Camden Treatment Associates LLC, an opioid abuse treatment facility in Camden, New Jersey, has agreed to pay a total of $3.15 million to resolve criminal and civil claims that it caused kickbacks, obstructed a federal audit, and fraudulently billed Medicaid, according to a press release from Attorney for the United States Vikas Khanna.
The civil settlement agreement requires Camden Treatment Associates LLC to pay $1.65 million to the United States to resolve claims that it violated the federal False Claims Act by submitting fraudulent claims to Medicaid.
As part of the resolution, a criminal information was filed on December 2, 2022, in Camden federal court charging Camden Treatment Associates LLC with violating the federal Anti-Kickback Statute and obstructing a Medicaid audit. The company entered into a three-year deferred prosecution agreement (DPA) that requires it to abide by certain measures to avoid conviction.
According to the DPA, Camden Treatment Associates LLC and a second company were owned and managed by related parties between 2009 and 2015. The company had a kickback relationship with the second company in which Camden Treatment Associates LLC ordered all of its methadone mixing services from the second company and paid it more than $125,300 for those services.
As a result, the second company paid the profits it made on Camden Treatment Associates LLC’s orders of methadone mixing to the related parties who owned and managed both companies. Camden Treatment Associates LLC received more than $2.78 million from Medicaid for methadone administration services.
Additionally, Camden Treatment Associates LLC obstructed a Medicaid contractor’s 2016 audit of the company’s claims for payment. The company submitted falsified materials to the auditor purporting to justify its claims to Medicaid, including adding patient and counselor signatures to patient files, altering names of counselors listed as providing services, and adding credentials for staff listed as performing services.
As part of the DPA, Camden Treatment Associates LLC is required to adopt several compliance measures, including having an effective compliance program, retaining an independent health care compliance consulting firm, creating an independent board of advisors, and having a chief compliance officer to oversee compliance-related functions at the company.
Defendant/Respondent: Camden Treatment Associates LLC
Criminal Charges: Violating the federal Anti-Kickback Statute and obstructing a Medicaid audit
City and State: Camden, New Jersey
Exact Date: December 2, 2022
Sentence or Outcome: Deferred prosecution agreement with a three-year term; agreed to pay $3.15 million in criminal penalties and civil settlement
Dollar Amounts: $3.15 million in total penalties and settlement; $1.5 million in criminal penalties; $1.65 million in civil settlement
Related Federal Cases
- Jeffrey Pearlman, Fentanyl Kickback Scheme, New Jersey 2017 · Connecticut
- HHS-OIG Exposes Treatment Gaps, Opioid Epidemic, Nationwide, 2023 · Massachusetts
- Google Found Guilty of Antitrust Violations, New York NY, 2023 · Connecticut
- Elmostafa Charif, Designer Drug Trafficking, New Jersey 2024 · Massachusetts
- Timothy P Foster, Rite Aid Kickback Scheme, NJ 2016 · Pennsylvania
Key Facts
- State: New Jersey
- Category: White Collar Crime|Healthcare Fraud
- Source: DOJ Press Release â†â€â€
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