Delaware joins lawsuit against pharmaceutical giant Wyeth

The Delaware Attorney General’s Office has announced that on Monday it joined
two whistleblower actions by filing a lawsuit with fifteen other states against the drug manufacturer
Wyeth. The suit alleges that Wyeth Pharmaceutical failed to provide the Medicaid program with the
same discounts it gives to private purchasers of its drugs, as required by law. As a result, Wyeth
allegedly avoided paying hundreds of millions of dollars in rebates due to state Medicaid programs for
its drugs Protonix Oral and Protonix IV.

“Overcharging Medicaid puts a strain on hardworking taxpayers,” said Timothy Mullaney,
Director of the Attorney General’s Fraud and Consumer Protection Division. “The Attorney General’s
Office is committed to holding companies that try to side-step the law accountable for their actions.”
Between 2000 and 2006, Wyeth offered discounts to thousands of hospitals nationwide for
Protonix Oral and Protonix IV when both drugs were purchased together. This “bundle” pricing gave
up to a 94% discount for Protonix Oral and up to an 80% discount for Protonix IV. In order to ensure
that Medicaid receives the same discounts offered to large commercial customers, the Medicaid Drug
Rebate Program requires that drug manufacturers report to the government the prices they charge
customers, including the “best price” offered for their drugs. In addition, companies are required to
pay rebates to state Medicaid programs that are calculated based on discounted prices they offer to
other customers. Wyeth allegedly failed to determine the discounted prices of the bundled drugs and
provide the required rebate to state Medicaid programs, therefore avoiding to pay hundreds of millions
of dollars owed to Medicaid.

The states’ investigation, coordinated by the National Association of Medicaid Fraud Control
Units, is being led by the Director of the Delaware Department of Justice Medicaid Fraud Control
Unit, Deputy Attorney General Dan Miller. In preparation for litigation, Delaware subpoenaed several
hundred thousand documents from Wyeth and coordinated the review of those documents. This action
follows a similar intervention on May 18, 2009 by the federal government in the same two
whistleblower suits filed in the United States District Court for the District of Massachusetts.
# # #


Department of Justice secures the cleanup of a Sussex County nuisance property

For the first time, social vice activity at a Delaware property has ceased through
the Delaware Department of Justice’s enforcement of Delaware’s Nuisance Abatement Act. The
Department announced today that, following a lengthy investigation, all activity resembling adult
entertainment will cease at the Canton Inn and the property owner will take other measures to comply
with the law.

“Today marks an important milestone in our enforcement of Delaware’s Nuisance Abatement
Law,” said State Solicitor Lawrence Lewis. “The Delaware Attorney General’s office is using this
statute in new and innovative ways to combat social vice crime in our neighborhoods. As a result, this
property will no longer be a haven for illegal activity.”

The Department of Justice alleges that the Canton Inn, at 704 Norman Eskridge Highway in
Seaford, has been the site of prostitution and lewd sexual conduct over a period of several years.
Following an investigation by the Delaware State Division of Professional Regulation and the
Delaware State Police, the Department of Justice determined that the property presented an immediate
threat to the public health, safety and welfare. Rather than defend itself against the Department in
court, the owner agreed to abate the nuisance voluntarily by ceasing all adult entertainment activity,
making renovations to the building, and discontinuing advertising as a “gentlemen’s club”. The
establishment will now be promoted as a restaurant and bar.

“The residents of Seaford will benefit greatly from this agreement,” stated Representative
Daniel B. Short, Seaford. “This is exactly how the Nuisance Abatement statute should work and I
commend the Attorney General’s Office for their efforts.”

In August, 2007 Attorney General Beau Biden launched a statewide effort to fight
neighborhood crime in Delaware under the state’s Drug Nuisance and Social Vices Abatement Act.
Under the Nuisance Abatement Act, enforcement actions can take a variety of forms, including closure
of a property. In September, 2008 a property in Wilmington was the first to be ordered closed
permanently under this Act by court order.

The Delaware Department of Justice identifies nuisance properties statewide through its own
investigations and cooperation with state and local police agencies, local authorities, civic associations,
and residents. Since August, 2007, the Department has abated 74 nuisances, either by obtaining a
court order or through securing the voluntary cooperation of the owner to clean up the illegal activity.
# # #


