On Thursday, the Department of Justice announced a $75,000 civil settlement with attorneys Alex Eichhorn and Scott Wade, their firm Tabak Law LLC, and insurance adjuster Gallagher Bassett Services, Inc. The settlement resolves allegations that they attempted to avoid reimbursing the U.S. Department of Veterans Affairs for medical expenses, according to the U.S. Attorney's Office.
In United States v. Eichhorn et al., the Department of Justice alleged that Attorney Eichhorn of Tabak Law LLC failed to reimburse the Department of Veterans Affairs for medical costs it incurred treating a veteran’s non-service-related injury. After the veteran, represented by Eichhorn, received a $90,000 workers' compensation settlement—with $75,000 intended for medical expenses—Tabak Law allegedly disbursed the funds to itself and the client without addressing the U.S. Department of Veterans Affairs’ claim, despite prior written notice. When the U.S. Department of Veterans Affairs later learned of the settlement, no repayment was made, prompting the government to file suit in April under the Federal Medical Care Recovery Act, as reported by the U.S. Attorney's Office.
Assistant U.S. Attorney Aaron R. Wegrzyn, along with D’Anthony Graham and the VA’s Office of General Counsel, handled a case where Attorney Eichhorn had stated that settlement money would be used to pay the VA's claim, but that did not happen, according to the government's complaint. The Department of Justice reminded legal professionals, especially those involved in workers' compensation, to follow the Federal Medical Care Recovery Act. More information is available in U.S. Department of Veterans Affairs regulations published in the Federal Register on February 8, 2023. People with information about attempts to avoid Federal Medical Care Recovery Act rules are encouraged to report it to their local U.S. Attorney’s Office.
