On July 29, 2026, the Department of Justice (“DOJ”) announced that it declined to bring criminal charges against Campus Eye Management Holdings LLC and its subsidiary, Campus Eye Management LLC (collectively “Campus Eye”), a New Jersey-based management services organization. Campus Eye is the first healthcare company to avoid criminal prosecution under the DOJ’s new corporate enforcement policy.
The declination was issued by the DOJ’s National Fraud Enforcement Division. It resolved a criminal investigation into Campus Eye’s role providing billing and administrative services to an optometry practice and ambulatory surgery center (“ASC”). The investigation centered on healthcare fraud, illegal kickbacks, and conspiracy.
At the same time, the DOJ unveiled a seven-count indictment against E. Bruce DiDonato, the founder of the optometry practice and ASC. DiDonato is accused of running a years-long scheme to bill Medicare and private insurers for unnecessary diagnostic eye tests and to pay illegal kickbacks to referring surgeons. According to the DOJ, the scheme ran from at least 2015 through March 2023 and generated approximately $3.4 million in allegedly fraudulent Medicare claims, about $1 million of which Medicare actually paid.
The Policy that Made the Declination Possible
The Campus Eye declination was the first for a healthcare company under the DOJ’s department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (“CEP”), announced on March 10, 2026. The CEP replaces all prior corporate enforcement policies and lays out a clear path: a company can avoid prosecution if it (1) voluntarily reports its own misconduct to the DOJ, (2) fully cooperates with the investigation, and (3) fixes the problem in a timely manner—so long as no “aggravating circumstances” tip the scales the other way.
Aggravating circumstances include how widespread the misconduct was, how much harm it caused, and whether the company has a history of prior offenses. Even when aggravating factors exist, prosecutors can still issue a declination if the company’s cooperation and remediation efforts are strong enough. Companies that receive a declination must still repay ill-gotten gains and compensate victims. All declinations are made public.
In the Campus Eye matter, the DOJ credited the company for reporting the misconduct voluntarily and promptly, cooperating fully with investigators, and strengthening its compliance program. Campus Eye also agreed to pay $1 million in restitution to victims. As Assistant Attorney General Colin M. McDonald, head of the DOJ’s National Fraud Enforcement Division, stated: “The Department’s policies afford companies that take responsibility for their misconduct with a clear path to a declination. Businesses that ignore the law and profit from their executive’s lies and deceit will be held accountable.”
The Central Takeaway: There Are Meaningful Benefits to Self-Disclosure
The Campus Eye resolution sends a clear message: coming forward early and voluntarily can mean the difference between criminal prosecution and the Government declining to pursue a criminal case. Campus Eye avoided corporate criminal liability entirely because it reported the misconduct on its own, cooperated fully, and took real steps to fix compliance gaps. However, self-disclosure does not protect individuals. DiDonato was indicted the same day the company’s declination was announced—a reminder that corporate cooperation does not shield culpable executives from personal accountability.
Why This Matters for Healthcare Companies
This declination matters for any healthcare company—or any business in a heavily regulated industry—that faces potential False Claims Act exposure. Just weeks earlier, on June 23, 2026, the DOJ announced a record-breaking number of healthcare fraud charges as part of its 2026 National Health Care Fraud Takedown. The message is unmistakable: federal enforcement in healthcare is intensifying, not slowing down.
For healthcare companies, the lesson is straightforward: invest in a strong compliance program, escalate potential problems quickly, and be willing to self-report when misconduct is discovered. That combination can turn a potential criminal case into a resolution focused on making victims whole rather than imposing criminal penalties. Given the significant overlap between conduct that triggers DOJ criminal exposure and civil False Claims Act liability, companies should view the CEP as an essential tool in their broader compliance and legal strategy.
Our firm’s False Claims Act Practice Group has deep experience guiding healthcare organizations through government investigations, voluntary self-disclosures, and compliance program enhancements. If your organization is facing potential FCA exposure or considering a voluntary disclosure, we can help you navigate the process and position your company for the best possible outcome. Contact our FCA Practice Group to learn more.