In a crushing blow to Medicare scammers, Florida businessman Daniel Hurt has agreed to pay over $27 million to settle allegations of conspiring with others to submit false claims to Medicare for cancer genomic tests that were not medically necessary and procured through illegal kickbacks.
The civil settlement, announced by the Department of Justice, is based on Hurt’s ability to pay and stems from an investigation that revealed the defendant and his companies, including Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, knowingly submitted false claims for cancer genomic tests that were not medically necessary to treat or diagnose a condition.
According to the investigation, Hurt and his companies conspired with telemarketing agents to solicit Medicare beneficiaries for “free” cancer genomic tests, with telemedicine providers to “prescribe” tests that were not medically necessary, and with reference laboratories to conduct the tests and billing laboratories and a hospital to submit claims for payment to the Centers for Medicare and Medicaid Services (CMS).
Hurt previously pleaded guilty to criminal healthcare fraud for these offenses and will now be excluded by the Department of Health and Human Services Office of Inspector General (HHS-OIG) from Medicare, Medicaid, and all other Federal health care programs.
The settlement includes the resolution of allegations brought in three cases filed under the qui tam or whistleblower provisions of the False Claims Act, including an action filed by Robert Gerstein, a minority owner of Sonoran Desert Pathology, who worked for Hurt and ran the billing operations for cancer genomic tests. Under the FCA, private parties can file an action on behalf of the United States and receive a portion of any recovery.
Gerstein will receive up to $4.7 million or 17% of the government’s recovery. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the Corporate/Financial Litigation Section, the U.S. Attorney’s Office for the Middle District of Florida, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
U.S. Attorney Philip R. Sellinger stated, “Medicare and Medicaid are two vitally important health care programs that provide critical services to millions of Americans. Schemes that seek to siphon money from these programs with unnecessary medical tests are especially egregious. We will do everything we can to protect the public and the services they need, and to hold accountable those who try to bilk the system.”
Principal Deputy Assistant Attorney General Brian M. Boynton added, “We will not tolerate those who prey on older Americans to defraud Medicare. As this settlement reflects, we will use our available resources to protect federal health care programs and the beneficiaries they serve.”
Related Federal Cases
- Florida Businessman Daniel Hurt to Fork Over $27M for Medicare Swindle · New Jersey
- Seth Rehfuss Gets 50 Months for Medicare Swindle · Mississippi
- Virginia Man Gets 19 Months in Medicare Swindle · Mississippi
- Coral Springs Scammer Sentenced for $11M Health Care Kickback Scheme · New Jersey
- Florida Man Pleads Guilty in $4.8M Medicare Fraud Scheme · New Jersey
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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