“Ejindu, through Joy Medical and AsaAsa, systematically misrepresented the type of enteral formula provided to Medicaid beneficiaries,” the complaint states.
Evidence of Misrepresentation
The government alleges that Ejindu knowingly submitted false claims and maintained false records. The complaint highlights that the labels on the shakes his companies distributed explicitly state they are not intended for treating inherited metabolic disorders such as galactosemia. The government contends that this labeling indicates Ejindu was aware of the fraudulent nature of his reimbursement requests.
Further, neither Joy Medical nor AsaAsa Medical is registered as a business entity in North Carolina, adding to the concerns about the legitimacy of their operations.
Financial and Legal Penalties
The federal government seeks treble damages totaling $5.56 million for the alleged false reimbursements, along with penalties ranging from $4.42 million to $8.84 million.
The lawsuit accuses Ejindu of multiple violations, including:
- Submitting false claims
- Keeping false records
- Unjust enrichment
- Receiving mistaken Medicaid payments
Legal Representation
The government is represented by Matthew R. Petracca of the North Carolina Department of Justice and Holly H. Snow of the U.S. Department of Justice. Counsel information for Ejindu was not immediately available, and he could not be reached for comment.
Broader Implications
The case underscores the government’s focus on rooting out Medicaid fraud, particularly schemes that exploit reimbursement systems to profit unjustly. If successful, the lawsuit could serve as a warning to other healthcare providers about the severe consequences of misusing public healthcare funds.
