GREENEVILLE — Physicians with McLeod Cancer in Johnson City agree to pay $4.25 million to resolve allegations of civil false claims, submitted to Medicare and Tenncare, for misbranded, unapproved chemotherapy drugs, according to a Department of Justice press release.
Dr. William R. Kincaid, Dr. Millard R. Lamb and Dr. Charles O. Famoyin, former partners at McLeod Cancer and Blood Center, have agreed to pay the $4.25 million in separate settlement agreements.
Kincaid will pay $2.55 million while Lamb and Famoyin will each be responsible for $850,000.
The settlement stems from a previous criminal case where Kincaid pleaded guilty to receiving misbranded drugs with the intent to defraud or mislead in violation of the Food, Drug and Cosmetics Act. He was sentenced in June to 24 months in federal prison and exclusion from federal health care programs for 10 years.
Lamb and Famoyin were minority owners and were not criminally charged.
Between the years of 2007 to early 2008 and August 2009 to February 2012, McLeod Cancer bought chemotherapy and other drugs from a foreign distributor in Canada. The drugs were obtained from foreign sources and sometimes were labeled in foreign languages or did not list dosage information. The drugs were not manufactured in U.S. Food and Drug Administration approved facilities.
The FDA requires that any manufacturer or distributor of drugs in the U.S be registered with and approved by the FDA. Drugs with labeling in a language other than English or from foreign sources not registered with the FDA are considered “misbranded.”
McLeod Cancer purchased the drugs for cheaper prices than what they would have cost in the U.S. and administered the drugs to patients. They also submitted claims for the drugs to Medicare, Tenncare and other government health benefit programs. Since the drugs are not covered under these programs, the government has alleged all of these claims violated the Federal and State false claims act.