Successful Cases from McInnis Law

Updated October 2016

US Attorney in Manhattan Joins Customs Duties Case Against Chinese Apparel Importer and others—Falsified Invoices Used

Case details in PDF format  

My Pillow Inc. settlement

"Settlement Against My Pillow, Inc. for 1.1 Million"

Husband sentenced to 100 months and wife to 78 months for forging doctor signatures on radiology reports prepared in their NJ mobile diagnostic businesses

"New Jersey couple and two diagnostic companies ordered to pay $7.75 Million for falsifying diagnostic test reports"

"Manhattan U.S. Attorney announces $9.5 million settlement with Columbia University for improperly seeking excessive cost recoveries in connection with federal research grants"
Government Complaint    Settlement Agreement

$25 Million-Plus Total Recoveries for U.S. and NY State Taxpayers As Fourth Defendant Settles Home Health Agency Fraud Case

Manhattan based Qui Tam Whistleblower Attorney Timothy J. McInnis announces an $850,000 Medicaid/Medicare False Claims settlement among three plaintiffs: The State of New York; the United States, acting through the U.S. Department of Justice and on behalf of the Office of Inspector General of the Department of Health and Human Services; and Deborah Yannicelli; and one defendant: Friendly Home Care, Inc. (“Friendly”).

Friendly, a New York corporation, is a Licensed Home Care Services Agency (“LHCSA”) with its principal place of business at 1811 Kings Highway, Brooklyn. Friendly contracted to provide home health aides to Certified Home Health Agencies (“CHHAs”). The settlement resolves allegations that Friendly knowingly caused various CHHAs to submit claims to New York Medicaid, for which the CHHAs received payment. In turn the CHHAs paid Friendly, for home health aide services provided by individuals who had not received the required training or valid certification.

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New York Gov. Andrew M. Cuomo, in a news release issued when he was New York State’s attorney general, said the cases, part of a larger investigation into Medicaid home health fraud known as “Operation Home Alone,” represented the Empire State's largest settlement won by its Medicaid Fraud Control Unit. Home health aide agencies used hundreds of unqualified workers to provide home care primarily to elderly, frail patients and then unlawfully billed the New York Medicaid Program millions of dollars, Cuomo had said.

Qui Tam Contact

As a result of Yannicelli’ s assistance, more than $25 million has now been recovered for U.S. and New York State taxpayers since late 2009.

“Medicaid and Medicare have clearly defined regulations governing training requirements and reimbursement for home health care,” Co-counsel McInnis said. “Our whistleblower client, Deborah Yannicelli, did the right thing. She saw that untrained home health care workers with false certifications were being assigned to elderly clients and brought her concerns to the attention of Medicaid program overseers.”

Yannicelli has received close to $2 million in whistleblower rewards from New York and the United States by providing information responsible for settlements by four defendants in the Home Alone investigation: Extended Home Care; Excellent Home Care; Nursing Personnel; and Friendly Home Care, Inc.

Read the McInnis Yannicelli Settlement News Release
Related filed court documents:

Original Complaint Filed Nov. 5, 2007 (PDF)
Friendly Federal Settlement Agreement (PDF)
Friendly State of NY Settlement Agreement (PDF)
Stipulation of Dismissal and Order (PDF)
Excellent NY State Settlement Agreement (PDF)
Extended NY State Settlement Agreement (PDF)
Nursing Personnel NY State Settlement Agreement (PDF)
Excellent US Settlement Agreement (PDF)
Extended US Settlement Agreement (PDF)
Nursing Personnel US Settlement Agreement (PDF)


New York Non-Profit Serving Developmentally Disabled Children and Adults Settles Whistleblower Complaint Alleging False Billing at Queens and Brooklyn Day Habilitation Centers

March 2013

(New York City) — A non-profit serving the developmentally disabled in three states falsely billed New York State Medicaid for day habilitation client services for five years even though its own attendance records showed some developmentally disabled clients were not present, according to allegations in separate whistleblower settlements between the provider and New York State and federal governments, Manhattan-based Qui Tam Whistleblower Attorney Timothy J. McInnis of McInnis Law announced.

EiHAB Human Services, Inc., (“EIHAB”) headquartered on South Conduit Avenue in the Springfield Gardens section of Queens, New York, falsely billed the governments for day habilitation according to the settlement agreements. While not admitting liability or conceding that the governments’ and the relators’ claims were well founded, EIHAB paid $54,000 to New York State and $36,000 to the United States. In addition, EIHAB was required to retain a compliance monitor approved by New York State who will send quarterly reports on the non-profit’s services billed to Medicaid, according to the agreement.

