The Department of Justice has announced the recovery of $10.85 million after a Mississippi whistleblower uncovered a scheme to defraud Medicare. The verdict comes after a nine-week trial in the federal district court sitting in the Southern District of Mississippi.
The trial resolves allegations that the defendants charged their hefty salaries to Medicare under fraudulent annual cost reports submitted to Medicare through a local hospital. This scheme was perpetrated over eleven years.
The case was filed by a whistleblower under the False Claims Act (FCA). The FCA allows whistleblowers to bring civil actions when they uncover fraud against the government and share in any recovery. Damages under the FCA are trebled and accompanied by substantial civil penalties.