California sleep clinic settles billing fraud allegations

San Francisco-based Bay Sleep Clinic, two of its related businesses and their owners have agreed to pay the federal government $2.6 million to resolve allegations they submitted fraudulent bills to Medicare, according to the Department of Justice.

Anooshiravan Mostowfipour and Tara Nader owned two businesses that operated 21 sleep clinics under the name Bay Sleep Clinic. Beginning as early as April 2002, Mr. Mostowfipour and Ms. Nader began submitting false claims to Medicare, according to the DOJ.

The government alleged Mr. Mostowfipour and Ms. Nader submitted bills to Medicare for sleep tests performed by unlicensed technicians or at locations unapproved by Medicare. The government further alleged the pair submitted fraudulent bills to Medicare for medical devices.

The allegations against the defendants were originally brought in a lawsuit filed under the qui tam, or whistle-blower, provisions of the False Claims Act.

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