The Sconi

Federal authorities have reached a $75,000 settlement with two Milwaukee-area attorneys, Alex Eichhorn and Scott Wade, the law firm Tabak Law LLC, and claims adjuster Gallagher Bassett Services, Inc. The settlement addresses allegations that they unlawfully avoided paying money owed to the U.S. Department of Veterans Affairs (VA). This resolves the government's claims in United States v. Eichhorn et al., Case Number 25-cv-584.

Court records indicate that the VA provided medical care to a veteran for a condition sustained while employed in the private sector. Attorney Eichhorn represented this veteran in workers' compensation proceedings against the employer and its insurers. During these proceedings, Eichhorn requested medical records from the VA. Upon learning of the claim, the VA asserted its right to recover expenses under the Federal Medical Care Recovery Act (FMCRA).

Attorney Eichhorn negotiated a settlement with Attorney Wade from Gallagher Bassett. Despite receiving notice of the VA's claim, they agreed on a deal where the veteran would accept "risk" regarding enforcement of FMCRA claims for $90,000, earmarking $75,000 for medical expenses.

The complaint alleges that although Eichhorn assured an administrative law judge that settlement proceeds would satisfy the VA's claim, his firm disbursed funds to itself as an unearned fee and to its client instead. After learning about this settlement months later, defendants allegedly failed to resolve their obligations under FMCRA.

The United States filed suit in April citing causes under the False Claims Act and common law theories of recovery. The public is referred to regulations concerning responsibilities under FMCRA and encouraged to disclose evidence of avoidance to their district’s U.S. Attorney’s Office.

Assistant United States Attorney Aaron R. Wegrzyn represented the government with assistance from D’Anthony Graham and others from VA’s Office of General Counsel.

"The claims resolved by the settlement are allegations only," stated Richard G. Frohling, Acting United States Attorney for Eastern District of Wisconsin. "There has been no determination of liability."