Medical Providers Settle Bribery & False Claims Act Violations for $1.9m in Laboratory Kickback Scheme

A group of medical providers and marketing entities have agreed to pay a combined total of $1,913,808 to settle allegations of False Claims Act and bribery violations linked to laboratory kickback schemes. The settlements resolve claims that several health care providers, including Gerald Congdon, M.D., Gbenga Aluko, M.D., and Anup Banerjee, M.D., along with their medical practices, received illicit financial incentives in exchange for referring patients for laboratory testing. Additionally, Curis Healthcare Inc., Omar Hussain, and Saeed Medical Group Ltd. were implicated in arranging improper referrals.

The settlements, which include cooperation agreements with the Department of Justice (DOJ), mark another significant step in federal efforts to combat health care fraud and uphold the integrity of Medicare, TRICARE, and other federally funded programmes.

Illegal Bribery & Kickback Scheme Leads to False Claims Act Violations

The Anti-Kickback Statute strictly prohibits offering or accepting payments in exchange for referrals for services covered under federal health care programmes. These laws are designed to ensure that medical decisions are made in patients’ best interests, free from financial conflicts.

The DOJ alleges that from 2016 to 2021, several medical providers received improper payments disguised as rental fees and phlebotomy service reimbursements in exchange for referring patient testing to a South Carolina-based laboratory. Additionally, a marketer and his company allegedly received commissions from this laboratory based on the volume of referrals they arranged, further contributing to fraudulent claims submitted to Medicare and TRICARE.

Bribery & Kickback Payments: Breakdown of the Settlements

• Dr. Gerald Congdon & Coastal Urgent Care LLC – Agreed to pay $400,000 for receiving illegal remuneration for patient referrals.

• Dr. Gbenga Aluko & Eagle Medical Center PC – Settled for $250,000 over allegations of receiving illicit payments for laboratory referrals.

• Dr. Anup Banerjee & Gastonia Medical Specialty Clinic P.A. – Agreed to $206,000 in penalties for similar violations.

• Omar Hussain & Curis Healthcare Inc. – Settled for $817,808 for allegedly receiving referral commissions from the laboratory.

• Saeed Medical Group Ltd. & Omar Hussain – Paid $240,000 over claims that they received cash payments in exchange for laboratory testing referrals.

Federal Agencies Crack Down on Bribery & Health Care Fraud

Federal investigators reaffirmed their commitment to eradicating fraudulent financial arrangements that divert taxpayer funds from genuine medical care.

• Acting US Attorney Brook B. Andrews emphasised that bribery and kickback schemes undermine the integrity of the health care system and compromise patient care.

• FBI Special Agent Steve Jensen warned that medical professionals engaging in fraud and bribery risk losing public trust and will be held accountable.

• HHS-OIG Special Agent Kelly Blackmon stressed that federal agencies will aggressively pursue those violating the False Claims Act through bribery and kickbacks.

• DCIS Special Agent Christopher Dillard underscored the impact on US service members and taxpayers, stating that collusive financial relationships, including bribery, will not be tolerated.

Continued Federal Oversight & Enforcement of Bribery Violations

This settlement follows previous government actions against health care providers in South Carolina, North Carolina, and Texas for similar schemes. The False Claims Act remains a powerful tool in combatting health care fraud and bribery, with authorities encouraging whistleblowers to report fraudulent activity to HHS at 1-800-HHS-TIPS.

While these settlements resolve the allegations, no determination of liability has been made. The DOJ and its investigative partners continue to pursue other participants in these alleged schemes.

View the settlement agreement here.

Read the press release here.