HUD Faud Attorney Tim McInnis

Two Large New York City Landlords Accused of
Defrauding HUD’s Section 8 Voucher Program

In October 2009, the United States Attorney’s Office for the Southern District of New York filed notices in the U.S. District Court for the Southern District of New York, located in Manhattan, to partially join two False Claims Act cases brought by tenant Edmund Rosner against two large NYC residential landlords, accusing them with defrauding the U.S. Department of Housing and Urban Development (HUD)’s Section 8 Voucher Program.

In his separate complaints against WB/Stellar IP Owner, LLC, as well as its owner Laurence Gluck (06-cv-07115 (SAS))) and Glenn Gardens Associates, LP (index number 06-vi-07715 (SAS)), Rosner, a tenant in a WB/Stellar owned complex known as Independence Plaza North, alleges that the landlords improperly obtained millions of dollars of HUD Section 8 reimbursements using higher market rate rents when they should have been using lower rent stabilized ones because in each instance the landlords were receiving so-called “J-51 tax abatements,” which restrict residential apartment owners from charging more than rent-stabilized rates.

Under the Section 8 Program, HUD pays landlords the difference between the rental amount low-income tenants are required to pay and the gross amount that the landlords are legally entitled to charge. Rosner also names the City of New York in his Complaints, alleging that the Office of Housing Preservation and Development (HPD) colluded with the landlords by allowing them to terminate their J-51 benefits and backdate the effect of the termination so that they could unlawfully avoid liability for rent overcharges. The United States’ Complaints charge the landlords with committing various common law civil offenses for the same conduct alleged in the Rosner Complaints, although it did not join him in the False Claims Act allegations or the allegations against the City of New York. All of the related cases have been assigned to U.S. District Judge Shira A. Scheindlin, who ordered Rosner’s Complaints, which had been filed in 2006 under seal, to be made public.

"Tim McInnis is an amazing attorney. He is intelligent, thorough, ethical, kind and he works very strategically in order to insure the best outcome for his clients. I would trust him with my life. He is not only an excellent attorney, but he is a compassionate person."
Denise A. Romano, January 2004

"Tim McInnis is a superb lawyer for whistleblowers. As both a relator and a lawyer I worked with for more than three and a

On October 14, 2020, medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, agreed to pay $18 million to settle allegations the company helped submit false claims to the federal Medicare and TRICARE programs and numerous state Medicaid programs by giving kickbacks to physicians and hospitals to induce the purchase and use of MMSI’s durable medical equipment devices and products. NYC attorney Timothy J. McInnis was a member of the legal team that successfully represented the whistleblower in the case, Charles J. (“CJ”) Wolf, M.D., who was the former Chief Compliance Officer of MMSI.

According to Dr. Wolf’s complaint and the government’s settlement agreement, for over six years MMSI paid kickbacks to physicians, medical practices, and hospitals. The payments were made indirectly under the guise of free advertising assistance, practice development, practice support, and so-called “educational” grants. All of this was intended to induce the healthcare providers to purchase and use MMSI’s products, including EmboSphere devices, which are used for uterine fibroid embolization procedures, and QuadraSphere devices, which are used for other types of embolization procedures. Among other things, MMSI used local advertising campaigns to steer patients to healthcare providers as a reward for past sales and to increase future purchases of MMSI products. Dr. Wolf and the government further alleged that MMSI disregarded numerous internal warnings, including from Dr. Wolf, that MMSI’s sales practices potentially violated the healthcare Anti-Kickback Statute (AKS).

The lawsuit was filed in the federal court in District of New Jersey, where attorney McInnis formerly served as an Assistant U.S. Attorney. The case is captioned United States ex rel. Wolf v. Merit Medical Systems, Inc., No. 2:16-cv-01855-CCC-MF (D.N.J.). Of the $18 million MMSI is paying to settle the case, $15.21 million will be go to the U.S. Treasury, and the remaining $2.79 million will go to the approximately 30 individual states that also joined the lawsuit.

half years and his counsel and perseverance were always spot on. His work was critical to a successful settlement of the case."
Stephen B. Diamond, Esq., August, 2016

"Tim McInnis Law represented my case with the up most professionalism. He communicated with me at every turn of the case ensuring I understood the process as well what was to come next. His patience, comprehension of Qui Tam Law and persistence in getting me the highest amount possible out of the case is unmatched. I wouldn't hesitate to recommend his law firm for a minute."
Don A. Briscoe, September 2016

HUD Faud Attorney Tim McInnis

Two Large New York City Landlords Accused ofDefrauding HUD’s Section 8 Voucher Program

Call us anytime 212-292-4573

Two Large New York City Landlords Accused of
Defrauding HUD’s Section 8 Voucher Program