NEWARK, N.J. – Daniel Hurt, a 57-year-old Florida businessman, has agreed to pay over $27 million to resolve allegations that he and his companies conspired to submit false claims to Medicare for cancer genomic (CGx) tests.
According to court documents, Hurt owned and operated several companies, including Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC. The companies allegedly conspired with others to submit false claims for CGx tests that were not medically necessary, receiving payments from Medicare in the process.
The United States alleged that Hurt received and paid kickbacks in exchange for Medicare referrals, violating the Anti-Kickback Statute (AKS). From January 2019 to November 2021, Hurt allegedly conspired with telemarketing agents to solicit Medicare beneficiaries for “free” CGx tests, with telemedicine providers to “prescribe” CGx tests that were not medically necessary, and with reference laboratories to conduct the CGx tests.
Hurt previously pleaded guilty to criminal healthcare fraud for these offenses. The civil settlement is based on Hurt’s ability to pay.
“Medicare and Medicaid are two vitally important health care programs that provide critical services to millions of Americans,” said U.S. Attorney Philip R. Sellinger. “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.”
Deputy Inspector General of Investigations Christian J. Schrank stated, “Submitting false claims for medically unnecessary services to Medicare and Medicaid jeopardizes the integrity of vital health care programs, and we, along with our law enforcement partners, will continue to make sure those who attempt to do so are held accountable.”
The settlement includes the resolution of allegations brought in three cases filed under the qui tam provisions of the False Claims Act (FCA), including an action filed by Robert Gerstein, a minority owner of Sonoran Desert Pathology, who 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.
This settlement highlights the government’s emphasis on combating health care fraud and protecting vulnerable populations from exploitation.
As part of the settlement, Hurt and his companies will be excluded from Medicare, Medicaid, and all other federal health care programs.
Related Federal Cases
- $27M Medicare Scammer Daniel Hurt Pays the Price · New Jersey
- Seth Rehfuss Gets 50 Months for Medicare Swindle · Mississippi
- Virginia Man Gets 19 Months in Medicare Swindle · Mississippi
- Florida Man Pleads Guilty in $4.8M Medicare Fraud Scheme · New Jersey
- Florida Man Gets 15+ Years for Extortion, Bomb Threats · New Jersey
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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