July 19, 1999 Olston Corporation
Olston Corporation and a subsidiary, Kimberly Home Health Care, Inc. have agreed to pay $61 Million Dollars to resolve claims asserted in a qui tam action filed by Donald McLendon, a former Olston Vice President. The allegations of the case were that the companies defrauded Medicare in connection with the sale of home health agencies, by disguising costs associated with the purchase of home health agencies as “management fees” which are reimbursable under Medicare.
As part of the settlement, Mr. McLendon will receive nearly $10 Million Dollars for having filed the qui tam case.
See U.S. Dept of Justice Press Release 7/19/99