TYLER, Texas – The Department of Justice announced criminal charges against 36 defendants in 13 federal districts across the United States for more than $1.2 billion in alleged fraudulent telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes.
In connection with this national effort, the U.S. Attorney’s Office for the Eastern District of Texas has charged 21 individuals, including doctors, laboratory executives, hospital executives, and marketers for their involvement in healthcare kickback and money laundering conspiracies. Former True Health Diagnostics LLC CEO Christopher Grottenthaler, former Boston Heart Diagnostics Corporation Susan L. Hertzberg, former Rockdale Hospital d/b/a Little River Healthcare CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). Additionally, 33 doctors and healthcare executives have agreed to pay over $32 million in order to resolve False Claims Act allegations for their involvement in the scheme. The criminal and civil cases allege that the defendants unlawfully enriched themselves by paying and receiving illegal kickbacks in exchange for laboratory referrals. https://urldefense.proofpoint.com/v2/url?u=https-3A__www.justice.gov_usao-2Dedtx_pr_21-2Dcharged-2Dincluding-2Dhospital-2Dand-2Dlab-2Dceos-2Dconnection-2Dmultistate-2Dhealthcare-2Dkickback&d=DwIFAg&c=GVdacB6ubqYPDFP-cd_GXA&r=bL6N2bkE90Hn1Icu7kPrrPN7JX5Dk1uZZOJGLopuVuY&m=iFxb9qqi5gLbaRsBErUJ7Ou92Plhwl4zlQ1ID1ziRTDA4Nl7vET9A3jMwHNpcQCM&s=O4r8xX41g57UUlN2jN-oemShz6PFPyI1xuscMbclM-c&e