIX)’s settlement of federal regulators’ claims that the maker of bone repair products defrauded Medicare by paying kickbacks to doctors was rejected for a second time by a judge. U.S. District Judge William G. Young in Boston today rebuffed an Orthofix unit’s offer to plead guilty to a felony count of obstructing an audit and pay a $7.8 million fine after concluding the agreement improperly restricted his sentencing powers. He originally rejected the deal in September. Young said while he has traditionally “gone along” with plea deals, he said he felt accepting the agreement wouldn’t “ensure the public interest.” It’s unclear whether Young’s refusal to accept the plea also scuttles Orthofix’s agreement to pay $34.2 million to resolve civil claims first raised in a whistle-blower’s lawsuit that the company defrauded the federal Medicare program through payments to doctors who used its bone-growth stimulators. Mark Quick, an Orthofix spokesman, didn’t respond before a first call to him was discontinued. He didn’t immediately return a second call seeking comment on Young’s ruling. Assistant U.S. Attorney Jeremy Sternberg, representing the government in the case declined to comment after the hearing. Five Orthofix employees have pleaded guilty in connection with the probe, the U.S. Justice Department said. Thomas Guerrieri, a company vice president, pleaded guilty to violating the federal anti-kickback statute by setting up fake consulting agreements for doctors who used the company’s products. Orthofix, based in Curacao, in the Netherlands Antilles, said in February that it had reserved $43 million to settle the false-claims allegations. The government joined a whistle-blower suit filed by Jeffrey Bierman, a Missouri businessman who learned about alleged Medicare fraud by Orthofix.

Read at Bloomberg

Bloomberg
   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES