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Maryland Physician Agrees to Pay $507,500 to Resolve False Claims Act Allegations

A Maryland gynecologist agreed to a settlement in connection with federal False Claims Act violation allegations. Valinda R. Nwadike, MD, agreed to pay the United States $507,500 to resolve allegations for her role in a telemarketing scheme designed to defraud Medicare and TRICARE. In April 2023, the US filed a complaint against Nwadike, alleging that she violated the False Claims Act. The US contends that from November 1, 2014, through January 1, 2018, Nwadike created and signed thousands of fraudulent prescriptions for compounded drugs and durable medical equipment, such as knee braces, which TRICARE and Medicare ultimately paid for. Additionally, the US alleges that Nwadike wrote and signed the prescriptions after a cursory phone call with the patient, but without physically examining the patient or reviewing their medical history. As a result of Nwadike’s role in the telemarketing scheme, the US paid for thousands of medically unnecessary prescriptions for compounded creams and durable medical equipment.