Texas Marking Company CEO Agrees to Voluntary Exclusion

On October 17, 2017, in connection with the resolution of his False Claims Act liability, Mitch Edland (Edland), Addison, Texas, agreed to be excluded from participation in all Federal health care programs for a period of 5 years under 42 U.S.C. § 1320a-7(b)(7). OIG's investigation revealed that Edland's company, DNA Stat, LLC (DNA Stat), entered into an agreement with a laboratory to market a pharmacogenomics clinical trial of which the laboratory was the sponsor. OIG's investigation revealed that Edland, in his capacity as CEO of DNA Stat, caused the submission of claims to Medicare that were false and fraudulent because of the following conduct in violation of the Anti-Kickback Statue: (1) paying physicians to participate in a clinical study, which OIG contends was not a legitimate clinical study, to induce those physicians to order pharmacogenetic tests from the laboratory; (2) paying physicians based on the volume of referrals made to his company, to induce those physicians to order pharmacogenetics tests from the laboratory; (3) providing physicians with in-office medical technicians to induce those physicians to order pharmacogenetic tests from the laboratory; (4) entering into a marketing arrangement with the laboratory that took into account the volume or value of referrals with the intention of inducing the referrals of tests to the laboratory; and (5) entering into marketing arrangements with individual marketers that took into account the volume or value of referrals with the intention of inducing referrals of tests to the laboratory. Senior Counsel Karen Glassman represented OIG.

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