...Financial Laws Theodore Gladney Health Services Finance Professor: Alison Williams Financial Laws Five Elements Pertaining To the Establishment of a False Claim under the False Claims Act The five elements necessary to establish a false claim must determine that the claim was in breach of State laws. It must be proved beyond reasonable doubt that the claim was false, fraudulent or fictitious and made for a monetary benefit. The false claim is established when an individual is in possession of a property or money used by the government with the intention to defraud the government (Boese, 2005). It must also be established that the ‘false claim’ was made with actual knowledge. False certification of receipt of property without attempting to confirm the truth of the information provided is also an element that constitutes false claim. Three Broad Objectives of HIPAA Privacy Standards HIPAA privacy standards aims to achieve the following three important objectives: i) Administrative Safeguards HIPAA privacy rules designed procedures and policies regarding the administrative procedures of the act; how will the act be complied with. ii) Physical Safeguards HIPAA privacy rules were designed to control physical access to guard against inappropriate access to personal healthcare information. iii) Technical Safeguards HIPAA privacy rules control access to computer systems and facilitate enclosed entities to protect interactions involving PHI transmitted...
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...Financial Laws and Regulations DeVry University HSM 340 Professor Black Financial Laws and Regulations 1) There are five elements that pertain to the establishment of a false claim under the false claims act. The first element that is identified by Cleverley et al (2011, p.90) is that the false claim act is that the claim, either to receive payment or to not pay the government, must be established as false. The second element that Cleverley et al states is that must be identified is that the claim was submitted knowingly that it was false. The third element that they identify is that the false claim can be submitted even in deliberate ignorance. The fourth element is that the false claim can be submitted with disregard of the claims falseness, or truth in recklessness. Lastly Cleverley et al explain that the person, or persons, that file a fraudulent claim will be liable for $5,500-$10,000 per claim, plus up to three times the damages to the federal program. 2) The three broad objectives that HIPAA privacy standards were designed to accomplish are firstly to force any entity that has private health identifying information available to be forced limit use and to use that information wisely. What this means is that another medical facility, or lawyers office cannot just call/fax requesting information and require for it to be released without a signed consent form. Secondly, set specified standards as to the patients’ rights to keep their information private. An example...
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...False Claims Act The False Claims Act was established to prevent intentionally inaccurate claims against or to the government for property or money. This applies to all federal programs, although it is applied to health care most frequently due, in part, to the large dollar amounts involved1, but also to the volume of claims regarding health care made to the federal government each year. There are five elements pertaining to the establishment of a false claim under the False Claims Act; 1) a claim for property or money is made; 2) the claim is against or to a department or agency of the United States; 3) the claim was false, fictitious or fraudulent; 4) the organization, or persons representing the organization, must have known at the time that claim was false, fictitious or fraudulent; and 5) the false, fictitious or fraudulent claim was material.2 Qui Tam. When an individual (relator) brings a lawsuit against an organization claiming violation of the False Claims Act, this is considered a “qui tam” action. A relator’s knowledge, used to bring about a qui tam suit, “must not be public knowledge but information that would not otherwise be available without the qui tam suit.”1 The relator, often referred to as a “whistleblower”, receives a portion of any settlement amount dictated by the results of a qui tam suit. This incentive was established by the False Claims Act and encourages individuals to assist the government in identification of fraud.1 HIPAA Privacy Standards ...
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...The False claim act is a law that inflicts liability on an individual or company that takes advantage of governmental programs. With the False Claim Act individuals are able to recover money stolen through fraud (False Claims Overview, 2014). According to the Office of Inspector general in order to qualify for financial incentives a state’s false claim act must: • Establish liability to the state for false fraudulent claims • Contain provisions that are at least as effective in rewarding and facilitating qui tam actions for false or fraudulent claims as described in the FCA • You must contain a requirement for filling an action under seal for 60 days • Finally you must contain a civil penalty that is not less than the amount of the civil penalty (State False Claim Act Reviews, 2014). The Health Insurance Portability and Accountability Act (HIPAA) was designed to protect patient privacy. The three objectives that HIPAA was designed to accomplish are: • Determine the circumstances in which protected patient health information is used and disclosed • Establish individual rights in regards to protected information • Ensure that administrative safeguards are adopted to ensure the privacy of patient information Stark law forbids a physician from making certain referrals for certain designated health service (Physician Self Referral, 2014). Ten specific DHS services are as follows: • Clinical laboratory services • Physical Therapy services • Occupational Therapy services ...
