FOR IMMEDIATE RELEASE                                         DAG
THURSDAY, MAY 25, 1995                             (202) 616-2765
                                               TDD (202) 514-1888

                                 
               DOJ, FTC FILE SUITS ALLEGING HEALTH
               CARE FRAUD AGAINST THREE COMPANIES 


     WASHINGTON, D.C. -- The Department of Justice and the
Federal Trade Commission (FTC), in a coordinated attack on 
telemarketing health care fraud schemes, announced today that
charges have been filed accusing several companies in Ohio and
South Carolina with deceptive practices in selling medical
equipment.
     Gerald Stern, Special Counsel for Health Care Fraud, said
the U.S. Attorney's office in Columbus, Ohio, filed a civil
complaint in U.S. District Court in Columbus seeking damages
against two companies under the False Claims Act.
     At the same time, the FTC, drawing on its experience in
telemarketing fraud, filed suit in federal courts in Columbus,
Ohio, and Charleston, South Carolina, to stop the defendants from
fraudulently marketing the equipment.  The FTC obtained temporary
restraining orders against the companies.  The United States
Attorney's office in South Carolina also cooperated in this
effort.   
     Special Counsel Stern praised other agencies which were
critical in this campaign, including the Defense Criminal
Investigative Service, the Federal Bureau of Investigation, the
South Carolina Attorney General's Office and the Florida Office
of the State Comptroller.  Investigations are ongoing.
     "This unprecedented joint action capitalizes
on the talents and resources of the Department of Justice, the
U.S. Attorneys' offices and the FTC to stop the fraud in its
tracks, punish the wrongdoers and recover monies," Stern said. 
"In the end, the beneficiary of this exceptional cooperation
among agencies will be the American health consumer."
     Attached are news releases announcing both filings.
                              #####
95-292