In a civil settlement agreement with the U.S. Government, an orthopedic surgeon has agreed to pay $471,221.46 to resolve allegations that he knowingly accepted illegal kickback payments in exchange for prescribing pain creams compounded and produced by OK Compounding, LLC, announced U.S. Attorney Trent Shores.

The government alleged that Dr. James L. Womack, 42, a physician in Clinton, Missouri, accepted the kickback payments from June 1, 2013 through June 9, 2015. Womack wrote prescriptions for expensive compounded pain creams that were marketed in bulk, and in so doing, facilitated the sale and distribution of pain creams by OK Compounding.

As compensation for his services, OK Compounding paid Womack what was characterized by the parties as medical director fees based upon an hourly rate. However, the prearranged payments that Womack received from OK Compounding were, in actuality, “kickbacks” and in violation of the False Claims Act, 31 U.S.C. §3729 et seq.

This matter is being handled by Assistant U.S. Attorney Kristin Harrington with the ACE unit and is the product of the collaborative investigative efforts of the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

Read more