Solomon, Steiner & Peck, Ltd.
Call today for a consultation:
216-245-0185 / 866-642-0932

Fraud Reimbursement

The Ohio Attorney General announced that a $26 million dollar settlement with a company called Care Source, which is a managed health care company. The settlement involved allegations of Medicaid fraud by the company. As a part of the settlement, two people who initially reported the fraud will share in a part of $3 million dollars receive by the Federal Government.

If someone turns in a person or company for cheating the Federal Government, can they receive some of the money?

In certain situations, yes. Under the Federal False Claims Act, if someone knows of a fraud against the U.S. Government, they can sue on behalf of the government and receive between 15-30% of the funds recovered. For example, a recent settlement agains a pharmacy comapny annouced by the U.S. Government resulted in five (5) whistleblowers dividinng approximately $40 million dollars as their share of the settlement.

What sort of claims are allowed?

The list is unending, but here are some examples:

- Overbilling for medical services;

- Overbilling for prescriptions, such as billing for brand name drugs when generic draugs are actually provided;

- Double billing for supplies to the government;

- Winning a contract through kickbacks or bribes

According to the Taxpayers Against Fraud Education Fund, the Federal Government has received more than $3 billion in settlement recoveries from false claims lawsuits, with 80% coming from the health care industry. However, even something like education has been caught. The University of Phoenix settled a $67 millions dollar claim that they paid college counselors to send students to the school.

Why did Congress pass the False Claims Act?

The idea is that the Federal Government just cannot police all of the fraud out there. By providing an economic incentive for individuals, it is hoped that private individuals will help the government catch the crooks.

Does Ohio have such a law?

Presently, there are 28 states that do have laws similar to the Federal Law, but Ohio currently does not have the equivalent of the Federal False Claims Act. If you think you know of a fraud being committed against the Federal Government, you should contact an attorney. You can also go to, which is the Taxpayers Against Fraud Education Fund to start your initial research into the field.

No Comments

Leave a comment
Comment Information

2005 BBB Torch Award Recipient Recipients of the 2005 BBB Torch Award Honoring Business of Integrity

  • ASNP
  • CMBA Green Certified 2107-19
  • member of the national eldercare matters Alliance
  • Golden opportunities

We are here to help. Contact our attorneys today.   

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Mayfield Heights Office
6105 Parkland Boulevard
Suite 140
Mayfield Heights, OH 44124

Toll Free: 866-642-0932
Phone: 216-245-0185
Fax: 216-595-2787
Mayfield Heights Law Office Map

Independence Office
Crowne Centre
5005 Rockside Road, Suite 600
Independence, OH 44131

Toll Free: 866-642-0932
Phone: 216-245-0185
Fax: 216-595-2787
Map & Directions

Westlake Office
PS Executive Centers
1991 Crocker Road
Suite 600
Westlake, OH 44145

Toll Free: 866-642-0932
Phone: 216-245-0185
Fax: 216-595-2787
Map & Directions

Mentor Office
5966 Heisley Road
Ste 201
Mentor, OH 44060

Toll Free: 866-642-0932
Phone: 216-245-0185
Fax: 216-595-2787
Map & Directions

Review Us