COLUMBIA, S.C. (WCIV) — Kevin S. Murdock, the former CEO and owner of the now-defunct Premier Medical, Inc., has agreed to a $27.5 million consent judgment.
This settlement acknowledges the likelihood of his liability in a civil action brought by the United States and the states of Colorado, Georgia, and South Carolina for violations of the False Claims Act and related state statutes.
The settlement was reached just one day before Murdock's two-week trial was set to begin. This adds to the $87 million in judgments and settlements previously obtained by the governments against other defendants in the case.
The U.S. District Court for the District of South Carolina had entered a default judgment of over $71 million against Premier Medical, Inc., which was owned by Murdock. The court's judgment means the allegations against Premier Medical are considered true. Murdock acknowledged the likelihood of being found liable for violating federal and state False Claims Acts.
The government's complaint detailed a scheme where Premier Medical and its associates paid illegal kickbacks for referrals for expensive cancer genetic testing. The scheme targeted Medicaid beneficiaries in Georgia, Colorado, and South Carolina, exploiting favorable reimbursements for such tests. The defendants set up tables in low-income areas to entice Medicaid beneficiaries to provide DNA samples under false pretenses.
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