Mortgage Fraud Task Force takes action to protect homeowners

The Delaware Attorney General’s office announced today that it has formed a
Mortgage Fraud Task Force to help homeowners stay in their homes. In conjunction with the
Delaware State Housing Authority and the Office of the State Bank Commissioner, the Task Force is
dedicated to reducing foreclosure and foreclosure-related fraud statewide by:
• Providing information about mortgages and the foreclosure process
• Directing homeowners to certified housing counselors and agencies that offer free services
• Linking homeowners with state and federal programs that provide mortgage assistance
• Taking aggressive law enforcement action against foreclosure scams
“During this difficult economic time when foreclosures are reaching new records, the Attorney
General’s Mortgage Fraud Task Force, along with its partners, is taking a leading role in directing
homeowners to the services available to help them stay in their homes, stated Timothy Mullaney,
Director of the Attorney General’s Fraud and Consumer Protection Division. “We are also taking new
steps to protect homeowners against foreclosure scams.”
Homeowners who are worried about missing a mortgage payment, are facing foreclosure, or
who suspect a foreclosure scam are encouraged to call the Attorney General’s Mortgage Hotline at
1-800-220-5424. This hotline serves as a central statewide resource for homeowners who seek
information about government programs for homeowners, want to connect with a certified housing
counselor, are looking for upcoming housing workshops, and want to report foreclosure scams.
The Mortgage Fraud Task Force, in conjunction with the Delaware Banking Commissioner’s
Office and the Delaware State Housing Authority, is sponsoring Housing Workshops in locations
statewide on June 26 and 27, 2009. Workshops will take place at the following times and locations:
Date Time Location Address County
Friday, June 26 3 – 7 pm
St. John’s United
Methodist Church
300 N. Pine St.
Seaford
Sussex
Saturday, June 27 8 am – 12 noon
Modern Maturity
Center
1121 Forrest Ave.
Dover
Kent
Saturday, June 27 1 – 5 pm
New Castle County
Government Center,
Gilliam Building
77 Read’s Way
New Castle
New Castle
During each Workshop, State employees, counselors from HUD-approved housing agencies,
and mortgage servicers will be available to meet with individuals to provide information on the
Delaware Mortgage Assistance Program (DEMAP), mortgage modification, foreclosure, and
foreclosure rescue scams.
The Attorney General’s Office also announced that it has launched a new mortgage foreclosure
website for consumers at www.attorneygeneral.delaware.gov/mortgageforeclosure. The site
features a broad range of information about government programs, counseling services, fraudprevention
tips, and other resources for Delaware homeowners.
# # #


Victims of identity theft offered new safeguards through enhanced ID Theft Passport

The Delaware Attorney General’s Office announced today that Izon® holographic
technology developed by DuPont will be used to provide authentication for victims of identity theft
statewide. The announcement was made during a presentation of the technology at the Attorney
General’s Wilmington offices.

The ID Theft Passport is a free service provided to victims of identity theft by the Attorney
General’s office as a way to substantiate the crime to creditors and law enforcement. Passports feature
laminated photo identification and can be presented to law enforcement agencies to help prevent arrest
for offenses committed by someone else using a victim’s stolen information, to creditors to aid in the
investigation of fraudulent charges, and to consumer reporting agencies as official notice of disputed
charges on credit reports. Izon® authentication technology will now be used as an additional security
and authentication device in each ID Theft Passport that is produced.

“The ID Theft Passport provides victims of identity theft with an important tool to secure their
identity and reclaim their financial health,” stated Chief Deputy Attorney General Richard Gebelein.
“We were impressed with the high level of security that DuPont’s Izon® authentication technology
provides and believe that Delawareans will be better protected as a result of its incorporation into the
Passport Program.”

“We are proud to offer our Izon® holographic technology to enhance the Identity Theft
Passport program,” said Linda B. West, vice president and general manager, DuPont Imaging
Technologies. “DuPont Authentication has been successfully assisting our global customers to
understand their security needs, whether that is brand protection, anti-counterfeiting, product tracking,
or document authentication and developing customized solutions based on those needs. We look
forward to working closely with the state of Delaware to reduce the negative impact of increasing
identity theft.”

Identity theft is one of the fastest growing white collar crimes in the nation. The Attorney
General’s Office provides a range of information and resources to help consumers prevent identity
theft and to assist victims of the crime. On June 6, 13, and 20, the Attorney General’s Office is
sponsoring “community shredding days” in locations statewide. During each event, free on-site
document shredding for consumers will be available and staff will be on hand to share educational
information about identity theft and the ID Theft Passport Program, featuring Izon® holographic
technology.

Learn more about identity theft and the June 2009 community shredding days by visiting
www.attorneygeneral.delaware.gov or call the Attorney General’s toll-free Consumer Hotline at
1-800-220-5424.

Photo caption: Chief Deputy Attorney General Richard Gebelein, with DuPont Vice President and
General Manager Linda B. West, announces the incorporation of Izon® holographic technology into
the Identity Theft Passport Program.


