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West Palm Beach Attorneys Announce Payment of Million

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					            West Palm Beach Attorneys Announce Payment of $3.1 Million Settlement
                 with South Florida Imaging Center in Medicare Qui Tam Action

WEST PALM BEACH – The law firms of McCabe Rabin, P.A. and Bruce E. Reinhart, P.A. announce the
payment of a $3.1 Million qui tam settlement, including attorney’s fees, that they and Department of Justice
attorneys reached with Midtown Imaging, LLC (“Midtown”) and its former owners for claims alleged by two
radiologists (the “Relators”). Midtown owns several diagnostic imaging centers in Palm Beach County,
Florida. The Relators worked for a radiology group that provided medical services to Midtown. The Relators
filed their claims under the Federal False Claims Act (31 U.S.C. § 3729), known as the federal whistleblower
statute.

On November 12, 2009, the Relators filed their qui tam action in the United States District Court for the
Southern District of Florida (Case No. 09-82209). The complaint alleged that Midtown submitted false claims
to Medicare between 2000 and 2008 by entering into certain leasing and professional services agreements
with referring physicians and physician groups that violated the federal Anti-Kickback Statute and Stark Law.

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals
of items or services covered by Medicare, Medicaid or other federally-funded programs. The Stark Law
prohibits a medical center from profiting from patient referrals made by a physician with whom the center
has an improper financial arrangement.

A copy of the settlement agreement may be found in the court file at https://ecf.flsd.uscourts.gov/cgi-
bin/login.pl. The Relators’ share from the $3.1 million settlement is $700,000, inclusive of attorney’s fees.

In addressing the settlement, the Relators’ qui tam lawyer and co-counsel, Adam Rabin, said “We are very
pleased with the settlement after several years of hard work and analysis of the complex referral schemes.
We are happy that our firm was able to work so well with the Department of Justice and the United States
Attorney’s Office in bringing this case to a favorable resolution.” The Relators’ qui tam attorney and co-
counsel, Bruce Reinhart, added, “I believe my prior experience as a federal prosecutor was extremely
valuable to our clients’ case. It expedited our review of the schemes, it helped us focus our presentation of
the claims to the Department of Justice, and it facilitated our cooperation with them.”

For more information, contact the following:

Adam T. Rabin, Esq.                                           Bruce E. Reinhart, Esq.
arabin@mccaberabin.com                                        breinhart@brucereinhartlaw.com
Ryon M. McCabe, Esq.                                          Bruce E. Reinhart, P.A.
rmccabe@mccaberabin.com                                       250 South Australian Avenue, Suite 1400
McCabe Rabin, P.A.                                            West Palm Beach, FL 33401
1601 Forum Place, Suite 301                                   561-202-6360
West Palm Beach, FL 33401                                     Web: www.brucereinhartlaw.com/practice.php
877-915-4040
Web: www.mccaberabin.com/lawyer-attorney-1408674.html

				
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posted:6/21/2012
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