Read the EIHAB News Release from McInnis Law
Read the EIHAB Amended Complaint
Read the EIHAB Federal Settlement Agreement
Read the EIHAB New York State Settlement Agreement
Read the EIHAB Stipulation and Order

Drug To Improve Appetite in HIV and Cancer Patients Aggressively Off-Label Marketed For Nursing Home, Even Hospice, Patients According to Complaint Unsealed With Federal, State Whistleblower Settlements Totaling More Than $22.5 Million by Par Pharmaceuticals

March 2013

Death, Deep Vein Thrombosis, and Toxic Reactions Leading to Impaired Kidney Function Were Side Effects in Elderly Yet Drug Manufacturer Created Separate Nursing Home Sales Force to Off-Label the Drug, According to NYC-Based National Qui Tam Whistleblowers’ Attorney Timothy J. McInnis, Esq.

(NEWARK, NJ) –For at least four years, drug manufacturer Par Pharmaceutical Companies, Inc., and its subsidiary Par Pharmaceuticals, Inc. (together “Par”) risked the lives of senior citizens across the U.S., by illegally off-label marketing to the elderly Megace ES, a prescription approved only to help HIV and cancer patients gain weight by increasing their appetite, qui tam whistleblowers’ attorney Timothy J. McInnis announced.

Read the McInnis Law News Release
Read the Par Pharmaceuticals Settlement Agreement
Read the U.S. Attorney's News Release
The Key Relators' Original Complaint

The Princeton Review Admits NYC After-School Tutoring Fraud Charges, Falsifying Attendance, Agrees to Pay Up to $10 Million

(New York City) —The Princeton Review received millions of federal dollars for operating an after-school tutoring program for underprivileged students at underperforming schools by falsifying attendance – which continued even after its vice president in charge was alerted to the fraud – Princeton Review’s owners admitted today by settling fraud allegations, Qui Tam Whistleblowers’ Attorney Timothy J. McInnis announced.

For 46 months ending in June 2010 Princeton Review falsely billed the United States under the Supplemental Educational Services (“SES”) program. They submitted falsified attendance sheets, which included forged signatures, according to the Settlement Agreement among the United States, which filed its own fraud Complaint, the qui tam whistleblower represented by McInnis, and the corporate owners of Princeton Review.

The United States, in May 2012, intervened in the Qui Tam Whistleblower case originally filed in 2009 by the Law Office of Timothy J. McInnis, against The Princeton Review and a former employee at the Review's SES tutoring division. The Government's fraud Complaint allege forging of student signatures, falsifying sign-in sheets, and providing false certifications for those attendances. Federal funds were involved under the No Child Left Behind law's response to underperforming public schools.

In January 2013 the U.S. Attorney for the Southern District of New York announced fraud guilty pleas by two former Princeton Review directors, along with civil settlements by the two former directors, and a former Princeton Review vice president.

Read the McInnis Law News Release
Read the Princeton Review Settlement Agreement
Read the U.S. Attorney's May 2012 News Release
The Government's Complaint
The Relator's Complaint
Read the U.S. Attorney's January 2013 News Release
Read the January 2013 Princeton Review Green Settlement and Dismissal
US ex rel Jane Doe v. The Princeton Review, Inc., Stephen Green, and Ana Azocar (index number 09 CIV 6876 (BSJ)

Westchester Medical Center Agrees to Repay $7 Million to Federal, State Governments; Admits Eight-Plus-Year Medicaid Outpatient Fraud at Hospital’s Behavioral Health Center; Government Intervenes, Settling Qui Tam Whistleblower Case Originally Filed 15 Months Ago by Manhattan-Based Whistleblowers’ Attorney Timothy J. McInnis, Esq. on Behalf of Former High-Ranking Medical Center Employee

Read the federal Government's Complaint-in-Intervention in the $7 Million Westchester Medical Center Case
Read the News Release from McInnis Law in the $7 Million Westchester Medical Center Case
Read the Federal Stipulation and Order of Settlement and Dismissal in the $7 Million Westchester Medical Center Case
Read the McInnis Law First Amended Complaint in the $7 Million Westchester Medical Center Case
Read the Notice of Intervention in the Westchester Medical Center Case
Read the Unsealing Order in the Westchester Medical Center Case

Hospital and Corporate Parent Pay $9 Million To Partially Settle Medicare Fraud Case Alleging Seven Years of False Billing for In-Patient Admissions Instead of Observation Services and Out-Patient Treatments

Additional Qui Tam Whistleblowers’ Allegations Still Pending Resolution, According to Manhattan-Based Qui TamWhistleblower Attorney Timothy J. McInnis, Esq.


