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Saginaw Pharmacy and a Series of Foot and Ankle Specialists Agreed to Pay $543,000 for Allegedly Violating the Civil Monetary Penalties Law by Paying Remuneration to Contractors in the Form of Sales Commissions

After they self-disclosed conduct to OIG, Kali Nagabalaji, LLC formerly d/b/a Saginaw Pharmacy; Deepak Arsid; Ravi Chandra Gudla; Shiva Peddireddy; Matthew W. Cerniglia, DPM, P.A. d/b/a Ankle and Foot Institute of Texas; Matthew W. Cerniglia, DPM; Absolute Foot Care Specialist; Noah Levine, DPM; HAI IL Corporation; Arshad Khan; Bedolla Enterprises, LLC d/b/a Madera Medical Distributors d/b/a MMD Management & Consulting Services; Alfredo Bedolla; Damien M. Dauphine, DPM; Complete Foot and Ankle Care of North Texas, PA; and Irish Kidd Partners, LTD, Texas, agreed to pay $543,664.28 for allegedly violating the Civil Monetary Penalties Law including provisions applicable to kickbacks. OIG alleged that Kali Nagabalaji, LLC, which was then doing business as Saginaw Pharmacy (Saginaw Pharmacy) knowingly paid remuneration in the form of commissions for the first fill of certain prescriptions filled as Saginaw Pharmacy to Bedolla Enterprises, LLC d/b/a Madera Medical Distributions d/b/a MMD Management & Consulting Services (Bedolla Enterprises), a portion of which Bedolla Enterprises paid to certain practitioners in exchange for their referrals of such prescriptions. OIG further contends that Saginaw Pharmacy knowingly paid remuneration to a marketer in the form of commissions in exchange for arranging for the filling of prescriptions at Saginaw Pharmacy for patients of two practitioners.

Action Details

  • Date:May 22, 2019
  • Enforcement Types:
    • Provider Self-Disclosures