South Carolina Chiropractor Pleads Guilty and Agrees to $9 Million False Claims Act Consent Judgment

Posted by Thomas W. Keilty | Nov 29, 2021

The Stark Law and the Anti-Kickback Statute are federal laws intended to prevent financial incentives from improperly influencing medical decision making. The federal government relies on whistle-blowers to come forward with information regarding individuals or companies that violate these laws. 

The Stark Law, among other things, prohibits billing Medicare for laboratory testing referred by a physician who has a financial relationship with the laboratory. 

The Anti-Kickback Statute prohibits offering anything of value to induce the referral of items or services covered by federal healthcare programs. 

On November 8th, 2021, the U.S. District Court for the District of South Carolina entered a $9 million civil consent judgment with South Carolina chiropractor Daniel McCollum. The U.S. alleged that McCollum illegally paid for urine drug testing referrals, received improper referrals from physicians with whom McCollum had a financial relationship, and submitted claims for urine drug testing and other services that were not medically necessary and that lacked a legitimate medical purpose. 

Four former employees of McCollum came forward as whistleblowers under the False Claims Act. Under the False Claims Act, any person with knowledge of these types of violations of federal laws are entitled to collect a portion of any recovery by the U.S. Government. 

If you know that your employer or any other person or company submits false claims, pays illegal kickbacks, or otherwise defrauds federal health care programs like Medicare, Medicaid, or Tricare, contact the experienced whistleblower attorneys at Keilty Bonadio for a free, confidential consultation.  

About the Author

Thomas W. Keilty

TJ Keilty represents individuals and families in cases involving complex products liability, medical malpractice, civil rights and the false claims act.  He is a true believer in the civil justice system and fights passionately to get his clients the compensation they deserve.  A calm demeanor an...

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