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...Introduction 1. Network banking: System characterized by a banking system with a network of branch spread throughout country. This system of banking was developed in UK and is in operation in most of the countries of the world including Australia, Canada, India, Pakistan, and Bangladesh and so on. 2. Unit banking: Unit banking is a single banking- office banking business which is characterized by concentration of activities of a bank in a particular area and no branch operates business in its name elsewhere. In order to provide facilities to its customers in remittance and collection of funds, a unit bank resorts to corresponding banking system. 3. Group banking: Group banking refers to a system characterized by a group of banks which are bought under the control of a holding company. Under this system, each bank retains its separate entity, but all the units in the group are controlled by the holding company. 4. Chain banking: Chain banking is system where the unit banks are associated by being owned or controlled by one individual pr a group of individuals. The main weakness inherent in the system of chain banking is that there remains the possibility of mismanagement by the controlling interests. 5. Deposit banking: Deposit banking refers to a system where the banks involve only in acceptance of deposits repayable on demand and lending money to trade and industry for a short period of time not exceeding one year. This type of bank is similar to that of a commercial bank...
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...The financial service terms form is part of your Financial Service Agreement with The Toronto-Dominion Bank and its affiliates. The financial service terms document helps explain what the services are provided by the bank with detailing the use and important information about their accounts. When a person signs the financial service agreement any existing agreement between the bank and the person who signs the agreement, for any particular product or service is replaced by this new agreement. There are few exceptions in which replacements of the existing agreement are not replaced. These exceptions are “any provisions whereby you have indicated who may deal with your joint account or whether your joint account has a right of survivorship remain valid until replaced with a new joint ownership record; and all provisions dealing with the specific terms of a particular product or service, including term, interest rate, amount of investment or any other terms particular to the product or service provided to you by us, to the extent that such provisions are not contained in the Agreement, remain valid until expiry or renewal.” It is not necessary that all the services mentioned in the contract will be used by the signatory. Person can request for new services later on, and if the bank introduces any new services then the signatory will be informed. There are seven parts of the Financial Service Terms, in which it is clearly stated what the services in your agreement are. The first...
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...Master-Student Financial Assistance Agreement. Your name Your institution Date of submission. Abstract This paper discusses the master-Student Financial Assistance Agreement as a regulation for higher education activities. The paper provides a detailed description of the law and how it affects students pursuing higher education in various faculties. Besides, the paper presents an analysis and purpose of the requirement of the law. It also suggests the appropriate training institutions where the law can be effectively applied. Finally, the paper proposes the stakeholders impacted by the requirement of the law. The paper then ends with conclusion which provides a summary of the main issues raised in the paper. Keywords: Stakeholders, Financial Aid, Agreement, Institutions of Higher Education. Introduction Most students in institutions of higher learning especially full-time students spent most of their time in classes and may not have sufficient time to engage in income generating activities. However, these students need funds to meet their daily requirements which can only be achieved through financial aid programs. According to the handbook for Financial Aid Officers, the concept of financial aid started long ago where it involved the students getting assistance from a benefactor. The assistance included tuition fees and borrowing books and a room to study. Financial aid has since then developed to date where it...
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...year-end financial statements. Brief Background: Oil Company Inc Inc. operates in the oil industry and its operations sometimes result in soil contamination. Oil Company Inc Inc.'s policy is to clean up any contamination that it causes. New government regulations require Oil Company Inc Inc. to perform certain actions to be in compliance with these regulations. Issues: 1. Should Oil Company Inc Inc. record a loss provision for operations in a country in which no legislation exists related to contamination cleanup as of the financial statement date but is expected to be enacted shortly after year-end? 2. Should Oil Company Inc Inc record a loss provision related to contaminated soil in a country that has no environmental legislation? 3. Should Oil Company Inc Inc. record a loss provision for changes to the income tax system that requires it to retrain a large portion of its sales and administrative staff? 4. Should Oil Company Inc Inc. record an expense related to new legislation that requires that smoke filters be installed in its factories even though the filters are not required to be installed until six months after the financial statement date? Summary Conclusion on Issues 1. Since there is no current legislation requiring Oil Company Inc Inc. to clean up contaminated soil, a loss provision does not need to be recorded. If, however, legislation is enacted after the financial statement date but before issuance of the financial statements...
