tax evasion, bribery and price fixing

"Ragged Dick opened his eyes slowly, and stared stupidly in the face of the speaker, but did not offer to get up.

"Wake up, you young vagabond!" said the man impatiently.

"I suppose you'd lay there all day, if I hadn't called you."

Going out into the fresh air Dick felt the pangs of hunger.

The small boy stepping incautiously to the edge of the boat fell over into the foaming water.

"My child!" a man exclaimed,"who will save my child? A thousand - ten thousand dollars to any who will save him!"

Now Dick, an expert swimmer, immediately dove in.

"Not many boys would have risked their lives for a stranger," said the gentleman.

It was the suit of new clothes he wore which made him feel a little more aristocratic.

He accordingly went to a restaurant for a substantial supper.

He was no longer Ragged Dick now, but Mr. Richard Hunter, junior partner in the large firm of Rockwell & Hunter.

Mr. Greyson felt that even in a worldly way Dick was a good match for his daughter; but he knew and valued still more his good heart and conscientious fidelity to duty, and excellent principles, and cheerfully gave his consent.

Last week I read Dick's marriage in the papers, and rejoiced in his new hopes of happiness.

So Dick has achieved Fame and Fortune, the fame of an honorable and enterprising man of business, and a fortune which promises to be very large.

I am glad to say Dick has not been spoiled by prosperity.

He never forgets his humble beginnings, and tries to show his sense of goodness by extending a helping hand to the poor and needy boys, whose trials and privations he understands well from his own past experience." - Horatio Alger Jr.

Using Excel and Benford’s Law to detect fraud

2007 Merck agrees to pay $2.3 billion to the IRS.

The tax dispute stemmed from income attributed to a partnership set up in Bermuda in 1993 to avoid taxes.

Merck acquired Medico and gave two patents, for Zocor® and Mevacor®, to it's Bermuda subsidiary.

Merck then pays it's subsidiary royalties on the two drugs - in effect deducting income it had paid itself.

2008 Merck agrees to pay $671 million for overcharging the government for four popular Medicaid drugs and for bribing doctors to prescribe Vioxx®, Zocor®, Mevacor® and Pepcid®.

Investigation triggered in 2000 by a former Merck salesman with an itchy conscience who blew the whistle.

Joseph Roth*, an account manager for Israel based United Mizrahi Bank, and rabbi Moshe Zigelman*, admitted to their parts in a tax evasion scheme in which people made bogus tax-exempt donations to charitable organizations related to Spinka, an Orthodox Jewish sect.

rabbi Moshe Zigelman admitted to soliciting donations by promising to refund 80% to 95% of the sum.

Joseph Roth admitted he established secret overseas bank accounts and bogus loans to facilitate the transfer of funds and charged fees to repatriate the money.

medicare and corporate fraud

How to Think Clearly About Medicare Administrative Costs:
Data Sources and Measurement

Philip Esformes sentenced to 20 years for $1.3 billion Medicaid fraud

"Many national healthcare plans provide universal insurance at a lower per-capita cost than the American system with better results." - JD Hunley

"A jury might think $45 million is fair and just compensation to the family of the woman who died while hospital personnel ignored her cries of pain.

The judge will automatically reduce any possible verdict to $250,000 - the most in non-economic damages anyone can recover for any injury or death caused by a healthcare provider.

The cap was passed at the behest of the insurance industry and medical establishment more than three decades ago.

It has never been changed or adjusted - even for inflation.

We may be reaching a point at which letting patients die is more cost-effective than treating them." - Linda Fermoyle Rice

1980s Under the Reagan administration International Medical Centers run by George Recarey expand rapidly due to a special exemption granted through the office of Jeb Bush.

1987 A federal court jury finds Jorge Recarey, Mariano Villa Del Rey and Antonio Fernandez Sr. guilty of labor racketeering charges.


July 1994 National Medical Enterprises agreed to pay $379 million in criminal fines, civil damages, and penalties for kickbacks and fraud at National Medical Enterprises psychiatric and substance abuse hospitals in more than 30 states.

After this settlement, National Medical Enterprises renames itself "Tenet".

October 1996 First American Health Care of Georgia, Inc, later Integrated Health Services, Inc, agrees to reimburse the federal government $255 million for overbilling and making fraudulent Medicare claims.

First American billed Medicare for costs unrelated to the care of patients in their homes, including the personal expenses of senior management, as well as marketing and lobbying expenses.

Epilogue: IHS files for bankruptcy and never pays the settlement.

November 1996 Laboratory Corporation of America Holdings (LabCorp), agrees to pay $182 million to resolve charges that it submitted false claims for medically unnecessary laboratory tests to federal and state health care programs.

The fraud involved bundled lab tests that were billed to Medicare as free-standing tests, resulting in an eight-fold increase in charges to Medicare.

March 1997 SmithKline Beecham Clinical Laboratories Inc. (SBCL), now GlaxoSmith Kline, is ordered to pay $325 million for filing false claims involving adding on laboratory tests not requested by doctors and not medically necessary, billing for lab tests that were not actually performed, giving kickbacks to doctors in order to get business, and billing Medicare for dialysis testing already paid for by kidney dialysis centers.

July 1998 Blue Cross Blue Shield of Illinois (also known as Health Care Service Corporation) pleeds guilty to eight felony counts and agrees to pay $144 million.

The nature of the fraud is that Blue Cross Blue Shield Illinois manipulated work samples and falsified reports to the Health Care Finance Administration in order to conceal evidence of its poor performance as a federally contracted processor of Medicare claims.

