Whistleblowing

 

The Long Path to a Whistleblower Recovery: Former CCO Vindicated by Merit Medical Systems False Claims Act Settlement (Part II of II)

Dr. Charles Wolf was the Chief Compliance Officer at Merit Medical Systems, Inc. (“MMS”), who ultimately became the federal whistleblower against MMS alleging violations of the Anti-Kickback Statute.  Dr. Wolf’s concerns were ultimately vindicated when the Justice Department intervened in support of his complaint. 

MMS settled the case with DOJ and agreed to pay $18 million.  Dr. Wolf received $2.65 million from the settlement under the qui tam provisions of the False Claims Act.

Dr. Wolf worked for MMS from 2011 to 2015.  He is a non-practicing attorney and involved in compliance since 1999. 

Dr. Wolf raised concerns internally in MMS about the legality of the program under the AKS law.  He eventually raised the issue with MMS’ CEO and Chairman, and to the MMS board.  MMS leadership and management ignored Dr. Wolf’s warnings and objections.  Eventually, Dr. Wolf resigned and filed his whistleblower complaint.

Wolf objected to MMS’ Local Advertising Program under which MMS provided physicians and hospitals millions of dollars in free advertising, practice development, practice support and unrestricted “educational” grants to induce the providers to purchase and use a number of MMS products.