A large damage award serves as a significant reminder to file an appearance in a False Claims Act (FCA) case.
In late August of 2022, the Government filed suit against AZ Diabetic and the owner, Hisham Zaghal (Zaghal), in the Eastern District of Virginia, alleging violations under the False Claims Act (FCA), stemming from over $600,000 in reimbursement claims related to prescriptions that AZ Diabetic illegally purchased. After AZ Diabetic failed to file an appearance, the Government moved for default judgment, which was entered by the Court. As a result, AZ Diabetic was liable for just over $12 million in civil penalties and treble damages under the FCA for violations of the Anti-Kickback Statute (AKS).
Under the FCA, penalties constitute three times the amount of damages awarded to the government, in addition to penalties for each false claim. Here, the Court awarded the Government $1,836,987.48 in damages and $10,199,567 based on the minimum civil penalty for each of the 923 claims submitted to Medicare for a total of $12,036,554.48.
The Government’s Motion for Default Judgment was denied as to Zaghal because he retained counsel and filed an appearance. What remains a mystery is why he did not retain counsel and file an appearance for his company. Ultimately, Zaghal reached a separate settlement with the Government. He agreed to pay $10,000 and forgo $57,690.12 that was held in escrow by the Department of Health and Human Services (HHS) for the suspension of payments to...
KUALA LUMPUR: Three construction company directors will face charges in the Kuala Lumpur Sessions Court tomorrow for submitting false claims related to a Klang Valley highway construction project....