On a decisive Thursday, the Seventh Circuit Court largely upheld a significant judgment from an Illinois federal judge. The court’s ruling confirmed a $6 million penalty against Management Principles Inc., which, along with its subsidiaries and owner Asif Sayeed, was found guilty of breaching federal kickback statutes. However, the Seventh Circuit has mandated a review of the damages awarded to ensure they accurately reflect the Medicare claims directly tied to the illegal kickbacks.
Key Findings and Judicial Reasoning
The three-judge panel concluded that the lower court correctly held that the defendants knowingly violated the Anti-Kickback Statute and both federal and state False Claims acts. This determination came after Management Principles Inc. paid Healthcare Consortium of Illinois $5,000 monthly for patient referrals—a clear contravention of legal standards.
While affirming the liability judgment, the Seventh Circuit found the $6 million penalty not to be “unconstitutionally excessive.” Nonetheless, it directed a partial reversal to allow the district court to specify which Medicare claims were a result of the unlawful kickback arrangements.
Home Health Kickbacks Judgment: Historical Context and Legal Implications
This case marks the second appearance before the Seventh Circuit, following a reversal of a previous decision by the district court to dismiss the case outright. On remand, U.S. District Judge Sharon Johnson Coleman stood firm against the company’s claims of legal exemption, highlighting the intentionally deceptive actions of Sayeed and his firms to solicit more Medicare funds through illicit means.
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