Medicare Fraud Exposed: QOL Medical and CEO Pay $4.7M in Kickback Settlement

The company engaged in a systematic kickback operation involving their drug Sucraid, which treats Congenital Sucrase-Isomaltase Deficiency (CSID). Between 2018 and 2022, QOL Medical provided free Carbon-13 breath test kits to healthcare providers and paid for laboratory analysis of these tests.

The Kickback Operation

The scheme worked through several key steps:

• QOL distributed free breath test kits to providers
• The company paid for laboratory analysis
• They used test results to identify potential Sucraid prescriptions
• Sales representatives tracked and converted positive tests into prescriptions

Settlement Terms

The settlement reached with QOL Medical LLC and CEO Frederick E. Cooper encompasses a total payment of $4.7 million to resolve the allegations. As part of this resolution, the company admitted to providing kickbacks through their free testing program, which violated federal healthcare regulations. The settlement specifically addresses allegations that the company submitted false claims to federal healthcare programs through their deceptive marketing and kickback scheme involving Carbon-13 breath tests and Sucraid prescriptions. This comprehensive settlement demonstrates the government's commitment to holding healthcare companies accountable for fraudulent practices that exploit federal healthcare programs.

The Whistleblowers' Role

The case was initiated by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblower will receive approximately $846,000 as their share of the recovery.

Medicare fraud undermines the integrity of our healthcare system and wastes taxpayer dollars. Whistleblowers play a crucial role in exposing these schemes, protecting patient care, and ensuring proper use of healthcare resources. Their courage in coming forward helps maintain the integrity of federal healthcare programs and recovers millions in fraudulent claims.

Take Action Against Healthcare Fraud

If you have knowledge of similar healthcare fraud schemes, you can make a difference. Contact the New Jersey Team, the Whistleblower Advocates offers free, confidential consultations to evaluate your case and guide you through the process of reporting fraud while protecting your rights. Your action today could help protect patients and save taxpayer dollars tomorrow.

Source: https://www.justice.gov/opa/pr/pharmaceutical-company-qol-medical-and-ceo-agree-pay-47m-allegedly-paying-kickbacks-induce?link_id=9&can_id=f87aac00a044a0da0c451889dc4f075a&source=email-fraud-in-america-blowing-the-whistle-to-protect-vulnerable-patients&email_referrer=email_2552424___from_3082361&email_subject=fraud-in-america-cybersecurity-fraud-101-and-how-whistleblowers-can-fight-it

This article is a news article for informational purposes only. The Whistleblower Advocates did not represent the parties identified in the story above.