The payments were in violation of the anti-kickback law, and Mr. Guerrieri faces up to five years in prison and three years of supervised release as well as a $250,000 fine and forfeiture. Mr. Guerrieri allegedly facilitated a consulting agreement with a New York surgeon, who the company paid tens of thousands of dollars but rarely received consulting services from. The surgeon did not record services on a time sheet provided by the company and continued to receive monthly payments.
As scrutiny intensified on such arrangements, the surgeon and Mr. Guerreri, along with a territory manager for the company, created a backdate time sheet so it appeared the surgeon filled out the forms and provided legitimate consulting services.
In another instance, Mr. Guirrieri and others reportedly paid a physician’s assistant in Rhode Island for each bone growth stimulator he ordered, a responsibility the surgeon had delegated to the PA. The PA received $50 to $100 per stimulator the surgeon prescribed.
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