A pharmaceutical representative at Forest Pharmaceuticals who provided whistleblower information to the federal government via a False Claims Act (FCA) action regarding a thinly veiled kickback scheme to pay doctors will receive $7.8 million as reward for his courageous efforts in assisting the government crackdown on fraud targeted at Medicare and Medicaid programs. The award was announced in December by the Department of Justice in connection with its settlement with Forest Pharmaceuticals and its parent company to pay $38 million for their violation of the federal Anti-Kickback Statute.
Forest’s Fraudulent “Speakers Bureau” Scheme
Kurt Kroening began working for Forest as a pharmaceutical representative in 2007, at a time when its so-called “Speakers Bureau” outreach program to doctors had already been in effect for several years. Through “Speakers Bureau,” doctors would be paid between $1,000 and $1,750 for speaking at presentations and also provided lavish meals, drinks, and travel expenses.
Although the stated purpose of the Speakers Bureau was to provide medical education, it was a thin cover for providing kickbacks to doctors who prescribed Forest’s drugs. The presentations were often cancelled (although the payments and benefits were not), and, when they were given, they were 5-10 minutes in length on irrelevant topics with no actual providers in attendance, and records were falsified to indicate that relevant attendees were present for the presentations. The doctors selected as presenters were ones who had high numbers of Medicare and Medicaid patients, and sales representatives closely monitored how much the doctors prescribed Forest drugs to determine whether there was a proper “return on investment” for the Speakers Bureau costs.
How Kroenig Fought Back (And Was Awarded $7.8 Million)
Kroening brought an FCA claim on behalf of 30 states and the federal government against his employer, arguing that by violating the federal Anti-Kickback Statute, Forest was defrauding the federal government and states through Medicare and Medicaid programs. The Department of Justice agreed with Kroening’s assessment of Forest’s illegal behavior and joined in the suit, resulting in this month’s $38 million settlement.
It is common for whistleblowers who initiate successful FCA suits to personally recover 15-25% of what the government recovers, and that was true in this case, with Kroening walking away with $7.8 million.
Forest’s situation is a good reminder to potential whistleblowers that, if something looks like an illegal kickback and steps are taken to make it look like it is not, it most likely is, and you are advised to speak with an attorney about potential next steps.
Work with an Experienced Whistleblower Attorney
The decision to come forward with information regarding a large corporation’s illegal and fraudulent acts can be an intimidating one, but working with an experienced whistleblower attorney whose only goal is in furthering your goals can protect your interests while maximizing your compensation. Kreindler & Associates is dedicated exclusively to protecting and helping whistleblowers who make the courageous decision to expose fraud. If you are considering making a whistleblower claim or feel that you’ve been the victim of wrongful retaliation for having done so, contact us today. We’re here to answer all of your questions and guide you through the whistleblowing process.
