Successful Cases from McInnis Law

US ex rel [Relator] v. Institute of International Education
(index number 07 CV 8294 (Castel, J.))

In June 2011 a final settlement was reached among the relator, the Government, and the defendant in the False Claims Act matter, US ex rel. [Relator] v. Institute of International Education (index number 07 CV 8294 (Castel, J.)), filed in the United States District Court for the Southern District of New York, involving allegations of defrauding the State Department's Fulbright Scholarship Program for foreign graduate students studying in the US. The whistleblower received a $170,000 reward from the Government.

Government Press Release (PDF)

Related filed court documents:

Complaint (PDF)

Amended Complaint (PDF)

Complaint in Intervention (PDF)

Qui Tam Settlement Agreement (PDF)

Relator Share Agreement (PDF)

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United States ex rel. Masoud Samandi v. Materials
and Electrochemical Research Corporation;
J.C. Withers; R.O. Loutfy; W. Kowbel; and R. Storm.
CV 05-124-TUC-DCB District of Arizona (Tucson)

US Partially Joins Qui Tam Whistleblower Suit Against
Nanotechnology Research Firm That Received $50 Million
in Small Business Innovation Research ("SBIR") Grants Since 1985;

In 2005; Materials and Electrochemical Research Corporation ("MER"),
Its Principals And Officers Defrauded Departments of Defense, Energy
and NASA By Illegally Duplicating Projects, Falsifying Progress Reports,
and Billing Government For Work On Private Projects, Complaint Filed
By Whistleblower's Attorney Timothy J. McInnis, Esq. Alleges

TUCSON, Ariz. - This qui tam case was filed under seal in 2005, charging Tucson-based Materials and Electrochemical Research Corporation ("MER"), a nanotechnology company that has received more than $50 million in Government research grants since 1985, and four individual defendants with violating the federal False Claims Act between 2002 and 2005 in connection with MER's receipt of Small Business Innovation Research ("SBIR") grants, according to the whistleblower's attorney, Timothy J. McInnis, Esq.

The U. S. Department of Justice and the U.S. Attorney's Office for the District of Arizona, in a March 31, 2008, U.S. District Court-filed notice, announced that the federal Government was partially intervening in the qui tam whistleblower lawsuit.

The United States then unsealed its Complaint against MER. It included new allegations that MER submitted forged venture capital agreements from a non-existent entity it called "Southwest Investment Partners" in 13 applications totaling approximately $9 million. Commercialization contracts are required to be in force in order to secure continuing SBIR grants, McInnis explained.

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Approximately $24 Million Recovered In
Settlements With Three Home Health Agencies

Approximately $24 million was recovered for U.S. and New York State taxpayers in late 2009, as a result of qui tam whistleblower settlements with three home health agencies which, it was alleged, had submitted false claims to New York's Medicare and Medicaid programs.

Qui tam attorney Timothy J. McInnis represented Deborah Yannicelli, who received approximately $1.95 million for providing information responsible for settlements by two of the defendants in the case, Extended Home Care and Excellent Home Care.

The allegations included supplying aides with phony training certificates, billing state Medicaid and federal Medicare programs for trained aides' services, and billing for home health services that never were performed.

New York Attorney General Andrew M. Cuomo, in a news release, said the case was the Empire State's largest settlement won by its Medicaid Fraud Control Unit. The case involved hundreds of unqualified workers who worked primarily with elderly, frail patients and billed the Governments millions, Cuomo said.

Related filed court documents:

Excellent NY State Settlement Agreement (PDF)

Extended NY State Settlement Agreement (PDF)

Nursing Personnel NY State Settlement Agreement (PDF)

Excellent US Settlement Agreement (PDF)

Extended US Settlement Agreement (PDF)

Nursing Personnel US Settlement Agreement (PDF)

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Two Large New York City Landlords Accused of
Defrauding HUD's Section 8 Voucher Program

In October 2009, the United States Attorney's Office for the Southern District of New York filed notices in the U.S. District Court for the Southern District of New York, located in Manhattan, to partially join two False Claims Act cases brought by tenant Edmund Rosner against two large NYC residential landlords, accusing them with defrauding the U.S. Department of Housing and Urban Development (HUD)'s Section 8 Voucher Program.

