Healthcare Providers in Tx, Va, and SC Pay $1.14 Million to Settle Kickback Allegations

Disguised “investment returns” led to illegal incentives for lab referrals, violating the Anti-Kickback Statute.

NEWARK, NJ—U.S. Attorney Philip R. Sellinger announced today that two laboratory marketers, three healthcare providers, an outpatient clinic, and related entities have collectively agreed to pay $1.14 million to resolve allegations they violated the Anti-Kickback Statute concerning laboratory testing referrals. The enforcement action underscores federal efforts to combat fraud and protect patients from healthcare providers’ improper financial motivations.

“The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.”

Alleged Kickback Schemes

From 2016 through 2022, certain marketers allegedly paid—or conspired to pay—illegal kickbacks disguised as “investment distributions” to induce healthcare providers to refer patients to specific laboratories in New Jersey, Florida, Virginia, and Texas. In return, those providers allegedly ordered lab testing that generated reimbursements to the labs, prompting the submission of false or fraudulent claims to Medicare in violation of the False Claims Act.

“Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions. Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes,” said U.S. Attorney Philip R. Sellinger.

Who Settled and for How Much

1. Marketers
   • Shahram Naghshbandi of Fort Worth, Texas: Paid $400,000. He also agreed to a 10-year exclusion from federal healthcare programs.
   • John Bello of Chesterfield, Virginia, and his marketing company RiteRx4U LLC: Paid $140,000.
2. Healthcare Providers and Associated Entities
   • Dr. Abbesalom Ghermay (Plano, Texas): Paid $228,482.
   • Dr. James Cook (Richmond, Virginia) and Family Medical Centers, P.C.: Paid $206,987.
   • Dr. Daniel Theesfeld (Longview, Texas) and H8 Pain Management Center of Texas PLLC: Paid $99,125.
   • Advantage Medical Group (Columbia, South Carolina) and owner Troy Belton: Paid $63,320.

Authorities allege these individuals and practices received thousands of dollars in disguised kickbacks in exchange for referring laboratory testing. Although the payers and recipients of kickbacks have settled, no determination of liability has been made; these are allegations only.

“Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division said.

Government Collaboration

The settlements announced today reflect cooperation among multiple agencies, including the U.S. Attorney’s Office for the District of New Jersey, the Civil Division’s Commercial Litigation Branch (Fraud Section), and the HHS Office of Inspector General (HHS-OIG).

“The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).”

Those named in the settlements have agreed to cooperate with the Department of Justice’s investigations into any other individuals or entities that may have participated in the alleged kickback arrangements. By holding both parties to the Anti-Kickback Statute accountable, officials aim to ensure that clinical decisions remain rooted in patient well-being rather than financially driven incentives.