DOJ issues declination of charges against eye care group, opting to indict CEO for role in $3.4M fraud scheme
In a first-of-its-kind move, the U.S. Department of Justice (DOJ) declined to charge a New Jersey practice and eye surgery center, opting instead to charge its founder with healthcare fraud, alleging he violated the federal anti-kickback statute.
E. Bruce DiDonato, 71, the former CEO of CampusEye and CampusEye Surgery Center faces a seven-count indictment, including multiple charges related to conspiracy to commit and substantive healthcare fraud. He also faces related charges associated with illegal referrals and paying kickbacks as part of a $3.4 million scheme.
The DOJ made the announcement this week, adding that it has issued its first healthcare declination as part of the new enforcement policy aimed at prosecuting individuals who allegedly commit crimes, as opposed to provider and corporate entities.
As part of that shift in enforcement, the DOJ said a $1 million disgorgement, paid by CampusEye, resolves any allegations of fraud targeted at the ophthalmology practices.
DiDonato has been accused of driving illegal business to CampusEye, allegedly using company funds to pay outside ophthalmologists incentive payments for referrals, many of which were deemed unnecessary.
Prosecutors said patients were subjected to diagnostic tests that had no medical need. Authorities allege they often played no role in patient care planning, with DiDonato and other doctors often not even reviewing the results. In some cases, the tests supposedly were duplicative, with referring practices already performing the exams.
All the same, the tests were allegedly billed to Medicare, which the DOJ framed as purely motivated by self-enrichment.
Multiple agencies worked on the investigation, including the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and state authorities.
“Dr. DiDonato's alleged deception of his patients, staff, and Medicare, which countless Americans depend on, is a scheme rife with disregard for the rules and integrity that govern the medical industry.” FBI Newark Special Agent in Charge Stefanie Roddy said in a statement. “People must be able to trust their doctors, and many do so, albeit blindly.”
“This case demonstrates the FBI's commitment to rooting out fraudsters and bringing justice to the victims impacted by these crimes.”
DiDonato allegedly caused the submission of approximately $3.4 million in fraudulent claims to Medicare, of which $1 million was paid out.
He has yet to have his day in court and has formally entered no plea. He remains innocent until proven guilty by a jury of his peers.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.