TG- What happened?

Quote




































Rhode Island Physician’s Assistant Sentenced to 12 Months for Taking Kickbacks from Medical Device Company



JULY 19, 2012


BOSTON - A Rhode Island man was sentenced today in federal court for taking kickbacks.

Michael Cobb, 42, was sentenced by U.S. District Judge George A. O’Toole to one year incarceration (six months in prison, six months home confinement), to be followed by two years of supervised release and a $3,000 fine. Cobb was also ordered to forfeit $10,000 of proceeds from the offense to the federal government. Cobb pleaded guilty to violating the Anti-Kickback law on April 19, 2012.

Between 2004 and 2011, Cobb, a physician’s assistant, took kickbacks from Orthofix Inc., a medical device company, in return for ordering Orthofix’s device. Orthofix manufactures bone growth stimulators, which are externally-worn medical devices that emit electromagnetic waves that help regenerate bone cells. Cobb was a physician’s assistant for a neurosurgeon in Rhode Island who prescribed bone growth stimulators for patients who underwent spinal fusion surgery. The surgeon had no preference as to which company’s bone growth stimulator was used, believing that there were no clinical differences amongst the stimulators on the market. The surgeon left this decision to Cobb, who was in a position to direct the stimulator business to whichever medical device company he chose. Between 2004 and 2011, Orthofix paid Cobb for each bone growth stimulator that was ordered by the surgeon in payments ranging from $50 to $300. Cobb never disclosed to the surgeon that he was taking these payments, and the surgeon would not have authorized the arrangement. Cobb was paid approximately $120,000 between 2004 and 2011 for bone growth stimulator orders. In return, Cobb steered more than a $1 million of reimbursement from insurance carriers to Orthofix, including approximately $350,000 in payments from federal insurance carriers.

In addition, Cobb committed perjury during his testimony before a grand jury when he falsely denied that he was ever paid by a territory manager who worked for Orthofix, and he lied by testifying that the surgeon he worked for was aware of the financial arrangement. Cobb admitted that, through his perjury, he obstructed the government’s investigation, as part of his guilty plea.


In addition to the Cobb sentence, the investigation concerning Orthofix has to date resulted in a number of felony charges against Orthofix as well as company executives and employees, including the following:

•On July 23, 2012, a plea and sentencing hearing is scheduled with respect to Orthofix’s plea to obstructing a federal audit, in violation of 18 U.S.C. § 1516. Orthofix has agreed to pay over $42 million to resolve criminal and civil liability arising from the illegal promotion of its bone growth stimulators (U.S. v. Orthofix, 12-cr-10169-WGY);
• On December 14, 2011, Mitchell Salzman, pled guilty to perjury in violation of 18 U.S.C. §1623 while he was a Regional Manager for Orthofix (U.S. v. Salzman, 11-CR-10385-RWZ);
• On March 22, 2012, Derrick Field pled guilty to health care fraud in violation of 18 U.S.C. §1347 while he was a Territory Manager for Orthofix (U.S. v. Field, 12-CR-10057-JAT);
• On April 9, 2012, Thomas Guerrieri pled guilty to paying kickbacks in violation of 42 U.S.C. §1320a-7b while he was Vice President of Orthofix (U.S. v. Guerrieri, 12-CR-10061-RWZ);
• On May 11, 2012, Michael McKay pled guilty to health care fraud in violation of 18 U.S.C. §1347 while he was a Territory Manager for Orthofix (U.S. v. McKay, 12-CR-10129-DJC).

The investigation is ongoing.

United States Attorney Carmen M. Ortiz; Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General; and Leigh-Alistair Barzey, Resident Agent in Charge of the Defense Criminal Investigative Service made the announcement today. The case was prosecuted by Assistant U.S. Attorney David S. Schumacher and Jeremy M. Sternberg of Ortiz’s Health Care Fraud Unit.
 












Anonymous said:
Sha Zam! Wonder how many more will get Busted?
Click to expand...

It all depends whether they wants anymore blood. But they could probably take down 50+ past and current reps if they wanted too, Trent Wood, Eric Brown, Mike Simpson, Todd Moberg, Company Attorney's, Willy Connelly, Gary Henley, Brian McCollum, Jeff Hammel, Sales Trainers. It all depends whether they pursues it, because they can bring anyone of them down if they want too.
 












Anonymous said:
It all depends whether they wants anymore blood. But they could probably take down 50+ past and current reps if they wanted too, Trent Wood, Eric Brown, Mike Simpson, Todd Moberg, Company Attorney's, Willy Connelly, Gary Henley, Brian McCollum, Jeff Hammel, Sales Trainers. It all depends whether they pursues it, because they can bring anyone of them down if they want too.
Click to expand...

Well written post. "It all depends on whether they wants anymore blood?" "It all depends whether they pursues it??" Good lord.

You can't paint everyone that worked for this company as crooked. The people that lied, falsified and cheated are being dealt with. If any of the folks listed above did that then they have to worry, I know the root lies with the "so called" experts in McKinney that told us what we could do and what their interrpretation of the rules and regulations were.
 






I think it would be fair to say that the rules and regulations were whatever the surgeons wanted. And no surgeons have been harmed or injured in the making of this movie. Other than their vacation/golf/sports car fund will be lighter.
 












Anonymous said:
It all depends whether they wants anymore blood. But they could probably take down 50+ past and current reps if they wanted too, Trent Wood, Eric Brown, Mike Simpson, Todd Moberg, Company Attorney's, Willy Connelly, Gary Henley, Brian McCollum, Jeff Hammel, Sales Trainers. It all depends whether they pursues it, because they can bring anyone of them down if they want too.
Click to expand...

What about all the "Shell" reps or Breg Rep distributors? These people seem to be the worse offenders.
 






Anonymous said:
If I were DOJ, I would pull out my microscope on the top 20 reps of all of these companies.
Click to expand...

With all of the nonsense that occurs in my region, it would seem the DOJ would benefit most by actually going after Donjoy. Paying off staff members is not an Orthofix-specific problem. DJO, at least on this side of the big river, is known to be crooked.
 






A lawyer once told a bunch of reps that it's not illegal to pay an Medical Assistant or someone who helps gather paperwork as long as they are not related to a prescriber. I questioned this but always wondered if it's true.

Of course illegal to pay a prescriber or anyone related to one.
 






Anonymous said:
With all of the nonsense that occurs in my region, it would seem the DOJ would benefit most by actually going after Donjoy. Paying off staff members is not an Orthofix-specific problem. DJO, at least on this side of the big river, is known to be crooked.
Click to expand...
Also the case in my state- particularly w the DonJoy distributors in my experience who do and say just a out anything to get orders. Hospital billing for acute fxs seems to be a specialty
 


















Anonymous said:
It all depends whether they wants anymore blood. But they could probably take down 50+ past and current reps if they wanted too, Trent Wood, Eric Brown, Mike Simpson, Todd Moberg, Company Attorney's, Willy Connelly, Gary Henley, Brian McCollum, Jeff Hammel, Sales Trainers. It all depends whether they pursues it, because they can bring anyone of them down if they want too.
Click to expand...


Can they take down "past" reps? My God, this is like "The Firm". Can't even quit and have peace.
 






Top Bottom
Back
Quote