Whistleblower Receives $950K After Reporting False Medi-Cal Claims

The U.S. Department of Justice (DOJ) recently announced a $5 million settlement with Lompoc Valley Medical Center (LVMC), a California healthcare provider, for alleged violations of the False Claims Act (FCA). They allege that LVMC submitted false claims to California's Medicaid program, known as Medi-Cal.

This settlement represents the latest development in a series of settlements linked to the alleged misconduct. The whistleblower who provided information leading to the settlement will receive $950,000 for his contributions.

Case background

The whistleblower lawsuit filed was against LVMC by Julio Bordas, a former medical director at CenCal. In this case, Bordas reported that LVMC’s false claims were specifically related to the Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA). His report led to the government recovering nearly $100 million.

In this case, Bordas is set to receive approximately $950,000 as his share of the federal recovery. Earlier, he received a qui tam whistleblower award of $12.56 million in a related settlement, announced in June.

False Claims Act whistleblower awards

Qui tam claims allow private citizens to file lawsuits on behalf of the government when they have knowledge of individuals or companies defrauding the government. FCA whistleblowers are eligible to receive a percentage (between 15 and 30 percent) of the government's recovery. This incentivizes regular citizens to report misconduct, and helps the affected government agencies recoup unlawfully diverted funds.

When you’re ready to report unlawful conduct at your company or organization, working with a whistleblower attorney is key. Contact a qualified whistleblower attorney at Kardell Law Group to learn more about your legal options.