DOJ Settles Civil Cyber Fraud Initiative Case with CHS and Imposes a $930,000 Penalty

HIPAA Journal

Steve Alder

The U.S. Department of Justice (DOJ) has announced a settlement has been reached with the Cape Canaveral, FL-based healthcare services contractor, Comprehensive Health Services (CHS), to resolve alleged False Claims Act violations.

This is the first settlement to be reached under the DOJ Civil Cyber Fraud Initiative, which was launched in 2021. The Civil Cyber Fraud Initiative was launched to pursue cases against government contractors that knowingly used deficient cybersecurity products and services which put information systems at risk, as well as failures to report cybersecurity incidents.

CHS and its subsidiaries had contracts with the U.S. Department of State and the U.S. Air Force to operate medical services at U.S. military facilities in Afghanistan and Iraq. Two actions were filed under the whistleblower provisions of the False Claims Act that alleged...

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