The Austin Chronicle reports that the U.S. Department of Justice (DoJ) filed suit on September 25, 2019, against the Lakeway Regional Medical Center and several of its founding investor-administrators, alleging that the group defrauded the U.S. Dept. of Housing and Urban Development (HUD) in a mortgage loan transaction that eventually cost the agency $172 million. The lawsuit follows a DoJ June 2019 settlement with a separate group of seven investors, for which they 'agreed to pay the U.S. $1.1 million to resolve allegations that they violated the False Claims Act.' The DoJ has named Surgical Development Partners LLC, SDP of Austin Enterprises LLC, G. Edward Alexander, Frank Sossi, and John Prater in the lawsuit. In 2016, Lakeway Regional sold its interests to Baylor Scott & White Health for $72 million.
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