Bay Sleep Clinic - Healthcare Fraud/Kickbacks ($2.6 million)

Constantine Cannon represented a whistleblower under the False Claims Act case alleging Bay Sleep Clinic billed Medicare for sleep studies by unlicensed technicians and paid kickbacks to doctors for patient referrals.  In December 2016, the company agreed to pay $2.6 million to settle the matter.  Our client received a whistleblower award of roughly 21% of the government’s recovery.  Read more -- SF Gate, DOJ, PR Newswire, CC.

There's No Such Thing as a Free BBQ: Kickbacks Cost Physicians Too

By Tim McCormack and Molly Knobler (published on the Huffington Post blog) On October 29th, pharma giant Warner Chilcott pled guilty to a felony healthcare fraud charge, agreeing to pay $125 million to settle allegations that it had paid illegal kickbacks to doctors and engaged in other illegal marketing behavior to sell its drugs Actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace,® and Loestrin®.  Perhaps more significant than the size of the...

Former NFL Player Turned Lab Owner Convicted in $328 Million Genetic Testing Fraud Scheme

By the Constantine Cannon Whistleblower Team  In February, a federal jury in Texas convicted lab owner Keith J. Gray, a former NFL player, for his role in a $328 million genetic testing fraud scheme involving two clinical labs he owned and operated: Axis Professional Labs LLC (Axis) and Kingdom Health Laboratory LLC (Kingdom).[1] The jury found Gray guilty of (1) conspiracy to defraud the United States and to solicit or receive...

Top 10 Healthcare-Related False Claims Act Recoveries in 2025

By the Constantine Cannon Whistleblower Team Last year was a record year for False Claims Act recoveries.  As the Department of Justice (DOJ) reported in its 2025 False Claims Act Roundup, the $6.9 billion the Government recovered in 2025 was the most for any single year under the statute. Unsurprisingly, more than 80% of this amount (or $5.7 billion) came from matters involving healthcare-related fraud.  It has been that way...

Top 10 False Claims Act Recoveries in 2025

By the Constantine Cannon Whistleblower Team As we reported last month in our post on the Department of Justice (DOJ) 2025 False Claims Act roundup, last year was another record year for False Claims Act recoveries.  In fact, the $6.9 billion the Government recovered in 2025 is the largest single-year haul ever under the statute.  As usual, the majority of that amount -- more than $5.3 billion -- came from...

Florida Nursing Assistant Convicted in $11.4M Medicare Fraud Scheme

By the Constantine Cannon Whistleblower Team On January 22, a federal jury convicted Florida-based nursing assistant and durable medical equipment (DME) supplier owner Christian “Chris” Cruz for his role in an $11.4 million healthcare fraud and wire fraud conspiracy.[1] What Was the Alleged Scheme? According to prosecutors, Cruz  submitted false claims for hundreds of Medicare beneficiaries and they were sent thousands of medically unnecessary orthotic braces. Cruz allegedly received several hundred...

Two Plead Guilty to $68M Brooklyn Adult Day Care and Home Healthcare Fraud Scheme

By the Constantine Cannon Whistleblower Team On January 15, Elaine Antao and Manal Wasef pleaded guilty to conspiring to defraud Medicaid by offering kickbacks for services not rendered at two Brooklyn social adult day cares and a home healthcare company. The proceedings took place before United States District Judge Natasha C. Merle in federal court in Brooklyn. Each defendant faces up to 10 years in prison. According to court documents, Antao...

Traditions Health Pays $34M to Settle False Claims Act Charges of Medically Unnecessary Home Health Services

By the Constantine Cannon Whistleblower Team Last Thursday (January 22), the Department of Justice (DOJ) announced that Tennessee-based Traditions Health agreed to pay $34 million to settle allegations it violated the False Claims Act and Anti-Kickback Statute and Stark Law by billing Medicare for medically unnecessary home health services and paying kickbacks to physicians in exchange for referrals.[1]  Traditions provides home healthcare services to patients in Kansas, Missouri, Oklahoma and...

Florida Ophthalmology Practices Agree to Pay Nearly $6M in Whistleblower Case Involving Transcranial Doppler Ultrasounds

By the Constantine Cannon Whistleblower Team Five Florida ophthalmology practices, Clay Eye Holdings LLC, Retina Macula Specialists of Miami LLC, Florida Eye Institute P.A., Miami Eye LLC, and Kendall Eye Institute Inc., agreed to pay roughly $6 million to settle allegations that they submitted fraudulent claims to Medicare and Medicaid in violation of the False Claims Act. [1] According to the government, the five practices knowingly billed Medicare and Medicaid for...

Healthcare Employees Sentenced to Prison for Multimillion Dollar Adult Daycare Fraud Scheme

By the Constantine Cannon Whistleblower Team A Texas physician and a clinic employee have been sentenced to prison for their roles in a multimillion dollar healthcare fraud and kickback scheme involving unnecessary lab tests and prescriptions. Dr. Osama Nahas, owner and physician at Crosspoint Medical Clinic, and medical assistant Isabel Pruneda were convicted on March 1, 2024 by a federal jury of conspiracy to commit healthcare fraud, healthcare fraud, and conspiracy...