The DOJ previously filed a complaint against former True Health Diagnostics LLC (“THD”) CEO, former Boston Heart Diagnostics Corporation (“BHD”) CEO, and former Little River Healthcare (“LRH”) CEO under the False Claims Act (“FCA”) for alleged violations of the Anti-Kickback Statue and Stark Law. The DOJ just amended its complaint to include six Texas physicians. The amended complaint (“Complaint”) alleges that Doyce Cartrett, Jr., Elizabeth Seymour, Emanuel Paul “E.P.” Descant, Frederick Brown, Heriberto Salinas, and Hong Davis (collectively the “Physicians”) also violated the Anti-Kickback Statue and Stark Law. 

According to the Complaint, the Physicians allegedly received kickbacks from management service organizations (“MSOs”) in return for laboratory testing referrals. More specifically, it is alleged that THD and BHD conspired with several small Texas hospitals, including LRH, to pay these Physicians for laboratory referrals.  MSOs were set up by recruiters to pay kickbacks under the guise of investment returns. The Complaint further alleges that medically unnecessary testing was unlawfully billed to federal health care programs. The Physicians are alleged to have collectively received over $750,000 in kickbacks for laboratory referrals. 

This matter originated under the qui tam provisions of the FCA by STF LLC. The government intervened in December 2021 and subsequently filed a complaint in January 2022. The government has already recovered more than $31 million in connection with this alleged scheme. Additionally, 29 physicians, 2 health care executives, and one laboratory company have reached FCA settlements for their alleged conduct. U.S. Attorney Brit Featherston for the Eastern District of Texas declared “[o]ur office is committed to rooting out health care fraud by pursuing all players involved the scheme, from the laboratories and their leaders to the marketers and the physicians who make it all possible.”

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act litigation and health care fraud investigations. If you need assistance with such a matter, please contact us today.