Healthcare fraud is a labyrinthine crime, often veiled under layers of deceit, demanding exhaustive investigation to unravel its full extent. One such case, emanating from South Carolina, involved Floyd Calhoun Dent, III and his associates, shedding light on the intricate nature of healthcare fraud and the unwavering pursuit of justice by law enforcement agencies. In 2018, a jury trial brought to the forefront Dent’s involvement in a clandestine scheme targeting TRICARE and Medicare, ultimately resulting in a groundbreaking $114 million settlement.
However, prior to facing legal repercussions, Dent meticulously orchestrated the dispersion of tens of millions of dollars in assets, strategically concealing his illicit gains. This premeditated endeavor to obfuscate his true identity and sidestep accountability underscores the labyrinthine complexity of fraudulent operations and the resolute determination of law enforcement authorities to hold wrongdoers accountable.
The saga commenced with an investigation into BlueWave Healthcare Consultants Inc., prompting Dent to initiate a series of transactions transferring funds to family members and affiliated businesses in an attempt to obfuscate his involvement in the healthcare fraud scheme. Despite Dent’s concerted efforts, a significant judgment of $114 million was rendered against him and his co-defendants for violations of the Anti-Kickback Statute and the False Claims Act. The Fourth Circuit Court of Appeals’ affirmation of the ruling further underscored the gravity of their crimes.
Subsequently, the Department of Justice (DOJ) pursued legal action against Dent and his associates for fraudulent asset transfers under the Federal Debt Collection Procedures Act (FDCPA). Dent’s scheme aimed to shield his ill-gotten gains by transferring substantial sums to entities under his control, triggering a Department of Health and Human Services Inspector General subpoena. The revelation of Dent’s deceit led to the freezing of 12 real estate parcels owned by him and his spouse, ultimately culminating in a settlement.
In a significant development, Dent agreed to surrender nearly all of his assets as part of the settlement, including real estate, precious metals, cash, and personal belongings. This comprehensive settlement, valued at over $33.6 million, represents a crucial step towards compensating the victims of Dent’s healthcare fraud scheme.
The forfeited assets will be distributed to the DOJ and the Liquidating Trustee for Health Diagnostic Laboratories Inc. (HDL), a blood testing facility implicated in the fraud alongside Dent and his co-defendants. The HDL Liquidating Trustee will oversee the equitable allocation of assets among creditors, including the United States, to mitigate the financial harm caused by Dent’s fraudulent actions.
Principal Deputy Assistant Attorney General Brian M. Boynton underscores the detrimental impact of kickback schemes on healthcare integrity and affordability, reaffirming the DOJ’s commitment to safeguarding federal healthcare programs and recouping illicit proceeds. U.S. Attorney Adair F. Boroughs emphasizes the importance of upholding program integrity to ensure access for those in need.
The resolution of this case underscores the collaborative efforts of the U.S. Attorney’s Office for the District of South Carolina and other DOJ divisions in delivering justice and deterring fraudulent activities. It sends a resounding message to perpetrators that fraudulent behavior will be met with exhaustive investigation, diligent prosecution, and accountability under the law.