operations and have been used extensively by American forces in Iraq and Afghanistan. The government alleged that the flares delivered by ATK were incapable of withstanding a 10-foot drop test without exploding or igniting, as required by specifications, and that ATK was aware of this when it submitted claims for payment. In April 2012, AmMed Direct LLC agreed to pay the United States and the state of Tennessee $18 million plus interest to settle allegations that it submitted false claims to Medicare and Tennessee Medicaid. Both the United States and the state of Tennessee alleged that, from September 2008 through January 2010, the Antioch, Tenn.-based company submitted false claims to Medicare and TennCare for diabetes testing supplies, vacuum erection devices and heating pads. Prior to learning of the United States' and Tennessee's investigation, AmMed disclosed to the Medicare Administrative Contractors its failure to refund monies for returned supplies and began paying the refunds to Medicare and TennCare. In March 2012, LifeWatch Services Inc. agreed to pay the United States $18.5 million to resolve allegations that the company submitted false claims to federal health care programs. The settlement resolves two lawsuits filed under the whistleblower provisions of the False Claims Act. The two complaints allege that LifeWatch improperly billed Medicare for ambulatory cardiac telemetry (ACT) services. ACT services are a form of cardiac event monitoring that use cell phone technology to record cardiac events in real time without patient intervention. Traditional event monitoring requires the patient to press a button when he or she notices a cardiac event to record the cardiac rhythms. Medicare reimbursed ACT services at between $750 and $1200 and traditional event monitoring services at roughly $250 during the relevant time period. In November 2010, Special Agents from the Defense Criminal Investigative Service (DCIS) worked jointly with the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit on an investigation of Samir Itani. The Texas businessman agreed to pay $15 million to settle federal allegations that he and his company cheated the government by selling old and potentially dangerous food to the U.S. military to supply combat troops serving in Iraq and elsewhere. Prosecutors alleged that Samir Mahmoud Itani and his company American Grocers Ltd. profited from the Middle East conflict by defrauding taxpayers and shortchanging U.S. soldiers. According to the government, Itani's firm bought deeply discounted products whose freshness dates had expired or were nearing expiration, then