WICHITA, Kan. (KSNW) — A Wichita man has been ordered to pay over $15 million after the U.S. Attorney’s Office says he violated the False Claims Act (FCA).

Timothy Warren, 58, of Wichita, is the owner of Titan Medical Compliance, LLC. The judgment is the latest action in a national investigation into an improper billing scheme involving P-Stim electro-acupuncture devices.

The U.S. Attorney’s Office says federal health care programs do not reimburse for P-Stim devices. The Eastern District of Pennsylvania has led the national Department of Justice’s effort to pursue and resolve various FCA cases against P-Stim providers, marketers, distributors, and coders.

According to the complaint, Warren is accused of falsely promoting P-Stim devices as reimbursable by Medicare and other federal insurers. Investigators allege that Warren promoted Titan as a compliance firm, and as a result, marketers and distributors of P-Stim devices paid Warren to provide medical coding guidance.

KSN has reached out to Warren and Titan Medical Center and are awaiting a response.

The U.S. Attorney’s Office says beginning in 2014, Warren promoted P-Stim devices as reimbursable by federal insurers, and provided instructions on what codes to bill. Those codes generated “a high amount of reimbursement,” but investigators say those reimbursements were meant for different, surgically implanted neurostimulators to manage chronic pain.

The U.S. Attorney’s Office says Warren knew P-Stim devices were not reimbursable by federal health care programs but continued to promote the devices anyway.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a complaint against Warren and Titan on October 14, 2021. They also defeated a motion by Warren and Titan to transfer the case to the District of Kansas.

The U.S. Attorney’s Office says they moved for a default judgment after Warren and Titan’s counsel withdrew and failed to respond.

A judge granted the motion and entered a default judgment, saying The U.S. Attorney’s Office “has stated cognizable claims under the False Claims Act against Defendants, and Defendants have failed to present any litigable defense.”

The U.S. Attorney’s Office says Warren caused approximately 1,200 claims to be falsely submitted to the federal health care programs in violation of the FCA. A judge ordered that Warren and Titan must pay statutory penalties totaling $15,270,066.

In August 2022, Warren and Titan were charged with fraud after a federal grand jury indicted him for crimes related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

He is accused of fraudulently obtaining Paycheck Protection Program (PPP) loans under the CARES act, totaling roughly $145,800, from two banks and then using a third bank to conceal the funds.