08 Sep 2021
Two executives of Massachusetts spinal implant company SpineFrontier Inc were arrested Tuesday on charges of bribing surgeons to use their products by paying them sham consulting fees, federal prosecutors announced.
SpineFrontier founder and chief executive officer Kingsley Chin, 57, of Fort Lauderdale, Florida, and chief financial officer Aditya Humad, 36, of Cambridge, Massachusetts, as well as the company itself, were accused in an indictment in Boston federal court of violating the federal Anti-Kickback Statute and conspiracy to commit money laundering.
“Kickback arrangements pollute federal health care programs and take advantage of patient needs for financial gains,” said Massachusetts Acting U.S. Attorney Nathaniel Mendell. “Medical device manufacturers must play by the rules, and we will keep pursuing those who fail to do so, regardless of how their corruption is disguised.”
Brad Bailey of Brad Bailey Law, a lawyer for Chin; Seth Orkand of Robinson & Cole, a lawyer for Humad; and Raymond Sayeg Jr of Krattenmaker O’Connor & Ingber, a lawyer for SpineFrontier did not immediately respond to requests for comment.
Prosecutors said the defendants entered into consulting contracts in which they agreed to pay surgeons between $250 and $1,000 per hour for consulting work.
In fact, prosecutors said, surgeons did little if any consulting work, and the payments served as bribes to use SpineFrontier products. The defendants’ payments through the scheme amounted to millions of dollars, they said.
Government health insurance programs, including Medicare and Medicaid, were billed for the use of SpineFrontier products induced by these bribes, according to the indictment, violating the Anti-Kickback Statute.
By Brendan Pierson, Reuters, 7 September 2021
Read more at Reuters
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