Healthcare Fraud
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May 29, 2019
Houston-based patient recruiter and home health clinic owner Egondu “Kate” Koko has been sentenced to over 15 years in prison and ordered to pay $14 million for participating in a $20 million kickback scheme involving Medicare beneficiaries. Koko had plead guilty in October to paying bribes to both physicians and patients in order to earn between $9.5 and $25 million in ill-gotten gains, as well as to laundering money under another person’s identity and using proceeds from the fraud to buy a home. DOJMay 29, 2019
Almirall, LLC, f/k/a Aqua Pharmaceuticals, LLC , will pay $3.5 million to settle kickback allegations exposed by a former Aqua sales representative. According to the whistleblower, the pharmaceutical company paid kickbacks in the form of free meals, trips, gift cards, and gifts, to dermatology providers in exchange for prescriptions of their drugs to Medicare and TRICARE patients. It also paid kickbacks by compensating healthcare providers for speaking engagements and consulting services. For coming forward with details of the fraud, the unnamed whistleblower will receive a $735,000 share of the recovery. USAO EDPAMay 29, 2019
A doctor in South Carolina has agreed to pay $92,506.30 to settle allegations of accepting illegal payments from OK Compounding, LLC, in exchange for prescribing their pain creams to TRICARE patients. The False Claims Act violations allegedly occurred between February and May 2013, and involved “medical director fees” paid to Dr. Jerry Back that were in reality, kickbacks. This was the eighth kickback settlement in the Northern District of Oklahoma since the beginning of the year. USAO NDOKMay 24, 2019
The co-defendant of a mental health clinic owner who was previously sentenced to prison for submitting false claims to Medicaid and evading taxes has been sentenced to over 6 years in prison on similar charges. Haydn Patrick Thomas, who worked as an office manager for an oral surgeon, had been convicted of providing Catinia Farrington with the names and Medicaid identification numbers of his office’s dental patients. He then failed to pay taxes on over $1.4 million that he earned from Farrington’s clinic, with the resulting tax loss amounting to approximately $518,000. DOJIntermountain Settles Dispute Pending Before Supreme Court, Leaving 9(b) Ambiguity Unresolved
Posted 05/24/19
Question of the Week — Should institutions return past donations from Big Pharma executives and their family members implicated in the opioid crisis?
Posted 05/23/19
