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BaltimoreMaryland – Maryland-based Capital Technology Information Services, Inc., (“CTIS”), a healthcare information technology company, has agreed to pay the United States $1,712,949.44 to settle allegations that it defrauded the National Institutes of Health under the federal False Claims Act. (“NIH”) for ineligible expenses.
The civil settlement was announced by United States Attorney for the District of Maryland, Eric L. Barron, and Special Agent Maureen Dixon, Office of Inspector General, Bureau of Investigation, Department of Health and Human Services.
“Federal contractors are required to pay only for properly reimbursable expenses and only for personal expenses unrelated to the work of the contract,” said Eric L. Barron, U.S. Attorney for the District of Maryland. “This agreement represents our continued commitment to holding companies accountable for noncompliance with federal contract and grant regulations and using taxpayer-funded programs.”
“Federal providers and contractors have a responsibility to ensure that all payments are for allowable costs,” said Maureen Dixon, special agent in charge of the Inspector General of the Department of Health and Human Services (HHS-OIG). “HHS-OIG is committed to protecting valuable taxpayer dollars and the programs they support from fraud, waste and abuse.”
CTIS’ core business includes health data analytics and related web infrastructure to capture, store and use health and biomedical data for its clients. CTIS received a five-year grant from the NIH through the National Institute on Minority Health and Health Disparities (NIMHD) to form a consortium of academic and for-profit organizations to study the impact of health delivery systems in selected minority communities. Find new ways to understand potential differences and avoid specific differences. CTIS has also been awarded an NIH Cancer Treatment Evaluation Program (“CTEP”) operational order cost-reimbursable contract to provide information technology and telecom solutions in support of CTEP. Under the terms of the contract and grant, NIH will reimburse CTIS only for authorized costs incurred during performance of the contract or grant.
In the year From July 1, 2013 to June 30, 2018, CTIS knowingly billed NIH for NIH grant-in-aid and CTEP practice orders for expenses not authorized, such as luxury vehicle expenses, mortgage payments, housekeeping services, wedding expenses, and other unreasonable and/or unreasonable expenses. or for non-contractual work or improperly performed work. The expenditures were falsely represented as supporting work performed on NIH grants and CTEP task orders and work deemed necessary for the overall operation of CTIS.
The civil divorce also resolves lawsuits filed under the False Claims Act. United States ex rel. Sherette Rhodes, and. al., v. Capital Technology Information Services, Inc., CV. No. GJH-17-0609 and in United States ex rel. Connie Ezerski v. CTIS, Inc., etc. Al., CV. No. GJH-18-0486 (DMD) The False Claims Act allows private parties to file lawsuits on behalf of the United States for false claims and obtain access to the United States Department of Recovery. As part of the civil settlement, two of the relators will jointly receive $171,294.94, and the other will receive $171,294.94.
Claims resolved by this Agreement are lawsuits. The settlement is not an admission of liability by CTIS, or an agreement by the United States that the claims are ill-founded. CTIS has cooperated in all federal investigations by the United States Attorney’s Office for the District of Maryland.
United States Attorney Eric L. Barron thanked DHHS-OIG for its work on this investigation. Mr. Barron thanked Assistant U.S. Attorney Tara DeShields for handling this case.
For more information about the Maryland US Attorney’s Office, its priorities and resources available to report fraud, please visit www.justice.gov/usao-md And https://www.justice.gov/usao-md/report-fraud.
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