The U.S. Attorney’s Office for the Eastern District of Michigan announced that Dr. Stephen Swetech, Yasser Maisari, and GMAJOS, LLC will pay $700,948.42 to resolve allegations of violating the False Claims Act. This settlement underscores the essential role healthcare whistleblowers play in exposing unlawful kickback and excessive prescription drug schemes.

Allegations Summary

The allegations include charging above-market rent to induce referrals and prescribing unnecessary medications. For context, Dr. Swetech ran a medical practice out of an office complex owned by his wife’s company, GMAJOS. Yasser Maisari owned Heartland Drugs, which rented space in the same office complex. Specifically, the settlement addresses two main allegations:

Improper Financial Relationships: Between January 2018 and January 2020, Biolab, a laboratory services provider, allegedly paid above fair market value rent to GMAJOS for a space in Dr. Swetech’s medical office, in exchange for patient referrals. This practice is considered a form of kickback, or unlawful remuneration in exchange for referrals, in violation of the False Claims Act.

Prescription Drug Fraud: From January 2016 to January 2018, Dr. Swetech reportedly prescribed excessive opioid and ADHD medications, which were filled by Heartland Drugs. This constitutes prescription drug fraud and spotlights the critical issue of medically unnecessary prescriptions being charged to government healthcare programs, which also violates the False Claims Act.

Why Healthcare Whistleblowers are Essential

The settlement also brings attention to the vital role of healthcare whistleblowers. Insiders or competitors can identify and report unethical practices that might otherwise go unchecked outside of a particular business or industry.

Whistleblowers can prevent the further misuse of controlled substances and challenge unlawful kickback schemes, thereby safeguarding patients and public funds. As the Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Chicago Region said about the case, “The payment of kickbacks in exchange for patient referrals can corrupt legitimate medical decision-making and lead to the delivery of fraudulent and unnecessary medical services.” The Macomb County case evolved from a qui tam lawsuit, where private individuals can sue on behalf of the government and receive a reward of 15-25% of the government’s recovery, showcasing the powerful impact of whistleblower actions.