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Center for Vein Restoration Settles False Claims Allegations for $4 Million

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Filed March 20th, 2026
Detected March 21st, 2026
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Summary

Connecticut, along with other states and the federal government, has reached a $4 million settlement with CVR Management, LLC, resolving allegations that its network of clinics billed government health programs for medically unnecessary vein treatments. CVR will pay $4 million, with Connecticut receiving $114,280.07 for its Medicaid program.

What changed

Attorney General William Tong announced that Connecticut has joined a multi-state and federal settlement with CVR Management, LLC, requiring the company to pay $4 million to resolve allegations of submitting false claims to government health programs. The allegations state that CVR, which manages the Center for Vein Restoration clinics, billed Medicaid, Medicare, and TRICARE for medically unnecessary chronic venous insufficiency treatments between January 1, 2010, and December 31, 2016. These treatments were allegedly performed for cosmetic reasons alone, which are not covered by government health programs, or without exhausting required alternative treatment options.

This settlement resolves qui tam actions filed under the federal False Claims Act and state false claims statutes. The resolution underscores the importance of protecting the integrity of public healthcare programs by preventing fraudulent billing practices. Regulated entities should review their billing practices for medically unnecessary procedures, particularly those with cosmetic components, to ensure compliance with federal and state false claims acts. Failure to do so could result in significant financial penalties and legal action.

What to do next

  1. Review billing practices for medically unnecessary procedures
  2. Ensure compliance with federal and state false claims acts

Penalties

$4 million settlement, with $604,365.07 going to Medicaid programs nationally and $114,280.07 to Connecticut's Medicaid Program.

Source document (simplified)

The Office of the Attorney General William Tong


Press Releases

03/20/2026

Center for Vein Restoration to Pay $4 Million to Resolve False Claim Allegations Arising from Billing Government Health Programs for Unnecessary Medical Procedures

(Hartford, CT) -- Attorney General William Tong today announced Connecticut has joined with other states and the federal government to reach a $4 million settlement with CVR Management, LLC, resolving allegations that the company’s multi-state network of vascular medicine clinics billed Medicaid, Medicare and TRICARE for medically unnecessary vein treatment procedures.

CVR Management, LLC, a professional services corporation based in Greenbelt, Maryland, manages the operations of the Center for Vein Restoration (“CVR”), a group of practices and medical clinics operating in numerous states. CVR will pay the states and the federal government $4 million dollars, of which $ $604,365.07 will go to the Medicaid programs, to resolve civil allegations that CVR’s conduct caused false claims to be submitted to the government health care programs. Connecticut’s Medicaid Program will receive $114,280.07 through this settlement.

Specifically, the settlement resolves allegations that from January 1, 2010 to December 31, 2016, CVR billed government health programs for unnecessary chronic venous insufficiency treatments. Chronic venous insufficiency is caused by the improper functioning of vein valves resulting in vein wall weakening that leads to varicose veins, cramping, swelling, discoloration, and sometimes ulcers or skin necrosis on the legs. It can be treated by sclerotherapy, radiofrequency ablation or endovenous laser ablation. But government health programs will not pay for such treatments when used for purely cosmetic reasons. To warrant coverage, chronic venous insufficiency must be accompanied by certain other conditions and treatments must occur only after patients undergo specified alternative options that prove unsuccessful. A lengthy investigation found that CVR knowingly billed Medicare, Medicaid, and TRICARE for sclerotherapy, radiofrequency ablation, and endovenous laser ablation procedures that were not clinically indicated and were medically unnecessary.

“Medicaid does not cover the treatment of varicose veins for cosmetic reasons alone. CVR knew this, but billed state Medicaid programs for medically unnecessary treatments anyway. Acting in coordination with our state and federal partners, we will continue to aggressively protect the integrity of our public healthcare programs,” said Attorney General Tong.

This settlement arises from a qui tam action originally filed in 2015 in the United States District Court for the District of Maryland under the federal False Claims Act and various state false claims statutes. The settlement also resolves a second qui tam action filed in 2018 in the United States District Court for the Eastern District of Pennsylvania, which was subsequently consolidated into the Maryland case.

A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and conducted the settlement negotiations with CVR on behalf of the states. The Team included representatives from the Offices of the Attorneys General for the states of Connecticut, Indiana, Maryland, Michigan, New Jersey, New York, Virginia, and the District of Columbia.

Assistant Attorney General Eric Babbs served on the NAMFCU Team and, under the supervision of Deputy Associate Attorney General Gregory O’Connell, Chief of the Government Fraud Section, assisted the Attorney General in this matter.
Twitter: @AGWilliamTong Facebook: CT Attorney General

Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

860-808-5318
attorney.general@ct.gov

Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
State AG
Filed
March 20th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
No. 15-cv-00000 (D. Md.) / No. 18-cv-00000 (E.D. Pa.)
Docket
15-cv-00000 18-cv-00000

Who this affects

Applies to
Healthcare providers
Industry sector
6211 Healthcare Providers
Activity scope
Healthcare Billing Medical Procedures
Geographic scope
United States US

Taxonomy

Primary area
Healthcare
Operational domain
Compliance
Topics
False Claims Act Healthcare Fraud

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