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McLeod cancer doctors ordered to pay $4.25M in settlements

Staff Report • Jul 3, 2013 at 10:55 AM

GREENEVILLE — A group of Johnson City physicians will pay $4.25 million in settlements for false claims submitted to Medicare and TennCare/Medicaid programs regarding misbranded cancer drugs administered through the McLeod Center, the U.S. Attorney's Office announced Tuesday in a news release.

Drs. William R. Kincaid, Millard R. Lamb and Charles O. Famoyin, former partners in East Tennessee Hematology-Oncology Associates, P.C., doing business McLeod Cancer and Blood Center, agreed to pay the claims via separate settlement agreements to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs.

Kincaid, McCleod's managing partner of McLeod Cancer, pleaded guilty in December to receiving misbranded drugs with intent to defraud or mislead in violation of the Food, Drug and Cosmetics Act and was sentenced on June 10 to serve 24 months in federal prison. Kincaid will also be excluded from federal health care programs for 10 years.

Lamb and Famoyin were minority owners and were not criminally charged. Kincaid’s portion of the civil settlement is $2.55 million, while Lamb and Famoyin are each responsible for payments of $850,000, all with interest.

During 2007 to early 2008 and from August 2009 to February 2012, McLeod Cancer purchased a substantial amount of chemotherapy and other drugs from a Canadian distributor that obtained the drugs from foreign sources. The drugs — sometimes with labeling in foreign languages or without dosage information — were not manufactured in establishments that were registered with the U.S. Food and Drug Administration.

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