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Frederick CFO Admits to $459,245 Kickback Scheme
Baltimore, MD – Vic Wadhwa, 38, of Frederick, Maryland, pleaded guilty today to soliciting and receiving kickbacks in return for referrals at lab tests.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to his plea agreement, Wadhwa was the chief financial officer of a group of pain management clinics located in central Maryland. The group’s clinics required its patients who have been prescribed pain relief medications to submit urine samples for testing in order to monitor the levels of pain medication or other narcotics in their bodies.
The group’s clinics generated hundreds of urine samples each month, which were sent to an outside lab for testing. Wadhwa negotiated the arrangement, whereby the lab company promised to pay kickbacks equal to half of its profit, after accounting for expenses, for every urine sample that the group of clinics submitted for testing.
Between the time the kickback payments commenced in July 2011 and the end of the scheme in July 2012, the lab company paid the group of clinics a total of $1,376,540.85 in kickbacks. Out of this amount, Wadhwa received approximately $459,245.
Wadhwa faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis has scheduled sentencing for April 2, 2015 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who are prosecuting the case.
RELATED: Stoughton Drug Kingpin Gets Over 11 Years for Cocaine Smuggling and Relief Fraud
Key Facts
- State: Maryland
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime
- Source: DOJ Press Release —
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