April 8, 1998  Home Americair of California

Home Americair of California, two of its franchises and its billing company have agreed to pay $5 Million Dollars to settle claims asserted in two qui tam actions filed by former employees of Americair franchises. The allegations asserted in the case were that companies defrauded Medicare through a complex scheme in which they provided home oxygen equipment to Medicare beneficiaries who were not qualified to receive coverage for such equipment. To induce Medicare to make payment, the defendants allegedly submitted false and misleading documentation regarding matters such as patients blood oxygen levels, to induce Medicare to make payment on the claims.

As part of the settlement the relators who filed one of the qui tam actions, Terry Frisco and Darrell Jones, will receive over $960,000 for having filed their qui tam case, and the relator in the other action, Todd Penizotto, will receive nearly $150,000 for having filed the other qui tam case.

See U.S. Dept of Justice Press Release 4/8/98

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