Qui Tam

Dental company pays $729,000 to settle Federal and State False Claims Act Allegations

By Brian F. LaBovick

InterDent, Inc., InterDent Service Corporation and Dedicated Dental Systems Corporation have paid the United States and the State of California approximately $729,000  to settle allegations that they submitted false claims for orthodontic care to Medi-Cal’s dental program, which is called Denti-Cal.

The lawsuit was originally filed in June 2005 by relator/ whistleblower, Dr. Guy W. Mendivil, a certified orthodontist. Dr. Mendivil, a Denti-Cal provider who worked at Dedicated Dental’s orthodontic clinic in Bakersfield, brought allegations that the Dedicated Dental clinic fraudulently used his Denti-Cal number from 2002 through 2005, to bill the Denti-Cal program for orthodontic care provided by unauthorized dentists.

The Department of Justice issued a release on this case. This particular lawsuit was filed under the federal False Claims Act on behalf of the United States and the alleged Medi-Cal fraud, was filed under the California False Claims Act on behalf of the State of California.

Although the company did not admit any guilt, this case serves as an example of how quickly things can settle, when whistleblowers such as Dr. Guy W. Mendvil come forward.  I am always amazed at the qui tam cases that come to our office, brought by doctors with morals that can't stand to see their companies defrauding the government and trying to get away with millions on the backs of taxpayers. Unfortunately, when companies steal from the government, they are stealing from the everyday citizen that works hard to make an honest dollar. If you have knowledge of a company submitting false claims against the government, we encourage you to get proof and discuss your rights with legal counsel. 

Full post as published by Whistleblower Law Blog on July 01, 2008 (boomark / email).