Bureau of Prisons contractor pays feds to settle false claims, kickback allegations

By

Tony Ware

A safety net is seen inside the Fresnes prison as a warden speaks on a telephone on January 13, 2015 in Fresnes, south of Paris. AFP PHOTO / MATTHIEU ALEXANDRE (Photo credit should read MATTHIEU ALEXANDRE/AFP/Getty Images)

A North Texas contractor and its former president have agreed to pay the United States $2.475 million to settle false claims and kickback allegations.

Mansfield, Texas-based Integrated Medical Solutions Inc. and former company executive Jerry Heftler are alleged to have engaged Cary Hudson, then employed by the U.S. Bureau of Prisons as a financial business administrator, to be a paid consultant and assist the company in obtaining favorable treatment during contracting.

The government has alleged that Hudson gave IMS access to confidential, non-public information that provided an unfair advantage in the bidding process for contracts to develop managed healthcare networks for federal inmates. Following the award of contracts, Hudson assisted IMS in reporting its performance.

Hudson previously pled guilty to a felony violation of submitting a false document in which he failing to disclose payment received from IMS.

The complete announcement can be viewed on the Justice Department website.