Mulberry Medical Associates, P.C., False Claims Act, Alabama 2020

Montgomery, AL

– On Monday, March 16, 2020, Mulberry Medical Associates, P.C. agreed to pay $425,000 in a civil settlement to resolve allegations that it violated the False Claims Act, announced Acting United States Attorney Sandra J. Stewart.

The alleged false claims involved the importation and distribution of foreign, non-Food and Drug Administration (FDA) approved pharmaceutical products prohibited under the Food, Drug, and Cosmetic Act.

Mulberry Medical Associates, P.C. is a group medical practice in Montgomery, Alabama, which specializes in internal medicine.

The government’s investigation revealed that Mulberry Medical Associates purchased and administered certain unlicensed and foreign-made pharmaceutical products, or “subject products,” that were meant to be distributed only in foreign markets.

The settlement addresses allegations that, from September 2011 through March 2017, Mulberry Medical Associates knowingly submitted false claims for and related to the use of the subject products to Medicare, Medicaid and the Federal Employees Health Benefits Program (FEHBP).

“This settlement shows that the United States government is working to identify companies that place profit ahead of patient safety, and hold them accountable,” stated Acting U.S. Attorney Stewart.

The United States contends that the subject products were not eligible for reimbursement by the federal health care programs because they had not received final marketing approval from the FDA.

“Doctors are entrusted with caring for their patients and obtaining and using safe, U.S. approved drugs on their patients,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.

Mulberry Medical Associates put their financial gain above the health and safety of local residents.

This Affirmative Civil Enforcement (ACE) matter was investigated by the U.S. Department of Health and Human Services-Office of Inspector General, the U.S. Office of Personnel Management-Office of Inspector General, the U.S. Food and Drug Administration-Office of Criminal Investigations, and the Health Care Fraud Investigator of the U.S. Attorney’s Office.

The United States was represented by Assistant United States Attorney Stephen D. Wadsworth of the Office’s Civil Division.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Mandatory facts:

Defendant/respondent: Mulberry Medical Associates, P.C.

Criminal charges: Violation of the False Claims Act

City and state: Montgomery, Alabama

Exact date: March 16, 2020

Sentence or outcome: $425,000 settlement

Dollar amounts: $425,000

Source: https://www.justice.gov/usao-mdal/pr/medical-practice-pay-425000-settle-false-claims-act-allegations