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$700,000 settlement reached in suit over alleged false mental health claims in Henrico
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$700,000 settlement reached in suit over alleged false mental health claims in Henrico

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A $700,000 settlement agreement has been reached with a Henrico County mental health services provider over alleged false claims to the Virginia Medicaid program, according to the offices of the U.S. Attorney for the Eastern District of Virginia and the Virginia Attorney General.

NDUTime Youth & Family Services Inc. provided crisis intervention, crisis stabilization and therapeutic day treatment for children, among other mental health services. NDUTime was only entitled to reimbursement for services that it actually provided.

Authorities alleged that, between 2013 and 2017, NDUTime submitted false claims for services: that it did not actually render; that were not provided by a licensed counselor; and that were based on initial assessments that were not completed by a licensed counselor.

The investigation started after two separate lawsuits were filed under the acts by whistleblowers who made the allegations. The government intervened, the cases were consolidated and the government filed its own complaint against NDUTime and current CEO Teshana Gipson.

The False Claims Act and the Virginia Taxpayers Against Fraud Act also permit whistleblowers to receive a share of between 15% and 25% of any recovery.

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