Federal Anti Kickback Act, Statute Penalties and Information

Under the Federal Anti Kickback Act individuals and companies are prohibited from offering, paying, soliciting or receiving kickback payments for items or services covered by federally funded

programs. For example, medical physicians cannot compromise their judgment by improper financial incentives.

In a recent Anti-kickback Act case on the DOJ Website, Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia, and Singulex Inc., of Alameda, California, agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing.

Settlements stemmed from three related whistleblower actions filed under the federal False Claims Act. HDL will pay $47 million and Singulex will pay $1.5 million.

Federal Anti kickback Act Penalties Information –Personal Services Illegal remunerations

There are various penalties attached to Anti kickback Act violations. Pertinent language regarding penalties include:

(1) Whoever knowingly and willfully solicits or receives any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind—

(A) in return for referring an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a Federal health care program, or

(B) in return for purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under a Federal health care program,

shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

(2) Whoever knowingly and willfully offers or pays any remuneration (including any kickbacks, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind to any person to induce such person—

(A) to refer an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a Federal health care program, or

(B) to purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under a Federal health care program, 

shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both. See more information about Anti Kickback Act Statute Resolving Challenges of Fraud and Penalties.

To Minimize Risk of False Claims, Get a Free Copy of Your False Claims Avoidance Chekclist

If you or your company is seeking legal representation or information in a pending case related to the Federal Anti-kickback Statute, and statutory penalties for personal services or selling products funded by the federal government call our federal criminal defense lawyers at 1-866-601-5518.