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Pharmaceutical Fraud - 17 Jun 2013

Pharmaceutical fraud involves activities that result in false claims to insurers or programs such as Medicare in the United States or equivalent state programs for financial gain to a pharmaceutical company.  There are several different schemes used to defraud the health care system which are particular to the pharmaceutical industry and these include Good Manufacturing Practice (GMP) Violations, Off Label Marketing, etc.  The Federal Bureau of Investigation (FBI) estimates that health care fraud costs American taxpayers $60 billion a year.

GMP violations:  Involve fraud with the Good Manufacturing Practice (GMP) Regulations which require manufacturers to have adequately equipped manufacturing facilities, adequately trained personnel, stringent control over the manufacturing process, appropriate laboratory controls, complete and accurate records, reports, appropriate finished product examination, and so on.  Certain violations of the Good Manufacturing Practice Regulations may be the basis for a False Claims Act lawsuit.  The link below shows examples of the consequences of non-compliant activities such as data fraud in R&D and manufacturing.



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