PharmaLogic Holdings Corporation, a radiopharmaceutical company based in Florida, has agreed to pay $350,000 to settle allegations of violating the False Claims Act. The allegations involve nine subsidiaries of the corporation accused of falsely claiming small-entity status to obtain reduced annual fees from the U.S. Nuclear Regulatory Commission (NRC).
The settlement was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, alongside NRC Inspector General Robert J. Feitel.
The NRC regulates and licenses civilian use of radioactive materials and charges an annual fee to entities that handle such materials. Entities qualifying as a small entity under 10 C.F.R. § 171.16(c) can receive a reduced fee by filing an NRC Form 526, which certifies their small-entity status.
From March 31, 2015, through December 31, 2023, nine entities acquired by PharmaLogic Holdings filed these forms and were certified under false pretenses for reduced fees despite exceeding size limits for qualification.
"This settlement exemplifies that the United States Attorney’s Office will hold accountable companies that claim falsely their small entity status to obtain from the government a benefit to which the companies are not entitled," stated Erek L. Barron.
Barron and Feitel commended the NRC-OIG and its Anti-Fraud Team for their investigative work. Assistant U.S. Attorney Tarra DeShields handled the case.
"This case demonstrates the OIG’s commitment to anti-fraud initiatives," said Robert J. Feitel, adding gratitude towards NRC staff for their cooperation during investigations.
The claims resolved are allegations only with no determination of liability made.
Further information about the Maryland U.S. Attorney’s Office is available on their website.