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Famous Fraud cases since

GlaxoSmithKline has spend more than $150 Million in solving accusation for dishonoring the False Claims Act in charges of fake and deceptive pricing of 2 drug named ZOFRAN & KYTRIL, mostly operated in combination with radiation and oncology treatment. GlaxoSmithKline is considered among the largest manufacturers of pharmaceutical was involved in a planning and maintain deceitful prices of Zofran and Kytril, despite of the fact that federal healthcare programs set up compensation and repayment tariffs on those drug rates.

Variation in the compensated tariff of health care programs the federal authorities and the genuine market rates paid by health nursing supplier of a medicine are usually called “spread. ” More of the spread on these drugs, the greater will be the return or profit on investments by the supplier. This spread was used in advertizing, promoting, marketing and selling of these drugs to already made client and prospective clients by GlaxoSmithKline.

The United States challenged GlaxoSmithKline that they have submitted deceptive and false declaration to federal health care programs as their compensation from federal programs was built on false, deceptive and overstated prices. Peter D. Keisler Assistant Attorney General of the Civil Division Department of Justice said that the agreement adds one more case in the sequence that pharmaceutical company has developed asked for on the false and deceptive drug rates costing millions of dollars to taxpayers and federal healthcare programs.

He added that the Justice Department will carry on pursuing similar fraud plans energetically and enthusiastically to make it very clear point that they will not bear deceptive pricing methods planned to grab more profits for the doctors and the drug companies on the cost of curriculums made for health care purpose of the deprived and old aged prople.

And the pharmaceutical company was busy in a dual dipping billing schedule with regard to Kytril, through persuading the clients to create an extra dose by assembling leftover vials of Kytril, which later be directed to a poor unwell patients and charged once again to federal healthcare programs and Medicare. Government Action: Michael J. Sullivan, U. S.

Attorney, District Massachusetts said that the deceptive rates of instruction medicine can charge thousand or more of the dollars to American taxpayers which can weaken the economic integrity of the healthcare system. And in order to defend the health care programs for betterment of the nation, they will carry on an aggressive investigation and violations of health care program fraud will be put on trial no matter whether they are pharmaceutical companies or individual doctors or professionals.

As the nation strives to hold the cost of healthcare programs, we must make sure that the manufacturing companies of drugs do not take privilege of the deprived ones, senior, old, aged or the impair by unlawfully exaggerating the price of prescribed drugs. (U. S. Department of Justice,2007). R. Alexander Acosta, U. S. Attorney, Southern District Florida said that if any manufacturer try to increase the false price of the medicine specially treated for decrease the consequences of tumor/cancer medication and therapy is unconscionable.

Resolution: Now a clause for getting engaged in the business henceforward with suppliers who engage in trade with Medicaid programs & Medicare, the GlaxoSmithKline company has entered contract hooked on an addition supplement to the current or on hand Corporate Integrity Agreement with the Inspector General, Department of Health and Human Services stating to facilitate with more stuffs, it will compel firm to account exact mean of sales rats and mean of cost rates for medicines enclosed with federal healthcare programs & Medicare.

HHS Inspector General, Daniel R. Levinson said that they would not stand violating programs by any company that were made for the advantage or benefit of our most susceptible nationals. And if any pharmaceutical company purposely increase, the pricing by false and deceptive means of prescribed drugs with complicated pricing schedules then he cheats states and recipients on a national scale of millions of dollars of Medicare and Medicaid (Department of Justice, 2005). Penalty for Settlement caused $150 Million:

CMS promised for defending the honor of the health care programs by federal government, guaranteeing the economic and monetary problems will not be transferred to the recipients, taxpayers and to the programs. These new contracts strengthen that commitment or obligation stated by M. D, P. D, Mark B. McClellan and Administrator of Medicare and Medicaid Services Centers. Out of the settlement amount of $150 Million, the states get the share of $10 million and the federal recovery was around $140 million. Case 2 The Nigeria Deposit Insurance Corporation record N9 billion in banks fraud:

An increase in the trend of immediate interpretation of accounts, financial statements and reports to the dogmatic authorities did not prevent bank personnel including accountants, executive assistants and financial heads, from leading the check on forgers and fraudsters. The Nigeria Deposit Insurance Corporation (NDIC) revealed the total amount bank lost in its 2003 annual report reason being their weak internal control systems which assisted the forgeries and frauds in insured banks (Adejokun, 2004). Around 850 forgery and fraud cases took place due to the weak or non-surviving

Board oversight which resulted the bank to loss of the sum of N. 9. 383 billion during financial year 2003. Deceptive transfers, withdrawals and presenting of fake cheques topped the rank of unprofessional conducts. The worst executors were “bank officers, clerks, cashiers, accountants, executive assistants and other financial departmental staff. It seems that some of the boards had renounced their supervisory and decision making roles to their managements and were unacquainted of the pathetic internal financial conditions of their banks.

