Texas-based SCCI Health Services Corporation (SCCI) and its subsidiary, SCCI Hospital Ventures Inc., have paid the United States $7.5 million to settle allegations that the companies violated the Stark self-referral statute and the False Claims Act, the Justice Department announced today. SCCI, which was purchased by Triumph Hospital in 2005, operates long term acute care facilities across the United States.

The government complaint alleged that from November 1996 through at least 1999, SCCI entered into prohibited financial relationships with three physicians and paid these physicians illegal payments in violation of the Stark statute. The government further alleged that from November 1996 through at least 1999, SCCI either submitted or caused false claims to be submitted to the Medicare program, as a result of these prohibited financial relationships, in violation of the False Claims Act.

“The Justice Department is committed to investigating cases that threaten the integrity of the Medicare program, especially when providers fail to abide by federal laws prohibiting the referral of Medicare patients in exchange for a fee,” said Assistant Attorney General Peter D. Keisler.

The settlement resolves a civil case filed on behalf of the government on April 1, 1999 by former employees and an independent contractor who worked for SCCI Houston. Daryl Kaczymarczyk, Patricia Rocha, Michelle Pate, Michael Brigle and Theresa Taylor filed the case under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to file lawsuits on behalf of the United States. On Oct. 2, 2002, the government intervened in the Stark Act claims as to the three physicians. The United States filed its complaint in the case on March 10, 2003. Of the total settlement amount, $1 million resolves additional allegations as to which the government did not intervene. As a result of the settlement, the five whistleblowers shared $1.7 million.

“The Justice Department and the United States Attorney’s Office are committed to preventing and punishing improper financial relationships between physicians and hospitals. Such relationships have great potential to adversely impact the physician’s judgment and result in Medicare funds being spent on unnecessary and expensive hospital stays,” said Donald J. DeGabrielle Jr., United States Attorney for the Southern District of Texas.

The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Southern District of Texas, with the assistance of the Federal Bureau of Investigation.

Kirkpatrick & Lockhart Preston Gates Ellis LLP, Pittsburgh's largest law firm, is launching an office in Berlin.

It is the first Pittsburgh-based law firm to establish an office in the Germany city. Reed Smith LLP has an office in Munich.

The 11-lawyer office will be staffed by partners who formerly practiced in the Berlin office of Taylor Wessing, an German/British firm. Rudiger von Hulst will serve as administrative partner.

The office is the 22nd for K&L Gates, created last month through the merger of Kirkpatrick & Lockhart Nicholson Graham LLP, Pittsburgh, and Preston Gates Ellis LLP, Seattle. The firm now employs around 1,400 lawyers.

Peter Kalis, K&L Gates chairman and global managing partner, said the opening of the Berlin office is a natural expression of the firm's relationships with many clients doing business in Europe and around the world.

Kalis said that the firm expects further growth in Europe and discussions are continuing in several cities, but Paris, he said, is a priority.

http://www.klgates.com

The US House of Representatives passed its first piece of legislation for the 110th Congress late Tuesday, a bill to implement the recommendations of the 9/11 Commission remaining after the enactment of the Intelligence Reform bill in 2004. The bill provides for additional intelligence oversight and sets out an ambitious screening program for shipping cargo coming into the US. HR 1 passed with bipartisan support by a vote of 299-128, though several Congressional Republicans assailed the bill's passage as a Democratic effort to appear tough on terrorism without considering the financial implications.

Tuesday's passage of HR 1 marks the first of several key votes scheduled by Speaker Nancy Pelosi (D-CA) and House Majority Leader Steny Hoyer (D-MD) to occur during the Democrats first 100 hours in office. Later this week the House will vote on legislation to raise the federal minimum wage and expand embryonic stem cell research.

Fielding served as General Counsel to President Reagan from 1981-86 and deputy counsel under President Nixon from 1970-72, and is regarded by observers as having the political experience that Bush may need to face challenges to executive authority from the new Democratically-controlled Congress. Fielding, 67, leaves his position as a partner at Wiley, Rein and Fielding in Washington, DC.

JOSHUA TREE, Calif. A sheriff's spokesman says an attorney and another man who were shot repeatedly at a Joshua Tree law firm yesterday remain in critical condition.

Attorney Bill Weir and Rocky Favorite were shot multiple times at the J-T Law firm. A San Bernardino County sheriff's spokeswoman says a third victim, 25-year-old Dawn Croom, was hospitalized with a wounded leg but later released.

Bernard Steppe was arrested shortly after the shooting for investigation of attempted murder. He's being held at Morongo Basin Jail on 500-thousand dollars bail.

Sheriff's spokeswoman Jodi Miller says Steppe lived on the same property as the law firm and may have worked for Weir in the past.

Micron Technology Inc. (MU.N: Quote, Profile , Research) said on Tuesday it has settled a class-action lawsuit that will reduce its previously announced first-quarter profit by up to $80 million.

The lawsuit, which followed a 2002 U.S. Justice Department inquiry into the memory chip industry, covered people and entities that bought a type of computer memory known as DRAM directly from suppliers from April 1999 through June 2002.