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...Week Five Article Review University of Phoenix Contemporary Business Law LAW/421 Valentine Castillo April 29, 2013 University of Phoenix Material Article Review Format Guide MEMORANDUM UNIVERSITY OF PHOENIX DATE: April 29, 2013 TO: Valentine Castillo FROM: RE: Sarbanes-Oxley Act: Was the ‘one-size-fits-all’ approach justified? Nogler, G., & Inwon, J. (2011, May/June). Sarbanes-Oxley Act: Was the ’one-size-fits-all’ approach justified? Journal of Corporate Accounting & Finance (Wiley), 22(4), 65-76. http://dx.doi.org/10.1002/jcaf.20691 ARTICLE SYNOPSIS The article discusses whether the Sarbanes-Oxley Act and the subsequence laws were the correct solution for the problems that arose from the Enron and WorldCom bankruptcies. The article illustrates how the different rules and legislature affect different size business, and the ramifications that resulted for companies that must follow the Sarbanes-Oxley Act. The authors of the article also conducted a study on whether or not fraud of the financial statements was in direct correlation of businesses filing bankruptcy (Nogler & Inwon, 2011, p. 68) like in the cases of Enron and WorldCom. The results found that the larger the company that filed bankruptcy the more likely that securities fraud litigation and general overstatement of the revenue and assets of the company occurred (Nogler & Inwon, 2011). LEGAL ISSUE Legal issues were rampant in the article...
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...type) | Key Economic Influences | Key Government (Regulatory) Influences | Key Legal (Law and Litigation) Influences | Riordan Manufacturing | Manufacturing | Gross National Product (GNP) or Gross Domestic Product (GDP) growth rateInventory levels | Export restrictions Import tariffs and quotasPolitical stability | Worker safety laws (OSHA)Union regulationsMinimum wage laws | Huffman Trucking | Transportation and logistics | Gross National Product (GNP) or Gross Domestic Product (GDP) growth rate | Regulation | Union regulationsLocal laws & licensesWorker safety laws (OSHA) | Kudler Fine Foods | Food and Beverage | Unemployment rate Consumer confidence | Import tariffs and quotas | Minimum wage laws Consumer protection laws Worker safety laws (OSHA) | McBride Financial Services | Financial Services | Interest ratesMonetary policies Balance of payments | Income tax rates | Consumer protection laws Minimum wage laws Local laws & licenses | The Elias Group | Defense and Aerospace | Consumer confidence Monetary policiesGross National Product (GNP) or Gross Domestic Product (GDP) growth rate | Government debt | Consumer protection laws Minimum wage laws | Smith Systems Consulting | Consumer Goods and Services | Gross National Product (GNP) or Gross Domestic Product (GDP) growth rate Consumer confidence. | Regulation | Minimum wage laws Local laws & licenses | Sparrow, Johnson, &...
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...wrongful termination. The theoretical philosophy laissez-faire provided the support for this legal rule. Employment at will is a legal doctrine that gives employers the freedom to terminate employees “for a good reason, a bad reason, or no reason at all.” This statute was developed in the 1800s and promotes the idea that employers have the right to dispose of what they own including their labor. An amendment to this law came in 1935 at a time when many Americans were fighting for labor unions and the right to organize. The U.S. Supreme Court ruled that employers cannot use employment-at-will to terminate an employee as an attempt to prevent the employee from organizing. In the 1960s, the Civil right act prevented employers from using the law to fire someone based on race, national origin, color, religion, sex, age, or disability. Later, statues were enacted that prevented firing for reporting safety violations. In 2002 after several financial scandals made headlines, Congress passed laws that included provisions to protect workers that report financial fraud. Many companies issue cell phones to their employees to conduct business. This is considered company property because the cell phones is purchased by the company. Also, if the company issues a smart phone like a BlackBerry, a data plan is purchased and the company owns the data stored on the device. The courts have found that unless assurance has been made by management that information such as emails would not...
