Many of the headlines in recent years relating to the federal government’s increased pursuit of False Claims Act (FCA) lawsuits have focused on large defense contractors and healthcare organizations that contract with the US government, but the scope of the FCA is far wider than the headlines might suggest. One of the more common types of FCA offenders in recent years have been colleges and universities that have not been playing by the rules with respect to performing work pursuant to large research grants and billing the government for Medicare and Medicaid related services. These types of practices hurt other educational institutions that are taking the necessary steps to follow federal guidelines while rewarding unscrupulous individuals and entities seeking an unfair and illegal advantage over the colleges and universities trying to do the right thing.
Recent FCA Claims Brought Against Colleges and Universities
Here are just a few of the types of cases that the federal government has brought against educational institutions in recent years with the assistance of conscientious private citizens:
- The University of Missouri-Columbia paid a $2.2 million penalty in 2016 for FCA violations after it was determined that the university billed the federal government for radiology services performed by physicians when no such services actually took place.Also in 2016,
- Columbia University paid $9.75 million to the federal government as a civil penalty for inflating charges to the federal government in connection with 423 grants by charging inflated “on campus” rates for work performed rather than the lower “off campus” rate that should have correctly been applied.
- The University of Florida paid nearly $20 million in 2015 to settle FCA claims that it improperly charged the federal government with salary and equipment charges pursuant to federal grants while inflating the costs of services performed by a third party.
The FCA prohibits, among other things, fraudulent billing of the federal government. Under recent Supreme Court precedent, this includes billing that occurs for services where a defendant failed to disclose that the services it was providing violated material requirements of applicable law.
Bring an FCA Claim With an Experienced FCA Attorney
If you are aware of potentially fraudulent billing or receipt/use of federal grants at a college or university, you may be able to collect a substantial financial reward by bringing the matter to light. At Kreindler & Associates, our focus is on bringing whistleblower claims and we will work with you to evaluate your potential case and guide you through the entire FCA process,. An FCA claim is only valid if it has not previously been initiated by another plaintiff or the government, so it is in your interest to speak with an experienced FCA attorney as soon as possible. Contact us today for an evaluation of your allegations.
