Virginia-based Maximus Inc. Settles False Claims Case for $30.5 Million

By Aaron Poehler

Published on August 09, 2007

According to the details of the suit, federal officials alleged that employees of Maximus, a government contracting firm, prompted the District of Columbia's Child and Family Services Agency (CFSA) to submit Medicaid claims for all children in their foster care program whether services had been provided for the children or not.

Under the terms of the deferred prosecution agreement reached this week, Maximus admits responsibility for causing CFSA to submit the claims. However, Maximus chief executive Richard Montoni indicated that the company has improved internal oversight policies in order to prevent similar incidents from occurring in the future.

The suit was originally filed by former Maximus division manager Benjamin Turner. Under the qui tam, or whistleblower, provisions of the False Claims Act, private parties who file an action on behalf of the United States receive a portion of the proceeds of a settlement or judgment awarded against a defendant. Turner will receive $4.93 million as his share of the settlement.

Comment on this article →