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...completely oblivious to the legal and decisions faced by managers. There are however, some legal and ethical decisions that are quite common and can be readily identified or recognized by the public’s eye as a result of mass media or common knowledge. Among the recognizable ethical issues are bribery, discrimination, deceptions, falsifying financial documents, and violation of worker’s rights. First, when it comes to bribery, the ethical issue often occurs in global business due to the undefined lines of business overseas. Companies are bound by the Foreign Corruptions Practices Act (FCPA)that defines lines for global business however not all global businesses practices such high levels of ethics as the United States and influence and bribery, sometimes named gifting or courtesy, may be hard to identify outside of the United States. The FCPA website identifies “Financial institutions [as] the most impacted group under the legislation as they are required to meet stringent requirements relating to the use of the global financial system by criminals (www.fcpa.gov, 2012), however the guidelines are definitively identified in the FCPA law. For government contractors with foreign interest, companies are required to identify themselves to the government for oversight purposes. Second is the issue of discrimination. As...
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...investors. (National Public Radio, 2005) This means that there is a law now that tells the organizations that they cannot falsify the reporting of financial records. It holds the CEO accountable and makes them sign off on the reports which gets them involved with where and how they come up with their numbers. They understand the processes and how the company reports the numbers. Companies are taking the law very seriously and are invest millions of dollars in compliance because the alternative would be much more severe, such as very high fines and or imprisonment. The law is acting as a deterrent to avoid and wrong conduct in these reporting methods. One issue is that globally the competing companies do not have to adhere to these laws so it makes it a little harder to compete. But when the foreign companies come to the states they all have to abide by the same rules. It helps tell the real story when it comes to mergers. I actually have experience with this issue before it became law and saw my CEO lose his shirt. We were a small consulting firm that was purchased by a larger company. My CEO was given stock options for the merger and two months after the merger it was discovered that the company was falsifying the financial reports and the stock plummeted my CEO last everything. Along with the employees that received stock options. I believe that the Enron case and other like it are the reasons that these laws have come to be. “On November 1, 1991, the United States Sentencing...
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...Compliance Plan - Riordan Jennifer Stucky Law 531 - Business Law August 20, 2010 Professor Musafia Compliance Plan – Riordan International Law Riordan currently has a joint venture with a small consortium of Chinese nationals in China. The joint venture project produces plastic fan parts in Hangzhou, China. Riordan shall meet all fiduciary duties of loyalty and care in this joint venture as it is liable for damages for any breaches caused. Riordan shall adhere to the regulatory laws of China regarding how the operations in Hangzhou are run. Riordan shall ensure compliance in this area by establishing within their contract with the Chinese joint venture partners the responsibility to interface with local vendors, governments, and regulatory agencies. Riordan shall ensure compliance with all bilateral treaties with the United States and China or other countries they have customers with. These treaties are equivalent to international legislation. Riordan shall ensure compliance with these treaties by checking with the United Nations for all registered and published treaties and will update their policies within 30 days. Riordan shall comply with the United Convention on Contracts for International Sale of Goods (CISG) with its customers in Japan, China, Italy, Taiwan, Germany, Canada, United Kingdom, Brazil, India, Thailand, and Russia. The CISG establishes the rules governing the formation, performance and enforcement of the international sales contracts...
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...Treasurer and Chief Financial Officer Phillip R. Luhmann. According to Kilbride (2003, p.1), “in 1988, 1990, and 1992, the Board Adopted Resolutions authorizing its treasurer to invest City Colleges’ funds only in instruments permitted by the Public Funs Investment Act (Investment Act) (30ILCS 235/1 et seq, (West 2002).” It further implies that “the resolutions provided that the funds should be invested only in securities guaranteed as to payment of principal and interest by the full faith and credit of the United States of America.” (Kilbride, 2003) Before funds were needed, the securities were required to mature to minimize interest risk rating. Despite these rules, Mr. Luhmann invested funds in unauthorized securities. He continuously proceeded with these investments known as “pairing off”.” (Kilbride, 2003) In other words, he purchased a security and sold it as profit before payment was required. From 1991 until 1993, Mr. Luhmann invested funds, violating regulations of the Investment Act. From 1991 until 1992, Arthur Andersen’s accounting firm audited City Colleges’ financial statements. Coopers & Lybrand’s accounting firm audited City Colleges’financial statements in 1993. In 1994, Ron Gidwitz, Board Chairman, learned that Mr. Luhmann violated investment regulations and declared a financial emergency and proceeded to file a lawsuit against Coopers & Lybrand L.L.P. Andersen’s firm reviewed the financial statements during...
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