San Diego, CA -- (SBWIRE) -- 09/13/2017 -- The Whistleblower Institute announces that Union Treatment Center reached a $3 million settlement in a whistleblower lawsuit over defrauding the federal workers' compensation program.

Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute at mail@whistleblowerinstitute.com or call: 619-452–1218. There are no costs or obligations to you.

Union Treatment Center will pay $3 million to resolve allegations the provider defrauded the federal workers' compensation program, known as FECA.

According to the Department of Justice, as part of the settlement, Union Treatment Centers will also waive claims for payment exceeding $1.6 million and be permanently excluded from participating in federal health care programs.

"Today's settlement reflects our commitment to combatting fraud in the federal health care system," said U.S. Attorney Richard L. Durbin, Jr. "We will use all of the tools at our disposal, including civil litigation under the False Claims Act, to ensure the integrity of federally funded programs."

Allegedly, the government claimed that UTC, its former CEO Garry Craighead and former CFO Christine Craighead devised and executed a scheme to overcharge U.S. Department of Labor, Office of Workers' Compensation Programs ("OWCP") for services and supplies allegedly rendered to patients covered by the FECA program. Allegedly, between January 1, 2009, and December 31, 2012, the government stated in its complaint that UTC fraudulently billed the FECA program for services never actually rendered; regularly overcharged for medical examinations and lied about the time patients spent in therapy. Furthermore, the complaint alleged UTC billed for services and supplies that were not needed, and offered, payed, sought and received kickbacks in exchange for patient referrals.

Reportedly, the allegations were part of a whistleblower lawsuit, and despite the settlement there has been no actual admission of liability. Garry Craighead is currently serving a 14-year term of imprisonment as a result of his guilty plea to kickback and money laundering charges. He was ordered to pay OWCP nearly $18 million in restitution for damage he caused the FECA program. Christine Craighead is awaiting trial on conspiracy, wire fraud, kickback, and aggravated identity theft charges and her trial is set for October 30, 2017.

Union Treatment Center is a medical and physical therapy provider with clinics in Austin, San Antonio, Corpus Christi, and Killeen.

The Whistleblower Institute is an information portal for current or former employees and other people having insight information about wrongdoing and other illegal activities by individuals either individually or within corporations, through company culture and or within international affairs. Whistleblowers should keep in mind that under the Dodd-Frank Act any person who provides the Securities and Exchange Commission ("SEC") with original information that leads to a successful enforcement action with over $1 million recovered must be awarded between 10%-30% of the total amount recovered. In order to determine the total amount of the reward there are numerous factors that need to be considered. Whistleblower actions are complex and our goal is to guide any whistleblower every step of the way. The Whistleblower Institute is dedicated to partnering with any individual who have information about fraud and we work with many of the best law firms worldwide.

Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute.

Contact:
Whistleblower Institute
2534 State Street - Suite 406
San Diego, CA 92101, USA
Phone: +1 (619) 452–1218
Facsimile: +1 (619) 785 – 3185
Email: mail@whistleblowerinstitute.com

The material was prepared by the Whistleblower Institute for informational purposes only and is not legal or financial advice. The information is provided only as general information which may or may not reflect the most currently available public information, is not provided as a basis for any established or existing relationship, and is not intended to constitute legal or financial advice, or to substitute for obtaining such advice from an attorney or other advisor licensed in your state.