The board of The Nigeria Deposit Insurance Corporation (NDIC) was blamed for their failure in establishing effectual strong internal control and sound management systems, which consecutively encouraged criminal acts. In the year 2003, the NDIC established a new division, the Special Insured Institutions Department (SIID), to smooth the progress of oversight of banking co operations and mainly finance institutions whose shareholders would get the advantage from security measure which is up till now enjoyed only by shareholders of universal banks(Adejokun,2004).

The NDIC realized N3. 984 billion from the auction of assets of closed banks and manage to recover N4. 895 billion from accounts receivables of the banks. Recovering of receivables of liquidated banks had been a complicated task during the past years on account of delayed legal disputes and the truth that many of the loans were inappropriately approved, granted and unsecured (Adejokun, 2004). Case 3 The KPMG tax shelter fraud: Tax shelter fraud scandal of KPMG involved supposedly unlawful tax shelters of U.

S through KPMG which were uncovered in the starting of the year 2003. Then in beginning of year 2005, KPMG LLP, the US affiliated companies of KPMG International, was charged by Justice Department of United States for forgery and deception in promotion and selling offensive tax shelters. Government action: KPMG LLP, under a contract, confessed illegal and unlawful activity in generating deceptive tax shelters in order to aid rich and affluent customers to get rid of taxes amounting to $2.

5 billion and reach an agreement which would compensate in consequence $456 million as a fine. KPMG LLP will not confront criminal tribunal providing it act in accordance to the conditions of its contract together with the government. In January 2007, the illicit plan accused KPMG was finished. ( Michael Hamersley’s written testimony before US Senate Finance Committee ). Although, Michael J. Garcia, Federal Attorney, acknowledged that the accusations may perhaps be re-established or restored if till September 2008, KPMG will not carry on giving to constant monitor ship Trials.

In August of year 2005, Bayerische Hypo-Und Vereinsbank AG (HVB) Domenick DeGiorgio, former official, German bank, was working to vend the shelters with KPMG, declared accountable to excise dodging or forgery charges. On February 15th 2006, HVB accepted the illegal activities of contributing to tax shelter fraud of KPMG. By the contract with U. S. Attorney the trial in opposition of the firm was delayed. In its overdue trial contract, the firm had to pay penalty charges, compensation and fines of $29.

6 million. On March 10th 2006, Lewis A. Kaplan, U. S. District Judge, bailed David Greenberg, former accounting executive of KPMG on the security of $25 million. Kaplan’s decision upturned his preceding rejection of Greenberg’s bail. Greenberg was commanded by Judge Kaplan to reside under electronic monitoring check within the territories of Manhattan in anticipation of his prosecution begins for forgery tax case, and warned his relatives about their bankruptcy if Greenberg try to run away from the region.

According to Kaplan Greenberg’s property were in confusion as it wasn’t possible to calculate the total net resources and locate them properly. In October of year 2005, while the condemnations were given Greenberg was a single culprit found under arrest by the established system, termed as a running threat by federal prosecutors. At October 15th 2008, opening point of view started in the prosecution of Robert Pfaff and David Greenberg, former KPMG tax partners; John Larson, former KPMG senior tax manager; and Raymond Ruble, former partner at law firm Sidley Austin. Assistant U. S.

attorney John Hillebrecht acknowledged the boards of judges in federal court of Manhattan that the four men lied and cheated, by making the tax bills of some of our nation’s richest and most influential citizens vanished. In turn, Larson’s defense lawyer, Thomas Hagemann, declared that his client assumed in good devotion that whatever he did was permissible under the law, frankly behavior his contracts and transactions, and behaved in “good faith disclosure”. Hagemann called David Makov, a former colleague of Larson, twisted one of the government’s main witnesses, “a liar and perjurer”.

The prosecutions will still probably last three to four months. Now a few customers of KPMG’s tax shelter are taking legal actions against KPMG for the liability revelation. Case 4 Rs 760 million tax fraud cases submitted by NAB to DG Intelligence: Pakistan: The Special Judge, Customs and Excise Taxation, and adjudication authorities, Sales Tax House, are in the course of settlement of a huge tax fraud case send to the Directorate General of Intelligence and Investigation by the National Accountability Bureau (NAB).

