Schering Plough Fined $435 Million: Improper Drug Marketing and Medicaid Fraud

Schering Plough Corporation has agreed to pay $435 million to resolve criminal charges and civil liabilities in connection with illegal sales and marketing of various drugs as well as Medicaid fraud.

 

"It is vital to public health and safety that pharmaceutical companies are deterred from improperly marketing their drugs to doctors and patients to treat illnesses that these drugs are not approved to treat...the Justice Department will not tolerate these deceptive and illegal marketing practices", stated the U.S. Deputy Attorney General Paul J. McNulty.

 

"The American people, as both taxpayers and consumers, expect our health care system to be free from fraud and corruption.  The pharmaceutical industry has an obligation to insure that all rules, regulations and laws are complied with," said U.S. Attorney of Massachusetts, Michael J. Sullivan.

 

One of the resolved allegations is that Schering induced physicians to use off label Temodar (without FDA approval) for certain patients with brain tumors and metastasis and the use of Intron A for certain patients with superficial bladder cancer through improper preceptorships, sham advisory boards, lavish entertainment and improper placement of clinical trials.

 

Aside from the U.S. Department of Justice Press Release highlighting the aforementioned, a Schering Plough news release confirmed the governments agreement and referred to an Action Agenda  to transform the company with integrity as its center.  Schering Plough, according to the government release, will also sign an addendum to its existing Corporate Integrity Agreement with the U.S. Department of Health and Human Services which requires extensive work to correct its drug sales, marketing and pricing injustices.

 

Read More:  http://www.usdoj.gov/usao/ma/Press%20Office%20-%20Press%20Release%20Files/Schering-Plough/press%20release.pdf

Internal Controls and Ethics Training: Critical to Preventing Organization Abuses

Recently, a window installation contractor, pleaded guilty and was sentenced to 24 months in prison for over billing the Paterson, NJ school district $750,000.00 and providing concealed benefits to school district officials.

Carl Babb, formally of Olympic Window Installers, Inc., admitted that he gave concealed payments and benefits (cash, Caribbean sea cruise vacations and home improvement projects at the school officials private residences) to Louis Malone, the former district Director of Maintenance and James M. Cummings, the former district Director of Facilities. Milone has been sentenced and Cummings has pleaded guilty.

Babb admitted that he submitted purchase orders to the school district which overstated the cost or for work partially completed.

An internal school control policy requiring regular inspection by the school district, normally a standard requisite for payment, was disregarded which facilitated the abuse.

Fraud detection procedures as well as auditing by an independent, objective expert protects an organization; adding efficiency, effectiveness and control to the operation through evaluation, critical to risk management. These procedures should include numerous levels of signing off to ensure open communication and to minimize collusion. Codes of conduct signed by employees and continually enhanced by training which emphasize ethics are also paramount to any organization.

Read the United States Attorney, District of NJ Press Release: http://www.usdoj.gov/usao/nj/press/files/babb0824_r.htm

Prudential Financial $600 Million Corruption Crackdown

On August 28, 2006, Prudential Financial agreed to pay a $600 million penalty to regulators and federal prosecutors to settle charges it engaged in deceptive market timing mutual fund trading.

The U.S. Justice Department stated that Prudential Equity Group has admitted to criminal wrongdoing under a deferred-prosecution agreement that will last for five years. According to the agreement, Prudential will cooperate with federal prosecutors in their ongoing investigation and will enforce policies and procedures to ensure sound practices are in compliance.

Deceptive market timing uses quick trades to move money in and out of funds quickly to take advantage of different market closing times throughout the world. Brokers defeated safeguards to protect against such illegal activities by using false accounts and false identities to give the impression that the trades were coming from many different brokers representing many clients.

The agreement was collaboratively announced by the U.S. Deputy Attorney General, the Securities and Exchange Commission Enforcement Director, the U.S. Attorney of Massachusetts, the Chief of Enforcement of the N.Y. Stock Exchange and the Chief of the U.S. Postal Inspection Service of the Boston district.

America must not tolerate fraud for corporate ethics are vital for the sound financial fiber of the nation and the protection of loyal employees and innocent investors.

Read the U.S Department of Justice Press Release: http://www.usdoj.gov/dag/speech/2006/dag_speech_060828.htm

Hurricane Katrina Aftermath Demands Collaboration

As Americans remember the catastrophic power of Hurricane Katrina on the August 29, 2006 one year anniversary, it must dedicate itself to remaking New Orleans and the gulf coast region a national and world treasure.

According to a White House Fact Sheet, the federal government is fulfilling its obligations to the people of the gulf coast, providing the necessary funding, restoring and improving New Orleans levees, removing debris, restoring transportation and energy systems, combating post-Katrina waste, fraud and abuse and also ensuring preparedness for future disasters.

Conversely, democratic leadership has released a report claiming a failed republican response to the hurricane citing that thousands of families are still waiting for FEMA trailers, $2 billion in abuse, fraud and waste, only 3 of 10 acute hospitals in New Orleans have reopened, 80% of gulf coast business''s with approved disaster loans are still waiting for the loans and only 56 of 128 schools will open this fall.

