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Investigative Press Release
Apr
05
2018

Physician's Estate Agrees to Pay $625,000 to Settle False Claims Act Violations

 HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Estate of Dr. Leroy Pelicci has agreed to pay the United States $625,000 to settle False Claims Act allegations.

According to United States Attorney David J. Freed, Leroy J. Pelicci was a physician and owner of the Pelicci Pain Relief Center in Scranton, Pennsylvania until his death in March 2014. The United States alleged that Dr. Pelicci submitted numerous improper claims for payment to the Department of Labor Office of Workers’ Compensation Programs under the Federal Employees Compensation Act and the Federal Employees Health Benefits Program for trigger point injections, which were upcoded to receive a higher reimbursement amount than permitted, between June 11, 2003 and March 4, 2014. The settlement reflects the amount of loss to the Government as a result of these allegations, as well as the costs of the investigation.

The United States Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth G. Cleevely, Pittsburgh, stated, “The U.S. Postal Service pays about $3 billion per year in workers compensation costs. USPS OIG special agents, along with our law enforcement partners, conduct investigations of those individuals who choose to take advantage of the system. I want to thank the U.S. Attorney’s Office for their diligence in pursuit of this civil settlement, and for recovering what the government is due.”