A spinal device manufacturer based in Malden, Mass. and its Chief Executive Officer (CEO) and Chief Financial Officer (CFO) was arrested today and charged in connection with a kickback scheme to bribe surgeons to use company products in exchange for sham consulting fees.
Kingsley R. Chin, MD, 57, of Fort Lauderdale, Fla., the CEO and founder of SpineFrontier; Aditya Humad, 36, of Cambridge, Mass., the company’s CFO; and SpineFrontier, Inc., were indicted on one count of conspiracy to violate the Anti-Kickback Statute, six counts of violations of the Anti-Kickback Statute and one count of conspiracy to commit money laundering.
According to the indictment, SpineFrontier, Chin and Humad paid and conspired to pay, millions of dollars in bribes to surgeons in the form of sham consulting fees for work they did not perform. The defendants allegedly bribed surgeons to use SpineFrontier’s products, and in turn, SpineFrontier received millions of dollars in revenue from surgeries the surgeons performed.
The defendants allegedly entered into contracts with surgeons, agreeing to pay the surgeons between $250 and $1,000 per hour for purported consulting for SpineFrontier. In reality, however, the defendants allegedly paid the surgeons for using SpineFrontier’s products. Although the surgeon-consulting program was purportedly directed at gathering technical feedback about SpineFrontier’s products, the indictment alleges that Chin and Humad designed and used the program, and the bribes they paid pursuant to that program, to induce surgeons to use SpineFrontier’s products in surgeries that were paid for by federal health care programs such as Medicare, Medicaid, TRICARE and VHA. It is further alleged that the surgeons frequently spent only a small fraction of their reported time, if any at all, performing actual consulting. On numerous occasions, the bribe amounts were determined following a review of the number of procedures a surgeon performed and the amount of revenue those procedures generated for SpineFrontier. The defendants allegedly paid each surgeon described in the indictment between $32,625 and $978,000 in bribes during the conspiracy.
The original full article can be found at justice.gov