Yesterday, the Third Circuit affirmed a doctor’s conviction for accepting bribes in exchange for referrals to New Jersey based lab Biodiagnostic Laboratory Services (BLS). U.S. v. Thomas V. Savino, No. 18-2223 (3d Cir. 2019). Doctor Thomas Savino allowed BLS to set up a blood drawing station in his solo medical practice in Staten Island, New York. BLS paid Savino approximately $25,000 over the course of the arrangement, which lasted from August 2012 to April 2013.
The government, with the assistance of a BLS recruiter-turned-cooperating witness, alleged that those payments were bribes for Savino’s referrals to BLS for testing services. Savino argued at trial that the money was rent payment for using his space, not bribes. The jury didn’t buy it and convicted Savino in October 2017 of 10 counts relating to the scheme, including violations of the federal Anti-Kickback Statute, Travel Act Bribery, Honest Services Fraud, and related conspiracies.
On September 24, the Third Circuit agreed. The Anti-Kickback Statute in 42 U.S.C. § 1320a-7b(b)(1)(A), it explained, required proof that that Savino (1) knowingly and willfully; (2) solicited or received any remuneration; (3) in return for referring any individual to a person for the furnishing of any item or service for which payment may be made in turn or in part under the Federal health care program. The Court rejected Savino’s claim that evidence was insufficient to show that the payments were for referrals rather than rent. It noted the “ample circumstantial evidence” the government presented at trial showing that Savino intended to accept bribes from BLS, including that:
The Third Circuit rejected Savino’s other arguments as well, namely that as a New York doctor he shouldn’t have been convicted in connection with the New Jersey bribery statute. The Court countered that the scheme clearly had detrimental effects in New Jersey, as BLS was based there, the blood was shipped to and tested there, and the payments Savino received came from the state.
Dozens of other individuals have already been convicted in connection with this scheme, which led to approximately $375,000 in business for BLS and more than $10 million charged to Medicare and private insurers. BLS pled guilty in 2016 to an information charging conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of conspiracy to commit money laundering.
Pietragallo Partners John Schwab and Jennifer Bouriat will be participating in the ACBA’s November 21, 2019 CLE, “Parallel Government Investigations: The Civil Side of a Criminal Investigation.” During this two-hour course, attendees will hear from a panel of experts about the handling of parallel proceedings in government investigations including learning how federal prosecutors investigate and… Read more »Read More
Pietragallo Gordon Alfano Bosick & Raspanti, LLP Partner Pamela Coyle Brecht will present “The False Claims Act Update” at the Pennsylvania Bar Institute’s (PBI) A Day in Health Law program on October 28, 2020 in Philadelphia, Pennsylvania. A Day on Health Law is a one-day, six-hour spin-off of PBI’s annual Health Law Institute. The Health… Read more »Read More
Partner Michael A. Morse will be speaking at the Health Care Compliance Association‘s 6th Annual Healthcare Enforcement Compliance Conference in November. During the four day conference, attendees will hear first‑hand from government officials about regulatory changes, expectations, and key priorities in the Healthcare Enforcement sector. Attendees can further gain the knowledge and skills needed to… Read more »Read More