Department of Justice Files False Claims Act Against Arizona Health Firm For $50 Million Fraud Scheme

The United States filed a complaint under the False Claims Act against Yury Gampel, a chiropractor, 15 Modern Vascular office-based labs located throughout the United States primarily owned by Gampel, and five Modern Vascular-affiliated companies owned by Gampel, for engaging in allegedly illegal financial relationships and transactions. Office-based labs, such as the ones named as defendants here, are an extension of a physician’s office where physicians conduct examinations and procedures on an ambulatory basis.

“Improper financial arrangements between health care providers and referring physicians can lead to overutilization and increase the cost of health care services paid by taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients and not the financial interests of providers.”

The United States’ complaint alleges that from at least Jan. 1, 2018, through June 30, 2022, Gampel and the Modern Vascular defendants offered physicians the opportunity to invest in Modern Vascular office-based labs to induce them to refer their Medicare and TRICARE patients to Modern Vascular for the treatment of peripheral arterial disease. The complaint also alleges that Gampel pressured vascular surgeons and interventional radiologists employed at the Modern Vascular office-based labs to increase the number of invasive surgical procedures performed by tracking procedures and setting aggressive weekly and monthly goals for such procedures.

The entities named as defendants in connection with Gampel’s alleged schemes are Nobility Management LLC; Modern Vascular LLC; Modern Vascular of South Florida LLC; Modern Vascular Management LLC; Modern Vascular Management – East LLC; Modern Vascular Management – West LLC; Modern Vascular Institute LLC; Modern Vascular of Mesa LLC; Modern Vascular of Glendale LLC; Modern Vascular of Sun City LLC; Modern Vascular of Tucson LLC; San Antonio Vascular Specialists Corp. dba Modern Vascular; Fort Worth Vascular Specialists Corp. dba Modern Vascular; Modern Vascular of Denver LLC; Modern Vascular – Navajo LLC; Modern Vascular of Fairfax LLC; Modern Vascular of Housto LLC; Modern Vascular of Indianapolis LLC; Modern Vascular of Southaven LLC; Modern Vascular of St. Louis LLC; and Modern Vascular of Kansas LLC.

“As part of our mission to protect the American people, the FBI remains committed to safeguarding patients who rely on our healthcare systems,” said Deputy Assistant Director Aaron Tapp of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate those who abuse our healthcare systems, place patients at risk, and waste taxpayer dollars.”

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