Maximus, a Reston company that provides consulting services for local and state social service agencies, has settled a Medicaid fraud lawsuit with the federal government for $30.5 million. In addition, the company will hire UBS Investment Bank to review its strategic options.

This settlement comes after an investigation by the federal government. The government alleged that Maximus had helped the District of Columbia’s Child and Family Services Agency submit false claims to the Medicaid program.

The U.S. government had previously recovered $12.15 million from the Child and Family Services Agency, bringing the total collected to $42.65 million. The investigation began after a lawsuit was filed on behalf of the government by a former division manager at Maximus, under whistle-blower provisions of the False Claims Act.

This is just another example of how widespread corporate fraud is in this country and how frequently it occurs when federal money is involved.

Source: Washington Post