America must respond to the devastation of Hurricane Katrina and its grave lessons for crisis management and national preparedness cohesively. Hurricane Katrina is not a republican or democratic issue but an American concern demanding to be solved together through persuasive leadership that inspires collaboration to alleviate human suffering.

Lessons in Crime: American Public School Corruption

As a crisis of honesty continues to manifest itself throughout the nation, the public school system is often a victim of corruption. The quality of a country's educational system must be a top priority which is placed at a disturbing risk by graft and dishonesty.

School corruption robs schools of millions of essential dollars, causes students to receive inferior books, supplies, programs, facilities and training and perhaps most importantly, erodes the moral fiber of our nations youth through the repercussions of moral indifference by those in authority.

In my opinion, these examples, and many other in the private sector, underscore the need for leadership and ethics training for those in authority, as well as the implementation of appropriate controls to reduce the likelihood of future occurrences.

Read the FBI headline story, Lessons in Crime, Why Protecting Schools from Corruption Matters. http://www.fbi.gov/page2/aug06/corruption82306.htm

$151.5 Million Medicaid Reimbursement Settlement in North Carolina

A civil settlement agreement requiring the repayment of $151.5 million to the federal government was consummated in Raleigh, North Carolina.  According to the three U.S. Attorneys for North Carolina, this represents one of the largest recoupments in state history.  The settlement agreement follows a 2 year investigation into the state's use of the Medicaid Reimbursement Initiative.

 

Over-payments to the state and the hospitals were determined to be the result of a number of interrelated factors, including the use of an overly-aggressive plan to obtain the maximum amount of federal health care dollars by the State, a number of significant accounting errors and the failure of State officials to insure timely cost settlements.

 

Read More from the Department of Justice Press Release: http://charlotte.fbi.gov/dojpressrel/2006/ce081806.htm

Probe Launched into Former Newark Mayor's Spending Habits

Major news organizations stated today that federal and state investigators launched separate criminal investigations into the city-issued credit cards by Sharpe James when he was the mayor of Newark, N.J.

Grand jury subpoenas from the U.S. Attorney's office and the state Attorney General's office were delivered to City Hall and the Newark Police Department. These subpoenas demanded the former Newark mayor's credit card records and related documents after reports surfaced that he racked up tens of thousands of dollars at taxpayers expense.

Read: American Leadership Issues: Crisis and Response
http://www.vincentbove.com/vb_article_008.php

Spotlight On: Lieutenant Patrick Fay

Lieutenant Patrick Fay of the Hackensack Police Department and President of the North Jersey Regional Crime Prevention Officers Association, has been a law enforcement official for 31 years. In his illustrious career he has played many roles and been involved with many programs but he believes that community policing is the most exceptional philosophy a police agency can have.

"Community policing allows law enforcement to have a great rapport with the most positive element of a community, good people who care about their neighborhoods and appreciate the dedication of the police who are protecting them. These people are dedicated to working with the police in keeping the neighborhoods safe and enhancing the quality of life of the community."

Some of the programs Lt. Fay has been involved with, which he believes are the best initiatives of community policing, are

• neighborhood block watch,
• personnel safety training,
• national night out,
• terrorism awareness training,
• youth police academies,
• citizens and business police academies,
• senior citizen training to prevent con games and scams, and
• citizens appreciation nights.

Lt. Fay has also served the State of New Jersey as a community policing primary instructor who has educated other law enforcement agencies on the community policing philosophy.

"I enjoy being on the cutting edge of community policing educational programs which allow training to take place to protect the neighborhood. Building ongoing relationships with the residents of our neighborhoods is a fulfilling experience for me."

Thank you, Lieutenant Fay, for your years of dedication and service!

Threat Remains: Inbound Flights from the United Kingdom to the United States

"The threat is not over...the investigation continues to follow all leads...we are remaining vigilant for any signs of planning within the United States or directed at Americans," said the Department of Homeland Security Secretary. As we approach the fifth anniversary of the 9/11 attacks and for the foreseeable future, it is critical that Americans remain vigilantly aware of the possibility of additional terror attacks. Read the Department of Homeland Security Warning: http://www.dhs.gov/dhspublic/

Muslim Youths See FBI Up Close

In an extraordinary day of fortifying lines of communication with the New Jersey region's large Muslim community, the FBI and a prominent Muslim organization co-hosted a youth leadership event at Giants Stadium in E. Rutherford, New Jersey.

 

This type of partnership, in my opinion, is an expression of the finest element of community policing, since the FBI enhances communication with the Muslim community in an age where appreciation of the diversity of our nation is critical.

 

Read "Starting a Conversation" from the FBI web site

 

http://www.fbi.gov/page2/aug06/newark_081806.htm

N.J. Attorney General Resigns After Ethics Violation Findings

Zulima Farber will step down after a special prosecutor concluded she violated state ethics laws by intervening in a traffic stop involving her boyfriend.

Headlines expressing a leadership crisis continue to dominate the American media.

Read American Leadership Principles in an Age of Corruption

http://www.vincentbove.com/vb_article_012.php