A Jamaican-born spinal surgeon named Dr. Kingsley Chin and his business, SpineFrontier Incorporated, were charged with money laundering, but a federal judge in Massachusetts dismissed the case while scolding the government for initiating the charge.
The grand jury discussions are confidential and not open to the public, but the judge has sealed the arguments presented in court at the government’s request, despite efforts to get the transcripts.
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Following a settlement of a civil case in which Chin agreed to pay the US Department of Justice (DOJ) a certain amount and give the DOJ 50% of his business for five years, the money laundering charge was dropped. The DOJ filed the lawsuit against Chin and SpineFrontier Inc. under the False Claims Act, alleging that SpineFrontier paid kickbacks to spine surgeons who provided consulting services to the company.
In October, the civil case was resolved and the money-laundering accusation was dropped; however, the firm and Chin are still facing kickback charges, which will go to trial in the middle of 2014.
Concerning the money-laundering case, the federal judge expressed skepticism regarding the charges, asking how transfers that were made public under the Physicians Payments Sunshine Act could have been concealed.
Manufacturers are required by the Sunshine Act to disclose payments and other value transfers to teaching hospitals and physicians.
In keeping with a report by the legal news service Law360, the judge found it difficult to comprehend how the defendant could have allegedly disguised unlawful transfers to surgeons while also revealing them publicly in compliance with the Sunshine Act’s requirements. The judge’s observation implied that the supporting evidence might not as straight-forward as be initially presented.
According to the report, the judge cited several issues that questioned the veracity of the claims, and an assistant US attorney concurred with the judge that proof of a cover-up was necessary to establish a money laundering case. The DOJ allegedly appointed three separate grand juries before bringing charges against Chin and his business.
Chin, who resides in Fort Lauderdale, Florida, and operates a medical device manufacturing firm, has opposed the US Federal case against him, stating that he and his company were caught up in an effort by the federal government to tighten on medical enterprises utilizing physicians as consultants.
Approximately 15 federal marshals arrived at his home with weapons drawn to take him into jail, Chin noted in an exclusive interview shortly after his arrest on September 7, 2021.
He noted, “In civil cases, this does not happened. The criminal complaint caught myself and my lawyers completely by surprise. In any case, this is normally handled by the suspect being asked to come to the police station and turn himself in.”
After arguing that none of this occurred, he was escorted to the police station and freed on US$1 million bond. According to Chin, at the time of the charges, he had a civil dispute with the federal government, but the criminal complaint filed against him was uncovered, which caught him off guard.
Chin’s business stated in a statement that this result reflects his dedication to improving patient outcomes in spite of major legal obstacles and gives him the opportunity to concentrate once more on his groundbreaking work in spinal care innovation.