(SUMMIT, NJ) – Overlook Hospital and parent AHS Hospital Corporation which operates three north Jersey hospitals, have agreed to pay more than $9 million to the U.S. Government to partially settle Qui Tam Whistleblower allegations of Medicare fraud and false billing over a seven-year-period, according to attorney Timothy J. McInnis, of McInnis Law in New York City, ( who represents the two whistleblowers who brought the case on behalf of the United States in 2008.

As alleged in the Complaint which is being partially settled, AHS Hospital Corporation, Atlantic Health Systems, Inc., and Overlook Hospital (“AHS”) frequently billed Medicare Part A for services provided to elderly persons under more expensive in-patient billing codes. Instead, the care provided to these elderly patients should have been billed under less expensive “observation” or “out-patient” procedure codes, the Complaint states.

Read the Complete AHS $9 Million Qui Tam Whistleblower News Release from McInnis Law
Read The AHS Whistleblower Complaint
Read The AHS Whistleblower Settlement Agreement

US ex rel [Relator] v. Institute of International Education (index number 07 CV 8294 (Castel, J.))

In June 2011 a final settlement was reached among the relator, the Government, and the defendant in the False Claims Act matter, US ex rel. [Relator] v. Institute of International Education (index number 07 CV 8294 (Castel, J.)), filed in the United States District Court for the Southern District of New York, involving allegations of defrauding the State Department's Fulbright Scholarship Program for foreign graduate students studying in the US. The whistleblower received a $170,000 reward from the Government.

Related filed court documents:
Government Press Release (PDF)
Complaint (PDF)
Amended Complaint (PDF)
Complaint in Intervention (PDF)
Qui Tam Settlement Agreement (PDF)
Relator Share Agreement (PDF

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.


Respiratory Therapist's Whistleblower Retaliation Case Is Settled; Medicare Fraud Amended Complaint Unsealed

On April 21, 2010, following a settlement between the parties, United States District Judge Alvin K. Hellerstein dismissed Joseph Kim's whistleblower retaliation case against his former employer, Medco Enterprises, Inc. The Complaint, filed by qui tam whistleblower attorney Timothy J. McInnis, has been pending in the United States District Court for the Southern District of New York, Docket No. 07-CV-1305 (AKH).

Kim, a respiratory therapist, alleged that he was fired by Medco because he had investigated and complained of Medicare fraud committed by his former employer in connection with services for respiratory patients at Medco's Wayne Center for Nursing and Rehabilitation in Bronx, New York. Kim's allegations were set forth in a First Amended Complaint against Medco that was filed in August 2008. The terms of the settlement between Kim and Medco were not publicly disclosed in the action at the time of its dismissal.

Related filed court documents:

Amended Complaint (PDF)
Order Dismissal (PDF)

Government Settles Partially Intervenes in Optician's Whistleblower Case Against New York Ophthalmologist

In April 2009, the United States Attorney's Office for the Eastern District of New York filed a notice of partial intervention in a civil Medicare fraud case against Staten Island Ophthalmologist Joseph R. Mermelstein, M.D. (United States ex rel Gerald P. Astorino v. Joseph R. Mermelstein, Index number 04 cv 1692 (Johnson, J.)). The case was originally brought under the False Claims Act qui tam provisions by Gerald Astorino, an optician formerly employed by Mermelstein.

Astorino's complaint, which was filed under seal in April 2004, but has since been made public, alleges various schemes to defraud the Medicare Program, primarily billing for ophthalmology services that were not rendered or that were unnecessary. Mermelstein is currently serving a five-year prison term as a result of his guilty plea to related criminal charges also filed in the United States District Court for the Eastern District of New York.

This qui tam case was settled in January 2011 for $700,000.

Related filed court documents:

Astorino Settlement Agreement (PDF)
Astorino Complaint (PDF)

US ex rel Joseph B. Lee v. Victory Memorial Hospital, (index number 04 cv 3234 (Ross, J.))

In March 2009, a final settlement was reached among the relator, Government and defendant in the False Claims Act matter, US ex rel Joseph B. Lee v. Victory Memorial Hospital, (index number 04 cv 3234 (Ross, J.)), filed in the United States District Court for the Eastern District of New York.


