Eleven Companies to Pay $10 Million to Resolve False Claims Act Allegations

Eleven Companies to Pay $10 Million to Resolve False Claims Act Allegations

Southern SNF Management, Inc., Rehab Services in Motion d/b/a Dynamic Rehab, and nine affiliated skilled nursing facilities have entered into a settlement agreement with the Department of Justice to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare for medically unnecessary rehabilitation therapy services.

The government alleges that between October 2009 and December 2013 the defendants “corporate policies and practices encouraged the provision of medically unreasonable and unnecessary therapy without regard for patients’ individual clinical needs,” and that the companies’ actions resulted in the submission of false claims to federally funded health care programs.

The eleven companies have agreed to pay the U.S. government $10 million. The False Claims Act claims resolved by this settlement are allegations only and there was no determination of liability against the defendants.

Qui Tam Whistleblower Lawsuit

The allegations resolved in this settlement in United States ex rel. Davis, et al. v. Southern SNF Management, Inc. et al., arose from a Qui Tam whistleblower lawsuit filed under the False Claims Act by three former employees of one of the skilled nursing facilities. (Case No. 13-000384-WSM, S.D. Ala.).

Under the False Claims Act, private citizens–in this case previous employees–can bring suit on behalf of the government for false claims. Whistleblowers are entitled to a portion of the damages the government recovers in case, so long as they provide the government with evidence it did not have and could not have obtained from publicly available sources. In this case, Whistleblowers La-Wanda Davis, Tramecier Donald, and Megan Dinkins will receive $2 million of the recovered funds.

“Those engaging in deceptive billing practices can expect an aggressive investigation to recover inappropriately obtained funds,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General.

Defending Against False Claims Act Allegations

If you have been accused of misconduct under the False Claims Act, or served in a Qui Tam case, it is critical that you hire a defense attorney skilled in this complex area of law.

Our firm has successfully represented numerous health care clients, including hospitals, physicals, pharmacies, and other health care providers. Ashley D. Adams, President and CEO of Ashley D. Adams, PLC, specializes in white collar criminal defense cases, representing corporate and individual clients in federal and state criminal trials, investigations, health care fraud cases, and regulatory and administrative matters.

Attorney Adams is a former United States Assistant Attorney. She served as a member of the DOJ’s Health Care Fraud Task Force investigating alleged frauds perpetrated by and against health care providers and hospitals. She was selected by National Trial Lawyers as one of the “Top 100” attorneys in criminal defense, and as one of Arizona’s Best Lawyers and Southwest’s Super Lawyers annually since 2010.

The best defense begins as soon as you are notified of an investigation or charges filed against you. A swift and ongoing defense helps to ensure the best possible outcome in your case.

Contact us or call now (480) 219-1366 for a consultation. There is no substitute for the type of experience and diligent legal representation that a high-quality attorney can provide.

We practice excellence, one client at a time.


The attorneys at Ashley D. Adams, PLC handle state criminal cases throughout Arizona and federal criminal cases throughout the United States, including Arizona, Oklahoma, Utah, and California.