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John F. Murphy received his undergraduate degree from Dartmouth College and his LLB from Boston College Law School. After practicing as a partner in one of the largest law firms in the state of Connecticut, Attorney Murphy opened his own law office in 1996, concentrating on False Claims Act litigation and civil trial practice. He is admitted to practice in the District Courts of the state of Connecticut, and when the False Claims matter involves a lawsuit outside the state, Mr. Murphy obtains what is known as a pro hac vice admission in that state, to practice, for the one case, in the United States District Court where the fraud took place. Mr. Murphy is past President of the Federal Bar Association of Hartford County, Founder and first President of the Connecticut Defense Lawyers Association, and he was appointed Chairman of the Defense Research Institute in Connecticut. He served as the Northeast Representative from the New England states to the Defense Research Institute. He is a former member of the Association of Trial Lawyers of America and the Connecticut Trial Lawyers Association. Mr. Murphy’s publications include "Errors in the Charge" in Litigation, The Journal of the Section of Litigation of the American Bar Association, Vol.14 No.3 Spring 1988; Edited revision, Chapter 13, "Powers of the Trial Judge Regarding Conduct of the Trial" of The Federal Evidence Practice Guide. 1990. Attorney Murphy served on active duty in the United States Marine Corps and achieved the rank of Captain. He is fluent in Spanish and French. Recent False Claims ExperienceMr. Murphy brought an action in Connecticut against Raytel Corporation for Medicare fraud. Raytel sells devices and services patients who have pacemakers implanted in their chests. Periodically, when a heart physician orders the test of the pacemaker, the patient uses the Raytel monitoring device to connect by telephone with Raytel. The Raytel employee then performs three thirty second tests of the pacemaker while she views the patient’s heartbeat on a computer screen. From what the employee views on the screen, he or she can tell the patient and the physician whether the pacemaker is functioning properly. Raytel was being paid approximately $45.00 per test by the Government
and was performing approximately 100,000 tests per year when the whistleblower
came to see Mr. Murphy. The man reported that his supervisor was using
phony printouts in a scheme to bill Medicare for the testing of actual
patients who had postponed or cancelled their appointments. The whistleblower
was fired by his supervisor when he refused to participate in this scheme.
The whistleblower also disclosed to Mr. Murphy that Raytel, after giving
bonuses to employees based on the number of tests they performed, had
ordered its employees to eliminate thirty seconds of the ninety second
test, so that the test would last a minute rather than a minute and a
half. This fraudulent act was geared to increasing the number of tests
that could be performed, and therefore billed, to Medicare. Following a meeting with the Medicare fraud investigators and officials from the Department of Justice, the United States Attorney advised Mr. Murphy and his client that, yes indeed, the “grapevine” was correct - the Government on the following Monday was prepared to get guilty pleas from Raytel, and, further, the Government was in the process of collecting $11.5 million from Raytel in fines and penalties for fraud that was based on the information provided by the relator. But because the qui tam lawsuit had been filed, the United States could not close the matter. The U.S. Attorney asked how much it would take to obtain a release from the relator. The whistleblower was rewarded - as the False Claims original source – with a payment of $1.62 million dollars. In Corpus Christi, Texas, Mr. Murphy sued Boeing/McDonnel Douglas in a False Claims action alleging fraud in the purchase of spare parts for the United States Navy training aircraft at the Naval Air Station in Kingsville, Texas. The two whistleblowers were retired Navy personnel – one a former lieutenant and the other a Warrant Officer - and as inventory and supply specialists, they both witnessed how Boeing was overstocking inventory and replacement parts with lead times of often two or three years. Both whistleblowers saw that, by the time the unnecessary parts were shipped from England (which manufactured the training aircraft), not only were an excessive number of parts being paid for, but the replacement parts themselves were very often obsolete. Still, the Navy continued to make what the relator claimed were overpayments to Boeing. When they challenged the over billing practices by Boeing, both men, in spite of impeccable performance records, were fired. The United States Attorney in Houston met with the Relators and counsel, and after what the United States said was an in depth investigation, the Government decided not to intervene. It is Mr. Murphy’s belief that the United States viewed the case more as an accounting problem - a bookkeeping problem - rather than as a fraud case. Not seeing any possibilities of filing criminal charges, the Government was not interested. Because the matter was begun initially by counsel in Corpus Christi who was representing both whistleblowers in a wrongful termination claim in the state courts, the action was settled for a rather disappointing marginal amount. Mr. Murphy brought a qui tam action against Goodyear Tire and Rubber Company in the U.S District Court in Akron, Ohio after he was hired by a man who had been working at a factory in Topeka, Kansas on curing tires for Humvees and two and a half ton trucks for