Source: DOJ Press Release
Pay Over, Settle Allegations, Management Service Organization — a summarized account of a Justice Department announcement. Grottenthaler reportedly facilitated True Health’s continued participation in the MSO kickback alleged scheme after receiving warnings that the marketers “are a powder keg waiting to explode on us” and that “people are gonna go to prison.” The settlement also resolves allegations that Grottenthaler arranged for True Health to pay kickbacks disguised as consulting fees, processing and handling fees, and waivers of copayments and deductibles, to induce laboratory testing referrals.The settlement with Grottenthaler resolves certain allegations in a lawsuit originally filed by STF LLC under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. announcement Laboratory CEO, Marketers, and Physicians to Pay Over $6M to Settle Allegations of Management Service Organization and other Lab Testing Kickbacks Monday, September 8, 2025 Share Facebook X LinkedIn Email For Immediate Release Office of Public Affairs One-time laboratory CEO Christopher Grottenthaler, formerly of Frisco, Texas, has agreed to pay $4.25 million to resolve False Claims Act litigation with the United States alleging illegal payments to doctors for laboratory referrals in violation of the Anti-Kickback Statute. “In collaboration with our law enforcement partners, HHS-OIG will continue to investigate kickback schemes and false claims made to federal healthcare programs.”“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare benefit program for military members, retirees, and their families,” said Acting Special Agent