Michael Loucks And Pharma Fraud: What Next?
10 CommentsBy Ed Silverman // December 3rd, 2009 // 10:32 am
By now, you probably have heard that Michael Loucks is leaving the US Attorney’s office in Boston, where he spent nearly 25 years and was the most visible and arguably influential prosecutor of health care fraud, especially fraud involving drugmakers.
During his tenure, the Boston office prosecuted several of the largest drugmakers, including TAP Pharmaceuticals, Schering-Plough, Sanofi-Aventis, GlaxoSmithKline and, most recently, Pfizer, which paid a record-setting $2.3 billion fine. Among these were some landmark cases that have since set a tone for government prosecution of off-label marketing (here’s the laundry list).
So what next for Loucks? And will the team he leaves behind retain a zeal for pursuing pharma wrongdoing? The In Vivo Blog speculates that prosecution of health care fraud may have crested, given that the focus of his successor, Carmen Ortiz, has been economic fraud. However, a spokesman for Taxpayers Against Fraud, a non-profit funded by attorneys who file whistleblower lawsuits, thinks the pace of prosecutions will continue unabated. We briefly spoke with Loucks…
Pharmalot: So what next? And why leave now?
Loucks: I don’t know. I’ve been in the US Attorney’s office for 24-1/2 years and had the opportunity to be the Assistant US Attorney for 4-1/2 years and the Acting US Attorney for seven months. But I’m a need-a-mountain-to-climb kind of person. I’m 54 years old and it’s time to do something else. Even though it’s a crummy economy. But nobody asked me to leave or forced me to leave. The president picked somebody else to be the US Attorney…But it’s the first time in 30 years I haven’t felt any stress. I felt it leaving my body the day I made the announcement.
Pharmalot: So what will you look for? Are you talking with anyone now?
Loucks: I very much enjoyed work in the health care area. But one of the difficulties when you’re the US Attorney and a First Assistant is that it’s hard to look for a job while running the office The minute you talk to a law firm, you have to recuse yourself from anything the law firm is working on. I’m not sure what I’m going to do. Going to work at a law firm is an option, in some respects, it’s a very appealing option.
Pharmalot: How long must you wait before you’re prevented from taking a certain job or clients? And would you consider representing drugmakers?
Loucks: There’s a one-year prohibition on handling cases that are before the US Attorney’s office….And I don’t know. I’ll cross that bridge when I come to and I don’t know if I’ll come to it. I know some very good prosecutors who went on to defend those they prosecuted…I dont’ know that there’s a philosophical issue there.
Pharmalot: Do you anticipate the office will shift its emphasis going forward?
Loucks: Well, look, the US Attorney’s Office in Boston recovered $6.8 or $6.9 billion from 1991 to 2009. That’s 30 percent of the nationwide total of all offices across the country and most of it was from drug companies. I think the emphasis of the office on health care prosecution will continue. You have some good lawyers there - Susan Winkler, Jeremy Sternberg and Sara Bloom.
The thing I worry about is the complete lack of funding given to health care across the country. Prosecuting offices have been getting $30 million for health care positions for the last eight years and it’s not gone up a penny. It’s completely flat budgeted – not enough to cover cost of living allowances for the laywers. We’ve recovered $6.8 billion and the government doesn’t have enough to cover the cost of living for the lawyers.
Pharmalot: Okay, but do you think Ortiz will shift the emphasis?
Loucks: I would say you have to ask her that question.
harpy
oh my.
Peter
It would be truly depressing if he went to work defending pharma companies, but that is probably where the money is.
doc
Lets hope in the Boston office they continue to watch drug companies, it is clear that the companies need watching - long term. They do not police themselves well.
Justice in MI
Good interview, Ed. Great you could do it.
ML says: “I know some very good prosecutors who went on to defend those they prosecuted…I dont’ know that there’s a philosophical issue there.”
Without prejudging what the “right answer” is, if there is not a “philosophical issue there,” there are not philosophical issues anywhere.
harpy
I thought the same thing, JiM.
Also, is he using “philosophical” as a euphemism for “ethical”?
Justice in MI
Hi Harpy,
Consciously or not (probably not), my hunch would be that ML used “philosophical” in order _not_ to use the word “ethical.”
In other words, to keep even the framing of the question as morally uncommitted as possible.
harry
loucks will join pfizer next year in time to join the compliance certification class 101, the end result of loucks investigations. but they will take a moment to celebrate the fact that this company and others have gotten off with the worst crime against the american people in the history of the US.
Carl Drumgoole,
I have more of an request then a comment. I am a retired NonCommissioned Officer, with more then twenty years of service. Who has for the two and half years been taxed with the responsibility of caring for my father. Which brings me to my request. Which is to ask Counselor: Mr. Michael Loucks, if he would be predispose to assisting a veteran, in a case involving a class action settlement in which the Pharmaceutical company: Merck was fined 4.85 Billion to settle all outstanding claims made by claimants that were injured or worse died as a result of being prescribe and using the drug Vioxx. I know you my be wondering what’s the issue! Well’ if you or someone that you know that might be interested in champion this veterans plight. POC: carl.lee.drumgoole@us.army.mil. And thank you for your service.
Carl Drumgoole,
Please go to http://www.topix.com/Vioxx. CLICK-ON News and Polls, see: Merck to fund Vioxx settlement in August.
WB HELL
Well now we know how Loucks really feels, screw the whistleblowers and defend Big pharma.
A 2 million dollar cap huh? What is your cap now Loucks in private practice ? Now that you are out of the DOJ you want to screw the very people that made you who you THINK you are.
Hypocrite Loucks should be indicted for his comments, they are so absurd. Whistleblowers everwhere that made you infamous now want to puke….preferably right in your face.