(212) 292-4573 tmcinnis@mcinnis-law.com

SBIR Grant Fraud - Examples of Qui Tam Cases

SBIR Grant Fraud – Examples of Qui Tam Cases

 

Eight-Year Scheme of Duplicated Research, False Billing and False Statements Involving Air Force, Navy, EPA and National Science Foundation “SBIR” Contracts Alleged in Whistleblower Complaint Unsealed Today; Research/ Consulting Lab, Owner Will Repay Approximately $1.1 Million To Settle Allegations; Moshe Lavid, Ph.d., President of M.L. Energia, Inc., Pleaded Guilty To Criminal Charges In 2004.

NEWARK, NJ — The owner of a Plainsboro-based research and consulting firm today settled whistleblower allegations brought under the Qui Tam provisions of the federal False Claims Act (“FCA”), agreeing to pay more than $1.1 million to the Government for his alleged role in an eight-year scheme to defraud several federal agencies under Small Business Innovation Research Program (“SBIR”) grants, Manhattan-based attorney Timothy J. McInnis announced today.

Moshe Lavid, Ph.d., president of M.L. Energia, Inc. (“Energia”), of Plainsboro, obtained “funding from different federal agencies for the same research,” according to the Complaint, in one case doing, “…little more than ‘recycling’ of the same research, data and technology.”
“This is the case of a research scientist who turned into a cut-and-paste bandit,” said McInnis who represents whistleblower, Moisey Teytelboym, Ph.d., a chemist who had been employed by Energia during the time covered by the Complaint.

The U.S. Attorney’s Office for the District of New Jersey, under the direction of U.S. Attorney Christopher J. Christie, is represented by Assistant U.S. Attorney Stuart A. Minkowitz, of the office’s Civil Division.

More on this Grant Fraud Example

"Tim McInnis is an amazing attorney. He is intelligent, thorough, ethical, kind and he works very strategically in order to insure the best outcome for his clients. I would trust him with my life. He is not only an excellent attorney, but he is a compassionate person."
Denise A. Romano, January 2004

"Tim McInnis is a superb lawyer for whistleblowers. As both a relator and a lawyer I worked with for more than three and a

On October 14, 2020, medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, agreed to pay $18 million to settle allegations the company helped submit false claims to the federal Medicare and TRICARE programs and numerous state Medicaid programs by giving kickbacks to physicians and hospitals to induce the purchase and use of MMSI’s durable medical equipment devices and products. NYC attorney Timothy J. McInnis was a member of the legal team that successfully represented the whistleblower in the case, Charles J. (“CJ”) Wolf, M.D., who was the former Chief Compliance Officer of MMSI.

 

According to Dr. Wolf’s complaint and the government’s settlement agreement, for over six years MMSI paid kickbacks to physicians, medical practices, and hospitals. The payments were made indirectly under the guise of free advertising assistance, practice development, practice support, and so-called “educational” grants. All of this was intended to induce the healthcare providers to purchase and use MMSI’s products, including EmboSphere devices, which are used for uterine fibroid embolization procedures, and QuadraSphere devices, which are used for other types of embolization procedures. Among other things, MMSI used local advertising campaigns to steer patients to healthcare providers as a reward for past sales and to increase future purchases of MMSI products. Dr. Wolf and the government further alleged that MMSI disregarded numerous internal warnings, including from Dr. Wolf, that MMSI’s sales practices potentially violated the healthcare Anti-Kickback Statute (AKS).

 

The lawsuit was filed in the federal court in District of New Jersey, where attorney McInnis formerly served as an Assistant U.S. Attorney. The case is captioned United States ex rel. Wolf v. Merit Medical Systems, Inc., No. 2:16-cv-01855-CCC-MF (D.N.J.). Of the $18 million MMSI is paying to settle the case, $15.21 million will be go to the U.S. Treasury, and the remaining $2.79 million will go to the approximately 30 individual states that also joined the lawsuit.

half years and his counsel and perseverance were always spot on. His work was critical to a successful settlement of the case."
Stephen B. Diamond, Esq., August, 2016

"Tim McInnis Law represented my case with the up most professionalism. He communicated with me at every turn of the case ensuring I understood the process as well what was to come next. His patience, comprehension of Qui Tam Law and persistence in getting me the highest amount possible out of the case is unmatched. I wouldn't hesitate to recommend his law firm for a minute."
Don A. Briscoe, September 2016

"Tim McInnis Law represented my case with the up most professionalism. He communicated with me at every turn of the case ensuring I understood the process as well what was to come next. His patience, comprehension of Qui Tam Law and persistence in getting me the highest amount possible out of the case is unmatched. I wouldn't hesitate to recommend his law firm for a minute."
Don A. Briscoe, September 2016

Call us anytime 212-292-4573