Sober Living Homes and Toxicology Laboratories Facing Allegations of Illegal Payments Under Federal Anti-Kickback Statute

Sober Living Homes and Toxicology Laboratories Facing Allegations of Illegal Payments Under Federal Anti-Kickback Statute
The Anti-Kickback Statute is a federal law that imposes civil and criminal penalties for illegal compensation arrangements in the health care industry.

Press Release ( - Dallas, TX - Nov 09, 2017 - Sober living homes serve a critical need in our society. When addicts are discharged from rehabilitation and need help to stay sober, specialized care homes provide a safe and supportive environment to re-adjust to life without alcohol or drug dependence.

“But there is a flip-side,” explains Bill McMurrey, a long-time Department of Justice trial attorney and former healthcare fraud prosecutor. With the increasing recognition of the nation’s opioid epidemic, and with President Trump’s declaration of a public health emergency, sober living homes have become a lucrative business. Not surprisingly, sober living homes have spread across the country, in particular in Southern California (e.g. Orange County, California), Florida, Georgia, Tennessee, South Carolina, and Texas. It is important to recognize that many sober living homes are truly committed to helping those in need. “However, there are also a number of operators out there that are engaged in fraud, bribery, and kickbacks. They need to be concerned. It may start with a letter from a private insurance company complaining about medically unnecessary testing and from there it quickly amounts to criminal prosecution. We have seen it, we have advised against it,” Lynette Byrd, a former federal healthcare fraud prosecutor, and attorney Nick Oberheiden of Oberheiden & McMurrey, LLP point out.

Whether sober living home operators are intentionally defrauding the insurance companies and public benefit programs or unknowingly violating federal law, the consequences of engaging in this type of illegal kickback scheme can be severe. In criminal cases, sober living home operators and toxicology laboratory owners can face fines of up to $25,000 and a five-year prison sentence per violation.

Sober living home operators and toxicology laboratory owners who are concerned about possible illegal kickback violations should immediately seek experienced legal representation to assess and mitigate the situation. With decades of government and healthcare law experience, Oberheiden & McMurrey LLP’s health care fraud defense lawyers are available for confidential consultations. Free case assessments are available to those who call (888) 452-2503 or inquire online now.

About the Firm

Oberheiden & McMurrey, LLP represents individual and corporate clients in healthcare investigations. Firm’s team members include former Department of Justice trial attorneys and Assistant United States Attorneys from the U.S. Attorney’s Office’s healthcare fraud division. For more information about Oberheiden & McMurrey, please visit the website at or call 214-469-9009.


This press release has been prepared for informational purposes only and does not constitute legal advice. This information may constitute attorney advertising in some jurisdictions. Reading of this information does not create an attorney-client relationship. Prior results do not guarantee similar future outcomes. All terms and conditions found on apply. Oberheiden & McMurrey is a Texas LLP with headquarters in Dallas.



Company: Oberheiden & McMurrey, LLP
Address: 3131 McKinney Avenue, Suite 600, Dallas, TX 75204
Phone: (214) 469-9009



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