TOPICS:
WhistleblowerJudgmentCapstone Medical ResourcesAlabamaFalse claimsFalse Claims ActMedicaidFraudBIRMINGHAM, Ala. — A federal court has awarded a $417 million judgment in a whistleblower case against Capstone Medical Resources, LLC, and Dr. Sharon Waltz. The case, presided over by Judge Madeline Haikala in the Northern District of Alabama, involved allegations of submitting 29,511 false claims to the government, resulting in a loss of $2,116,538.42. This loss was tripled under the False Claims Act (FCA) to $6,349,615.26.
Dr. Waltz, who operated Capstone Medical Resources in various locations around Alabama, including its primary office in Birmingham, was accused of billing the Alabama Medicaid Agency for services that were never performed. These services included individual and group counseling sessions for at-risk youth.
The FCA, a federal law aimed at combating fraud against governmental programs, imposes severe penalties on violators. In this case, the total statutory penalty for the false claims was calculated at $411,560,406, bringing the total damages to $417,910,021.26.
The court awarded Nancy D’Anna and Valerie Paige Zeiger, the qui tam relators who played a pivotal role in uncovering the fraud, 25% of the total award, amounting to $104,477,503.30.
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"This judgment sends a clear message that those who misuse taxpayer dollars will be held accountable. Medicare funds exist to support the most vulnerable members of our society – not...
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