The Center for Vein Restoration, its management company CVR Management, LLC, the affiliated Center for Vascular Medicine, and founder Dr. Sanjiv Lakhanpal agreed in March 2026 to pay $4 million to resolve federal and state False Claims Act allegations. The CVR $4 million settlement, announced March 20, 2026, by the U.S. Attorney’s Office for the District of Maryland, resolved claims that the vein clinic chain billed Medicare, Medicaid, and TRICARE for vein procedures that were not medically necessary between January 2010 and December 2016.1U.S. Department of Justice. Health Care Management Corporation Agrees To Pay $4 Million To Resolve False Claims Act The settlement resolves allegations only. There was no determination of liability.
What CVR Was Accused of Billing For
The procedures at the center of the case were treatments for chronic venous insufficiency: sclerotherapy, radiofrequency ablation, and endovenous laser ablation. Federal health programs cover those procedures only after a patient has tried conservative treatment first, and only when the treatment is clinically indicated rather than cosmetic.
Prosecutors alleged CVR bypassed those requirements. The government said the clinics billed federal payers for procedures that did not meet the clinical criteria, including treatments the government characterized as essentially cosmetic.1U.S. Department of Justice. Health Care Management Corporation Agrees To Pay $4 Million To Resolve False Claims Act The alleged conduct spanned nearly seven years.
How the $4 Million Is Divided
The federal government receives $3,395,634.93 of the settlement. State Medicaid programs and the District of Columbia share $604,365.07, with $325,208.84 going to the participating states and D.C. and the remaining $279,156.23 going back to the federal government as its portion of the Medicaid recovery.1U.S. Department of Justice. Health Care Management Corporation Agrees To Pay $4 Million To Resolve False Claims Act
Maryland’s share alone was $168,763.36. The other participating jurisdictions were Connecticut, Indiana, Michigan, New Jersey, New York, Virginia, and the District of Columbia.2Maryland Office of the Attorney General. Attorney General’s Medicaid Fraud and Vulnerable Victims Unit Obtains $4 Million Settlement With Center for Vein Restoration The two whistleblowers who brought the case received a combined $752,000.1U.S. Department of Justice. Health Care Management Corporation Agrees To Pay $4 Million To Resolve False Claims Act
The Whistleblower Cases Behind the Settlement
The case began with a lawsuit filed in November 2015 by Karen Fulton, a former CVR employee, in the U.S. District Court for the District of Maryland. It was captioned U.S. ex rel. Fulton v. CVR Management, LLC, et al., No. 15-cv-3591.1U.S. Department of Justice. Health Care Management Corporation Agrees To Pay $4 Million To Resolve False Claims Act A second employee filed a related action in the U.S. District Court for the Eastern District of Pennsylvania in 2018 under the name Jane Doe, and that case was later consolidated into the Maryland litigation.2Maryland Office of the Attorney General. Attorney General’s Medicaid Fraud and Vulnerable Victims Unit Obtains $4 Million Settlement With Center for Vein Restoration
Judge Paula Xinis dismissed all claims with prejudice on March 19, 2026, finalizing the deal. From the original whistleblower filing to resolution, the litigation had lasted more than a decade.3PACER Monitor. United States of America et al v. CVR Management, LLC et al
Who CVR and Dr. Lakhanpal Are
Dr. Sanjiv Lakhanpal founded the Center for Vein Restoration in 2007. He is board-certified in general surgery, cardiovascular surgery, and thoracic surgery, and previously served as Director of Cardiac Surgery at Prince George’s Hospital in Maryland.4Center for Vein Restoration. Sanjiv Lakhanpal, MD, FACS He is President and CEO of CVR Management and Chairman of the Board of the Center for Vascular Medicine.1U.S. Department of Justice. Health Care Management Corporation Agrees To Pay $4 Million To Resolve False Claims Act
CVR calls itself the largest physician-led vein care provider in the country. It reported operating 100 centers across 22 states and the District of Columbia by January 2021, with more than 200,000 patient interactions a year.5Center for Vein Restoration. Celebrating 100 Centers Nationwide As of 2026, its website lists over 130 locations in 23 states.6Center for Vein Restoration. Center for Vein Restoration Homepage The network continues to accept Medicare and Medicaid. As of March 2026, the Maryland Board of Physicians reported no disciplinary action against Dr. Lakhanpal’s medical license.7The Daily Record. CVR Management Vein Clinic Greenbelt Settlement
Not the Same as the Dr. Brown Kickback Settlement
A separate 2025 DOJ settlement sometimes turns up in the same searches. That case involved Dr. Frederick Brown of Texas, who paid $309,055 to resolve allegations he received disguised kickbacks in exchange for laboratory test referrals to Little River Healthcare and True Health Diagnostics.8U.S. Department of Justice. Laboratory Executives, Marketers, and Physician Pay Over $2M To Settle Allegations of Illegal It has no connection to CVR, Dr. Lakhanpal, or the vein procedure allegations.