United States Files False Claims Act Complaint against Participants in Hospital Development Project for Improperly Obtaining Government-Insured Loan and Misusing Loan Funds

The United States has filed a complaint under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 against Lakeway Regional Medical Center, LLC (LRMC); Surgical Development Partners, LLC (SDP); G. Edward Alexander; Frank Sossi; and John Prater for improperly obtaining a loan insured by the Federal Housing Administration (FHA) and for impermissibly distributing project funds relating to the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice announced.