the Army. The whistleblower noticed defects in the tires after they were cured, and he kept telling his supervisors that the tires should not be repaired, they should be scrapped. The man was fired by Goodyear after telling his supervisors, and then the Inspector General for the Army, that the tires were defective. The United States did not intervene after its investigation determined that the contract with Goodyear and the U.S. Army actually allowed Goodyear to repair tires that were defective when they were cured. Having concluded (from their perspective) that this portion of the plaintiff’s allegations were without foundation, the United States Government had no interest in intervening in the case. The action was begun before 9/11 and before the war in Iraq, and an initial problem with the case had to do with proving that the tires were defective. In other words, the whistleblower who was working on the tire assembly line saw that the tires were defective. But there were no specific tires he could point to; a physical inspection of which he felt would demonstrate that the tires were defectively manufactured. In fact, the Judge in the District Court in Cleveland, where the case was transferred, said the same thing – “If there isn’t any proof of field failures – proof that the tires you claim were defective actually were defective – there isn’t any case.” At a deposition that was taken in Warren, Michigan, the headquarters of TACOM, the Tank and Armored Command division, which is the government facility in charge of purchasing tires for the Army, Mr. Murphy learned that all tires, in every theater of operation, but particularly in Iraq, were being replaced at an unusually high rate, and he also discovered that the Army through TACOM had recently signed a contract with an independent automotive testing facility in order to determine why there was such a high tire replacement. Under the terms of the contract, Mr. Murphy discovered that, in October of 2003, a team from the Nevada Automotive Testing Center and Hodges, Inc., was being trained to be sent to Kuwait before the end of the year to determine the causes of the failed tires. The judge in Cleveland agreed to wait for the results from Hodges, Inc., the company that owned and operated the Nevada Automotive Testing Center. Mr. Murphy wrote to Hodges and asked if the inspection and examination of the failed tires would include scientific testing that would determine whether any of the failures were caused by defects when they were manufactured. The United States Attorney, who was copied in on the letter, admonished Mr. Murphy for having written to Hodges. Mr. Murphy was told that he should limit any contact with officials of the United States, or their agents, or any persons under contract with the United States. Because of a hope that sometime in the future he would be seeking the cooperation of the United States Attorney, Mr. Murphy did not wish to have the United States Attorney as an adversary, and so he did not respond to the letter, and made no further contact with Hodges or with any other Government agent or agency. Mr. Murphy never did get an answer to the question he posed to Hodges – whether the testing was comprehensive enough so that the tests would determine once and for all whether there were failures caused by the way the tires were manufactured. In the Spring of 2004, the Assistant U.S. Attorney advised the Court that the Hodges report on the examination of failed tires now involved National Security, so that the full details of the report could not be provided. The U.S. Attorney provided a summary of the report during the summer of 2004. The TACOM employee monitoring the results of the examinations of the tires, stated in an affidavit, that Hodges had made a visual inspection of some 7,000 tires that had failed, and then made a “more detailed examination” of some 500 of these tires. The Army employee advised the Court that as far as the investigators could tell, there were no tire defects that resulted from the manufacturing process. Mr. Murphy never learned the nature and extent of the testing – what the testing included, whether there were X-rays of the treads in the tires, whether the tires were cut open, or anything else that might give substantial weight to the report. After the affidavit was filed, the lawyers for Goodyear submitted a motion for summary judgment, and the United States Attorney’s office agreed with Goodyear. The Court then granted summary judgment. The case was doomed when, in its brief, Goodyear took as an “admission” the fact that an agent of the United States – the person from the Army who had signed the affidavit – admitted that there were no defects in the manufacture of the tires. Mr. Murphy brought a False Claims action against Melrose-Wakefield Hospital for Medicare fraud in the U.S. District Court in Boston after being contacted by a respiratory therapist who was blowing the whistle on overcharging, on tests being performed without medical necessity, on Arterial Blood Gas Testing with defective equipment, on the “bundling” of charges to Medicare, on “upcoding” in diagnosis for a higher reimbursement rate, and on a host of additional practices that Mr. Murphy alleged had produced undeserved payments from the Government to Melrose-Wakefield. The Respiratory Therapist claimed he was fired for repeatedly bringing the neglect and the fraud to the attention of his superiors and to HCFA. The Government made a decision not to intervene in this action. Prior to retaining Mr. Murphy, the Relator had commenced an unlawful discharge action under the rubric False Claims Action with another attorney, where only the unlawful termination was being alleged in an attempt to get