United States Announced Lawsuit Filed Against Central Medical Systems Alleging Medicare Fraud

Orlando, Florida – The United States filed a civil lawsuit today against Central Medical Systems, LLC (CMS) and Alan Trent Harley alleging that they had falsely billed Medicare for wound care supplies during a six-year period. The complaint alleges that CMS and its owner, Harley, violated the federal False Claims Act by seeking and receiving inflated Medicare payments for more expensive products than had been provided to patients or for products that were never sent.

According to the government’s allegations, multiple former employees reported that Harley routinely changed quantities of items while billing and manipulated orders in CMS’s billing software. The government’s suit also alleges that CMS billed Medicare for thousands more products than it had purchased.

The lawsuit was filed under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. Jael Cancel, the office manager of CMS, filed the whistleblower lawsuit in 2014. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover treble damages plus civil penalties ranging from $5,500 to $11,000 for each false claim the defendants submitted.

The claims asserted against CMS and Harley are allegations only, and there has been no determination of liability.

The full press release is available at justice.gov.

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