Posted by
alfredlester on Saturday, June 04, 2011 7:18:36 PM
Michael K. Loucks WAS arguably the Nation&&9;s most influential prosecutor of Health Care Fraud.
He racked up Numerous convictions and settlements in mega-Nearly a quarter-century, using whistle-blowers and secret grand juries to pressure major pharmaceutical companies and Health Into ending practices like illegal kickbacks to doctors and Misuse of blockbuster drugs.
Once Described as a cross Between a firebrand preacher and a charismatic Litigator, Mr. Loucks has burnished reputation aptly Captured in a Fortune magazine headline: "Why Do Drug Companies Fear This Man? Maybe Because He&&9;s Declared all-out war on drug cheats In The Industry. "
But a year ago and a half, Mr. Loucks, a Republican, left The United States attorney&&9;s office in Boston after He Was Passed over for the top post and President Obama has Appointed Democrat. Instead, Mr.Loucks joined Skadden, Arps last July, has startled and form allies in recent months by Emerging as a zealous defender as corporate He Was a prosecutor, Complete with more lenient Proposals Seeking Treatment for companies he vilified oz.
In a six-page memo to clients last month in history Portfolio, Which May include Some Of The Same very corporations he prosecuted Repeatedly, Mr. Loucks bemoaned He Had Embraced strategies.
"The Government and the whistle-blower Have an advantage," he wrote, Complaining That Were Federal investigators now using The Law unfairly. "While Prosecutors assert Often The Company has Engaged in &&9;serious&&9; misconduct, They Keep the company in the dark, Often for Years, To The Specific allegations have."
Those Who Have Known HIM are quick to recall His crowning achievement That Was a $ 2.3 trillion Settlement Against Pfizer That capped a four-year secret investigation.
"We&&9;re all disappointed That he&&9;s gone over to the dark side it Seemed That Because He Was a good prosecutor," Said Shelley R. Slade, a whistle-blowers&&9; lawyer in Washington and a train senior counsel for health care fraud At The Justice Department.
"I Looked upon It With sadness," Patrick Burns, Spokesman for the whistle-blower advocacy group Taxpayers Against Fraud, Said of Mr. Loucks&&9; exchange. "He&&9;s a good and honorable person. He did "great work in the Boston office. He&&9;s a good lawyer. It&&9;s just too bad. "
Federal ethics rules prohibée Mr. Loucks from "any Dealing with the United States attorney&&9;s office in Boston for a year after His resignation, and he Can Never Be Involved in boxes he POURSUITES directly.He aim is Not Barred from Representing clients he is prosecuted oz Other matters, and His law firm&&9;s roster includes The Biggest sacrifice part of companies he POURSUITES ounces, Including Pfizer, Merck, Schering-Plough, Bristol-Myers Squibb, and Medtronic.
He forbid His newfound friendship With Foes form, and notes he&&9;s "still That wearing cowboy boots native to Oklahoma history childhood Even though he&&9;s now working in the white-collar division of Prestigious law firm has.
"While everyone calls it &&9;The Other Side,&&9; I&&9;m doing The Same Thing I&&9;ve Always Done, Which Is Representing my clients zealously," he said.
And while he Used to Call Some of Those people&&9;s actions "evil," today he Argues That drug and medical device companies are complying in Making Strides With federal billing, fraud and kickback Laws. "They make products That Have Huge Benefits to a number of celebrities," he said.Skadden, a 2,000-lawyer firm, has made SEVERAL recent hires in Years to amplify ITS Health Care practice.
In interviews and a Lengthy e-mail exchange, Mr infrared heater. Loucks Said His views are the whistle-blower law HAD Evolved.
The False Claims Act, icts With triple damages, has been "The Government&&9;s Most Powerful Weapon Against Health Care Fraud sincere Congress in 1986 The Reward Increased for whistle-blowers. Since Then, Taxpayers Have Recovered year Estimated $ 28 one billion from drug and medical companies.
As a federal prosecutor in Boston, Mr. Loucks Created a Health Care Fraud Unit and Used The Law, as well as "The Tools of secrecy and surprise, to reap major awards. The unit&&9;s victories are renowned, starting with an $ 875 million payment in 2001 by TAP Pharmaceuticals. Whistle-blowers shared $ 95 million&&9;m his box, alerting and Companies Involved Information to the stakes.
For Years, Mr.Loucks has Argueda That whistle-blowers are Paid far too much in health care fraud cases - up to 30 percent bounties, totaling $ 650 million in just The Last Two Years, he said. These People Would blow the whistle for Much less money, he Argueda Both Inside the prosecutor&&9;s office and more Recently in a paper titled "The Great American Giveaway." While That hostility Toward What he CONSIDERS The greed of Some whistle-blowers Is Old News, Mr. Loucks&&9; Views on Their unsealing Complaints are new.
In His May 12 memo to clients, Mr. Loucks Some companies urged to press judges to unseal Complaints more quickly. That way, he says, They Can Learn The Scope of Complaints soon, Witnesses Identify and fight back harder.
"If Mike WAS Still With The Justice Department, he could" Give You 10 Reasons Why This is a bad idea, "Said Suzanne E. Durrell, a whistle-blowers&&9; lawyer in Boston Who WORKED With Mr.Loucks for a decade When She Was Of The civil division chief for The United States Attorney in Massachusetts.
Mr. Loucks says more Openness Would let companies clean up acts Their Own, Even If It Meant adverse publicity.
He points to new statistics he says That support historical argument. The Justice Department Reported to Congress That 885 boxes Involving False Claims Act Health Care Fraud Under seal pending Were At The Beginning of this year, only about 200 With Prosecutors to juggle &&9;em. One average, a sealed box for WAS More than a year, and Some Much Longer.
"That&&9;s The Government Does not Have adequate resources to handle The boxes Is Not A Good Cause to Keep Them Under Seal," Mr. Loucks Said In An Interview, Comparing it to a sports game WHERE IS Allowed only one team to try to score . In These boxes, That Would Be His training team now.
"I Knew What I Was Doing it Behalf de fait," he said."I do not know if lawyers are The Other Side Felt They Were Not Able to adequately Represent Their customers while WAS The Case Under Seal."
Nicholas C. Theodorou, chairman of Foley Hoag&&9;s Business Crimes Defense Group in Boston, Said Mr. Loucks argument made sense from a corporate defense Standpoint, and Would Possibly Sit Well with Some Federal Judges Who Have Questioned Why Remain Under Seal boxes so long.
For His part, Mr. Loucks has uses baseball to explain historical reference switching sides. Johnny Damon left His beloved Boston Red Sox in late 2005 to sign with "the evil empire, the New York Yankees," Mr. Loucks said. Both teams won World Series With help from Mr. Damon.
Asked whether the "evil empire" analogy made The Justice Department or Skadden, Mr.Loucks Said, "One man&&9;s evil empire Is Another&&9;s home team."
Drug Makers&&9; Once-Feared Foe Switches Sides, as Their Lawyer