Texas Heart Hospital and Wholly-Owned Subsidiary THHBP Management Company LLC to Pay $48 Million to Settle False Claims Act Allegations Related to Alleged Kickbacks

DOJ

Texas Heart Hospital of the Southwest LLP, a partially physician-owned hospital in Plano, Texas, and its wholly owned subsidiary, THHBP Management Company, LLC (collectively, the “Heart Hospital”) have agreed to pay the United States $48 million to resolve claims that the Heart Hospital violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute, the Justice Department announced today. 

This settlement arises from a lawsuit filed by former Heart Hospital physician owners Mitchell Magee, M.D. and Todd Dewey, M.D. pursuant to the whistleblower or qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds.  Under the Act, the United States may intervene in such an action or permit the whistleblower to pursue it.  Although the Unites States declined to intervene in this case, it played a primary role in the discussions that led to the settlement. Dr. Dewey and Dr. Magee will collectively receive $13,920,000 as their share of the recovery.

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SEC Issues Multiple Whistleblower Awards Totaling Over $3.6 Million

SEC

The Securities and Exchange Commission today announced whistleblower awards in connection with three separate enforcement actions totaling over $3.6 million.

In the first order, the SEC awarded a whistleblower over $1.8 million for providing significant information about a fraudulent scheme. The whistleblower took immediate steps to mitigate the harm to investors, and provided substantial assistance to the staff, including providing testimony, key documents, and other information that saved SEC time and resources and contributed to an enforcement action that resulted in the return of millions of dollars to harmed investors.

In the second order, the SEC awarded a whistleblower more than $1.2 million for providing information that led to a successful enforcement action. In making the award, the SEC determined that the whistleblower's culpability and unreasonable delay impacted the award amount.

In the third order, the SEC awarded more than $500,000 to a whistleblower who provided significant information and ongoing assistance that led to the success of an enforcement action. In issuing the award, the SEC waived the TCR filing requirement based on the unique facts and circumstances of the case. read more »

SEC Awards Over $1.6 Million to Whistleblower

SEC

The Securities and Exchange Commission today announced an award of more than $1.6 million to a whistleblower whose tip significantly contributed to the success of an enforcement action. The whistleblower produced critical information about an ongoing fraudulent scheme and provided extensive assistance to the investigative staff, including by participating in meetings and furnishing high-quality evidence.

The SEC has awarded approximately $736 million to 128 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.   Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10-30% of the money collected when the monetary sanctions exceed $1 million. read more »