These elements have instigated the total loss of around Rs 760 million to the national exchequer by declaring prohibited sales tax refund in Karachi. The Federal Board of Revenue (FBR) is vigorously tracking the Director General, Intelligence, for confirming action against the sales tax bureaucrats concerned in dispensation and releasing the repayment to the deceitful ones(RECORDER REPORT, n. d. ). These events or cases are connected to the above fraud and the related organizations are taking measures to protect future frauds in future and to take strict action against concerned sales tax officials.

MODERN TEXTILES: Breaking case for Rs 17. 434 million is made against the enlisted person for obtaining/declaring repayment against forged or bogus accounts and statements. The case is in negotiation process before the Additional Collector Adjudication, Sales Tax House, Karachi, Pakistan (RECORDER REPORT, n. d. ). M. S. INDUSTRIES: At an early stage of inspection, it was discovered that the enlisted individuals had presented forged records of selling abroad just to declare falsely sales tax repayment. So the FIR was written against the enlisted/registered individuals.

Contravention fraud case of Rs 81. 019 million is filed against enlisted individuals obtaining/declaring repayment against forged invoice. In 2007 the initial stage of the case was decided in favor of the department. The case is still under prosecution before the Collector Appeal. The fraud case is in the process of tribunal in the court of special Judge (Customs and Taxation), Karachi, Pakistan. UNITED TEXTILES: Contravention fraud of Rs 48. 165 million had registered against individuals who were obtaining/declaring repayment against forged or bogus statements and accounts.

The case is under process of trial before the Additional Collector Adjudication, Sales Tax House, Karachi, Pakistan. COSMOS TRADING CORPORATION: Contravention fraud of Rs 27. 434 million is registered against individuals obtaining/declaring repayment against forged and bogus account statements. The case is under trial before the Additional Collector Adjudication, Sales Tax House, Karachi, Pakistan. TISSOT INTERNATIONAL: Contravention fraud of Rs 31. 438 million is filed against culprits who were obtaining/declaring repayment against forged and bogus statements.

The case is under prosecution before the Additional Collector Adjudication, Sales Tax House, Karachi, Pakistan. AL-ZOHRA POLY PACKAGES (PVT) LTD: Contravention fraud case of Rs 36. 339 million is recorded against individuals for obtaining and declaring repayment forged and bogus statements. The case is under prosecution before the Additional Collector Adjudication, Sales Tax House, Karachi, Pakistan. GOLDEN TEXTILE: Contravention fraud case for Rs 51. 853 million is filed against the listed individual for obtaining and declaring repayment against forged and bogus accounts statement.

The case is under trial before the Additional Collector Adjudication, Sales Tax House, Karachi, Pakistan. DOMESTICATION INDUSTRIES: Contravention fraud case for Rs 17. 054 million is recorded against listed individuals of industry for declaring and acquiring repayment against forged and bogus account statements. So far in this case no show cause notice has yet been issued. The prosecution department was appealed to start the trial proceedings immediately for this case. EMPORIUM DE TEXTILE: Contravention fraud for Rs 18. 263 million is filed against listed individuals for declaring and acquiring the forged account statements.

No show cause notice is yet issued for the concerned fraud case. Instead the prosecution was appealed on immediate bases. EXCELLENT INTERNATIONAL: The series of audits have taken place and very soon an audit report will be issued under the suggestion to the headquarter. WORKTEX (PVT) LTD: In the starting period of inspection of recorded documentation and substantial confirmation, the brokers of the enlisted individuals were running away from their announced sites before the FIR was wedged against the enlisted individuals.

References: Adejokun, S. (2004). Banks record N9 billion fraud . Retrived on November 3, 2008 from http://news. biafranigeria. com/archive/2004/jul/26/192. html Department of Justice. (2005). SERONO TO PAY $704 MILLION FOR THE ILLEGAL MARKETING OF AIDS DRUG. Retrived on November 3, 2008 from http://www. usdoj. gov/opa/pr/2005/October/05_civ_545. html DOJ News Release. (n. d. ) GlaxoSmithKline Pays $150 Million in Drug Pricing Fraud Case. Retrived on November 3, 2008 from http://crime. about. com/od/news/a/bldog_glaxo. htm terms=acosta+sales+marketing RECORDER REPORT. (n. d. ).

NAB refers Rs 760 million tax fraud cases to DG Intelligence. Retrived on November 3 ,2008 from http://www. brecorder. com/index. php? id=804960&currPageNo=1&query=&search=&term=&supDate= U. S. Department of Justice. ( 2007). MIAMI JURY CONVICTS OWNER OF HEALTH CARE FRAUD, Patients Sending Unneeded Medicine Paid for by Medicare to Cuba. Retrived on November 3, 2008 from http://miami. fbi. gov/dojpressrel/pressrel07/mm20071220a. htm

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