Macomb County Doctor And Pharmacist Agree To Pay $700,948 To Settle False Claims Act Allegations

DETROIT - United States Attorney Dawn N. Ison announced today that GMAJOS, LLC, Dr. Stephen Swetech, and Yasser Maisari have agreed to pay a total of $700,948.42 to the United States and the State of Michigan to resolve allegations that they violated the False Claims Act. Dr. Swetech has also agreed to rescind his DEA registration and never again prescribe, administer, or dispense controlled substances.

Dr. Swetech operated a medical practice in Clinton Township, Michigan. The practice was located in an office complex owned by his wife's company, GMAJOS. The complex included separate office spaces for the medical practice, a physical therapy center, and a pharmacy. During all relevant times, Heartland Drugs, which was owned by Yasser Maisari and operated by Med Express Inc., occupied the pharmacy space. GMAJOS also had a lease with a medical laboratory to rent a room within Dr. Swetech's medical practice.

The settlement announced today resolves two sets of allegations. First, from January 1, 2018, through January 1, 2020, Biolab indirectly paid above fair market value rent to Dr. Swetech for a room rented from GMAJOS in order to induce Dr. Swetech's referrals to Biolab. These referrals are alleged to have violated the False Claims Act as improper inducements and/or self-referrals. Second, from January 1, 2016, through January 1, 2018, Dr. Swetech prescribed medically unnecessary opioid and attention-deficit/hyperactivity disorder medications, and Yasser Maisari's Heartland Drugs filled those prescriptions, in violation of the False Claims Act.

"The False Claims Act is an important tool to deter and hold accountable those who submit fraudulent medical claims to the government," said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. "Healthcare providers whose services are tainted by improper financial relationships or who are charging the government for unnecessary medical services will be vigorously investigated by our office."

"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," said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. "Working together with our partners, HHS-OIG will continue our efforts to identify and investigate those who seek to unlawfully benefit from such arrangements."

The civil settlement includes the resolution of claims brought under a qui tam or whistleblower lawsuit under the False Claims Act: United States and the State of Michigan ex rel. Doe v. Med Express Inc., et al., Case No. 17-13162 (E.D. Mich.). Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery.

The resolution obtained in this matter was the result of a coordinated effort among the United States Attorney's Office for the Eastern District of Michigan, the Michigan Attorney General's Health Care Fraud Division, the U.S. Drug Enforcement Agency, and the U.S. Department of Health and Human Services - Office of the Inspector General. The matter was handled by Assistant United States Attorney John Postulka from the U.S. Attorney's Office for the Eastern District of Michigan.

The investigation and resolution of this matter illustrates the government's emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).