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