Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 305

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 305
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 including gifts, discounts, credit arrangements, payments of cash, consulting
fees, waivers of co-payments, ownership interests and providing anything at less than its fair market value. Penalties for federal anti-kickback
violations are severe, and include imprisonment, criminal fines, civil money penalties, and exclusion from participation in federal health
care programs. Many states also have anti-kickback statutes, some of which may apply to items or services reimbursed by any third-party
payor, including commercial insurers.

Legislation defining two new federal crimes related
to health care was recently enacted: health care fraud and false statements relating to health care matters. The health care fraud statute
prohibits knowingly and willfully executing a scheme to defraud any health care benefit program, including private payors. A violation
of this statute is a felony and may result in fines, imprisonment or exclusion from governmental payor programs such as the Medicare and
Medicaid programs. The false statements statute prohibits knowingly and willfully falsifying, concealing or covering up a material fact
or making any materially false, fictitious or fraudulent statement in connection with the delivery of or payment for health care benefits,
items or services. A violation of this statute is a felony and may result in fines, imprisonment or exclusion from governmental payor
programs.

Finally, another development affecting the health
care industry is the increased enforcement of the federal False Claims Act and, in particular, actions brought pursuant to the False Claims
Act’s “whistleblower” or “qui tam” provisions. The False Claims Act imposes liability on any person or entity
that, among other things, knowingly presents, or causes to be presented, a false or fraudulent claim for payment by a federal governmental
payor program. The qui tam provisions of the False Claims Act allow a private individual to bring actions on behalf of the federal government
alleging that the defendant has defrauded the federal government by submitting a false claim to the federal government and permit such
individuals to share in any amounts paid by the entity to the government in fines or settlement. When an entity is determined to have
violated the False Claims Act, it may be required to pay up to three times the actual damages sustained by the government, plus civil
penalties ranging from $5,500 to $11,000 for each false claim.

In addition, various states have enacted false
claim laws analogous to the federal False Claims Act, although many of these state laws apply where a claim is