January 2000 Fresenius Medical Care of North America, the world's largest provider of kidney dialysis products and services, agreed to pay a fine of $486 million for a scam involving National Medical Care, Inc. (NMC), a kidney dialysis subsidiary owned by Fresenius which included fraudulent and fictitious blood testing claims by LifeChem, Inc. and fraudulent claims submitted to Medicare for intradialytic parenteral nutrition (IDPN), a nutritional therapy provided to patients during dialysis treatments.

February 2000 Beverly Enterprises Inc., the nation's largest assisted living facility chain, agreed to pay $175 million to resolve civil and criminal charges that it defrauded Medicare by fabricating Medicare patient records.

December 2000 HCA The Healthcare Company (formerly known as Columbia HCA), the largest for-profit hospital chain in the US, pleeds guilty to criminal conduct and agrees to pay more than $840 million in criminal fines, civil penalties and damages for unlawful billing practices.

Fraud included: billing for lab tests not medically necessary and not ordered by physicians, "upcoding" medical problems in order to get higher reimbursements for more serious medical issues, billing the government for advertising under the guise of "community education," and billing the government for non-reimbursable costs incurred in the purchase of health agencies around the country.

This agreement does not resolve allegations that HCA unlawfully charged for the costs of running its hospitals, and that it paid kickbacks to physicians to get Medicare and Medicaid patients referred to its facilities.

March 2001 Vencor Inc., one of the nation's largest assisted living facility chains, and Ventas Inc., a related real estate investment trust, agreed to pay the US $104.5 million to resolve claims for failure to provide the promised quality of care to assisted living facility patients due to inadequate staffing, improper care of bedsores, and failure to meet resident's basic dietary needs.

October 2001 Taketa-Abbott Pharmaceutical Products Inc. agreed to pay $875 million to resolve criminal charges and civil liabilities in connection with fraudulent drug pricing and marketing of Lupron®, a drug sold for $500 per dose for the treatment of prostate cancer under Medicare Part-A.

2002 Pfizer paid $49 million to settle state and federal Medicaid fraud charges involving Lipitor®.

April 2003 Bayer paid $257,200,000 to settle Medicaid fraud charges involving a "lick and stick" scheme in which Bayer sold re-labeled products to an HMO at deeply discounted prices and then concealed this discount in order to avoid rebating the government .

June 2003 AstraZeneca agreed to pay $355,000,000 for providing free drug samples to doctors and telling them to bill Medicare and Medicaid hundreds of dollars per sample.

HCA agreed to pay $631 million in civil penalties and damages arising from false claims, including cost report fraud and the payment of kickbacks to physicians, submitted to Medicare and other federal health programs.

July 2003 CG Nutritionals, Inc. pled guilty to obstructing a criminal investigation and defrauding the Medicare and Medicaid programs and agreed to pay $400 million to resolve civil claims. In addition, the subsidiary of Abbott Labs, CG Nutritionals, Inc., agreed to a criminal fine of $200 million in relation to the sale of products which pump special foods into the stomachs and digestive systems of patients who are not able to ingest meals in a normal manner.

2003 GlaxoSmithKline signed a corporate integrity agreement and paid $88 million in a civil fine for overcharging Medicaid for the antidepressant, Paxil® and nasal allergy spray, Flonase®.

unique library index

This web site is not a commercial web site and is presented for educational purposes only.

This website defines a new perspective with which to engage reality to which its author adheres. The author feels that the falsification of reality outside personal experience has forged a populace unable to discern propaganda from reality and that this has been done purposefully by an international corporate cartel through their agents who wish to foist a corrupt version of reality on the human race. Religious intolerance occurs when any group refuses to tolerate religious practices, religious beliefs or persons due to their religious ideology. This web site marks the founding of a system of philosophy named The Truth of the Way of the Lumière Infinie - a rational gnostic mystery religion based on reason which requires no leap of faith, accepts no tithes, has no supreme leader, no church buildings and in which each and every individual is encouraged to develop a personal relation with the Creator and Sustainer through the pursuit of the knowledge of reality in the hope of curing the spiritual corruption that has enveloped the human spirit. The tenets of the Truth of the Way of the Lumière Infinie are spelled out in detail on this web site by the author. Violent acts against individuals due to their religious beliefs in America is considered a "hate crime."

This web site in no way condones violence. To the contrary the intent here is to reduce the violence that is already occurring due to the international corporate cartels desire to control the human race. The international corporate cartel already controls the world economic system, corporate media worldwide, the global industrial military entertainment complex and is responsible for the collapse of morals, the elevation of self-centered behavior and the destruction of global ecosystems. Civilization is based on coöperation. Coöperation does not occur at the point of a gun.

American social mores and values have declined precipitously over the last century as the corrupt international cartel has garnered more and more power. This power rests in the ability to deceive the populace in general through corporate media by pressing emotional buttons which have been preprogrammed into the population through prior corporate media psychological operations. The results have been the destruction of the family and the destruction of social structures that do not adhere to the corrupt international elites vision of a perfect world. Through distraction and coercion the direction of thought of the bulk of the population has been directed toward solutions proposed by the corrupt international elite that further consolidates their power and which further their purposes.

All views and opinions presented on this web site are the views and opinions of individual human men and women that, through their writings, showed the capacity for intelligent, reasonable, rational, insightful and unpopular thought. All factual information presented on this web site is believed to be true and accurate and is presented as originally presented in print media which may or may not have originally presented the facts truthfully. Opinion and thoughts have been adapted, edited, corrected, redacted, combined, added to, re-edited and re-corrected as nearly all opinion and thought has been throughout time but has been done so in the spirit of the original writer with the intent of making his or her thoughts and opinions clearer and relevant to the reader in the present time.

Fair Use Notice

This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of criminal justice, human rights, political, economic, democratic, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information see: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Dedicated to the establishment of knowledge, truth, justice and a clear understanding of reality as the American way!
Copyright © Lawrence Turner
All Rights Reserved