U.S. Attorney Peter D. Leary | U.S. Department of Justice
A settlement of $1.5 million has been reached with BTW Solutions, LLC, an Arkansas-based drug wholesaler. The company was accused of violating the Anti-Kickback Statute and False Claims Act (FCA). This resolution concludes a case that started as a qui tam suit on June 7, 2017, known as U.S. ex rel. Young v. BTW Solutions, LLC.
The allegations centered around claims submitted to the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) for pain creams dispensed in violation of the Anti-Kickback Statute. BTW Solutions allegedly offered these creams at or near cost to physicians, billed OWCP at high markups, and shared reimbursements with the physicians.
U.S. Attorney Peter D. Leary remarked on the importance of protecting medical decision-making from financial influences: “The Anti-Kickback Statute protects medical decision-making from being corrupted by improper financial considerations.” He also acknowledged efforts from his office and thanked the U.S. Department of Labor Office of the Inspector General and the U.S. Postal Service Office of the Inspector General for their cooperation.
Christopher J. Godfrey, Director of the Office of Workers’ Compensation, stated: “This settlement allows the OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return these funds to the Employees’ Compensation Fund.”
The settlement resolves allegations without any admission or determination of liability by BTW Solutions. It highlights how serious violations related to federal healthcare programs are addressed under statutes like FCA and emphasizes ongoing efforts to ensure compliance within federal compensation programs.
Special Agent Joshua Barnes from DOL-OIG and Special Agent Derek Bigham from USPS-OIG led investigations into this matter. The civil action and settlement were handled by Assistant U.S. Attorneys Todd P. Swanson and W. Taylor McNeill.