Private Equity Firms Become DOJ Health-Care Fraud Targets

In a recent False Claims Act intervenor complaint, the Department of Justice (DOJ) alleged that Riordan, Lewis & Haden (RLH), a private equity firm based in Los Angeles, participated in a scheme with Diabetic Care Rx to defraud the federal government's TRICARE program.  RLH bought a controlling stake in Diabetic Care Rx in July 2012.

The case underscores the DOJ's willingness to hold private equity and other investment firms accountable for the compliance infractions of the organizations in which they invest.  

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Posted on June 22, 2018 .