DOJ steers $52 million in fraud settlement $$ to Ashcroft

[EV_Ares]

Daily Kos:

A few weeks back, you may have missed reports regarding settlement of a pretty significant fraud case regarding illegal kickbacks by artificial joint manufacturers to surgeons:

Four of the nation’s biggest makers of artificial hips and knees have agreed to pay a total of $311 million in penalties to settle federal accusations that they used fake consulting agreements and other tactics to get surgeons to use their products.

Under the settlements, which were announced by the United States Attorney in Newark, N.J., the four companies were charged with criminal conspiracy to violate anti-kickback laws. But they will not be prosecuted if they follow new compliance procedures under federal monitoring for the next 18 months.

"This industry routinely violated anti-kickback statutes by paying physicians for the purpose of exclusively using their products," said the Christopher J. Christie, the United States Attorney in Newark. "Prior to our investigation, many orthopedic surgeons in this country made decisions predicated on how much money they could make — choosing which device to implant by going to the highest bidder."

New York Times, 9/27/2007

Link: http://www.dailykos.com/storyonly/2007/11/25/211958/93