The federal government has filed a civil suit against Jerome Hahn, owner of Lexington, Ky.-based Telehealth Holdings, for violations of the False Claims Act, according to the Department of Justice.
Mr. Hahn's company received three federal grants worth more than $600,000 to support the development of a sleep apnea monitoring system and the development of electronic pillboxes. The government alleges that Mr. Hahn and his company defrauded the government by making false statements in those grant applications.
The government further alleges that after receiving the grants, Mr. Hahn falsely stated that the funds had been used for purposes in compliance with grant regulations. The government claims Mr. Hahn and Telehealth spent the grant money on personal and business expenses not allowed under the grant regulations and then falsified entries in accounting ledgers to conceal the fraud.
In a related criminal case, Mr. Hahn pleaded guilty to conspiring to defraud the federal government by making false claims in connection with grants that were awarded to his company. In that matter, Mr. Hahn was ordered to spend four months in prison and to pay $222,037 in restitution to the National Institutes of Health.
More articles on healthcare industry lawsuits:
11 latest healthcare industry lawsuits, settlements
UPMC to pay $2.5M to settle overbilling allegations
Virginia man arrested for selling fake cancer cure for $1,200 per bottle