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The Employment Law Group® Law Firm Helps Two Whistleblowers to Win Settlement of Fraud Case Against DC-Area Physical-Therapy Clinics

In Victory for Taxpayers, Defendants Will Repay $2.8 Million on Claims of False Billings

WASHINGTON, April 14, 2014 /PRNewswire/ -- Two local companies that operate a network of physical-therapy clinics, along with two individual owners and a former manager, agreed to repay $2.8 million to settle claims that they defrauded federal health-insurance programs.

The Employment Law Group® law firm represented Kathya Angel and Alexis Natal, the whistleblowers who first brought the allegations to light. Ms. Angel and Ms. Natal will share a combined 16 percent of the government settlement for their role in the case.

The U.S. Department of Justice last week announced details of its deal with Alliance Rehabilitation LLC and Active Physical Therapy Services LLC, both incorporated in Maryland, and individually with Thomas Bray and Rajeev Gupta, owners and managers of both companies, and Geeta Trehan, who worked for Alliance and Active.

Alliance operates physical-therapy clinics in Washington and Northern Virginia, while Active operates clinics in Maryland. None of the defendants admitted any wrongdoing.

The defendants also reached a separate, confidential settlement with Ms. Angel and Ms. Natal, two former clinic employees who were fired after protesting the alleged fraud.

"Kathya and Alexis have shown immense courage and perseverance, and as a result U.S. taxpayers will recover millions of dollars," said David L. Scher, a principal of The Employment Law Group and lead attorney on the case. "Both women could have looked the other way, but instead they did the right thing -- and were fired. Their three-year campaign for justice, for themselves and for their fellow citizens, deserves recognition and honor."

Ms. Angel and Ms. Natal, who worked for the defendants as a medical biller and medical assistant respectively, blew the whistle on their former employers in late 2010 by filing a complaint under the federal False Claims Act. That statute, originally signed into law by President Abraham Lincoln in 1863, makes it illegal to deceive the federal government for financial gain.

The law includes a "qui tam" provision that allows whistleblowers to file a legal complaint on behalf of the government and -- if they prevail -- to receive a share of the proceeds.

Among other things, Ms. Angel and Ms. Natal alleged in their qui tam complaint that the defendants had billed Medicare for services supposedly performed by approved physical therapists -- even though the therapy actually was conducted by staff members whose work was not reimbursable by the government program.

The Justice Department later decided to intervene in the case, endorsing some of the claims and taking charge of its own representation. It concluded that Alliance and Active had been submitting improper bills to Medicare and Tricare, another government program, for more than five years starting in 2007.

The resulting settlement was negotiated by the U.S. Attorney for the District of Columbia, Ronald C. Machen Jr., in consultation with investigators and attorneys for Medicare and Tricare. In addition to repaying the U.S. Treasury, the defendants signed a "Corporate Integrity Agreement" that will govern their future practices.

"Medicare fraud doesn't just harm taxpayers; it raises medical costs for everyone," said Mr. Scher of The Employment Law Group. "I'm proud to have helped our clients to blow the whistle here: Kathya and Alexis are great examples of the difference an honest person can make in the world."

About The Employment Law Group

The Employment Law Group® law firm represents whistleblowers and others who stand up to wrongdoing by employers. Based in Washington, D.C., the firm takes cases nationwide.

More information about The Employment Law Group and its attorneys is available at http://www.EmploymentLawGroup.com.

Read more news from The Employment Law Group.

CONTACT:
Kate Connors
Media & Communications Strategies 
Email 
202-449-9804

SOURCE The Employment Law Group

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