Veni-Express Inc., a mobile phlebotomy service based in California, along with its owners Myrna and Sonny Steinbaum, has agreed to pay $135,000 to settle allegations of submitting false claims. The allegations involve fraudulent claims for blood testing services and travel mileage under the False Claims Act, as well as violations of the Anti-Kickback Statute.
The settlement includes Veni-Express paying $100,000 plus additional amounts contingent on property sales. Myrna Steinbaum will contribute $25,000 and Sonny Steinbaum will pay $10,000. These figures are based on their ability to pay.
From 2015 to 2019, Veni-Express allegedly submitted false claims for services not rendered during home visits and claimed non-reimbursable travel mileage from Medicare. Additionally, between July 2014 and June 2015, the company is accused of paying illegal kickbacks to Altera Laboratories (also known as Med2U Healthcare LLC) for marketing purposes.
Principal Deputy Assistant Attorney General Brian M. Boynton stated that health care providers billing for unperformed services or offering illegal incentives would be held accountable. U.S. Attorney Phillip A. Talbert emphasized the commitment to investigating those who violate federal laws to protect public funds and the integrity of federal health care systems.
Special Agent Steven J. Ryan highlighted that improper incentives and billing practices divert taxpayer money intended for necessary medical services for Medicare enrollees.
This civil settlement addresses claims filed under the whistleblower provisions of the False Claims Act by Banisha Evans and Richard Drummond. Under these provisions, private individuals can sue on behalf of the government for false claims and receive a portion of any recovery obtained.
The share of the settlement allocated to Evans and Drummond has yet to be determined.
The resolution was achieved through cooperation between several entities including the Civil Division's Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for Eastern District of California; and HHS-OIG.
The case highlights ongoing efforts against health care fraud using tools like the False Claims Act. Reports regarding potential fraud can be made via HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Gary R. Dyal and Assistant U.S. Attorney Colleen Kennedy managed this case which remains an allegation without determination of liability.