Health Law Daily Wrap Up, FALSE CLAIMS ACT—SETTLEMENT AGREEMENTS: Laboratory executives, marketers and physician agree to more than $2M in FCA settlements, (Jun 9, 2026)

By Patricia K. Ruiz, J.D.

The agreements resolve claims stemming from alleged improper billing tied to laboratory testing referrals.

A group of laboratory executives, marketers, and a physician have entered into six separate settlement agreements with the U.S. government, resolving civil allegations that they submitted or caused the submission of false laboratory testing claims to Medicare, Medicaid, and TRICARE, with combined payments exceeding $2 million. The agreements arise from a civil action in the Eastern District of Texas and address conduct involving Boston Heart Diagnostics Corporation and related entities. Each settlement resolves claims under the False Claims Act (FCA) and related theories without an admission of liability, while preserving certain government rights, including criminal enforcement and administrative remedies (Settlement Agreement Susan Hertzberg, May 29, 2026; Settlement Agreement Matthew Theiler, May 29, 2026; Settlement Agreement Ginny Jacobs, Scott Jacobs, S&G Staffing, LLC, Oct. 9, 2025; Settlement Agreement William Todd Hickman, Nov. 4, 2025; Settlement Agreement Thomas Gray Hardaway, June 1, 2026; Settlement Agreement Frederick Brown, M.D., Sept. 22, 2025).

Settlement amounts. The settlements include payments by multiple individuals tied to Boston Heart Diagnostics and affiliated marketing efforts. Susan Hertzberg, the laboratory’s former chief executive officer, agreed to pay $600,000 to resolve the government’s claims. Matthew Theiler, the company’s former senior vice president of sales, also agreed to pay $600,000. Thomas Gray Hardaway, a former area sales manager, agreed to pay $250,000. Frederick Brown, M.D., a physician in Texas, agreed to pay $309,055, including $154,527.50 designated as restitution, with part of the balance to be paid over time with interest. Ginny Jacobs, Scott Jacobs, and their entities S&G Staffing LLC and Jacobs Marketing Inc. agreed to pay $250,000, of which $125,000 is designated as restitution and the remainder payable over time with interest. William Todd Hickman agreed to pay an initial amount and additional contingent sums tied to his future income, with total payments potentially reaching $100,000 depending on annual earnings thresholds.

Civil and criminal proceedings. According to the agreements, the U.S. contends that the defendants submitted or caused the submission of claims for laboratory testing to federal healthcare programs, and that their conduct gave rise to liability under the FCA for presenting false claims, making false statements, and participating in conspiracies to submit false claims, as well as under common law theories such as unjust enrichment and payment by mistake. The conduct at issue is tied to allegations set out in an amended complaint filed in U.S. ex rel. STF LLC v. True Health Diagnostics, LLC, pending in the Eastern District of Texas.

Several of the defendants were also involved in related criminal proceedings or administrative sanctions reflected in the agreements. Hertzberg, Hardaway, and Theiler were convicted by a jury in 2023 of conspiracy to commit illegal remunerations and are appealing those convictions. Each has been excluded from Medicare, Medicaid, and other federal healthcare programs for a period of six years. Brown pleaded guilty to falsifying a document in a federal investigation, while Hickman pleaded guilty in a separate criminal matter and agreed to a forfeiture of $100,000. The Jacobs entities agreed to a 10-year exclusion from federal healthcare programs as part of their settlement.

Release of claims, other provisions. In exchange for payment, the U.S. agreed to release civil and administrative monetary claims arising from the covered conduct under the FCA and other authorities, subject to specified exceptions. Those exceptions preserve the government’s ability to pursue criminal liability, tax-related claims, and administrative actions, including exclusion from federal healthcare programs. The agreements also require that certain costs related to the matters be treated as unallowable for reimbursement purposes and prohibit defendants from resubmitting or appealing claims tied to the alleged conduct. In addition, several agreements include cooperation provisions requiring the settling parties to assist in ongoing investigations or litigation involving other individuals or entities, including by providing documents and testimony upon request.

Companies: Boston Heart Diagnostics Corporation; True Health Diagnostics, LLC; LGRB Management Services LLC; S&G Staffing, LLC; Jacobs Marketing, Inc.; Ascend Professional Management, Inc.; Ascend Professional Consulting, Inc.; BenefitPro Consulting, LLC; Rockdale Hospital d/b/a Little River Healthcare; Jones County Regional Healthcare d/b/a Stamford Memorial Hospital; Denton Transitional LTCH, L.P. d/b/a Integrity Transitional Hospital

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