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SpineFrontier CEO and CFO Indicted in Kickback Scheme
BOSTON – In a shocking turn of events, the CEO and CFO of SpineFrontier, a spinal device manufacturer based in Malden, Mass., have been arrested and charged in connection with a brazen kickback scheme to bribe surgeons to use company products in exchange for sham consulting fees.
Kingsley R. Chin, MD, 57, of Fort Lauderdale, Fla., the CEO and founder of SpineFrontier, and Aditya Humad, 36, of Cambridge, Mass., the company’s CFO, were indicted on one count of conspiracy to violate the Anti-Kickback Statute, six counts of violations of the Anti-Kickback Statute and one count of conspiracy to commit money laundering.
According to the indictment, SpineFrontier, Chin and Humad paid, and conspired to pay, millions of dollars in bribes to surgeons in the form of sham consulting fees for work they did not perform. The defendants allegedly bribed surgeons to use SpineFrontier’s products, and in turn, SpineFrontier received millions of dollars in revenue from surgeries the surgeons performed.
The indictment alleges that Chin and Humad designed and used a program to induce surgeons to use SpineFrontier’s products in surgeries that were paid for by federal health care programs such as Medicare, Medicaid, TRICARE and VHA. The bribe amounts were determined following a review of the number of procedures a surgeon performed and the amount of revenue those procedures generated for SpineFrontier.
The defendants allegedly paid each surgeon described in the indictment between $32,625 and $978,000 in bribes during the conspiracy. The indictment follows two guilty pleas in related criminal prosecutions, including those of Jason Montone and John Balzer, who pleaded guilty to conspiracy to violate the Anti-Kickback Statute and obstruction and conspiracy to violate the Anti-Kickback Statute and one count of witness tampering, respectively.
“Kickback arrangements pollute federal health care programs and take advantage of patient needs for financial gains,” said Acting United States Attorney Nathaniel R. Mendell. “Medical device manufacturers must play by the rules and we will keep pursuing those who fail to do so, regardless of how their corruption is disguised.”
The FBI and the U.S. Department of Health and Human Services, Office of Inspector General, worked together to investigate the scheme. “Today’s arrests show that the FBI will not hesitate to go after those who try to undermine the integrity of the medical decision-making process to take advantage of patients for their own personal gain,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
SpineFrontier, Chin, and Humad are set to appear in court on [date]. The indictment is a stark reminder of the importance of holding medical device manufacturers accountable for their actions and ensuring that they prioritize patient care over profits.
Key Facts
- State: Massachusetts
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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