Fake Medicaid Claims Cost Healthcare Company Over $150 Million

Maxim Healthcare has suffered a multimillion dollar deficit in fines, penalties and reimbursements for their involvement in medical aid fraud.

Richard West, a New Jersey Vietnam veteran, helped spur this fraudulent discovery when he noticed his Medicaid benefits were maxed out in 2004, according to the New York Post. After further review of his personal records he later learned that his healthcare provider, Maxim Healthcare, had been billing the government for care he never received.

Enraged with the company for trying to make money off his disability, West hired a lawyer to file a federal lawsuit against Maxim, resulting in the largest financial settlement in home healthcare fraud history.

“From my wheelchair, on a ventilator and oxygen, I have spent the last seven years in this fight,” said West.  “Sometimes, the good guy wins.”

Maxim, who has 300 offices and is represented in 40 states, was found to have made $61 million from phony reimbursements.

The company was fined $20 million, and in addition agreed to pay $121.5 million in reimbursements for the fake claims and $8.4 million to the Veterans Administration.

West received $15 million for his efforts as federal law states he is entitled to a percentage of the cash Maxim was ordered to pay back.


By: Pete Strom, Federal Criminal Defense Attorney


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