Elite Lab Services, LLC, along with its husband-and-wife owners Gerard and Suzanne Dengler, will pay the U.S. Government $3.75 million after engaging in deceptive Medicare billing.

In July 2014, former Elite Lab employee Karen M. filed a whistleblower lawsuit under the qui tam provisions of the False Claims Act.

In her whistleblower lawsuit, Karen alleged, among other things, that the defendants inflated mileage claims submitted to Medicare from approximately 2010 through 2014.

Karen reportedly came to the Denglers in 2014, voicing her concerns about the alleged deceptive Medicare billing practices.

Karen claimed the deceptive Medicare billing was not corrected, and resigned from her position at Elite Lab.

The government intervened in the action for purposes of settlement.  The Denglers and Elite Lab agreed to pay the United States $3.75 million to settle the False Claims Act lawsuit.

As part of the settlement, the Denglers and Elite Lab admit they submitted false claims to Medicare—claims that contained inflated mileage calculations beyond those actually driven by Elite Lab employees.

The settlement also resolves a separate lawsuit in which the United States sought to forfeit funds and property obtained by the Denglers and Elite Lab through their deceptive Medicare billing conduct.

As a result of the settlement agreement, the Denglers are released from a separate forfeiture lawsuit brought by the government to recover property obtained through their fraudulent conduct, acting U.S. Attorney Brit Featherston stated.

“Medicare is designed to ensure that this country’s elderly have access to vital health care services,” Featherston said in a statement. “Unfortunately, some providers fraudulently raid these limited public funds for purely personal gain — misconduct that our office will tirelessly prosecute.”

The False Claims Act permits a private citizen (called a “relator”) with knowledge of fraud, including deceptive Medicare billing, against the Government to bring a lawsuit on behalf of the United States and to share in the recovery.

Under the Elite Lab deceptive Medicare billing settlement, Karen will receive a 21 percent share of the government’s recovery, totaling $787,500, court documents show.

Furthermore, as a result of this settlement, Elite Lab Services will be excluded from participating in Medicare for eight years, Gerard Dengler will be excluded for 10 years, and Suzanne Dengler will be excluded for eight years.

Do You Have Knowledge of Deceptive Medicare Billing?

Anyone with knowledge of deceptive Medicare billing, such as doctors, nurses, or claims administrators, may be able to receive a substantial financial reward – typically between 15 and 30 percent of the total amount recovered by the government.

For more information about filing a False Claims Act lawsuit and a free individual case review, contact an experienced whistleblower attorney today.

The Elite Lab Services Deceptive Medicare Billing Lawsuit is USA v. Elite Lab Services LLC et al., Case No. 6:14-­cv­00662, in the U.S. District Court for the Eastern District of Texas.