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December 7, 2022

Dignity Health and the Tenet Healthcare hospitals Twin Cities Community Hospital and Sierra Vista Regional Medical Center will pay a total of $22.5 million to resolve allegations that they submitted false claims to Medi-Cal in connection with the ACA’s Medicaid Adult Expansion program.  The defendants, who contracted with Medi-Cal, agreed to provide healthcare services to this newly-insured population and return surplus funds if they did not spend at least 85% of the specified funds on eligible services.  The government alleged that the hospitals falsely billed for “Enhanced Services,” which allowed them to overstate AE spending, including by billing for services that were duplicative of services already required. The settlements resolve claims brought in a whistleblower action by Julio Bordas, who previously served as a Medical Director for CenCal Health, the County Organized Health System through which Medi-Cal contracted with the hospitals. Bordas will receive $3.9 million as his share of the federal recovery.  DOJ; USAO CD Cal; CA

December 5, 2022

An opioid abuse treatment facility in New Jersey has agreed to pay $3.15 million and enter into a three-year deferred prosecution agreement to resolve criminal and civil charges relating to alleged violations of the federal Anti-Kickback Statute.  Between 2009 and 2015, Camden Treatment Associates LLC (CTA) allegedly received kickbacks from a related company in exchange for exclusive orders of CTA’s methadone mixing services.  CTA then allegedly submitted false claims to Medicaid and obstructed a Medicaid contractor’s attempt to audit those claims in 2016 by falsifying patient records.  USAO NJ

December 2, 2022

Global technology company ABB Ltd. will pay over $315 million for violating the Foreign Corrupt Practices Act. Between 2014 and 2017, ABB paid bribes to Eskom Holdings Limited, a South African state-owned and controlled energy company. The bribes were paid to subcontractors associated with a South African government official and were used to obtain business advantages in the awarding of contracts. ABB conducted sham negotiations on pre-arranged pricing, and falsely recorded payments—portions of which were meant as bribes—to subcontractors as legitimate business expenses. DOJ; SEC

November 29, 2022

Government contractor PowerSecure, Inc. agreed to pay $8.4 million to resolve claims that it failed to completely and accurately report disclose cost or pricing data in connection with securing a sole source contract for the repair and restoration of Puerto Rico’s power grid following the damage caused by Hurricane Maria.  The government asserted that such cost and pricing data was required by the Truth in Negotiations Act, and that PowerSecure’s failure to provide it violated the False Claims Act.  DOJ

November 21, 2022

Michael and Betsy Feinberg, owners of Catharon Software Company and who lied about having developed software capable of generating large returns for investors and philanthropists, will spend 5 years in prison and pay restitution for the $5 million in victim losses. The software, called VDelta, was in fact not under development, yet over a period of 15 years, the Feinbergs lied to investors with false promises about the software’s completion, release date and capabilities. Their investors were comprised mostly of the Feinbergs’ friends and associates located in Sedona, Arizona. The stolen funds were used to pay the Feinbergs’ salaries and to pay for personal expenses. USAO AZ

November 21, 2022

Ruixue “Serena” Shi will spend 20 years in federal prison and has been ordered to pay nearly $36 million in restitution for defrauding investors out of tens of millions of dollars. Shi, convicted on one count of wire fraud, was the general manager of Global House Buyer LLC, a China-based real estate company with an office in Los Angeles. Shi inked a deal with Dakota Development, a subsidiary of SBE Entertainment, to build a real estate development in the City of Coachella consisting of luxury condos, a hotel complex, and conference facilities. Shi solicited investments from mostly Chinese investors, preying on their ignorance of English and trust in the American economy, and led them to believe their investment would help them obtain an American visa. USAO CDCA

November 21, 2022

Todd and Julie Chrisley, married television personalities and newly-convicted fraudsters, will spend 12 and 7 years in federal prison, respectively, for conspiracy to commit bank fraud, bank fraud, wire fraud, and conspiracy to commit tax evasion. The Chrisleys defrauded Atlanta-area community banks to obtain more than $36 million in personal loans by submitting false banking and personal financial statements. After funding their lavish, undeserved lifestyle with the multi-million-dollar loans, Todd Chrisley filed bankruptcy, walking away from over $20 million in loans. Both before and during the trial, the Chrisleys attempted to obstruct justice, including by submitting a fraudulent document in response to a grand jury subpoena. In addition to serving time in prison, the Chrisleys will be required to pay restitution in an amount to be determined later. USAO NDGA

November 14, 2022

The Florida Birth-Related Neurological Injury Compensation Association and a related entity, which were created by the State of Florida to provide compensation for the medical, rehabilitative and custodial care of children who suffered certain categories of birth-related neurological injuries, will pay $51 million to resolve a whistleblower’s qui tam lawsuit, pursued on a non-intervened basis, alleging that they fraudulently caused NICA participants to submit their healthcare claims to Medicaid rather than NICA, in violation of Medicaid’s status as the payer of last resort under federal law.  The relators, Veronica Arven and the estate of Theodore Arven III, will receive $12,750,000 as their share of the recovery.  DOJ

November 3, 2022

Titan Medical Compliance, LLC, and its chiropractor owner Timothy Warren, have been ordered to pay over $15 million to resolve claims that they falsely marketed auricular electro-acupuncture devices as FDA-approved and Medicare-reimbursable, when in fact they are not.  The judgment against Warren and Titan is the latest in a federal investigation into the improper billing of these non-surgical devices.  USAO EDPA

November 1, 2022

Electronic health record technology vendor Modernizing Medicine, Inc. (“ModMed”) has agreed to pay $45 million to resolve allegations, including by its former VP of Product Management, that it both received and provided illegal kickbacks in exchange for referrals.  According to the government and whistleblower Amanda Long, ModMed engaged in schemes with Miraca Life Sciences, Inc. (now known as Inform Diagnostics) to receive kickbacks in exchange for recommending its users for Miraca’s lab services, and to provide its EHR technology free to healthcare providers to entice them to direct lab orders to Miraca and add to ModMed’s user base.  Long will receive about $9 million of the settlement with ModMed. DOJ
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