Fourth Circuit Court of Appeals Affirms $114 Million Judgement Against 3 Defendants Found Liable of Defrauding Medicare and Tricare
Columbia, S.C (STL.News) Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the United States Court of Appeals for the Fourth Circuit has affirmed a $114 million judgment against Floyd Calhoun “Cal” Dent, III, of Lexington, and his two co-conspirators, all of whom a South Carolina jury found liable for defrauding the federal healthcare programs Medicare and Tricare.
At trial, the United States contended that, when specialty labs Health Diagnostics Laboratory, Inc. (“HDL”) and Singulex, Inc. paid commissions to Dent’s marketing firm, BlueWave, based on the number of blood tests sold, the parties violated the Anti-Kickback Statute. The United States argued these volume-based commissions constituted “remuneration” intended to induce BlueWave’s sales representatives to sell as many blood tests as possible. The United States also contended the Anti-Kickback Statute prohibited BlueWave from paying its salespeople for recommending the tests. By paying these kickbacks, the defendants caused false claims to be submitted to federal healthcare programs for millions of dollars in unnecessary blood tests. The jury agreed, and now the Fourth Circuit has affirmed the jury’s verdict in a published opinion.