News and Press Releases

$343,000 Settlement with American International Biotechnology, LLC Resolves False Claims Act Allegations

July 22, 2014

PITTSBURGH – American International Biotechnology, LLC (“AIB”) has agreed to pay the United States $343,739.45 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today.

The settlement resolves allegations that AIB violated the False Claims Act by obtaining improper referrals for genetic tests billed to the Medicare program. The United States alleged that AIB, acting through a contract sales agent, falsely marketed its genetic tests to a Pennsylvania medical practice as part of a free clinical research study for which patients and insurers would not be billed, and later billed those tests to Medicare. The United States further alleged that AIB’s contract sales agent offered payments to an employee of the Pennsylvania medical practice in exchange for referrals of genetic tests, in violation of the Anti-Kickback Statute, a law that prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The claims settled by this agreement are allegations only; there has been no determination of liability.

The settlement also resolves a civil lawsuit filed against AIB under the qui tam, or whistleblower, provisions of the False Claims Act. The lawsuit is captioned U.S. ex rel. Greentree Medical Center, PC v. American International Biotechnology, LLC et al., Civil Action No. 13-597 (W.D. Pa.).

This matter was investigated by the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigation, and the United States Attorney’s Office for the Western District of Pennsylvania. Assistant United States Attorney David Lew handled this matter on behalf of the United States.

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