> ## Content Index
> Fetch the complete content index at: https://www.fdaweb.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Device Company Charged with Fraud in Grants Case
- URL: https://www.fdaweb.com/device-company-charged-with-fraud-in-grants-case/
- Published: 2016-08-01T12:00:00.000Z
- Updated: 2026-09-14T21:20:07.000Z
- Author: David McFarland
- Tags: Devices, #legacy-id-D5136348

The Justice Department has filed suit against **Jerome Hahn** (Lexington, KY) and a medical device company he owns, Telehealth Holdings, for allegedly violating the False Claims Act. According to the [complaint](https://www.justice.gov/usao-edky/pr/lexington-man-and-his-medical-device-company-sued-grant-fraud?ref=fdaweb.com), Hahn and his company defrauded the government by submitting false claims in connection with three federal grants worth over $600,000 that were intended to support the development of a sleep apnea monitoring system and electronic pillboxes customized for specific patient populations, including cancer patients. The complaint alleges that Hahn and Telehealth committed fraud in connection with these grants, including making false statements in the grant applications about Telehealth’s personnel, facilities, and accounting systems.

In a related criminal case, Hahn pleaded guilty to conspiring to defraud the government by making false claims in connection with grants that were awarded to Telehealth. On 6/13, he was sentenced to four months in prison and an additional six months on home detention. Hahn was also ordered to pay $222,037 in restitution to NIH.