Dr. Marc Blatstein Blog, Medical, Preparation, Sentence Mitigation, White-Collar

False Claims Act (FCA) 2025, COULD PUT YOU IN LEGAL JEOPARDY

FCA #1: HEALTHCARE.

IF YOU’RE A

HEALTHCARE PROVIDER OR SYSTEM CEO-COO,

A CONTRACTOR, OR PROCUREMENT OFFICER:

UNDERSTAND THE DOJ 5/12, & 19/2025 MEMOS

DON’T BE ON THEIR TARGET LIST.

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5/12/2025 MEMORANDUM

TO: All Criminal Division Personnel

FROM: Matthew R. Galeotti
Head of the Criminal Division
SUBJECT: Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime

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5/19/2025 THE DEPUTY ATTORNEY GENERAL,

SUBJECT: Civil Rights Fraud Initiative

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The Criminal Division will prioritize investigating and prosecuting white-collar Waste, fraud, and abuse.

  1. Healthcare and Procurement fraud.
  2. Trade, Customs, and Tariff Evasion.
  3. Elder, securities fraud, and other market manipulation schemes.
  4. Fraud that victimizes U.S. investors, individuals, and markets, including Ponzi schemes,
  5. Conduct that threatens the country’s national security and financial system by Cartels, TCOs, hostile nation-states, and/or foreign terrorist organizations.
  6. Material support by corporations to foreign terrorist organizations,
  7. Complex money laundering, including Chinese Money Laundering Organizations,
  8. Violations of the Controlled Substances Act and the Federal Food, Drug, and Cosmetic Act (FDCA), the unlawful manufacture and distribution of chemicals and equipment used to create counterfeit pills laced with fentanyl, and the unlawful distribution of opioids by medical professionals and companies.
  9. Bribery and associated money laundering that undermine U.S. national security,
  10. Digital Assets DAG Memorandum: crimes: (1) involving digital assets that victimize, (2) that use digital assets in furtherance of other criminal conduct. (3) willful violations that facilitate significant criminal activity.

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CIVIL (Financial) OR CRIMINAL (Prison) CHARGES, TAKE THEM BOTH SERIOUSLY. What was once considered criminal, in some cases, is now Considered Civil. Don’t take any chances.

Get legal representation and avoid turning a civil financial penalty into a criminal sentence.

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CIVIL

DOJ Announces Civil Rights Fraud Initiative Targeting Federal Fund Recipients’ Use Of DEI
… fraud against the Government, particularly in areas like healthcare and defense contracting. Indeed, the DOJ’s most recently announced complaint …

False Claims Act

The False Claims Act (“FCA”), 31 U.S.C. §§ 3729 et seq., has historically been utilized to address fraud against the Government, particularly in areas such as healthcare and defense contracting.  The plan, entitled the Civil Rights Fraud Initiative (the “Initiative”), aims to target the use of diversity, equity, and inclusion (“DEI”) programs by universities, healthcare, and government contractors.

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CRIMINAL: FINANCIAL AND PRISON  

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Medical Equipment Business Owner Sentenced to Federal Prison and Ordered to Pay Over …

Pedro Reyes, 54, formerly of Elizabethtown, Kentucky, was sentenced to 2 years and 9 months in prison, followed by 2 years of supervised release, for one count of conspiracy to commit health care fraud. Reyes, through multiple Kentucky companies, executed a scheme in which he fraudulently billed Medicare for durable medical equipment (orthopedic equipment, to including back, knee, and shoulder braces) that was medically unnecessary, unwanted by patients, and not prescribed by the patients’ medical providers. Restitution totaled $6,004,916.  May 27, 2025

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CIVIL

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Justice Department to use False Claims Act to target DEI in SENIOR LIVING Facilities

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