Headlines that Matter for Companies and Executives in Regulated Industries
Pharmaceutical Company Agrees to Pay $12.6 Million to Settle FCA Allegations Involving Kickbacks
On Tuesday, the Department of Justice announced a $12.6 million settlement with Incyte Corporation, a Delaware pharmaceutical company, to resolve False Claims Act allegations relating to Incyte’s drug Jakafi, a drug approved to treat myelofibrosis. The
qui tam claims were brought by a former compliance executive at Incyte, who will receive approximately $3.59 million of the recovery.
According to the government, between November 2011 and December 2014, Incyte allegedly pressured an independent foundation to pay copays of Medicare and TRICARE beneficiaries using Jakafi who were ineligible for fund assistance because they did not have myelofibrosis. The government further alleged that an Incyte contractor assisted ineligible beneficiaries in completing and submitting applications to the fund for copay assi
Details Written by Justice Department
Sioux Falls, South Dakota - Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.
Medical Designs and Sicage agreed to pay an additional $100,000 in penalties to settle allegations that they violated the Open Payments Program by failing to report to the Centers for Medicare & Medicaid Services (CMS) Asfora’s ownership interests and payments made to Asfora.
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South Dakota neurosurgeon Wilson Asfora, MD, and his two medical device distribution companies, agreed to pay $4.4 million to settle federal allegations around kickbacks and unnecessary procedures, the U.S. Department of Justice said this week.
The settlement resolves False Claims Act allegations related to illegal payments to Asfora for the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries, the DOJ said.
Asfora s companies, Medical Designs and Sicage, have agreed to pay an additional $100,000 to settle allegations they failed to report to CMS Asfora s ownership interests and payments made to him.
S.D. Neurosurgeon, 2 Companies Settle Kickback, Fraud Allegations for $4.4M May 4, 2021
A South Dakota-based former Sanford Health neurosurgeon and two medical device distributorships that he owns will pay $4.4 million to settle allegations that they defrauded the federal government through illegal kickback schemes, the U.S. Department of Justice said.
The settlement resolves allegations that over the course of nearly a decade, Dr. Wilson Asfora and his distributorships, Medical Designs and Sicage, knowingly and willfully engaged in three kickback schemes to allow Asfora to profit from his use of over a dozen devices in his medical procedures.
Federal officials contended in a 2019 lawsuit that Asfora made millions of dollars by performing unnecessary and dangerous surgeries, including one that left a patient partially paralyzed.