False Claims Act Case Exposes $487 Million Healthcare Fraud Scheme

A False Claims Act (FCA) case recently exposed a massive fraud scheme perpetrated by Cameron-Ehlen Group, Inc. (doing business as Precision Lens), and its owner, Paul Ehlen. The defendants were found liable for over $487 million due to FCA and Anti-Kickback Statute violations. The judgment followed a federal civil jury's verdict in favor of the U.S. government after a trial in February 2023. The jury found Precision Lens and its owner responsible for causing the submission of 64,575 false claims to the Medicare program, amounting to $43,694,641 in single damages between 2006-2015.

Case background

According to the government's press release, the defendants provided kickbacks to physicians in various forms, including extravagant travel and entertainment. Examples of these perks included high-end skiing trips, fishing excursions, golf outings, hunting trips, sporting events and exclusive entertainment vacations. Physicians were treated to luxurious experiences at exclusive destinations, often transported via private jets. The defendants also sold frequent flyer miles to physicians at significant discounts, enabling them to take personal and business trips at a fraction of the fair market value.

The case was initially brought to light by whistleblower Kipp Fesenmaier, who filed a lawsuit under the qui tam provision of the FCA. This provision allows private citizens to take legal action on behalf of the government if they possess knowledge of an individual or company defrauding the government. Under the qui tam provision, whistleblowers are entitled to receive between 15 and 30 percent of the government's recovery. The exact amount to be awarded to Fesenmaier has yet to be announced.

If you’re ready to blow the whistle on healthcare fraud, contact a seasoned whistleblower attorney at Kardell Law Group today.