The United States has settled claims asserted against Philip McHugh, one of the former owners of Physicians Choice Laboratory Services (PCLS), a now-defunct diagnostic testing laboratory formerly located in Charlotte and Rock Hill, South Carolina. McHugh has agreed to pay $2,021,795.57 to resolve the United States’ allegations that he violated the Anti-Kickback Statute (AKS), and, as a result, caused PCLS to submit millions of dollars in false claims for reimbursement to the Medicare program in violation of the federal False Claims Act (FCA). In June of 2019, the United States filed its Complaint in Intervention asserting FCA claims against McHugh, PCLS and other agents of the laboratory based on allegations that they participated in various schemes to offer or provide benefits to physicians in exchange for the referral of patient samples for drug testing. The United States contended that such conduct violated the AKS, which specifically forbids any person or entity from knowingly and willfully offering, paying, soliciting, or receiving remuneration to influence the referral of items or services reimbursable by a federal healthcare program, and, that as a result, it was entitled to recover damages under the FCA.