DOJ Warns Fraud Disclosures Won't Shield Culpable Execs

Litigation attorney Jessica Sievert was quoted in Law360 on the U.S. Department of Justice's (DOJ) decision to decline criminal charges against optometry practice Campus Eye Management while pursuing a criminal indictment against its former CEO, E. Bruce DiDonato, over an alleged Medicare fraud and kickback scheme. The matter marks the DOJ's first declination under its new Corporate Enforcement Policy (CEP), which encourages companies to self-disclose misconduct, cooperate with investigators and remediate compliance issues in exchange for leniency. The DOJ cited Campus Eye's timely self-disclosure, cooperation and remediation efforts as reasons for declining prosecution of the company. At the same time, federal prosecutors moved forward with a seven-count indictment against DiDonato, reinforcing the agency's focus on pursuing individuals accused of orchestrating fraudulent conduct.

Jessica told Law360 the DOJ's self-disclosure incentives under the new CEP intend to help prosecutors identify and hold accountable the individuals responsible for healthcare fraud schemes, even when companies receive favorable treatment for their cooperation.

"I don't think it changes that DOJ will continue to focus on individual prosecutions in this space," she said.

Jessica also co-authored a Holland & Knight alert on this topic.

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