The Department of Justice (DOJ) entered into a consent judgment with the former CEO of Premier Medical, a now-defunct genetic testing company. In a July 17 press release, the DOJ announced that Kevin S. Murdock agreed to pay more than $27.5 million to resolve allegations of violations of the False Claims Act and state Medicaid fraud laws. This settlement brings the total amount recovered by the government from various defendants in the case to $114.5 million.
The DOJ’s investigation was sparked by a former Premier employee, Karen Mathewson. Mathewson filed a qui tam lawsuit under the False Claims Act. As part of the settlement, which will be split between the United States and the three states involved (Colorado, Georgia, and South Carolina), Mathewson will receive an award of 16% of the funds received by the United States and 7.5% of the funds received by both Georgia and Colorado.
In 2021, the U.S. and the three states filed a joint complaint against Premier; its coconspirator, Freedom Medical Labs, LLC; and several individuals in leadership positions within the two companies, including Murdock. The complaint alleged that Freedom conducted medically unnecessary genetic cancer screenings for Medicaid recipients in the three states to obtain the high Medicaid reimbursements they offered, and that Premier paid illegal kickbacks to Freedom for this testing. In total, the scheme cost the states’ Medicaid programs over $14 million.
“Medicaid fraud undermines the integrity of...
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