Pennsylvania Consulting Engineering Firm Settles Whistleblower Retaliation Case With Civil Engineer

In 2004, and in anticipation of a settlement between the parties, United States District Judge Malcolm Muir dismissed David A. Anderson's whistleblower retaliation case against his former employer McTish, Kunkle & Associates which was pending in the United States District Court for the Middle District of Pennsylvania, Docket No. 04-CV-754.


Columbia University

Columbia University Pays More Than $5 Million To U.S.; Whistleblower Case Alleged Medical School Obstetricians Defrauded Medicaid Over Midwife-Handled Deliveries

UPDATE May 2008 : The U.S. District Court for the Southern District of New York has ruled against New York Presbyterian Hospital’s second Motion for Summary Judgment, setting an August 4th trial date for the Romano case.

At that time a jury will determine if the hospital is liable for thousands of False Claims Act violations over a five-year period, each of which carries a maximum fine of up to $11,000.

In his April 2, 2008 ruling The Hon. Louis I. Stanton found that no “presentment” requirement was needed in this qui tam case, even though invoices were first given to the New York State Medicaid program (which is funded with federal dollars). In an earlier ruling, in April 2006 Judge Stanton dismissed a hospital motion for Summary Judgment on other grounds.



United States Ex Rel John F. Reilly v Catskill Regional Medical Center f/k/a Community General Hospital of Sullivan County, et al

Cabrini Medical Center (“Cabrini”), operator of a hospital located on East 19th Street in Grammercy Park, is paying $3.4 million to settle whistleblower allegations that it illegally kicked back millions to a consulting firm that delivered alcohol and drug detoxification patients to the hospital over a 23-month period.



United States Of America Ex Rel. Ellen Zweifach V.Comprehensive Counseling Center, Arthur Laifer And Barry Butner, Ph.D. Cv. 03-02003

Psychotherapy Center With 85 Employees At Five Queens and Nassau County Locations Allowed Unlicensed Psychologist To Treat Woman And Son, Then Falsely Billed Medicaid, Federal Whistleblower Suit Alleges

Director Of Three Comprehensive Counseling Center Locations, Who Is New York State-Licensed But Never Saw Either Patient, Signed Medicare Billing Forms, Since Treating Psychologist Was Ineligible To Bill, According to Whistleblower Attorney Timothy J. McInnis, Esq.


M.L. Energia, Inc. and Moshe Lavid, Ph.d.

Eight-Year Scheme of Duplicated Research, False Billing and False Statements Involving Air Force, Navy, EPA and National Science Foundation “SBIR” Contracts Alleged in Whistleblower Complaint; Research/ Consulting Lab, Owner Will Repay Approximately $1.1 Million To Settle Allegations



Applied Consulting, Inc. Applied CaseManagement, Inc.

Two New York City Consulting Companies Settle Whistleblower Case With Federal Government; Latest Milestone In False Claims Case; Two New York Hospitals Earlier Settled Related Medicaid Fraud Allegations



The Mount Vernon Hospital

Mount Vernon Hospital Settles Whistleblower Charges of Operating an Unlicensed Alcoholism Treatment Facility and “Patient Brokering;” Agrees To Pay Government $2.65 Million; It Received “Several Millions” From Medicaid For Treating Substance Abuse Patients Illegally Referred by Consultant That Received Approximately $60,000 Per Month In Kickbacks, According To Complaint



Catskill Regional Medical Center

For Treating Thousands of Alcohol And Substance Abuse Patients A New York Hospital Received Millions, Paying $52,000 Monthly In Illegal Kickbacks To Unnamed “Entity” Under Sham Administrative Agreement, According To Federal Complaint And Qui Tam Whistleblower Suit Settlement; Catskill Regional Medical Center (“Catskill”) Agrees To Pay $1.5 Million For Illegal Referral Scheme And Cooperate In Government's Continuing Investigation



Montefiore Medical Center

One Of America's Oldest Academic Medical Centers Settles Whistleblower-Initiated Allegations That For Six Years It Hid And Failed To Repay More Than $10 Million In Medicare Overpayments It Received In Error; Montefiore Medical Center Simply Erased A $5.6 Million Debt And Stopped Paying On Another, According To Federal Complaint; Montefiore Will Pay $12 Million To U.S. Within 10 Days



Center for Pain Management

Texas Back Pain MD and Wife Settle Federal Whistleblower Charges Sparked By Anesthesiologists Whose Billing Data Allegedly Used Without Their Permission On False Claims To Medicare, Medicaid, State and Federal Workers Compensation; Back Surgery Billed But Never Performed; Surgical Removal of Bony Lower Back Portion Previously Falsely Billed Are Alleged In Federal Complaint




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