MONTGOMERY, Ala. (WTVY) - Diversicare, a healthcare provider, and two workers must pay over $1.3 million in fines for violating the False Claims Act, the Department of Justice announced on Wednesday.

The company and employees Kellie S. Lemons and Charles M. James faced allegations they submitted fraudulent Medicare claims at Canterbury Health Care in Phenix City, a facility operated by Diversicare.

From March 1, 2018, through September 25, 2020, Lemons and James, who were certified occupational therapy assistants, falsified occupational therapy records by clocking into work and then left to work at other healthcare facilities in the area while billing Canterbury for that time according to U.S. Attorney Sandra Stewart of Alabama’s Middle District.

Diversicare management knew of the fraud, Stewart said in a statement.

This civil settlement concludes a lawsuit brought by the DOJ and a whistleblower who receives $200,000 of the settlement.

Diversicare is a group of private companies providing rehab and long-term care nationwide.

While they agree to pay the claim, the settlement contains no admission of guilt.

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