The U.S. Department of Justice (DOJ) announced that on November 8, the U.S. District Court for the District of North Carolina “entered a $9 million civil consent judgment for the United States” against chiropractor Daniel McCollum. The judgement was entered under the False Claims Act.
The DOJ press release states that the “U.S. Attorney’s Office for the District of South Carolina filed an information and plea agreement in which McCollum admitted to engaging in a conspiracy to pay illegal kickbacks and to defraud healthcare programs by billing for unnecessary medical services” also on November 8. McCollum could face a maximum criminal penalty of “five years in prison and a fine of $250,000.” According to the DOJ, “[a] sentencing date has not been set.”
The DOJ states that McCollum “owned and operated pain management clinics, laboratories and a pharmacy in South Carolina,” as well as pain management clinics in North Carolina and Tennessee. His clinics “did business collectively as Pain Management Associates.”
The U.S. filed a civil complaint against McCollum in May of 2019 alleging that he “caused the submission of false claims to federal health care programs arising from kickbacks he paid for urine drug testing (UDT) referrals in violation of the Anti-Kickback Statute; referrals prohibited under the Stark Law from physicians with whom McCollum had financial relationships; and claims for UDT and other services that were not medically necessary and that lacked a legitimate...
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