Corporate Compliance

U.S. attorney's office files complaint against Ernst & Young

Compliance Monitor, January 14, 2004

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U.S. Attorney Patrick L. Meehan announced January 5 the filing of a federal complaint against Ernst & Young, a prominent, national accounting firm. According to the complaint, nine hospitals in eastern Pennsylvania paid Ernst & Young for billing advice that later caused the submission of false claims to the Medicare program.

The complaint alleges that 200,000 claims for payment for outpatient clinical laboratory tests were billed to Medicare from 1991 to 1997. The government is seeking to recover more than $900,000 in damages resulting from laboratory payments improperly claimed and received by the nine hospitals, the Department of Justice (DOJ) said in a press release.

"It is the responsibility of an independent reviewer to be alert to fraud and abuse and certainly not to ignore it," Meehan said in the release. "In this case, as the complaint alleges, Ernst & Young kept itself deliberately ignorant of the facts."

For more from the DOJ news release, click here.



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