A $1.5 million civil settlement has been reached with BTW Solutions, LLC, an Arkansas-based drug wholesaler, over allegations of violating the Anti-Kickback Statute and False Claims Act. The case, U.S. ex rel. Young v. BTW Solutions, LLC, et al., began as a qui tam suit filed on June 7, 2017. The government intervened in September 2023.
BTW Solutions agreed to pay $1.5 million to resolve claims that it submitted bills to the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) for pain creams dispensed in violation of the Anti-Kickback Statute. This statute aims to prevent medical decision-making from being influenced by improper financial incentives.
U.S. Attorney Peter D. Leary stated: “The Anti-Kickback Statute protects medical decision-making from being corrupted by improper financial considerations.” He expressed pride in his office's efforts in this challenging case involving healthcare for injured federal workers.
Christopher J. Godfrey, Director of the Office of Workers’ Compensation, commented: “This settlement allows the OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return these funds to the Employees’ Compensation Fund.”
The United States alleges that between 2013 and 2018, BTW Solutions induced sales by offering pain creams at low cost and billing OWCP at a high markup while sharing reimbursements with physicians. These actions are claimed to violate both the Anti-Kickback Statute and FCA.
No determination or admission of liability has been made regarding these allegations.
The investigation was conducted by Special Agents Joshua Barnes (DOL-OIG) and Derek Bigham (USPS-OIG). Assistant U.S. Attorneys Todd P. Swanson and W. Taylor McNeill represented the United States in this matter.