Peter Keisler is Acting Attorney General

Peter D. Keisler has been tapped by President Bush to serve as Acting Attorney General. Mr. Keisler has served as Assistant Attorney General for the Justice Department's Civil Division since  July 1, 2003. Prior to that, Mr. Keisler served as Principal Deputy Associate Attorney General and Acting Associate Attorney General. He joined the Justice Department on June 24, 2002. Unfortunately, it is not likely that that Mr. Keisler will be the permanent AG, since, President Bush nominated him for a position as a federal judge on the U.S. Court of Appeals for the District of Columbia Circuit.

Mr. Keisler is well regarded as a great Attorney and equitable and fair man by his peers.  According to a blog post by Ed Whelan, author of Bench Memos, "Everyone should be grateful for Keisler’s continued service. In his blog post, he includes several positive statements from others singing the praises of Peter Keisler, including:

Neal Katyal (opposing counsel in the Hamdan case): Keisler “would be a fabulous judge”; “not an ideologue, but rather a lawyer who took tremendously seriously both his craft and his carefulness.”

David Carpenter (self-described “political liberal” who worked closely with Keisler at Sidley & Austin): “Peter absolutely epitomizes the kind of lawyer and the kind of person who should be sitting on a federal court of appeals”; “personally and intellectually honest, to the very depths of his bones”.

Stephen Sachs (former Maryland AG): Keisler is “especially well qualified to be an outstanding appellate judge”; “judiciousness … marks his values, his conversation, even his advocacy.”

Georgetown law professor Marty Lederman: “I can vouch that Peter is an attorney of great skill, judgment, integrity and fair-mindedness".

The Corporate Crime Reporter team also weighs in on the Peter Keisler Acting AG appointment. In an article, "Know your Attorney General", they write, "the people who like the False Claims Act like Keisler". Patrick Burns of Taxpayers Against Fraud, is quoted in the article saying “Peter Keisler is a first-rate legal mind, and one of those good government guys that brings honor to the notion of public service”.

Peter D. Keisler is a great Attorney and will serve our country well in his role as Acting Attorney General. He will go on to do a superb job as Federal Judge on the U.S. Court of Appeals for the District of Columbia Circuit.

We wish you all the Best in your new role, Peter Keisler. 

Click Here to read more from the Corporate Crime Reporter or Bench Memos.

Scooter Store Inc. Pays $4 Million to settle False Claims Act Case

The United States Department of Justice celebrates another win in the fight against Medicare Fraud by corporations. This time, it stemmed from a case against The SCOOTER Store Inc. based out of San Antonio. The SCOOTER Store Inc. will pay the United States $4 million, and give up many millions more in pending claims for reimbursement to Medicare.

This settlement is part of our ongoing commitment to fighting abuse of Medicare's durable medical equipment benefit," said Assistant Attorney General Peter D. Keisler.

The Scooter Store Inc. was accused of fraudulent medicare claims for their motorized scooter. The company ran a savvy tv and print advertising campaign that enticed seniors to call them regarding a mobilized scooter.  The ads were very effective in getting the seniors to sign up and purchase the scooters.  How could anyone refuse, when they were told that medicare and insurance would pick up the cost?  The real problem began when the company coerced doctors into prescribing the mobile scooter as a medically necessary item. It does not stop there, The company  would then bill Medicare for power wheelchairs which cost about $5000 to $7000. This was considerably more than the $1,000 to $2,000 advertised motorized scooter. If it could not get any worse, The Scooter Store Inc., sold used equipment as new and unnecessary additional accessories. 

Thankfully, the brave whistleblower, a former Scooter Store, Inc., employee came forward with this information.  As a result of this bravery, the whistleblower will be awarded the statutory amount of $3,228,251, according to the Department of Justice.

The Founder of the Scooter Store Inc., Douglas Trent Harrison, will give up dividends from his company for the next few years and a $500,000 personal contribution. It is ironic that although the company was making fraudulent claims to the government based on misleading information, they had the courage to bring suit against the government for unpaid claims. The recent settlement that was agreed upon yesterday, cancels this out. They will now drop their case. It really takes courage to try and get away with a massive fraud like this and turn around and try to bully the government into paying you. I guess the adage "don't bite the hand that feeds you" applies here.

If you are a potential whistleblower with pertinent information on a corporation's wrongdoing in defrauding the government, contact our office to speak to Civil Justice Prosecutor, Brian F. LaBovick, Esq. All information will be kept confidential and you will be given an honest opinion about the strength of your claim.

Click here to read more on this case from the Department of Justice.

Medicis Pharmaceutical Pays $9.8 Million to Settle False Claims Allegations

Medicis Pharmaceutical Corporation of Scottsdale, Ariz., agreed to pay the United States $9.8 million to settle allegations that the company violated the False Claims Act with respect to claims submitted to Medicaid, according to a Department of Justice announcement earlier this week. The settlement resolves allegations that Medicis promoted the use of a topical skin preparation, Loprox, for use on children under the age of 10, without approval by the Food & Drug Administration (FDA).

The United States and the whistleblowers – four former Medicis employees – alleged that from approximately November 2001 through April 2004, Medicis sales personnel targeted pediatricians, urging the doctors to use Loprox as a treatment for diaper rash.

According to Assistant Attorney General Peter D. Keisler, "Pharmaceutical companies need to know that they will be held accountable for off-label marketing schemes and other illegal activities that affect those programs.” More pharmaceutical companies should be put on notice, they will pay for their illegal activities.

The four whistleblowers will collectively receive in excess of $1,078,000 as their statutory award. Under the qui tam provisions of the False Claims Act, whistleblowers can file an action on behalf of the United States and receive a portion of the settlement if the government reaches a monetary agreement with the defendants.

Click Here to read more on this Medicis Settlement from the Department of Justice.

Medicis announced this week, their first quarter 2007 profits were better than expected. I guess confession is good for the soul. They are trying to put their past misdeeds behind them and move forward. Hopefully, they will learn from the past.