Reference no: EM133162194

A neurosurgeon meets a neuro-monitoring device manufacturer through a colleague at an annual conference. The manufacturer approaches the neurosurgeon and his colleague and offer them the opportunity to invest (and obtain a proportional ROI) in the neuro-monitoring company joint venture which sells the neuro-monitoring devices to hospitals for utilization by neurosurgeons during surgery. The neurosurgeon is in private practice but has staff (surgical) privileges at many local hospitals and recently accepted a "Chief of Neurosurgery" medical director position, which position has the potential to provide him with the opportunity to recommend which neuro-monitoring device company to contact with. In addition to the investment opportunity, the neuro-monitoring device manufacturer has provided the neurosurgeon with the opportunity to enter into a Consulting Agreement (compensated on a flat monthly fee) to provide certain consulting services to the affiliated management company, which will then provide turn-key management/billing/administrative services to the newly formed joint venture (as well as own an interest in the JV). All is going well until the neurosurgeon and hospital with which he is a medical director are subject to an investigation by the OIG/Department of Justice.

1. What are all of the possible prohibited activities that could be under investigation?
2. What federal fraud and abuse laws could be implicated?
3. Are there any facts or circumstances that the neurosurgeon and/or hospital could use to defend themselves?