by Tim McInnis, Esq | Mar 6, 2013 | Our Cases
Aug. 15, 2016 Following the recent unsealing of their lawsuit, whistleblower attorneys Stephen B. Diamond of Chicago’s Stephen B. Diamond, P.C. and Timothy J. McInnis of NYC’s McInnis Law announce a $1.109 million settlement of a qui tam lawsuit against My Pillow, Inc. in State of New York ex rel. Stephen B. Diamond, P.C. v. My Pillow, Inc., 100337/14 (Sup Ct, NY County). The settlement resolves allegations that My Pillow, a Minnesota company, knowingly failed to collect and remit New York use taxes on Internet and telephone sales to New York customers, thereby violating the New York False Claims Act, N.Y. Fin. Law § 187. This is the first New York False Claims Act settlement for unpaid taxes on Internet and telephone sales since the Act was amended in 2010 to explicitly include tax claims.
This action followed on the heels of Relator Stephen B. Diamond, P.C.’s 2012 investigation of My Pillow in Illinois, which revealed My Pillow sold merchandise at craft shows and through the Internet and telephone to New York customers. My Pillow also broadcast infomercials to New York residents. In July, 2016, the New York State Attorney General and Relator, Stephen B. Diamond, P.C. entered into a settlement agreement with My Pillow requiring My Pillow to pay $1.109 million in lost taxes and penalties for 2011-2015 and also collect and remit use taxes on all future Internet and telephone sales to New York customers.
In bringing this case as the whistleblower, Stephen B. Diamond, P.C. pointed out “Actions for unpaid taxes pursuant to the False Claims Act give the State a means to recover substantial amounts of lost revenue, including treble damages and penalties.” Attorney McInnis noted that, “New York is one of only a few states that have false claims acts ‘with qui tam provisions’ permitting private individuals to sue state sales and income tax fraud evaders on behalf of the government. Illinois is another such state. Typically a whistleblower can receive between 15% and 30% of recovered funds if the suit is successful.” In this case, under the settlement agreement Stephen Diamond, P.C. received $221,000 (20%), plus the right to seek reasonable statutory fees, which have not yet been determined.
SOURCE McInnis Law
by Tim McInnis, Esq | Mar 3, 2013 | Our Cases
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.
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.
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)
by Tim McInnis, Esq | Mar 2, 2013 | Our Cases
(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
