OB/GYN Physician Agrees to Pay $507,500 to Resolve False Claims Act Allegations Connected to Fraudulent Prescription Scheme

Baltimore, Maryland - A Maryland gynecologist agreed to a settlement in connection with federal False Claims Act violation allegations.

Valinda R. Nwadike, MD, agreed to pay the United States $507,500 to resolve allegations for her role in a telemarketing scheme designed to defraud Medicare and TRICARE.

U.S. Attorney Kelly O. Hayes announced the settlement with Special Agent in Charge Maureen Dixon, Department of Health and Human Services Office of Inspector General (HHS-OIG), and Allison Russo, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office.

In April 2023, the U.S. filed a complaint against Nwadike, alleging that she violated the False Claims Act. The U.S. contends that from November 1, 2014, through January 1, 2018, Nwadike created and signed thousands of fraudulent prescriptions for compounded drugs and durable medical equipment, such as knee braces, which TRICARE and Medicare ultimately paid for. Additionally, the U.S. alleges that Nwadike wrote and signed the prescriptions after a cursory phone call with the patient, but without physically examining the patient or reviewing their medical history. As a result of Nwadike's role in the telemarketing scheme, the U.S. paid for thousands of medically unnecessary prescriptions for compounded creams and durable medical equipment.

"When physicians write prescriptions for medically unnecessary drugs and equipment, they abuse our federal health care programs," Hayes said. "The U.S. Attorney's Office continues to work with our partners at DCIS and HHS-OIG to hold fraudulent providers accountable. We're committed to protecting taxpayer dollars using all available tools, including civil settlement."

"Civil enforcement is an important approach to safeguarding the integrity of the Medicare program," Dixon said. "This settlement demonstrates our commitment to ensuring that Medicare program dollars are only paid for services that are actually needed and appropriate for patients."

"This settlement highlights DCIS' unwavering commitment to protecting the integrity of TRICARE, the DoD's primary health care program, and ensuring that taxpayer dollars are not wasted on fraudulent schemes," Russo said. "Healthcare fraud is not a victimless crime. It directly harms the American taxpayer and undermines the efforts of honest healthcare providers who are dedicated to serving our military members and their families. The DCIS, along with our law enforcement partners, will continue to aggressively pursue those who seek to enrich themselves at the expense of our military healthcare system."

U.S. Attorney Hayes commended HHS-OIG and DCIS for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Matt Shea and Roann Nichols, who handled this case, along with Investigator Ann Thiel.

For more information about the Maryland U.S. Attorney's Office, its priorities, and resources available to report fraud, please visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.

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