Federal authorities have reached a settlement with two Milwaukee-area attorneys, Alex Eichhorn and Scott Wade, the law firm Tabak Law LLC, and workers’ compensation insurance claims adjuster Gallagher Bassett Services, Inc. The parties will pay $75,000 to resolve allegations that they unlawfully avoided paying money owed to the United States Department of Veterans Affairs (VA). This resolution addresses the claims in United States v. Eichhorn et al., Case Number 25-cv-584.
According to court records, the VA provided medical care to a military veteran for a condition sustained while employed in the private sector. Attorney Eichhorn represented the veteran in workers’ compensation proceedings against the employer and its insurers. Upon learning of the claim, the VA asserted its right to recover medical expenses under the Federal Medical Care Recovery Act (FMCRA).
Attorney Eichhorn negotiated a settlement with Gallagher Bassett’s counsel, Attorney Wade. Despite being notified of the VA’s claim, they agreed on a deal where the veteran would assume the risk of VA enforcement in exchange for $90,000, with $75,000 allocated for medical expenses.
The government alleges that Attorney Eichhorn assured an administrative law judge that settlement proceeds would satisfy the VA’s claim. However, Tabak Law LLC disbursed funds from its client trust account as unearned attorney fees and to its client. After learning about this months later, defendants allegedly failed to resolve their obligations under FMCRA.
The United States filed suit in April alleging violations under the False Claims Act and common law recovery theories. The public is referred to regulations concerning responsibilities under FMCRA and encouraged to disclose evidence of avoidance.
Assistant United States Attorney Aaron R. Wegrzyn represented the government with assistance from D’Anthony Graham and others from the VA’s Office of General Counsel.
The settlement resolves allegations only; no liability determination has been made.
