PHILADELPHIA – Carla Sparkler, the former Chief Marketing Officer of BioTek reMEDys Inc., has agreed to a settlement over allegations of violating the False Claims Act by engaging in kickback schemes and waiving co-pays to protect the company’s revenue.

Sparkler has consented to a six-year exclusion from any federally funded health care programs, such as Medicare, as announced by United States Attorney Jacqueline C. Romero. This decision comes in the wake of allegations that Sparkler, during her tenure from August 2015 to May 2020, led activities at BioTek, a specialty pharmacy, that involved waiving copayments for Medicare and TRICARE patients to induce them to purchase its drugs and services without considering the patients’ financial hardships.

The settlement further addresses accusations that under Sparkler’s guidance, BioTek provided remuneration, including gifts and free services, to physicians like Dr. David Tabby, to encourage patient referrals to BioTek. This scheme was part of an effort to sustain the company’s revenue stream while potentially undermining patient care. Dr. Tabby and BioTek’s CEO, Chaitanya Gadde, have also made payments to settle related allegations, with Dr. Tabby paying $480,000 and BioTek and Gadde collectively paying $20 million.

The resolution of this case underscores the commitment of the Eastern District of Pennsylvania to combatting health care fraud and corruption. It also includes claims brought under the whistleblower provisions of the False Claims Act by former BioTek employees, highlighting the critical role of private citizens in uncovering and addressing fraudulent activities within the health care system.

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