The DOJ announced that Dr. Gregory J. Gerber has agreed to the entry of a consent judgment and permanent injunction to resolve allegations of violating the False Claims Act (FCA) and the Controlled Substance Act (CSA).
According to the 2018 Complaint, between 2013 and 2016 Gerber wrote 835 prescriptions for Subsys, which is a liquid form of fentanyl that is applied under the tongue to treat cancer-related pain. In turn, Gerber allegedly received $175,000 in kickbacks from the manufacturer of Subsys, Insys Therapeutics, Inc., in violation of the Anti-Kickback Statute and FCA. Gerber also prescribed controlled substances, like Oxycodone, to an undercover that he began seeing in 2017. The undercover never complained of pain during his six visits but Gerber prescribed controlled substances at each visit after only a minimal medical examination. The 2018 Complaint also alleged that one of Gerber’s patients died from an overdose after he prescribed fentanyl patches.
The 2018 civil matter was initially stayed pending the disposition of criminal proceedings. In 2021, Gerber was criminally charged with 51 counts of distribution of a controlled substance and two counts of health care fraud. Gerber ultimately pleaded guilty to illegally dispensing narcotics and was sentenced to 42 months in prison, one year of home confinement, and ordered to pay $861,892.13 in restitution.
Per the consent decree, Gerber is permanently prohibited from prescribing opioids and other controlled substances. He is also permanently prohibited from managing, owning, or controlling any entity that dispenses controlled substances. Gerber is also required to pay f $4,761,326.62 plus post-judgment interest.
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