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Thursday, April 30, 2026

Investigations Newsletter: Ophthalmology Distributer and Owner ... - JD Supra

Headlines that Matter for Companies and Executives in Regulated Industries

A federal jury in Milwaukee recently returned a verdict against the Cameron-Ehlen Group, Inc., d/b/a Precision Lens, and its owner, Paul Ehlen, for paying kickbacks to induce surgeons to use Precision Lens products in connection with cataract surgeries paid for by Medicare.

After a six-week trial, the jury found Precision Lens and Ehlen violated the Anti-Kickback Statute and the False Claims Act when paying for physicians’ travel and entertainment expenses. The defendants frequently flew physicians on private jets to luxurious vacation destinations for hunting, golfing, skiing, and fishing vacations. Many physicians were also treated to Broadway musicals and premier sporting events, such as the Masters Tournament in Augusta, Georgia and the College Football National Championship game in Miami, Florida. According to DOJ’s press release, Precision Lens maintained a secret slush fund that was used to finance many of these trips. The jury found that the defendants submitted 64,575 fraudulent claims to Medicare that resulted in approximately $43.76 million in damages.

After the verdict, the US Attorney’s Office in Minnesota requested that the Court enter judgment in the amount of $489.529 million — approximately $131.083 million in treble damages and $358.445 million in per-claim statutory penalties. The defendants vigorously oppose the government’s request, arguing that the government’s “taint theory”—...



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