The $6 Million Dollar Scam – Company Pays for Falsified Asbestos Report

The Center for Asbestos Related Disease (CARD), a clinic in Libby, Montana recently found itself in the middle of a federal case claiming 337 separate false claims. BNSF Railway alleged that the clinic filed claims of asbestos-related diseases that allowed patients to be eligible for Medicare and other benefits.

“The decision to pursue this litigation was not taken lightly,” a BNSF spokesperson said in the beginning stages of the case. “BNSF found very concerning allegations of fraud related to work at the Center for Asbestos Related Disease, Inc.”

The case was heard in court in June of this year, resulting in a seven-person jury agreeing with BNSF Railway in its claim that the clinic violated the federal False Claims Act (FCA). U.S. District Judge Dana Christensen ruled in favor of stiff penalties that he said he hoped would prevent future misconduct.

Especially tragic in this case, CARD was established in Libby to treat and assist residents who lived or are living in one of the nation’s deadliest polluted sites. The clinic is funded by the federal government and has been at the forefront of the medical response to deadly pollution from nearby mining with staff members including scientists, researchers, and medical professionals.

Libby was impacted by a railyard in town operated by BNSF. The railyard transported asbestos-tainted vermiculite from the nearby W.R. Grace Co. mine. The result was hundreds of deaths and thousands of illnesses in the Libby area due to exposure from the hazardous asbestos dust. The town and surrounding communities were declared a Superfund site over twenty years ago, after media reports of mine workers and their families becoming ill and dying due to the hazardous asbestos dust.

“The focus of this trial was on CARD’s treatment of the hundreds of people who were not sick. It’s a sad chapter in this saga that this trial was necessary to restore the focus on those who are truly impacted and who should continue to have access to the benefits and care they deserve,” said railway spokesperson Lena Kent. She believes that the actions of CARD wasted taxpayer funds and diverted resources from those who legitimately needed the assistance.

The judgment against CARD comes with a steep price. District Judge Christensen ruled that the clinic must pay the government almost $6 million in penalties and damages. Per the law, the judge the tripled the $1.1 million in damages found by the jury, to almost $3.3 million. Another $2.6 million was tacked on in additional penalties.

BNSF, which first filed the suit in 2019, was awarded 25 percent of the proceeds, which is allowed under the False Claims Act. At this time, there have been no criminal charges brought against the clinic. This is despite self-diagnosis of an asbestos-related disease from the clinic’s high-profile doctor, Brad Black, and a nurse signing off on benefits for her own mother. Judge Christensen wrote that the clinic demonstrated “a reckless disregard for proper medical procedure and the legal requirements of government programs.”

United States Senator Max Baucus of Montana was involved in crafting a provision in the Affordable Care Act that made asbestos victims in Libby eligible for government benefits. While he stated that CARE was acting within that law, he was barred from giving testimony in the court proceedings.

According to documents used in court proceedings, the clinic has certified over three thousand people with asbestos-related diseases and has received more than $20 million in federal funding. The verdict may potentially harm the reputation of the clinic and undermine lawsuits by asbestos victims.

CARD’s false claims cast a negative light on what should be an asset to a suffering community. In addition to the healthcare costs that are associated with the illnesses created by asbestos exposure, individuals impacted were made to deal with an inability to work and lost wages, disabilities, and a lower quality of life. Some cases were even fatal.

The clinic’s attorneys appealed the jury’s verdict to the 9th United States Circuit Court of Appeals. The director of the clinic, Tracy McNew, said that the clinic could be forced into bankruptcy if it was made to pay the full amount of the judgment.

Health Implications of Asbestos Exposure & The Burden of Proof

Scientists have shown that exposure to even a miniscule amount of asbestos can cause serious lung diseases and other health issues, including many different forms of cancer. Asbestos-related diseases can take years to develop after exposure, and those who file claims must be able to show proof of an asbestos-related illness.

One of the primary illnesses caused by exposure is mesotelioma, a rare and aggressive from of cancer. The symptoms of mesothelioma included chest pain, shortness of breath, and extreme fatigue. It is a debilitating disease that can affect the lungs, abdomen, and/or heart. Treatment is often complicated and costly and could include chemotherapy, radiation therapy, immunotherapy, and/or surgery.

Another common illness, asbestosis, is a chronic lung disease directly linked to exposure. This disease is marked by inflammation and scarring of the lungs, which may lead to respiratory problems as well as other health issues. Treatments can include medication, oxygen therapy, and other costly procedures.

Mesothelioma and asbestosis are two common types of claims that have been filed by those who have been affected by asbestos exposure. However, additional types of illnesses and reclamos can also result. Some other commonly diagnosed diseases include COPD, emphysema, asthma, as well as ovarian, kidney, and throat cancer, among many others.

If you or someone you know may be impacted by asbestos exposure, an asbestos claims attorney can help you file a claim. Working with an experienced attorney will allow you to make an informed decision about how to proceed, guiding clients through the various steps of the claims process and ensuring any mistakes are avoided along the way. Minor errors can cause a claim to be rejected. Filing is also a complex and time-consuming process, and typically requires extensive documentation and evidence of exposure. Working an experienced attorney can help ensure success.

Mortality from asbestos-associated disease in Libby, Montana 1979–2011 – PMC (nih.gov)