Medical Device Manufacturer’s Settlement of Kickback Charges Shows That Even Criminal Fines Can Be “Privatized”

The U.S. Attorney for New Jersey directed that a no-bid 18-month contract worth $28 million to $52 million contract be awarded to The Ashcroft Group, the consulting firm of former Attorney General John Ashcroft, to monitor a large settlement of criminal accusations against medical device manufacturer Zimmer Holdings and four smaller companies accused of paying kickbacks to doctors who recommended and used the company’s knee and hip implants.

U.S. Attorney Christopher J. Christie directed that the contract be awarded to his former boss with no public notice. Mr. Christie said the fees were imposed in lieu of fines.

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