Just as a reminder, the False Claims Act is a federal law that holds people and companies accountable if they knowingly submit false or fraudulent claims for payment to government programs like Medicare or Medi-Cal. This holds true even if the mistake was unintentional and not corrected.
The federal law also allows private individuals, or whistleblowers, to report fraud by filing lawsuits on behalf of the government. Whether you are facing a potential claim or simply want to ensure compliance, consulting a False Claims Act attorney early on can help protect you, your employees, and your practice.
Below are three noteworthy False Claims Act violation examples from 2024-2025 that show what can go wrong — and how the law is being enforced in real-time.
DRI Relays Inc. (DRI), a military parts manufacturer and a subset of TE Connectivity Corporation (TEC), agreed to pay $15.7 million to settle allegations that it violated the False Claims Act. The company was accused of knowingly supplying electrical relays and sockets that failed to meet U.S. military and Department of Defense testing requirements, despite billing them as military-grade parts.
Takeaways: Providing substandard parts is not just a contract breach — it also puts military safety at risk. This case shows how expensive federal violations can be, with high False Claims Act fines. It also highlights the importance of ensuring products meet all required specifications before invoicing for government contracts. On top of the financial consequences, these violations can damage a company’s reputation and its relationships with government agencies.
Oluyemisi Sangodeyi, M.D., and his practice, Med-Surge Physician Group, Inc. (Med-Surge), based in Beckley, West Virginia, agreed to pay $152,382.70 to resolve allegations of violating the False Claims Act by submitting false claims to Medicare and Medicaid.
Med-Surge was found to have improperly billed for telehealth appointments by submitting a facility fee for patients who were at home, disregarding federal regulations. These claims were submitted between March 2020 and January 2021, resulting in over $76,000 in inappropriate payments from Medicare and Medicaid.
Takeaways: This case shows how important it is to understand and follow federal billing regulations. Not only did the violation lead to financial consequences, but it also misused taxpayer dollars. Healthcare providers must make sure their claims align with program requirements to avoid legal and financial penalties. Our False Claims Act attorneys are here to give you the guidance you need to stay compliant, avoid legal issues, and protect your practice.
According to the U.S. Department of Justice, in the fiscal year ending September 30, 2024, settlements and judgments related to the False Claims Act reached over $2.9 billion, with 558 cases settled. Although this is the second-highest total after last year’s 566 cases, it saw a record 979 qui tam lawsuits filed by whistleblowers. Since the law was strengthened in 1986, over $78 billion has been recovered under the False Claims Act.
Takeaways: The U.S. government takes False Claims Act investigations seriously, and it is committed to holding people accountable who submit false payment claims. The False Claims Act (California and beyond) is in place to make sure individuals and healthcare practices are held responsible for the work they do and the funds they receive. It serves as a reminder to stay compliant and avoid the risks that come with submitting fraudulent claims.
Fenton Jurkowitz Law Group has a team of seasoned False Claims Act lawyers who are well-versed in California law, including the False Claims Act, Stark Law, and anti-kickback statutes. It is important to have legal counsel on your side to ensure you and your healthcare practice are protected. Fill out our contact form on our website today to connect with a California False Claims Act attorney.