06/16/2026
Telemedicine Company and Physician to Pay Over $3.3 Million To Settle Whistleblower Lawsuit Alleging Fraudulent Billing
The Department of Justice announced that Circle Medical Technologies, Inc., a nationwide telemedicine company, its affiliated physician group, Circle Medical Care of California, and their Chief Medical Officer and medical director, Dr. Nicole Tsang, D.O., (collectively, “Circle Defendants”) have agreed to pay the United States and State of California $3,325,000 to settle a qui tam lawsuit filed in the U.S. District Court for the Northern District of California.
Asher Alavi and David Bocian of KTMC represented the whistleblower, Jason Vellen, and filed the qui tam lawsuit under seal in 2024 pursuant to the whistleblower provisions of the federal False Claims Act and California Insurance Frauds Prevention Act. In June 2026, the United States and State of California intervened in the lawsuit for purposes of settlement.
The settlement, one of the first of its kind involving a telemedicine company, resolves allegations that the Circle Defendants defrauded federally funded healthcare programs and private insurance plans in California by billing numerous telemedicine visits provided by its roughly 350 providers to patients throughout the country under the name and NPI of a physician who neither provided nor supervised the visits. In fact, the telemedicine visits, which were primarily related to the prescription of ADHD medication, were overwhelmingly performed by contracted physician-assistants and nurse practitioners, who were not properly supervised by the rendering provider listed on the claims.
Read more at https://www.ktmc.com/news