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Respiratory Therapist's Whistleblower Retaliation Case
Is Settled; Medicare Fraud Amended Complaint Unsealed

On April 21, 2010, following a settlement between the parties, United States District Judge Alvin K. Hellerstein dismissed Joseph Kim's whistleblower retaliation case against his former employer, Medco Enterprises, Inc. The Complaint, filed by qui tam whistleblower attorney Timothy J. McInnis, has been pending in the United States District Court for the Southern District of New York, Docket No. 07-CV-1305 (AKH).

Kim, a respiratory therapist, alleged that he was fired by Medco because he had investigated and complained of Medicare fraud committed by his former employer in connection with services for respiratory patients at Medco's Wayne Center for Nursing and Rehabilitation in Bronx, New York. Kim's allegations were set forth in a First Amended Complaint against Medco that was filed in August 2008. The terms of the settlement between Kim and Medco were not publicly disclosed in the action at the time of its dismissal.

Related filed court documents:

Amended Complaint (PDF)

Order Dismissal (PDF)

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Government Settles Partially Intervenes in Optician's
Whistleblower Case Against New York Ophthalmologist

In April 2009, the United States Attorney's Office for the Eastern District of New York filed a notice of partial intervention in a civil Medicare fraud case against Staten Island Ophthalmologist Joseph R. Mermelstein, M.D. (United States ex rel Gerald P. Astorino v. Joseph R. Mermelstein, Index number 04 cv 1692 (Johnson, J.)). The case was originally brought under the False Claims Act qui tam provisions by Gerald Astorino, an optician formerly employed by Mermelstein.

Astorino's complaint, which was filed under seal in April 2004, but has since been made public, alleges various schemes to defraud the Medicare Program, primarily billing for ophthalmology services that were not rendered or that were unnecessary. Mermelstein is currently serving a five-year prison term as a result of his guilty plea to related criminal charges also filed in the United States District Court for the Eastern District of New York.

This qui tam case was settled in January 2011 for $700,000.

Related filed court documents:

Astorino Settlement Agreement (PDF)

Astorino Complaint (PDF)

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US ex rel Joseph B. Lee v. Victory Memorial
Hospital, (index number 04 cv 3234 (Ross, J.))

In March 2009, a final settlement was reached among the relator, Government and defendant in the False Claims Act matter, US ex rel Joseph B. Lee v. Victory Memorial Hospital, (index number 04 cv 3234 (Ross, J.)), filed in the United States District Court for the Eastern District of New York.

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Pennsylvania Consulting Engineering Firm Settles
Whistleblower Retaliation Case With Civil Engineer

In 2004, and in anticipation of a settlement between the parties, United States District Judge Malcolm Muir dismissed David A. Anderson's whistleblower retaliation case against his former employer McTish, Kunkle & Associates which was pending in the United States District Court for the Middle District of Pennsylvania, Docket No. 04-CV-754.

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Columbia University

Columbia University Pays More Than $5 Million To U.S.; Whistleblower Case Alleged Medical School Obstetricians Defrauded Medicaid Over Midwife-Handled Deliveries

UPDATE May 2008 : The U.S. District Court for the Southern District of New York has ruled against New York Presbyterian Hospital’s second Motion for Summary Judgment, setting an August 4th trial date for the Romano case.

At that time a jury will determine if the hospital is liable for thousands of False Claims Act violations over a five-year period, each of which carries a maximum fine of up to $11,000.

In his April 2, 2008 ruling The Hon. Louis I. Stanton found that no “presentment” requirement was needed in this qui tam case, even though invoices were first given to the New York State Medicaid program (which is funded with federal dollars).  In an earlier ruling, in April 2006 Judge Stanton dismissed a hospital motion for Summary Judgment on other grounds.

