Fort Belvoir, Va. –
Cardiac Imaging Inc. (CII) recently agreed to pay a historic $75 million settlement, including additional amounts based on future revenue, to resolve allegations of fraud related to improper medical referrals. Additionally, CII’s founder, owner and CEO, Sam Kancherlapalli, agreed to pay over $10 million, marking the $85 million settlement as the largest single-district civil settlement in the history of the Southern District of Texas.
A whistleblower alleged an illegal kickback scheme and False Claims Act violations from CII. The scheme included CII allegedly paying physicians $500 per patient referral, disguising those fees as supervision fees. The physician referrals were for positron emission tomography (PET) and cardiovascular stress tests using CII’s mobile units. Investigators also discovered some physicians lacking proper qualifications to supervise these procedures and instances where the physician was absent during the scans and testing.
The Defense Contract Audit Agency’s (DCAA) Office of Investigative Support (OIS) played a key role in the investigation. OIS auditors reviewed contracts and modifications, analyzing audit histories and examining critical financial documents. DCAA supported many teams throughout the investigation including the Defense Criminal Investigative Service, the Federal Bureau of Investigation, Department of Veterans Affairs, and more.
This case highlights DCAA’s commitment to ensure accountability in government contracts, particularly those affecting service members and veterans as TRICARE, the program for service members and their families, paid the fraudulent claims submitted by CII. DCAA’s audit expertise continues to be an essential tool used for identifying fraud and safeguarding public funds.
Read the press release for more information.