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Criminal Investigation | Dec. 4, 2020

Durable Medical Equipment Manufacturer and Orthotics Provider Agree to Pay $1.59 Million to Resolve False Claims Act Allegations

DCIS

National durable medical equipment manufacturer Joint Active Systems, Inc. (JAS) has agreed to pay $1 .5 million, and orthotics and prosthetics clinic chain New England Orthotics & Prosthetics, LLP (NE OPS) has agreed to pay $90,000, to resolve allegations that they violated the False Claims Act by improperly charging the government for custom fabricated orthotics. NE OPS, which has locations throughout New England and New York, filed for bankruptcy in 2017, and is now under new ownership. "Joint Active Systems and New England Orthotics & Prosthetics engaged in multiple calculated schemes to enrich themselves by submitting false claims to government healthcare programs and overcharging the government for their devices," said United States Attorney Andrew E. Lelling. "Today's result is another example of this office's commitment to take action against health care providers that defraud the government and American taxpayers."