Life Sciences

DOJ alleges whistleblower part of fraud scheme

Pharma Compliance Alert, October 31, 2007

The man who blew the whistle on Cell Therapeutics is now under investigation by the Department of Justice (DOJ) for allegedly masterminding an even bigger fraud scheme within Cell Therapeutics.

James Marchese, a former sales representative for Cell Therapeutics, told the DOJ that his former employer had fraudulently marketed Trisenox, a cancer drug, and defrauded Medicare for millions of dollars. In April, Cell Therapeutics settled its case for $10.5 million. Marchese was in line to receive up to $2.8 million for bringing the fraud to light.

The DOJ is asking a federal judge in Seattle to award Marchese nothing because the DOJ contends he created the bigger fraud scheme at the core of the case. Prosecutors contend Marchese engineered a complex scheme to mislead oncologists and Medicare into believing that Trisenox had been approved to treat more types of cancer than it was. Marchese denies the allegations.

Click here to more about this story in The New York Times.

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