Government Needs Help in Identifying Dishonest Pharma Executives

Last month, the influential legal advocacy group Washington Legal Foundation (WLF) called on the FDA to abandon its plans to criminally prosecute the corporate masterminds behind pharmaceutical fraud schemes. Specifically, in a letter to Eric Blumberg, Deputy Chief for Litigation in the FDA’s Office of Chief Counsel, WLF complained that increased criminal prosecution of pharmaceutical executives could “adversely affect the nation’s healthcare delivery system by providing industry executives little incentive to continue working in the pharmaceutical sector.”

The reality is that, until recently, dishonest pharmaceutical executives could devise elaborate fraud schemes, with little concern that the Government would hold them personally liable. Some organizations, such as WLF, are looking to turn back the clock on law enforcement efforts. However, the momentum is now heading in the direction of justice, especially since whistleblowers are increasingly providing the necessary inside information to identify the criminal masterminds.

False Claims Act whistleblowers have proven especially effective in identifying wayward executives and restoring ethical business practices. Indeed, in just the past two months, whistleblowers played key roles in the prosecution of four pharmaceutical companies and the recovery of over $2 billion.

For more information about qui tam law and pharmaceutical fraud, contact Nolan and Auerbach, PA.