DOJ accuses Arizona-based Modern Vascular of $50M fraud scheme

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DOJ accuses Arizona-based Modern Vascular of $50M fraud scheme
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The DOJ filed a complaint Tuesday in a lawsuit against Modern Vascular, claiming the company and its founder ripped off Medicare to the tune of $50 million.

Mike Bonebrake lost his leg after a Modern Vascular procedure went wrong. He originally went to a doctor for an ingrown toenail that wouldn't heal. He was then referred to Modern Vascular.The U.S. Department of Justice filed a complaint Tuesday in a lawsuit against Modern Vascular, claiming the company and its founder ripped off Medicare to the tune of $50 million.

The complaint also says Gampel and his company placed “enormous pressure” on their staff to perform invasive procedures: “As Modern Vascular Corporate’s Chief Medical Officer Steve Berkowitz told a reporter for the Arizona Republic, ‘If you run a pizza joint and you’re not selling enough pizzas, you’re not going to stay in business.’”

In a previous text message exchange, Gampel said anyone can allege anything in a lawsuit. Asked for a response to the Republic’s investigation, Gampel said in a text message: “With your ability to report false claims, twist words, and make up scandalous stories, I’m sure you’ll be a top notch national news reporter one day. Even small cockroaches grow up to become larger cockroaches.”

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