A federal jury found Precision Lens and its owner, Paul Ehlen, (collectively “Precision”) liable for more than $43 million in violations of the False Claims Act. During the six-week trial in Minnesota, the government proved that Precision submitted 64,575 false claims to Medicare between 2006-2015. In addition, Precision was found liable of violating the Anti-Kickback Statute. Because the False Claims Act provides for treble damages and penalties, Precision Lens is potentially liable for over $800 million.
Precision Offered Lavish Vacations to Induce Surgeons to Use Its Products
During the trial, the government proved that Precision paid improper remuneration in the form of lavish trips and entertainment to ophthalmic surgeons. In return, the surgeons used Precision’s products in cataract surgeries reimbursed by Medicare. In its Complaint, the government provided examples of the luxury vacations afforded to the surgeons. Some examples included trips on private jets to the Masters golf tournament, the college football championship game, and a Broadway musical. Precision’s wrongdoing was initially brought to light by whistleblower, Kipp Fesenmaier, in a qui tam lawsuit. The government later intervened in the lawsuit in 2018.
The jury’s verdict protects the integrity of the Medicare system for patients and those healthcare providers who operate fairly and legally. Companies may not use expensive trips and other items of value to persuade physicians to use their products, and physicians may not accept that remuneration.
-Assistant U.S. Attorney Chad Blumenfield.
The False Claims Act Provides for Triple Damages and Penalties
The Federal Jury found that Precision Lens’ conduct had led to $43 million in false billings to the government. However, the False Claims Act provides for triple damages and the assessment of penalties for each violation. False Claims Act penalties are adjusted periodically for inflation. From 2006 to 2015, the period of Precision’s violations, False Claims Act penalties ranged from $5,500 to $11,000. The Jury also determined that Precision Lens caused the submission of 64,575 false claims. As such, Precision Lens’s total liability is $129 million (3 times $43 million) plus 64,575 penalties totaling $355 million to $710 million. The Judgment that will be entered against Precision will set forth the total amount to be awarded to the government.
We Help Whistleblowers Bring Successful Cases
The Whistleblower Law Collaborative LLC represents clients nationwide in bringing actions under state and federal False Claims Acts. In addition, the firm assists clients in bringing claims in other whistleblower programs such as the SEC and IRS Whistleblower Programs. Among the firm’s many successes is a $234 million settlement earlier this year with Mallinckrodt for Medicaid rebate fraud.
The post Jury Finds Precision Lens Liable for $43 Million False Claims Act Violations appeared first on Whistleblower Law Collaborative.