A South Dakota neurosurgeon is the subject of a complaint filed by the United States government last week as part of a whistleblower lawsuit against him claiming violations of the False Claims Act.
According to Federal investigators, the neurosurgeon is the owner of a pair of medical device distributorships in the Sioux Falls area. They say he and his firms were involved in several illegal kickback arrangements that saw the defendant receive cash in exchange for using spinal devices sold by his distributorships in several medical procedures.
Investigators say he received several warnings to stop the practice, yet he continued conducting medically-unnecessary operations using the device, reaping substantial financial rewards in the process.
The original suit was filed under the qui tam, or whistleblower, provision of the False Claims Act, which permits an individual to file suit on the government’s behalf. Upon investigating the merits of the claim, the government then has the choice to intervene in the suit and litigate the case itself.
Civil claims against several other firm allegedly involved in the illegal kickback scheme were settled out of court last month.
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