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United States Of America Ex Rel.
Ellen Zweifach V.Comprehensive Counseling Center,
Arthur Laifer And Barry Butner, Ph.D. Cv. 03-02003

A psychotherapy practice with five-offices in Queens and Nassau Counties has paid $300,000 to settle federal Medicaid fraud allegations brought by a whistleblower who alleged that the practice and two office directors, one of whom is not a New York State licensed psychologist, improperly certified invoices for education and learning evaluations, whistleblower attorney Timothy J. McInnis, Esq. announced.

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United States Ex Rel John F. Reilly v Catskill Regional Medical Center
f/k/a Community General Hospital of Sullivan County, et al

Cabrini Medical Center (“Cabrini”), operator of a hospital located on East 19th Street in Grammercy Park, is paying $3.4 million to settle whistleblower allegations that it illegally kicked back millions to a consulting firm that delivered alcohol and drug detoxification patients to the hospital over a 23-month period.

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United States Of America Ex Rel.
Ellen Zweifach V.Comprehensive Counseling Center,
Arthur Laifer And Barry Butner, Ph.D. Cv. 03-02003

Psychotherapy Center With 85 Employees At Five Queens and Nassau County Locations Allowed Unlicensed Psychologist To Treat Woman And Son, Then Falsely Billed Medicaid, Federal Whistleblower Suit Alleges

Director Of Three Comprehensive Counseling Center Locations, Who Is New York State-Licensed But Never Saw Either Patient, Signed Medicare Billing Forms, Since Treating Psychologist Was Ineligible To Bill, According to Whistleblower Attorney Timothy J. McInnis, Esq.

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M.L. Energia, Inc.
and Moshe Lavid, Ph.d.

Eight-Year Scheme of Duplicated Research, False Billing and False Statements Involving Air Force, Navy, EPA and National Science Foundation “SBIR” Contracts Alleged in Whistleblower Complaint; Research/ Consulting Lab, Owner Will Repay Approximately $1.1 Million To Settle Allegations

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Applied Consulting, Inc.
Applied CaseManagement, Inc.

Two New York City Consulting Companies Settle Whistleblower Case With Federal Government; Latest Milestone In False Claims Case; Two New York Hospitals Earlier Settled Related Medicaid Fraud Allegations

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The Mount Vernon Hospital

Mount Vernon Hospital Settles Whistleblower Charges of Operating an Unlicensed Alcoholism Treatment Facility and “Patient Brokering;” Agrees To Pay Government $2.65 Million; It Received “Several Millions” From Medicaid For Treating Substance Abuse Patients Illegally Referred by Consultant That Received Approximately $60,000 Per Month In Kickbacks, According To Complaint

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Catskill Regional Medical Center

For Treating Thousands of Alcohol And Substance Abuse Patients A New York Hospital Received Millions, Paying $52,000 Monthly In Illegal Kickbacks To Unnamed “Entity” Under Sham Administrative Agreement, According To Federal Complaint And Qui Tam Whistleblower Suit Settlement; Catskill Regional Medical Center (“Catskill”) Agrees To Pay $1.5 Million For Illegal Referral Scheme And Cooperate In Government's Continuing Investigation

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Montefiore Medical Center

One Of America's Oldest Academic Medical Centers Settles Whistleblower-Initiated Allegations That For Six Years It Hid And Failed To Repay More Than $10 Million In Medicare Overpayments It Received In Error; Montefiore Medical Center Simply Erased A $5.6 Million Debt And Stopped Paying On Another, According To Federal Complaint; Montefiore Will Pay $12 Million To U.S. Within 10 Days

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Center for Pain Management

Texas Back Pain MD and Wife Settle Federal Whistleblower Charges Sparked By Anesthesiologists Whose Billing Data Allegedly Used Without Their Permission On False Claims To Medicare, Medicaid, State and Federal Workers Compensation; Back Surgery Billed But Never Performed; Surgical Removal of Bony Lower Back Portion Previously Falsely Billed Are Alleged In Federal Complaint

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