Example Cases

  • Contractor Custer Battles and its owners, Scott Custer and Michael Battles, were found liable for fraud in the first Iraq military contract case prosecuted under the False Claims Act, in a jury trial.The jury found that all of the U.S. funds spent under the contract were fraudulently billed. In addition, the jury found more than 30 separate fraudulent acts, each one of which is subject to an $11,000 penalty. The jury also awarded Pete Baldwin $230,000 for being demoted and constructively discharged. The total award in this case is in excess of $10 million.
  • As part of a 1998 settlement, Francine Mettevelis and Rhea Jones received $903,899 for reporting that Charter Behavioral Health Systems – Orlando billed Medicare for medically unnecessary psychiatric care for elderly patients with severe dementia, Alzheimer’s Disease and other organic brain disorders.
  • The estate of Teresa Semtner received $3.2 million after Semtner brought a suit against Emergency Billing Services, disclosing the company’s practice of upcoding the claims of its clients.
  • George Denoncourt received approximately $4 million as part of the settlement of his allegations that the State of New York was overcharging the federal government under various Social Security Act programs, including Medicaid.
  • Donald McLendon, the former Vice President of Olsten Corp., received $9.8 million as part of a 1999 settlement of his allegations that Olsten charged Medicare for unallowable, sales and marketing costs.
  • As part of a $140 million civil settlement with Health Care Service Corporation, the private plaintiff was paid more than $21 million for exposing that this Medicare carrier had submitted false information to the Health Care Financing Administration, failed to process claims in accordance with HCFA’s guidelines, and failed to process correspondence and reviews in a timely manner.
  • In 2002, Eckerd Corporation, a national retail pharmacy chain, paid the United States $5.87 million to resolve allegations that Eckerd dispensed partial prescriptions due to insufficient stock, but billed for the full quantities prescribed for beneficiaries of Medicaid and other government health insurance programs.