$45 Million False Claims Act Award for Kickback Scheme at Skilled Nursing Facilities

Garcia & Artigliere lawyers Stephen M. Garcia, David M. Medby, and Matthew M. Coman served as relator counsel in a qui tam case involving Skilled Nursing Facilities engaging in a kickback scheme.

Trilochan Singh, (“Relator”) filed a qui tam action on behalf of the United States and the State of California, to recover damages and penalties under the Federal and California False Claims Acts. The complaint alleged, among other things, that defendants, owners and operators of various Skilled Nursing Facilities, intentionally and fraudulently engaged in a pattern and practice of providing cash, gift cards or other remuneration to physicians and case managers for the referral and subsequent residency of patients (who were either Medicare and/or Medi-Cal beneficiaries), i.e., “kickbacks”; submitted false and fraudulent charges to Medicare and Medi-Cal for reimbursement; and inflated the costs of their SNFs and reported said inflated costs. Defendants agreed to a consent judgment with the United States.

The settlement included a consent judgment for more than $45 million. The court awarded judgment against Defendants in the following amounts: Kayal, Inc. (d/b/a Bay Point Healthcare Center), jointly and severally with Paksn, Inc. and Prema Thekkek for $3,208,840.64; Nadhi, Inc. (d/b/a Gateway Care & Rehabilitation Center), jointly and severally with Paksn, Inc. and Prema Thekkek for $14,004,281.34; Oakrheem, Inc. (d/b/a Hayward Convalescent Hospital), jointly and severally with Paksn, Inc. and Prema Thekkek for $2,293,443.96; Bayview Care, Inc. (d/b/a Hilltop Care and Rehabilitation Center), jointly and severally with Paksn, Inc. and Prema Thekkek for $563,841.73; Aakash, Inc. (d/b/a Park Central Care & Rehabilitation Center), jointly and severally with Paksn, Inc. and Prema Thekkek for $24,156,186.79; and Nasaky, Inc. (d/b/a Yuba Skilled Nursing Center), jointly and severally with Paksn, Inc. and Prema Thekkek for $1,418,732.7.

JUDGE:

Stanley Blumenfeld Jr.

ATTORNEYS:

Plaintiff:

Stephen M. Garcia (Garcia & Artigliere)

David M. Medby (Garcia & Artigliere)

Karen Y. Paik (Office of the U.S. Attorney)

Defendant:

Benjamin N. Gluck (Bird, Marella, Boxer, Wolpert, Nessim, Drooks, Lincenberg & Rhow PC)

Nicole R. Van Dyk (Bird, Marella, Boxer, Wolpert, Nessim, Drooks, Lincenberg & Rhow PC)

Naomi S. Solomon (Bird, Marella, Boxer, Wolpert, Nessim, Drooks, Lincenberg & Rhow PC)

Alexis A. Wiseley (Bird, Marella, Boxer, Wolpert, Nessim, Drooks, Lincenberg & Rhow PC)

FILING DATE: Nov. 20, 2015