federal jurisdiction. The case was assigned to the same Judge who dismissed the earlier action. And after one dismissal and two appeals, all the way up to the U.S. Supreme Court, the case was regrettably closed with no recovery. Mr. Murphy represented the whistleblower in a qui tam lawsuit against Balfour-Beatty and others. What follows is the press release from the Department of Justice: FOREIGN & U.S. FIRMS TO PAY GOVERNMENT NEARLY $25 MILLION FOR INFLATING CLAIMS MADE TO AMTRAK WASHINGTON, D.C. – A joint venture of engineering and construction companies has agreed to pay the United States $24.75 million to settle allegations that the firms violated the False Claims Act, the Justice Department announced today. The government asserts the companies violated the False Claims Act by knowingly submitting inflated claims on Amtrak’s project to electrify the rail corridor between New Haven and Boston. Balfour Beatty Construction; Massachusetts Electric Construction Company; their joint Venture BBC-MEC; J. F. White Contracting Company; and Northeast Corridor Foundations, a joint venture between J.F. White and BBC-MEC, are alleged to have overcharged Amtrak for the installation of an overhead system used to deliver electricity to locomotives. The allegations are that the parties inflated claims regarding the foundations for the poles, the electrical power system, and for delay and disruption of the overall project. The overcharges were paid with grant funds provided to Amtrak by the federal government. “This settlement sends a clear message that the Justice Department will investigate and resolve financial fraud perpetrated by contractors of federal grantees,” said Peter Keisler, Assistant Attorney General for the Civil Division. BBC-MEC was the prime contractor on the project and J.F. White was a partner in the subcontractor whose responsibility was to install the foundations for the poles. BBC is a subsidiary of London-based Balfour Beatty PLC, and MEC is a subsidiary of Peter Keiwit & Sons, Inc. BBC’s primary U.S. office is in Atlanta. MEC and J.F. White are based in Boston. "The whistleblower provision of the False Claim Act offers a powerful financial incentive," said U.S. Attorney Kevin J. O'Connor of the District of Connecticut. "Individuals with knowledge of fraud against the government are encouraged to contact the U.S. Attorney's Office." This case was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Ian Cartwright, a former Balfour Beatty employee. As a result of the settlement, Cartwright will receive $3,898,125 of the total recovery. Under the whistleblower provisions of the False Claims Act, private parties can file an action on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. The settlement resulted after a lengthy investigation by the Justice Department made in conjunction with the Federal Bureau of Investigation and Amtrak’s Office of Inspector General. The case is entitled U.S. ex rel. Cartwright
v. Balfour Beatty, et al., Civil No.
3:99CV02585 (JCH) (D. CT.). One additional recent case involves a health care provider. The matter is presently under seal, and Mr. Murphy therefore is prohibited from mentioning the factual pattern in any detail. In this Medicare fraud claim, the U.S. Attorney has obtained a partial lifting of the seal in order to approach the health care provider with discussions of the possibilities of a settlement. Attorney’s Fees and ExpensesEvery fee agreement and expense proposal is in writing and explains all the charges in detail. Because most relators (whistleblowers) cannot afford to pay hourly fees as they are incurred, it is John Murphy's practice to accept cases on a contingent fee basis. He is paid only if there is an actual financial recovery, with the fee being a one third contingent fee on any total recovery that is awarded to the relator. Expenses are paid by the client at the close of the case regardless of the outcome. Confidentiality; Communications; Attorney Client Privilege
A Word About John F. Murphy as a Trial Lawyer John F. Murphy has negotiated and settled more than one thousand cases through his years of courtroom experience as a trial attorney. He offers a unique blend of legal competence and negotiating expertise, the highest rating from fellow attorneys, diligent, thorough preparation, as well as compassion and understanding. Prior to concentrating his focus on the False Claims Act, he tried cases in both the state and federal court system involving franchise agreements, death actions, covenants not to compete, products liability claims and a broad range running from corporate to personal injury litigation. He has courtroom experience involving the proceeds of a life insurance policy and the interpretation of the presumption of death of a missing person after a seven year disappearance. He has been involved in all phases of the claims procedure - from arbitration proceedings of underinsured motorist claims to jury trials involving simple assault, brain stem injury and wrongful death. He has defended a man accused of arson murder. He has tried cases involving attempted murder and simple assault. He recovered a quarter million dollars for a woman who was sexually involved with the father of her best friend when she was thirteen years old.
Because of his broad range of experience, Mr. Murphy has a great deal of insight in evaluating the ranges of recovery in all civil actions involving False Claims. Because he has practiced in all courts of the state and throughout the federal system of the United States, he is uniquely positioned to give clients what they need, deserve and expect. Contact John F. Murphy if you believe you have a False Claims case. |
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