Richmond business sued by federal government over alleged $80 million kickback scheme

On August 7, Tonya Mallory, the co-founder and former CEO of the Richmond-based Health Diagnostic Laboratory (HDL), was sued by the United States government. The case alleges that Mallory was involved in a massive kickback scheme that cost the United States hundreds of millions of dollars in improper medical reimbursements through Medicare and Tricare.

The federal investigation was sparked several years ago, after three whistle-blowers filed separate suits against HDL, accusing the organization of fraud. 

On top of HDL and Mallory, BlueWave Health Care Consultants, its co-founders Floyd Calhoun Dent and Robert Bradford Johnson, and the Berkeley Heartlab were all named as defendants in the case. BlueWave acted as HDL's third-party sales contractor, and the Heartlab had employed Mallory, Dent, and Johnson before they'd moved on to found their own companies. 

The case focused on kickback payments that HDL delivered to physicians in an alleged attempt to bribe them into using the company's services. The government argues that those payments are in violation of the False Claims Act and other government anti-kickback laws. US attorneys also claim that BlueWave paid $68 million in these kickbacks on behalf of HDL between 2010 and 2014.

Mallory had abruptly resigned as HDL's CEO last year.

HDL itself was not named as a defendant in the case, as it had entered into a $47 million settlement with the government earlier in the year. 

No matter where you are with your company, it's important to contact a skilled business attorney as soon as possible. A lawyer can help protect your rights in case of litigation, and get you just compensation.

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