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William Rosellini and His Companies Agreed to Pay $50,000 and Be Excluded for 5 Years for Allegedly Violating the Civil Monetary Penalties Law by Inappropriately Drawing Down Funds from NIH Small Business Innovation Research Grants

On October 13, 2020, William Rosellini, Nexeon Medsystems, Inc., Pulsus Medical, LLC, , and Nexeon Medsystems Puerto Rico Operating Company, Inc. (collectively, “Nexeon”), entered into a settlement agreement with OIG in which they agreed to pay $50,000 and be excluded from participation in all Federal health care programs for five years under 42 U.S.C. 1320a-7a and 42 U.S.C. 1320a-7(b)(7). The settlement agreement resolves allegations that Nexeon drew down funds from the HHS Payment Management System from National Institutes of Health (NIH) Small Business Innovation Research (SBIR) awards that were: (1) sent to an overseas affiliate without NIH approval, in violation of NIH SBIR requirements; (2) based upon quotes and other potential costs that were never incurred; (3) comingled among various affiliates and used for unallowable costs unrelated to the NIH SBIR awards; and (4) not supported by adequate documentation to ensure that the funds were used for allowable costs in accordance with the terms and conditions of the awards. Senior Counsels Michael Torrisi and David Traskey, assisted by Chief Investigator Amber Mahmood, represented OIG.

Action Details

  • Date:October 13, 2020
  • Enforcement Types:
    • CMP and Affirmative Exclusions