September 13, 2005

First Settlement Reached In VeridianHealth Lawsuit; Veridian Forced Into Involuntary Bankruptcy

On September 13, 2005 a settlement was finalized with individual defendants Fred Goldman and GTA Group, Inc. Pursuant to the terms of the settlement, Goldman agreed to pay $205,000 to the State of Illinois in return for dismissal of all claims against him and GTA Group. The Relator, represented by the Law Office of Tracy L. Netzel, received 35% of the settlement proceeds paid to the State of Illinois as well as amounts for attorneys' fees and costs incurred in bringing the litigation. Settlement discussions are ongoing with certain other defendants.

Veridian itself has now closed its doors and discontinued all operations. This preceded an involuntary bankruptcy petition filed by certain of Veridian's creditors on August 10, 2005. The litigation continues with respect to all remaining defendants not in bankruptcy including Veridian's former CEO, Mitchell Rubin.

- Return to Menu -

May 13, 2005

Illinois Judge Enters Temporary Restraining Order In Veridian Health Lawsuit

On May 13, 2005, Judge Richard J. Billik entered a Temporary Restraining Order against Veridian Health, LLC and various of its subsidiaries and affiliates enjoining it from billing and submitting claims for reimbursement to insurance companies for diagnostic testing that has no diagnostic value, lacks medical necessity and/or is not conducted under the direct supervision of a physician. The TRO also restrains Veridian Health from transferring, selling or otherwise dissipating its assets.

On July 8, 2005, the State of Illinois and Relator filed a Second Amended Complaint in the lawsuit adding as defendants neurologists Nils Anderson and Harish Thaker and also Josef Verhaerdt and Mark Sanna. According to the lawsuit, Veridian Health paid kickbacks to Verhaerdt and Sanna, both chiropractors, to recruit other doctors into the referral and testing scheme. Sanna is alleged to have received nearly a half million dollars in annual kickback payments. Anderson and Thaker, along with a handful of other off-site neurologists recruited by Veridian Health allegedly "read" the worthless diagnostic testing reports. Veridian Health then billed insurance companies in upwards of $10,600 for these purported services.

In July 2005 Veridian Health advised the Court and Plaintiffs it was discontinuing its business operations.

Read the TRO entered by Judge Billik

Read the Second Amended Complaint filed on July 8, 2005

- Return to Menu -

April 26, 2005

Illinois Attorney General Intervenes In $234 Million Fraud Case Filed By The Law Office of Tracy L. Netzel

The Illinois Attorney General intervened today in a lawsuit filed by the Law Office of Tracy L. Netzel on behalf of a whistleblower against Veridian Health, a complex web of corporate affiliates and the individuals running the operation. The Lawsuit alleges the “Veridian Health” companies perform worthless, medically unnecessary tests and charge insurance companies to the tune of $4,750 to $10,600 for these purported services.

The Complaint filed by the whistleblower and State of Illinois alleges largely untrained technicians employed by Veridian Health perform a full battery of tests or “profile” on each and every patient they encounter regardless if the patient needs such excessive testing. The tests allegedly also are worthless in that Veridian Health does not perform the needle EMG test which actually is needed to diagnose the conditions Veridian Health purports to test for. Veridian Health also bills for tests they don’t even do and the “phantom” billings are higher than the tests they actually performed.

Off-site neurologists controlled by Veridian Health “read” and “interpret” all the test results and in a matter of minutes, generate a boiler-plate “result” for the patient. For this, insurance companies are charged the $4,750 to $10,600 fee. The Lawsuit further alleges Veridian Health has billed $234 million to-date under the scheme and of this, collected over $80 million.

The Lawsuit further alleges how the company and its managers schemed to “fly under the radar” of the insurance companies to avoid detection.

View the Complaint

Read the Attorney General’s Press Release

Read the article in the Chicago Sun Times

- Return to Menu -

May 13, 2004

The Law Office of Tracy L. Netzel Files Brief On Behalf Of AARP And TAF As Amicus Curiae In Illinois Supreme Court Appeal

The Law Office of Tracy L. Netzel filed a brief today on behalf of AARP and Taxpayers Against Fraud as amici curiae in an appeal to the Illinois Supreme Court challenging the constitutionality of the qui tam provisions of the Illinois Whistleblower Reward & Protection Act (IWA), 740 ILCS 175/4 et seq. The case, a direct appeal from the Circuit Court of Cook County, is styled as Scachitti et al. v. UBS Financial Services and Deloitte and Touche; Case No. 02 CH 21121 and Illinois Supreme Court No. 97023.

The IWA is modeled closely after the federal FCA and is the State of Illinois’ most potent anti-fraud weapon. The IWA took effect on January 1, 1992. Since 2000 alone, the qui tam provisions of the IWA have resulted in the return over $21 million in fraudulently-obtained funds to the State.

The Scachitti appeal represents the first constitutional challenge to a state false claims statute. Constitutional challenges to the FCA have been swiftly rejected by every appellate court to consider the issue.

Read the Amici Curiae Brief

- Return to Menu -

March 16, 2004

Consumer Class Action Filed Against Bally Total Fitness

The Law Office of Tracy L. Netzel filed a consumer fraud class action today against Bally Total Fitness Corp. alleging deceptive and unfair business practices in connection with the company’s sale of health club memberships. The lawsuit seeks treble damages, compensatory and punitive damages and injunctive relief.

For more information about the lawsuit contact Tracy L. Netzel at .

- Return to Menu -

October 25, 2003

Tracy Netzel speaks at 2003 Legal Aspects of Medicine course in Chicago.

View slideshow, "What Every Physician Needs To Know About Fraud & Abuse Laws (But Is Afraid To Ask)."    View slideshow

- Return to Menu -

August 15, 2003

Whistleblower Legal Center launches first issue of newsletter, The Whistler

In the premier issue of The Whistler, the Whistleblower Legal Center provides readers with a “primer” on False Claims Act (FCA) litigation, reports key FCA statistics and describes the “hot” FCA enforcement areas of 2003. The newsletter concludes with a preview of what’s coming next in FCA enforcement.

Read the first issue of The Whistler.

- Return to Menu -