Precision Lens receives $487 million judgement over surgeon kickbacks

(FOX 9) - Precision Lens, also known as Cameron-Ehlen Group, Inc., and its owner Paul Ehlen has received a judgment of more than $487 million by a federal judge for violations to the False Claims Act over alleged kickbacks to its surgeons.

U.S. District Judge Wilhelmina M. Wright entered the judgment, which claims, "The defendants violated the False Claims Act and the Anti-Kickback Statute by paying kickbacks to ophthalmic surgeons to induce their use of the Defendants’ products in cataract surgeries reimbursed by Medicare."

According to the United States Attorney Office (USAO), a jury found that 64,575 false claims were submitted to Medicare due to their conduct, which resulted in $43,694,641.71 in damages to Medicare.

At trial, prosecutors argued, "The defendants provided kickbacks to physicians in various forms, including travel and entertainment, with multiple examples of trips including high-end skiing, fishing, golfing, hunting, sporting, and entertainment vacations, often at exclusive destinations."

Examples of trips included were to New York City to see a Broadway musical, the College Football National Championship Game in Miami, Florida, and the Masters Golf tournament in Augusta, Georgia. Defendants also sold frequent flyer miles to their physicians at a significant discount, allowing them to take personal and business trips at well below fair market value.

The USAO also proved that Precision Lens maintained a fund, referred to internally at Precision Lens as a secret fund or slush fund, to further propel its kickback scheme. This civil lawsuit was originally brought by whistleblower.

A person or entity found to have violated the False Claims Act is liable to the United States Government for a minimum civil penalty of $5,000 per false claim, and three times the amount of damages sustained by the government.

The amount totaled $358,445,780 in statutory penalties, and an additional $131,083,925.13 in damages, resulting in a total amount of $487,048,705.