Resolution of the Campus Eye Case
On July 29, 2026, the U.S. Department of Justice (DOJ) announced its first healthcare sector declination under the department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (CEVSDP). The DOJ declined to prosecute Campus Eye Management Holdings, LLC and its subsidiary, Campus Eye Management, LLC, for alleged healthcare fraud, kickbacks, and conspiracy. While the companies avoided criminal charges, the DOJ simultaneously indicted the company’s founder, Dr. E. Bruce DiDonato, on charges including healthcare fraud and violations of the anti-kickback statute.
The resolution requires the companies to pay $1 million in disgorgement and mandates continued cooperation with the ongoing prosecution of Dr. DiDonato. This decision marks a significant milestone for the CEVSDP, which was implemented on March 10, 2026, to standardize corporate criminal enforcement across most DOJ divisions.
The CEVSDP Framework and Incentives
The CEVSDP replaced the 2023 Corporate Enforcement Policy (CEP) previously confined to the Criminal Division. Under the new policy, the DOJ seeks to provide greater predictability for corporations. To secure a declination, a company must meet four core criteria: voluntarily self-disclose misconduct, provide full cooperation, undertake timely remediation, and ensure no aggravating circumstances are present.
The policy also introduces a “near miss” tier for companies that cooperate but do not meet the full criteria for a declination. These entities may still secure non-prosecution agreements, avoid independent compliance monitors, and receive significant fine reductions ranging from 50% to 75% below the U.S. Sentencing Guidelines range. This framework is designed to incentivize companies to come forward, particularly in the context of mergers and acquisitions where new ownership may uncover past misconduct.
Stakes for Corporate Entities
The Campus Eye case underscores the importance of rigorous due diligence. The relationship between the company and its founder soured following a private equity acquisition by The Beekman Group. When the new management identified potential fraud—specifically the submission of unnecessary diagnostic eye tests and the use of sham consulting agreements to conceal kickbacks—the decision to self-disclose proved pivotal. By coming forward, the corporate entities mitigated their exposure, effectively insulating themselves from the criminal liability that ultimately befell the company’s founder.