Attorney General’s Office welcomes Summer Law Clerks and Steiger Fellow

edia Release
June 1, 2009
Attorney General’s Office welcomes Summer Law Clerks and Steiger Fellow
Wilmington, DE – Today, the Delaware Attorney General’s office welcomed seventeen law school
students who will work at the Delaware Department of Justice this summer through the Summer
Law Clerk and Steiger Fellowship programs.
This year’s Summer Law Clerks are volunteering their service with the Delaware
Department of Justice. They gain broad experience by working in the Department’s Civil,
Criminal, Family, and Fraud and Consumer Protection Divisions. Their duties include assisting
Deputy Attorneys General in hearings and trials, completing research projects, preparing briefs,
writing memos, and other tasks reflecting the day-to-day experiences of Deputy Attorneys General.
Qualified Clerks may also be assigned to prosecute minor misdemeanor cases. The Steiger
Fellowship, named after the late Janet D. Steiger, former Chairman of the Federal Trade
Commission, provides law students opportunities to work in consumer protection and antitrust Units
in State Attorneys General offices. Delaware is one of 20 states awarded a Steiger Fellow in 2009.
“This year’s Summer Law Clerks and Steiger Fellow display impressive academic
credentials and demonstrate an admirable commitment to public service and I am proud to welcome
them to the Delaware Department of Justice,” stated Chief Deputy Attorney General Richard
Gebelein. “Their service to Delaware, especially during this challenging time of reduced state
revenue, will help us to fulfill our mission to enforce the law and protect families and consumers.”
The 2009 Summer Law Clerks and Steiger Fellowship intern are as follows (photo copied below):
Summer Law Clerks
Tristan Bramble, a rising third year law student at Temple University Beasley School of Law,
received a B.A. in English from Andrews University, Berrien Springs, MI.
Yaw Antwi Darkwa, a rising third year law student at Columbia University School of Law, received
a B.A. in International Relations and Political Economy and Development from Brown University,
Providence, RI.
Periann Doko, a rising third year law student at Widener University School of Law, received a B.S.
in Biology from The College of New Jersey, Ewing, NJ.
Michelle A. Gerhardt, a rising third year law student at Widener University School of Law, received
a B.A. in Economics from Holy Family University, Philadelphia, PA.
Ashley Brynne Gorodetzer, a rising third year law student at Widener University School of Law,
received a B.A. in Communications from Villanova University.
Andrew Haupt, a rising second year law student at University of Chicago Law School, received a
B.A. in Philosophy from Davidson College, Davidson, NC.
Veronica Hoof, a rising third year law student at Thurgood Marshall School of Law, Texas Southern
University, Houston, TX, received a B.A. in Accounting from Clark Atlanta University, Atlanta,
GA.
Brian T.N. Jordan, a rising third year law student at Villanova University School of Law, received a
B.A. in English and B.A. in History from the University of Delaware.
Ashley Markow, a rising second year law student at Boston University School of Law, received a
B.A. in Sociology and Criminal Justice from the University of Delaware.
Sean A. Meluney, a rising third year law student at Widener University School of Law, received a
B.S. in Human Development from Binghamton University, Binghamton, NY.
Frank Mieczkowski, a rising 3rd year evening division law student at Widener University School of
Law, received a M.A. of Public Administration and a B.A in History from the University of
Delaware.
Sarah Mollet, a rising third year law student at The Dickinson School of Law of The Pennsylvania
State University, Carlisle, Pennsylvania, received a B.S. in Biology and B.A. in Political Science
from Salisbury University, Salisbury, MD and a B.S. in Environmental Science from the University
of Maryland Eastern Shore, Princess Anne, MD.
Douglas Norquest, a rising third year law student at Villanova University School of Law, received a
B.A. in Political Science and Sociology and B.A. in Criminal Justice and Philosophy from the
University of Delaware.
Beth Powers, a rising third year law student at Widener University School of Law, received a B.A.
in Elementary Education from the University of Delaware.
Gina Sechter, a rising third year law student at the University of Baltimore School of Law, received
a B.A. in Political Science and English from the University of North Carolina at Greensboro,
Greensboro, NC.
James Vadakin, a rising third year law student at The Catholic University of America, Columbus
School of Law, Washington, DC, received a B.A. in English from the University of Delaware.
Janet D. Steiger Fellowship Intern
Andrea Priest, a rising third year law student at William and Mary School of Law, Williamsburg,
VA, received a B.A. in Political Communications from The George Washington University,
Washington DC. She is working in the Fraud and Consumer Protection Division this summer.
DEPARTMENT OF JUSTICE
820 NORTH FRENCH STREET
WILMINGTON, DELAWARE 19801
CONTACT JASON MILLER
PUBLIC INFORMATION OFFICER
PHONE (302) 577-8949