Illinois Federal Anti-Kickback Statute And Stark Law Defense Counsel
Federal healthcare fraud investigations move fast. Physicians, pharmacists, clinic owners and executives in Cook and Lake counties who receive a Department of Justice (DOJ) subpoena or Office of Inspector General (OIG) civil investigative demand face criminal prosecution and the loss of their professional licenses.
At Pissetzky Law LLC, we bring over 25 years of federal defense experience to the highest stakes healthcare fraud cases in Illinois.
Two Federal Laws, Two Very Different Threats
The federal Anti-Kickback Statute (AKS) (42 U.S.C. § 1320a-7b) and the Stark Law (42 U.S.C. § 1395nn) both target financial relationships in healthcare but carry very different legal standards.
The AKS is a criminal statute prohibiting the knowing and willful exchange of anything of value to induce federal healthcare referrals. Penalties per violation can include:
- Felony charges with up to 10 years in federal prison
- Fines up to $100,000
- Mandatory exclusion from Medicare and Medicaid
- False Claims Act exposure with treble damages
The Stark Law operates as a strict liability civil statute – no criminal intent required. A prohibited financial relationship between a physician and a referral entity triggers a violation automatically, regardless of intent. When both statutes apply to the same conduct, the consequences compound quickly.
A Federal Investigation Can Cost You Your License Too
In Illinois, a DOJ or OIG investigation can trigger a parallel Illinois Department of Financial and Professional Regulation (IDFPR) inquiry before any indictment occurs. The IDFPR can suspend or revoke a medical license on an emergency basis, ending a career while the federal case remains pending. For physicians, pharmacists and healthcare executives, this dual-track enforcement creates two simultaneous battles – one in federal court and one before the licensing board. We defend clients on both fronts.
Why Must You Act Before The Filing Of Charges?
Early intervention gives us the best opportunity to build a strong defense for our clients. We engage the moment a federal investigation surfaces to limit exposure and build the strongest possible defense. Our strategies include:
- Reviewing financial arrangements against AKS safe harbor regulations to identify compliant structures
- Challenging the government’s ability to prove willful criminal intent under the AKS
- Analyzing whether Stark Law exceptions apply to the financial relationship at issue
- Responding aggressively to IDFPR inquiries to prevent emergency license suspension
Every day without a defense strategy gives the government more time to build its case against you.
Frequently Asked Questions
Our clients understandably have many questions about these investigations. We can give you the answers you’re looking for.
Q: What is the main difference between the Anti-Kickback Statute and the Stark Law?
A: The primary differences lie in intent and criminal exposure:
- Anti-Kickback Statute (42 U.S.C. § 1320a-7b): A criminal felony statute that prohibits offering, paying, soliciting or receiving anything of value to induce patient referrals under federal healthcare programs. The government must prove you acted “knowingly and willfully.” Convictions carry up to 10 years in federal prison per count, heavy criminal fines and mandatory exclusion from Medicare/Medicaid.
- Stark Law (42 U.S.C. § 1395nn): A strict liability civil statute that bars physicians from making referrals for “designated health services” (DHS) to entities with which they (or immediate family) have a financial relationship, unless a specific statutory exception applies. No proof of intent is required – a technical oversight or expired lease can trigger massive civil monetary penalties, refund demands and secondary False Claims Act liability.
Q: Can a legitimate consulting, medical director or lease agreement still violate the Anti-Kickback Statute?
A: Yes. Federal prosecutors routinely prosecute physicians, practice owners and executives who entered into written, formal contracts. Under the federal “One Purpose Test,” if even one purpose of a financial agreement – such as a medical directorship, rental agreement or marketing arrangement – was to induce or reward federal healthcare referrals, the entire arrangement is illegal.
To be protected, your arrangement must fit strictly within an established federal safe harbor provision. Our defense team reviews your financial agreements against regulatory safe harbors to prove payments represented legitimate, fair market value compensation rather than illegal referral incentives.
Q: How does a federal healthcare investigation impact my Illinois medical or pharmacy license?
A: A federal DOJ or OIG inquiry almost always triggers a parallel administrative investigation by the IDFPR.
If you are indicted, enter a civil settlement or face exclusion from federal healthcare programs (OIG Exclusion List), the IDFPR can move immediately to issue an emergency summary suspension or permanently revoke your professional license. Effective legal defense must address the criminal/civil federal investigation and the administrative IDFPR proceedings simultaneously to safeguard both your personal liberty and your license to practice.
When The Stakes Are This High, Call Us
A federal AKS or Stark Law investigation can end your career in days. At Pissetzky Law LLC, our trial-ready defense team fights for medical professionals and healthcare executives across Cook and Lake counties. Call us at 312-239-8292 to reach our team today. You can also send us an email.
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