Laboratory CEO, Marketers, and Physicians to Pay Over $6M to Settle Allegations of Management Service Organization and other Lab Testing Kickbacks

One-time laboratory CEO Christopher Grottenthaler, formerly of Frisco, Texas, has agreed to pay $4.25 million to resolve False Claims Act litigation with the United States alleging illegal payments to doctors for laboratory referrals in violation of the Anti-Kickback Statute. Two physicians — Hong Davis, M.D., of Plano, Texas, and Elizabeth Seymour, M.D., of Denton, Texas — and seven marketers — Courtney Love, of Dallas, Texas, Stephen Kash, of Winnie, Texas, Laura Howard, of Lucas, Texas, Jeffrey Parnell, of Tyler, Texas, Stanley Jones, of San Antonio, Texas, Jordan Perkins, of Conroe, Texas, and Ruben Marioni, of Spring, Texas — have agreed to pay an additional $1,818,462 to settle the United States’ laboratory kickback allegations against them in the case. The settling parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes. With these settlements, the Department of Justice has secured over $59 million in civil False Claims Act settlements for kickbacks to healthcare providers disguised as managed service organization (MSO) investment distributions, including recoveries from 50 physicians.

Read more on www.justice.gov