Companies that operated in South Carolina and North Carolina, with the help of individuals from Florida and Illinois, were involved in the fraudulent medical practices.
Several healthcare providers and marketing professionals have agreed to pay over $1.9 million to settle allegations of kickback schemes that allegedly led to fraudulent medical billing. The settlements address claims that doctors, medical practices, and marketing firms participated in arrangements where financial incentives influenced medical decisions, in violation of federal law.
At the heart of the case are allegations that physicians in South Carolina and North Carolina, along with marketing professionals from Illinois and Florida, received illegal payments in exchange for referring patients for laboratory testing.
These payments were disguised as office space rentals, phlebotomy fees, and other compensation, according to the Department of Justice. The schemes allegedly resulted in fraudulent claims submitted to federally funded healthcare programs such as Medicare and TRICARE.
The Anti-Kickback Statute prohibits financial arrangements that could improperly influence medical decision-making. Such kickbacks create a conflict of interest, undermining the integrity of patient care. Federal investigators stated that these illicit financial relationships prioritize profit over patient health, ultimately misusing taxpayer funds.
Among those implicated is Dr. Gerald Congdon of Coastal Urgent Care in South Carolina, who, along with his medical practices, agreed to pay $400,000 to settle allegations that from 2016 to 2021, he received disguised payments in return for ordering laboratory tests.
Similarly, Dr. Gbenga Aluko of Eagle Medical Center in North Carolina agreed to pay $250,000 to resolve claims that he accepted improper payments during the same time frame.
Dr. Anup Banerjee of Gastonia Medical Specialty Clinic also reached a settlement, agreeing to pay $206,000. Federal authorities allege that he too received financial incentives under the guise of office space rentals and other payments in exchange for referring patients for lab tests.
Read also:Another huge investment in South Carolina: $134 million investment, nearly 500 news jobs
In addition to the medical professionals, marketing firms were also implicated in the scheme.
Omar Hussain, the head of Curis Healthcare Inc., a marketing company based in South Miami, Florida, agreed to a substantial settlement of $817,808. Prosecutors claim that Hussain and his firm received commissions based on the volume of laboratory test referrals they facilitated, which violates federal law.
Additionally, Saeed Medical Group Ltd., operating under the name Alliance Immediate and Primary Care in Chicago, Illinois, was implicated in the case. The company, along with Hussain and Curis Healthcare, agreed to pay an additional $240,000 to settle allegations that they accepted cash payments in return for directing lab test referrals.
Government officials involved in the case stressed the importance of protecting the integrity of the healthcare system. Acting U.S. Attorney Brook B. Andrews for the District of South Carolina condemned kickback schemes, stating that such practices divert focus away from patient care.
Special Agent in Charge Steve Jensen of the FBI’s Columbia field office echoed these sentiments, emphasizing that healthcare providers who violate ethical standards erode public trust.
Officials from multiple agencies, including the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the Department of Defense Office of Inspector General, reiterated their commitment to prosecuting those who engage in fraudulent medical practices.
Special Agent Kelly Blackmon of HHS-OIG stated that the government will continue to pursue False Claims Act violations to safeguard taxpayer-funded healthcare programs and protect patients.
The settlements are part of a broader federal effort to combat healthcare fraud. Investigators highlighted that previous enforcement actions had targeted similar schemes in South Carolina, North Carolina, and Texas. While the accused parties have agreed to financial settlements, the claims remain allegations, and no formal determination of liability has been made.
Read also: Sen. Lindsey Graham roasted online after writing ‘Trump 2028’: “Shut up, you are a traitor!”
Authorities encouraged whistleblowers and members of the public to report potential healthcare fraud, emphasizing that vigilance is crucial to maintaining ethical medical practices. Anyone with information regarding fraudulent activities can report concerns to the Department of Health and Human Services through a designated hotline.
The case underscores the federal government’s continued crackdown on fraudulent healthcare practices, sending a clear message that financial arrangements compromising medical decisions will not be tolerated.
