Healthcare Fraud

Owners of Wound Graft Companies Pay Big for False Claims Act and Kickback Violations -- DOJ Reinforces Zero Tolerance for Healthcare Fraud

By the Constantine Cannon Whistleblower Team Last Friday (December 12), the Department of Justice (DOJ) announced the major sentencing, forfeitures, and penalties imposed on the owners of several Arizona wound graft companies for a $1.2 billion healthcare fraud scheme.[1]  DOJ described the action -- against Alexandra Gehrke and her husband Jeffrey King -- as “the first prosecution of its kind.”

What Was the...

Mindpath Pays $1.9M To Settle False Claims Act Allegations of Healthcare Fraud

By the Constantine Cannon Whistleblower Team Last week (December 2), the Department of Justice (DOJ) announced that North Carolina’s largest behavioral practice Mindpath Care Centers -- along with its former officers Jeff Williams, Abigail Sheriff, and Sarah Williams -- paid $1.9 million to settle allegations they violated the False Claims Act by fraudulently billing Medicare for Psychotherapy and medication...

Zakia Khan Pleads Guilty to $68M Adult Social Day Care and Home Health Care Medicaid Fraud Scheme in New York

By the Constantine Cannon Whistleblower Team On August 6, the government announced that Zakia Khan pleaded guilty in federal court to conspiring to defraud Medicaid of roughly $68 million through kickbacks and bribes at two New York-based social adult day care centers that she owned in Coney Island called Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc....

Two Dermatology Providers To Pay $847K+ To Resolve Medicare Coding Fraud Claims For Wound Care Under the False Claims Act

By the Constantine Cannon Whistleblower Team Forefront Dermatology S.C. (“Forefront”) and Henghold Surgery Center LLC (“Henghold Surgery Center”) will pay $847,394 to resolve allegations that they violated the False Claims Act by submitting falsely coded claims to Medicare for wound repairs.

The Dermatology Providers and the Procedures Allegedly Performed

Forefront owns and operates Henghold Dermatology,...

DOJ Announces False Claims Act Working Group Targeting Healthcare Fraud, Sending the Call Out For Whistleblowers to Help

By the Constantine Cannon Whistleblower Team On July 2, the Department of Justice (DOJ) announced the creation of a Working Group with the Department of Health and Human Services (HHS) “to advance priority enforcement areas” under the False Claims Act. ¹ It follows what DOJ describes as a “long history” of partnering with HHS to use the statute to go after healthcare fraud.

The False Claims Act is DOJ's...

Busted: DOJ Announces $14.6B Health Care Fraud in Historic Takedown

By the Constantine Cannon Whistleblower Team On June 30, the DOJ announced what prosecutors are calling the "2025 National Health Care Fraud Takedown" and it’s one for the books. The government dismantled a healthcare fraud scheme that involved over 300 defendants and totaled an eye-popping $14.6 billion in alleged false claims. ¹

Surpassing Previous Records

This figure towers over prior record-setting fraud...

Health Wealth Will Pay $1.29M to Resolve Whistleblower-Initiated False Claims Act Lawsuit

By the Constantine Cannon Whistleblower Team Georgia-based Health Wealth Safe, Inc. (Health Wealth) and its owner, Dr. Subodh Agrawal, have agreed to pay $1.29 million to settle allegations that they knowingly caused the submission of false claims to Medicare.

Whistleblower Lawsuit Filed by Former Employee

This lawsuit was brought under the whistleblower or qui tam provisions of the False Claims Act (FCA) by a...

Assertio to Pay $3.6M in False Claims Act Settlement over Fentanyl Marketing Practices

By the Constantine Cannon Whistleblower Team  On May 9, the government announced that Assertio Therapeutics Inc., (formerly Depomed Inc.) (“Assertio”), agreed to pay $3.6 million to resolve False Claims Act allegations stemming from its marketing of Lazanda, its transmucosal immediate-release fentanyl (TIRF) drug. This case was initiated by whistleblowers.¹ Lazanda is a nasal spray solely approved by the...

Genexe and Its Entities Will Pay $6M to Settle False Claims Act Allegations, Case Brought by Four Whistleblowers

By the Constantine Cannon Whistleblower Team On April 23, the government announced that Genexe LLC, its marketing company Immerge, Inc., and two of its owners, Jason Green and Jason Gross, will pay $6 million to settle allegations that they violated the False Claims Act and Anti-Kickback Statute. The now-defunct Genexe once billed itself as a “one-stop-shop” for genetic and pharmacogenetic profiling,...

NJ Rehab Center Will Pay $19.75M to Resolve False Claims Act Allegations

On April 30, a New Jersey-based drug and alcohol rehabilitation facility, Summit BHC New Jersey, LLC, d/b/a Seabrook, agreed to pay $19.75 million to resolve allegations that it violated the False Claims Act by billing for services it was not authorized to provide. This case was initiated by a former Seabrook employee who filed suit under the whistleblower or qui tam provisions of the False Claims Act. According to...