Tuesday, December 28, 2010

Pharmaceutical Industry Fraud - The Nader Page

The corporate defrauding of taxpayers (eg. Medicaid and Medicare) and prescription drugs with skyrocketing prices was the subject of a report by Public Citizen's Dr. Sidney Wolfe and his associates (see Citizen.Org).

Dr. Wolfe's team compiled a total of 165 federal and state settlements since 1991 totaling $19.8 billion in penalties. A key finding is that the drug industry's penalties under the Federal False Claims Act exceed even those assessed against the overcharging defense industry for fraud.

Before we become overly impressed with the cumulative amount of the penalties, specialists in corporate crime law enforcement believe that adding more federal cops on the corporate crime beat, backed by a determined law and order Justice Department with White House backing, would have greatly increased the number of cases and imposition of penalties on these drug industry giants.

Nonetheless, Dr. Wolfe's study shows that the pace of penalties has picked up over the past five years. This is due to "a combination of increased violations by companies and increased law enforcement on the part of federal and state governments," says the report.

Posted via email from Jack's posterous

1 comment:

Tadalis said...

Oh my!!! You are just too true to be good. How do you manage to write and research on such wonderful things? You have inspired me to work harder now. I shall try as much as possible to enjoy life to the fullest and be satiated with the wonderful things that are around me, which I have been unaware of until now.